NEVADA - The Las Vegas real estate market is hotter than the desert itself, and that's a good thing for investors. The market presents an excellent investment opportunity with stable housing prices and a high supply of available units. The city is surrounded by open land and cannot expand rapidly to meet housing demand.
Although mortgage rates are higher than last year, the overall market remains hot. The city continues to attract people worldwide who want to make Las Vegas their new home. This means that the value of the Las Vegas real estate market will continue to rise. Despite the market's current condition, Las Vegas is the hottest real estate market in the country.
The city's employment base is one of the largest in the country. This is largely due to its large labor pool and relatively hospitable business climate. In addition, promoters have worked hard to lure businesses to Las Vegas over neighboring states like California. Moreover, the state's unemployment rate is down to under three percent, and the city's foreclosure rate has dropped by almost half a percent in the past year. This is great news for those considering buying a home in Las Vegas since jobs drive the housing market.
Prices for single-family homes in Las Vegas continued to rise in May. The median price of a Las Vegas home in July 2021 was $405,000, which is 12.3% higher than in July last year. Meanwhile, the median price of townhouses and condos sold in May of 2021 was $205,000, an increase of two percent from last month. The number of homes for sale in Las Vegas reached a five-year high in May, so more sellers are lowering their asking prices to attract buyers. The inventory shortage makes the market a good time for sellers and buyers alike.
While the market is likely to remain competitive, experts don't expect real estate prices to continue to climb. The US housing market has remained a seller's market for several years, but early predictions suggest that prices will slow slightly in 2023, giving way to new buyers with smaller budgets. Moreover, high-interest rates will continue to hamper the affordability of housing. For some, a wait-and-see strategy may be the most prudent approach.
In addition to a stable economy and improving population, Las Vegas is also an ideal location for investors. Rental rates are expected to rise. If you have an extra budget and can buy an investment property, you can rent it out to a large rental population. Several new upscale properties are also available in the area.
One of the reasons home prices are rising is because Millennials are buying homes. Millennials are the largest generation in history, looking for an affordable, family-friendly community. Consequently, these homes are overvalued.
