The Future of Las Vegas Housing Market for 2021! The Las Vegas housing market is riding a HOT STREAK of record prices and rising sales despite the bleak economy, thanks in large part to cheap money. And while it’s anyone’s guess how long it will take for tourism to fully recover in Las Vegas, industry experts believe the housing market will remain strong in 2021.
Many experts had predicted it would crash as it did during the Great Recession. On the contrary, by the end of 2020, the Southern Nevada housing market was in the midst of a boom. Even during these tough times, the Las Vegas properties are still selling at record prices.
The housing supply is now at .6 months, well below what is considered necessary for a balanced real estate market. Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.
The housing demand is also increasing as people continue to flock to Las Vegas from higher-priced areas, especially Northern and Southern California. Industry experts said this trend has accelerated during the pandemic as exiled office staffers work remotely and buy bigger, more affordable homes in Southern Nevada. Setting the highest pace for home sales in the area in 14 years.
The home values are predicted to rise by 7-8% in the next twelve months. It has already heated up with strong demand and a shrinking supply driving home price peaks. The houses are selling quicker than they were last year at this time despite the coronavirus pandemic’s devastating effect on the economy.
One sector of the Las Vegas housing market that has been doing particularly well is the luxury home market. The housing market in the area continues to rise as new residents arrive daily and bringing millions of dollars in equity from the sale of their homes in more expensive housing markets. Las Vegas luxury homes are setting some records for the values of properties sold. As demand for housing in the city climbs and available inventory becomes a premium, home values surge and will continue to do so in 2021.
But if the factors that fueled Las Vegas’ surprising housing surge stay in place, the market will buzz with activity in 2021
Las Vegas has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in single-family rental properties. This area is skewed to sellers due to a very low level of inventory that can’t meet the demand of the rising population.
For sellers, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pandemic. As more and more buyers enter the market the prices are going to increase due to tight supply.
For buyers, the mortgage rates are the lowest ever, so they should take advantage of scooping up more expensive houses by locking in lower monthly payments. Lower rates can help buyers stretch their budgets for higher-end deals that otherwise are taken away by seasoned investors in the bidding wars.
Keep in mind that Las Vegas, because of its reliance on tourism and construction, tends to have one of the most volatile economies in the US. But Sin City’s cost of living is much lower than most major cities – nearly half the cost of living as San Francisco, for example. Nevada also has no state income tax and lower property taxes – ranking in the top ten.
It also has a favorable climate, with mild winters balancing out long hot summers. And Vegas has so much to do in and around The Strip, as well as being a unique major city surrounded on all sides by the great outdoors.
Also, if you are thinking about buying or selling in the Las Vegas Valley, CLICK HERE or you can call me at 702-370-5112.
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