The summer forecast looks bright and sunny in many places, including Las Vegas! Whatever your reason for buying property in Las Vegas, you’ll want to start planning and preparing for your move well in advance of summer 2022. One important consideration is the cost of living and the current rental market, including the average price of houses for sale in Las Vegas and apartments if you are planning to rent, and general market trends. These factors can also vary by location in Las Vegas. Before you pack your bags and move, contact real estate agents in Henderson to get the details you need.
Demand and Supply
In Las Vegas, as with other locations, you’ll want to think about demand and supply in the housing market. Housing prices are rising quickly because Las Vegas is a desirable place to live. Today, the median price of a single-family home is $460,000 as of March 2022. That number is a 2.2% increase from the cost of a single-family home just the month before, and it’s more than a 25% increase from a year ago. Las Vegas is a popular place to live and plays a significant role in the cost of housing. Still, other factors, including the fact that people are moving more now that the COVID-19 pandemic is winding down, are also contributing to rising prices. Even though the price of housing in Las Vegas is rising rapidly, that is not deterring people from buying. Most homes (83%) sell within the first month they are on the market. And more than 30% of homes are purchased with cash. That means you have to be ready to jump on the opportunity to buy a home. While some locals are buying homes, many buyers come from outside locations such as California. Investors also make up a large percentage of buyers coming into Las Vegas. Considering you have to be prepared to jump on an offer when you see a home you want to buy, you probably wonder, “where can I find a real estate agent near me to help?”. Fortunately, you can turn to The Mor Group to help buy your dream piece of property.
Pricing by Property Type
While single-family residential homes are a popular option in Las Vegas, there are other types of properties that you can consider buying as well. Condos, which are more affordable, are another enticing option. The average price of a condo is currently $270,000, which is a 3.8% increase from February 2022. Condos have increased in price even more than single-family homes in the past year, with nearly a 40% increase within the past 12 months! If you are looking at condos, be aware that the market is currently more favorable for sellers. Most condos are selling at prices above their advertised listing price. Real estate agents in Las Vegas say that it is not uncommon to have a 10% premium on condos. That means you’ll have to be ready to make an offer when you check out a condo, and you will have to be prepared to put down a little more than you anticipated.
Is the Housing Market Sustainable?
One of the big questions that prospective buyers want to know is, “is the skyrocketing market sustainable?”. In Las Vegas, the demand for housing currently far exceeds the supply. However, that may not be the case forever. Industry experts say that although housing costs have increased, people are not necessarily selling their properties faster. In March 2022, there were just over 2,000 homes for sale in Las Vegas, but there were far fewer offers. Housing prices in Las Vegas have been steadily rising for the past eight months, but they are still lower than the housing prices of other metro areas such as Phoenix.
Additionally, the unprecedented rise in housing prices in Las Vegas is not a phenomenon that is exclusive to the city. Across the country, there has been a housing boom that is fueled by low mortgage rates that has allowed people to spend more on a home. Interest rates have hit historic lows of 3.76% on a 30-year loan as of February 2022. Although current interest rates are at an all-time low, they are still slightly higher than the month before. The fact that mortgage interest rates are low but still increasing is another incentive for people to buy sooner rather than later, according to real estate agents in Las Vegas. Nationwide, many realtors describe the current market as “irrational,” which applies to areas outside of Las Vegas.
Realtors recommend that house hunters hit the pause button if their primary motivation is to purchase a home now because they are afraid that housing prices will only rise in the future. If that is the case, experts recommend waiting out the storm of the irrational market. Rather than purchasing on impulse, they recommend waiting for the volatile market to settle down. Waiting for market conditions to stabilize, experts say, can be one of the best decisions that potential homebuyers make. Even if potential buyers feel like they can get their foot in the door when it comes to buying a home, they may ultimately get tired of the competition. Purchasing fatigue, along with increasing mortgage rates and skyrocketing home values might make potential buyers think twice about whether or not they want to buy a home.
Turning on the Heat
So far, in 2022, the real estate market in Las Vegas has remained red hot, according to Henderson realtors. That is good for sellers, as selling was erratic and unpredictable in 2021. However, buyers still generally paid more than the asking price per home, and median home sales reached historic highs, with the average price of a home increasing by the month. Buyers who wanted new or improved homes were put on waiting lists, and contractors even started a lottery system to determine who would be able to purchase the property. One of the biggest appeals for people buying in Las Vegas is that the relatively low cost of homes and living has meant that people have been able to buy bigger homes than they would elsewhere.
What About Land?
Although many people are looking at homes in Las Vegas to buy, you may also be wondering about the prospects of purchasing land and perhaps building your own home one day. Even if you want to get the land first before the home, you should be prepared to spend much more today than you would even a year ago. As with housing prices, the cost of land has increased considerably in recent years. In 2021, the average cost per acre was $514,000, and in 2020, the cost per acre was $250,900.
Renting in Las Vegas
If you are not quite ready to buy a home, renting is another possibility in Las Vegas. However, following the trend of home sales, rental prices have also jumped tremendously in recent history. The average cost of renting is 23.3% higher than the same time last year. There is also a shortage of low-income housing available statewide, which means housing is less affordable now than before.
While the housing market in Las Vegas may sound challenging, working with Las Vegas realtors and The Mor Group can help you get the house you want and at the price you want. Voted “Best of Las Vegas” multiple years in a row, The Mor Group offers both real estate and property management services in the valley. Whether looking to sell/buy a home or potentially begin investing in long-term rentals, our trusted team can help. Contact Cassie and Adi, owners of The Mor Group, by calling 702-501-1085 or filling out our contact form here.
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