LAS VEGAS, NV – There’s no doubt about it- real estate in Las Vegas, Nevada, is on a slow but powerfully non-stop climb after sinking into the financial mire in the mid-2000’s. Records are being broken in terms of both prices and sales totals, and everywhere you drive, new developments are gracing the once-barren landscape. In addition, projects that had stalled or been outright abandoned are once again pushing forward in this new, more positive economic climate. While things aren’t quite at the booming levels they are right before markets crash, they are nonetheless very positive and getting better every day.
But for those who are looking to jump aboard this freight train to the top and are feeling some trepidation in regards to it all tumbling down again in the near future, experts are predicting – using the strongest of verbiage – that this isn’t a likely outcome.
Within the last year, the real estate market in Las Vegas has surged in leaps and bounds; 2,249 single-family homes were sold in the Las Vegas area in February, an increase of 6.5 percent from February 2016, and the average single-family home has gone up nearly nine percent, with the average price currently coming in at approximately $240,000.
And of course, these properties aren’t being simply given away, so there’s been a corresponding increase in the demand for mortgages Southern Nevada as well; continuing a three-year trend of growth, home purchase loans jumped up an additional 8.5 percent in 2016 over the previous year, equating to a total of 36,130 mortgages . And all that increasing demand has, of course, in turn driven up prices; in 2017, the average price of a single-family dwelling is coming in at $240,000, which represents an increase of $119,000 for the same home during the very same period in 2012.
In a recent interview, Home Builders Research founder Dennis Smith notes that the demand in Vegas for new homes is very strong, with one of the main reasons for that being fear of rising interested rates; as of now, many people are recognizing a housing boom and have decided to finally get off the pot, so to speak. After all, when interest rates go up, prices quickly follow. In addition, he said, is the limited supply of new homes in the area, which is also serving to inflate demand. However, unlike with a limited trend in the area a few years ago, Smith notes that this current drive is not investor-driven, but homeowner-driven, which suggests far more stability and optimism in the surrounding economy and job market.
It’s this stability, combined with moderate yet steady growth based on legitimate consumer need, that Smith says offsets any possibility of the Las Vegas real estate market growing too much, too soon and creating another bubble that is sure to burst; instead, he notes, it’s ensuring a strong, profitable tomorrow for anyone getting into Southern Nevada real estate, as well as a good place for families to take a shot at the American Dream, with industry – and, along with it, jobs – quickly filtering into the region.
“Is Vegas going to grow? Yes. Do they want it to grow? I would certainly hope so. If not, then go live out in the desert. But is there a bubble or too much construction? I don’t understand why people would suggest there’s too much construction when the demand shows there isn’t,” he said. “How can anyone convince me that 8,000 sales a year is a bubble? We’ve had 30,000 – 40,000 permits a year; that was a bubble. But before that, in the 1990s and early 2000s, we were doing 20,000 permits and closings a year, and everyone was marveling how wonderful everything was in Las Vegas.”