The desert can support many kinds of life, and weather many changes. Of course, it never hurts to have a hundred and twenty casinos nearby either.
The Las Vegas real estate market has been experiencing a boom as of late, with a median increase of 28 percent in price from this same time last year, according to Zillow. This increase tops the list of the thirty major housing markets in the United States. But the recent surge still puts Las Vegas home sales below where they were at their 2006 peak, showing that, similar to most of the U.S. markets, the country is still recovering from the 2011 crash.
After the inevitable foreclosures of 2011, many investors began scooping up Las Vegas homes for sale, looking to pick up the properties cheaply and sell them later when Las Vegas home prices went up, as they are doing now. In the meantime, a large percentage of these homes were turned into rental properties, as investors attempted to collect revenue on their listings while they bided their time.
Even with such an impressive rate of growth in the market, analysts foresee a leveling of the increase, as many markets return to more stable and sustainable values. This prediction has enticed many investors to hold on to their income generating rental properties for a little while longer, in a kind of self fulfilling prophecy to slow down Las Vegas home sales. It has also made short sellers and “flippers” wary to invest in new properties without the short term promise of continued price increase.
So what does this mean for the average home buyer or renter? The news is actually pretty good. With so many rental properties still in play, finding a place to live will still be relatively easy, and the abundance of rentals may help to drive down monthly rent charges. Current Las Vegas home sales will trend more towards buyers looking to invest in the market for the long haul (or simply have a place to settle down with their family). Thankfully, as the housing market settles down, buyers can save their gambling for the casinos.