The Las Vegas real estate market has been the talk of many homeowner’s and investors for a long time. The uniqueness of the city itself dazzles many and the recovery of the market continues to draw attention. As a matter of fact, the Greater Las Vegas Association of Realtors recently stated that Septembers average home price reached $310,000, just $5,000 short of the peak during 2006. What is on the horizon, as we head into 2020?
Though prices inched up, the market has slowed down. More homes are available on the market with no offers and buyers are finding more room to negotiate. After years of steady appreciation, the market has stabilized. This will allow buyers to gain some traction. For first time home buyers, this is no doubt relief, as they will hope to find a home without the same competition as months and years prior.
However, not to be understated is that there is still demand for housing. Investors are looking for opportunities. And new home builders are continuing to expand with new communities, such as a new multi builder community in northwest Las Vegas. Interest rates are still low as well, contributing to an interest from buyers.
With sales price appreciation came rental rate appreciation as well over the last few year, and so the reason investors are interested in the market. Rental property owners are finding that their properties are leasing for substantially higher rates than in years prior and many existing and new investors want to capitalize on a more stable market and higher rental rate returns.
Homes below $300,000 are still in demand since they fall into the affordability range of most buyers. Those properties we expect will continue to be in demand throughout 2020. Though we do expect the market to stabilize more and even see prices pull back some, we anticipate there to be strong demand for housing.
Contributed by Nicklin Property Management.
Adrian Frankfurter is a marketing director and licensed property manager for over 10 years with Nicklin Property Management.