Las Vegas Real Estate Market Continues to Defy Expectations
It wasn’t that long ago that some doubted the local Las Vegas real estate market, wondering if it was a bubble in the making, whether it was sustainable and if it would all come crashing down. Yet, here we are. June 2021. Las Vegas is returning back to normal. And the real estate market appears to be pandemic and recession proof. On the other hand, investor confidence is high.
The consumer confidence index shows that since December 2020, consumer confidence is on a steep upswing. As a matter of fact, last month, May 2021, the index registered a value of 100.01. If your not familiar with the index, don’t worry – most of us aren’t experts on it. However, the consumer confidence index pretty much summarizes how people feel about the economy – whether they feel inclined to save because of a poor economic outlook, such as a looming recession due to unemployment numbers or layoffs, or if they feel they confident about the economy and as a result, inclined to spend money.
So, what does 100.01 tell us. Well according to OECD.com, which tracks the metrics, “An indicator above 100 signals a boost in the consumers’ confidence towards the future economic situation, as a consequence of which they are less prone to save, and more inclined to spend money on major purchases in the next 12 months.”
What does this mean? That people will be looking to spend money, which should further contribute to a recovering economy, lower unemployment and strong demand. This usually spills over into the real estate market. And with inventory continually low and demand high, prices have been doing what we expected: rise!
As of May 2021, the median price of a home in Las Vegas topped out at $385,000.
As in prior months, cheap money due to low interest rates was a big contributing factor. However, Las Vegas is also entering a stretch where hotels and casinos are reporting steady and increasing income, the airport is logging in more travelers and more and more places are hiring.
So, the foreseeable future appears to be filled with consumer buying confidence and, more likely than not, a continually appreciating Las Vegas real estate market.
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