Cut into almost any shape, the Las Vegas real estate market is heating up.Home sales are fast, prices are hitting record highs every month, and rents are skyrocketing. Enthusiasm for housing has raised concerns about affordability and prompts more buyers in the valley than usual to search for homes in the cheapest Pahrump in the countryside about 60 miles away.So how long can the heatwave last and how is it all going to end?Short answer: Who knows?The housing market is always up and down, especially in Las Vegas, and no boom lasts forever. But this spring’s overall sales decline has since reversed, and overall the market is still stabilizing, in large part thanks to an extended period of cheap money that has allowed buyers to stretch their accounts. banking.
In total, homes in Las Vegas are selling nearly 42% above long-term trends, making it the 9th most valued market in the nation, according to a new report from professors at the University of California. Florida Atlantic and Florida International University.
Vivek Sah, director of the Real Estate Lie Center at UNLV, pointed out to me that value is relative. Like many other things, real estate is only worth what someone is willing to pay for it.
Prices are unsustainable at the moment, Sah said, but he believes the market will dry up and not plunge as it did a decade ago after a bout of buying frenzy fueled by easygoing and usury investors.
For now, however, Las Vegas is experiencing sustained sales and record prices.
The median selling price of older single-family homes – a big chunk of the market – hit a record $ 405,000 in July, up nearly 23% from the previous year, the trade association said.
In addition, 89% of homes delivered last month were on the market in 30 days or less, compared to around 60% of sales last July.
Homebuyers are also paying record amounts for new construction. According to Home Builders Research, the median closing price for builders in southern Nevada hit an all-time high at around $ 419,950 last month, up 13% from the previous year.
The Las Vegas rental market is also gaining momentum as people, including newcomers from more expensive cities, seek more space during the pandemic, a change that is also helping to boost sales.
The typical rental price for a home in Las Vegas in the region increased nearly 23% year on year in July to $ 1,662, compared with an increase of almost 9% nationwide to 1,843 $, the Zillow SEO website recently reported.
Rents here are rising at the second-fastest rate in the country and at an accelerating rate. In January, rents in Las Vegas were up 6.7% from a year earlier, Zillow previously reported.
The current frenzy is not at all like the bubble of 15 years ago when it emerged saw house prices plummet and people across the valley losing their homes to the seizures.
Builders built more houses at the time, developers began to fill the valley with apartment towers, and resale prices, once adjusted for inflation, were higher than they expected. are today.
It is not clear where the Las Vegas market is heading today. But if prices come down, local owners can only hope that they don’t have to be impacted.
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