The Las Vegas housing market remains one of the nation’s most dynamic, with overall sales volume up almost 6% from January of 2017.
Buyers are continuing to flock to a market with low inventory, but one in which new housing starts are on the rise. Finally. According to Housingwire.com, “Housing starts increased 9% from the fourth quarter of 2016 to the fourth quarter of 2017, bringing new home construction to its highest level since 2008 in Las Vegas.”
Many will remember 2008 as the rim of the bubble, moments before The Great Recession took hold. However, fear of such a dramatic downturn is clearly not an issue in today’s market, where federal manipulation has created a highly guarded economy, especially when it comes to housing. In Las Vegas specifically, large institutional investors own thousands of single-family homes, helping stabilize the market but at the same time, cutting inventory.
From December, sales are down a bit, but still higher than a year ago. Median price, $265,000, represents an 11.5% annual jump.
One thing Las Vegas real estate agents need to keep track of is the market segment in which new homes are being built. Again, from Houseingwire.com via a survey from Metrostudy, “Homes built in the $200,000 to $299,000 price range plummeted from last year, whereas homes built in the $300,000 to $399,000 price range increased.
Even homes built in the $400,000 to $499,000 price range saw a fairly notable increase from the year before.” This is a clear indication of where builder preferences are heading. Larger, more expensive homes are now much safer builds for suburban developers. With mortgage lending standards still tough against first-time buyers, only the more cash-rich and financially prepared buyers are entering the market.
With them comes a reduced risk of default. That said, even though new homes are pricier, the people buying them have more money.
Las Vegas has understandably become a haven for migrants from the west.
Northern and Southern California residents are being priced out but relatively speaking, see Las Vegas as a fertile hunting ground for affordable homes.
Even though we love to welcome new residents, CENTURY 21 Gavish Real Estate continues to advocate for our local buyers and sellers. We want to do all we can to help families seeking that first home, or those with ever-changing needs. After all, we’re a family company, too.