Las Vegas Makes the “Realtor Cities to Watch For in 2018” List

It is no secret that the housing market is volatile in nature. It is a cutthroat industry that seems to always keep everyone on their toes. In fact, considering the fickle attitude of the industry, one would not be wrong in calling it a gamble. Speaking of gambling — let’s talk about Las Vegas!When most of us think of Las Vegas, our minds are probably more likely to wander to bouts of debauchery, incessant gambling, fear and loathing, and the neon brilliance of the strip. While these are all fine and dandy notions that one would not be wrong in attaching to the aesthetic appeal of Las Vegas, there is another facet to this metropolitan giant that one may not expect: a growing and flourishing real estate market.

Throughout this article, we will discuss the fabric of Las Vegas’ housing market, the projected supply and demand, and what professionals are saying about the future of the real estate market in big bad Sin City.

Why Las Vegas?

Your first question probably has to do with why Las Vegas is on the “Realtor Cities to Watch Out For in 2018” list. Considering the destitute nature of Las Vegas’ economy in the past, its future is looking exceedingly brighter for both realtors and prospective home-buyers alike. In comparison to the other top 100 housing markets in the country, Las Vegas is on the up-and-up. According to Realtor.com, Las Vegas’ real estate market is expected to increase by 8.7% in comparison to a 6.4% growth rate projected by other various markets. In fact, the latest S&P/Case-Shiller Home Price Index—published at the end of October—stated that Las Vegas’ home value growth is the second largest year-over-year growth of all the cities reported in the index.

Las Vegas was hit hard during the recession of the 2,000’s and as such, has attracted multitudes of people due to its mind-boggling affordability. Stephen Miller, Director of the Center for Business and Economic Research at the University of Nevada, states, “Our home prices are lower than nearly every Western metro area. People in California are retiring and selling their houses and moving in…They want a lower cost of living.”

Since the recession and the massive wave of foreclosures that followed, Las Vegas is attracting torrents of new residents and return buyers with low housing prices and affordable interest rates. However, with these low prices and high availability, Las Vegas won’t be affordable for long.

Las Vegas Housing Forecast for 2018

As it goes with most businesses that specialize in the exchange of goods and services, low supply means high demand. Bryan Kyle, a local real estate broker of First Serve Realty, says that the low supply and high demand is what is keeping the market attractive right now. Considering the lack of inventory and the increasing demand, it is no secret that the prices of homes will certainly rise over the course of this next year in Las Vegas. However, despite the projected rise of home prices in the Las Vegas area, the median DOM (days-on-market) in Las Vegas was at 55 days in the end of October—higher than the national average—suggesting that homes are staying on the market longer. Las Vegas also had a 2.6 month supply of houses in the market at the end of October which is well below the national average.

Needles to say, what we may be looking at is an inevitable “slowing down” of the housing market  in Las Vegas over the course of this next year. Simply put, with the demand decreasing, the price increasing, and the supply staying relatively low, I think that we can expect somewhat of a decline in the popularity of Las Vegas’ real estate market throughout the year of 2018. Yet, this is all projection of facts from the past and observations of the present. At the end of the day, anything can happen, and quite frankly, this lovely world we live in is full of surprises.

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