The real estate market in Las Vegas over the past year (2018) was booming so much that it surpassed leading US real estate markets such as Seattle. But how is the Las Vegas housing market in 2019?
Is this a good time to buy? Here, we take a look at the Las Vegas real estate market forecast for 2019 to help you make a better buying decision.
- 📋 Housing Inventory is on the Rise in Las Vegas
- 🙎🏼♂️ Las Vegas 2019 Population Trends
- 📰 Las Vegas 2019 Economic Trends
- 📊 Las Vegas 2019 Housing Market Trends
- 🚪 Are Homes For Sale In Las Vegas Affordable?
- 📈 Will a Las Vegas Housing Investment Appreciate?
- 🎟 What’s the Takeaway?
- 👉🏼 What Sort of Return on Investment Does a Rental Property in this City Promise?
📋 Housing Inventory is on the Rise in Las Vegas
There is some good news for home buyers who are ready to enter the real estate market in Las Vegas this year. Housing inventory (i.e. the number of houses for sale listed) is on the rise from 2018.
Buyers who buy in 2019 should have more property options, and probably less competition. Real estate inventory is expected to continue to increase in this city throughout the year.
Housing inventory in the city bottomed out at about 1.9 months in July last year, and then it rebounded to about 3.7 months as the year drew to a close. Economists say that a 5 or 6-monthly supply of houses is a “balanced” housing market.
Las Vegas seemed more like a seller’s territory according to the real estate inventory, but it is now starting to turn towards a “neutral” territory.
The rise in for-sale housing inventory became clear towards the end of 2018. The Greater Las Vegas Association of Realtors reported that about 10,000 single-family houses were available for sale at the end of November last year.
Around 7,000 of those homes had not received any offer yet. This marked a 54 percent rise in housing inventory from 2017.
The point is that there were more properties listed for sale at the beginning of 2019 than there were in most of 2018 and 2017.
🙎🏼♂️ Las Vegas 2019 Population Trends
It is a good time to buy a for sale rental property in Las Vegas because the population is expected to increase at a high rate. PwC’s yearly real estate report projects that the Las Vegas real estate market in 2019 will enjoy a population increase rate that is more than the national growth rate.
The population in the state of Nevada went above 3 million people in 2018. This is a continuous growth rate because figures from US Census Bureau showed that Nevada’s population rose by about 62,000 people (2.1%) from July 2017-July 2018.
In Las Vegas itself, population status was about 631,676 people in 2018. This was roughly 20 percent higher than 8 years earlier.
As you can see from the census reports, there has been a continuous growth in Las Vegas and in Nevada as a whole. This sort of steady trend increases the demand for property, on both the buying and rental side. Moreover, it helps to sustain house prices in the long run.
It is crystal clear the city will maintain this title in 2019. This population growth has been attributed to the high quality of life provided in the city’s real estate market.
People flock to purchase and rent out property in Las Vegas because the city offers a lot more than just casinos and wild nightlife. There are actually some quiet suburban neighborhoods with family-friendly parks, eateries, culture, art and nature to enjoy.
So what does this mean for future real estate investors in Las Vegas? With a positive population growth rate thanks to more migration into this area, the demand for rental housing is generally high.
Smartasset.com data indicates that the price to rent ratio in the city is 38.59 as of March 4th 2019. Normally, anything more than 15 indicates that many people are renting instead of buying homes.
Moreover, Neighborhood Scout reports that almost 50 percent of people living in Las Vegas are actually renters, the figures prove very favorable for buying a rental property. Owning a rental property in Las Vegas should be very profitable in the right neighborhood.
📰 Las Vegas 2019 Economic Trends
The healthy population growth is not just a positive factor but also a necessity for the Las Vegas real estate market in 2019. This is due to the fact that the growing economy of this area needs it. Economic projections are indicating that the employment growth rate is bound to be twice that of the United States in 2019.
Employment is yet another vital consideration for property buyers. This is the case for both investors and regular buyers who want to live in the properties they buy.
The point is, a strong job market offers people financial means to buy property and to be able to make mortgage payments as required.
Though the unemployment rate in Las Vegas was still more than the countrywide average as of January 2019, the rate has improved steadily from the post-recession era.
The housing market in Las Vegas is positively filled with new businesses. This high entrepreneurial activity is propping up the city’s economy and helping in all of the positive housing trends for this year. As a matter of fact, new businesses are being started at a faster rate compared to the national average.
Rental properties in Las Vegas that are located close to the new businesses will benefit hugely because of the tenant pool plus the overall improvement in economic growth they bring.
Even if you do not manage to purchase an investment property in a community filled with new businesses, the entrepreneurial activity is good for the overall economy and for investment properties in Las Vegas as a whole.
📊 Las Vegas 2019 Housing Market Trends
As seen earlier, the housing market trends for Las Vegas are very good. The population is growing more and more very year, and the area has a strong job market.
Homes in this city are more affordable compared to other cities and the real estate investment properties are expected to appreciate. This is definitely a good time to purchase a home in Las Vegas.
🚪 Are Homes For Sale In Las Vegas Affordable?
Purchasing an investment property in the United States Seller’s market is becoming more costly because of the rise in mortgage rates and housing prices. This fact makes the Las Vegas real estate market in 2019 a great place to invest.
Homes for sale are relatively affordable in this city. The median property price according to Greater Las Vegas Association of Realtors for a single-family home was $296,200 in February 2019, which went down from $300,000 in January. The median price for condos and townhouses in February 2019 was $165,000.
If these prices still look too high for your 2019 real estate budget, there are cheaper properties that are also available in the area.
📈 Will a Las Vegas Housing Investment Appreciate?
Although you can find investment properties in the city at an affordable price as of now, the market forecast indicates the values and prices are appreciating. This is to be expected because the Las Vegas real estate predictions for 2019 show increased growth.
The housing market is bound to continue with this trend well into 2020. According to Zillow, property value in Las Vegas is expected to appreciate 7.1 percent in 2019 after rising by about 15 percent last year.
In spite of the increase in house prices, the volume of sales are also expected to rise. All this shows a seller’s market.
🎟 What’s the Takeaway?
The best time to purchase a property to rent out in this city is now if you want to enjoy great returns and property appreciation. Waiting longer to invest here, home prices will increase as will the competition.
👉🏼 What Sort of Return on Investment Does a Rental Property in this City Promise?
According to Mashvisor.com, an average traditional rental property in this city can bring the property owner a rental income of about $1,333 and cash on