If we had to characterize the Las Vegas metro housing market (encompassing both Las Vegas and Henderson, NV) in one over-simplified description, it would probably be that the market was moving like a speeding racecar and someone just tapped the brakes for the first time in a while.
But while the luxury side of the real estate market (and those who price listings unrealistically) may have their expectations dampened, there is still reason to think Las Vegas’ housing market will weather this correction.
With a renewed emphasis on pricing listings correctly, a prevalence of great loan programs available, even for buyers with low credit scores who are in need of credit repair in Las Vegas, and Blue Water Credit’s emphasis on repairing credit scores for Las Vegas first-time buyers, the lower and middle of the real estate market should continue to see high demand and strong activity.
Las Vegas real estate market vital signs:
The median list price for residential real estate in Las Vegas is now $279,990, with a median sales price at a noticeably lower $250,000.
That median list price represents a modest 2% increase ($5,090) since this time last year, which means that homeowners and sellers aren’t pricing their homes exorbitantly when they put them on the market.
However, the median sales price has also gone up 2% since this time last year ($5,000). In terms of housing appreciation, that’s a relatively flat figure and could indicate a market that is starting to find its balance between buyers and sellers and even cool – a period of price stagnation or decreases – soon.
The price per square foot for residential real estate is now approximately $155.
A slowing – not stopping – housing market:
There are signs that the market is coming back to earth, which can be optimistically considered a healthy correction at this point. For instance, there were 4,335 single-family homes listed for sale but still without offers at the end of June, which was the highest level in seven months.
In total, the number of available homes for Las Vegas homebuyers climbed nearly 8% this late spring, which was the largest one-month increase since 2014.
To put it in perspective, this gradual slowing of the Las Vegas market follows a period of marked price increases for happy homeowners, pushed by high buyer demand.
Keeping an eye on foreclosure concerns:
During the halcyon days for real estate appreciation in the early and mid-2000s, Las Vegas saw was one of the hottest markets in the entire country. However, that all came crashing back to earth with the mortgage meltdown and Recession, as ‘Vegas also suffered some of the worst foreclosure epidemics in the nation.
So it’s justified that we closely monitor foreclosure levels in Las Vegas, and while there isn’t an outright problem yet, there is reason for concern on the horizon.
There are currently 3,447 residential properties that are in foreclosure – or some stage of that process, such as being more than 90 days late, scheduled for auction, or already owned by the bank. Foreclosure filings for Las Vegas were up an alarming 22% from May to June of 2018, and increased a concerning 9% since June of 2017.
Sales volume was healthy, with the number of home sales in Las Vegas in May 10% higher than in April, and up a whopping 136% from that same month in 2017!
In total – including foreclosed homes for sale – there are approximately 7,914 resale and new homes on the market for buyers in Las Vegas.
Important Las Vegas demographics:
The median age of Las Vegas residents is 36 (younger than the American median), with 33% of all residents unmarried or single.
Currently, homeownership rates in Las Vegas stand at around 61%, which is slightly down from the national rate of 63-64%, but still encouraging if you consider the transitory, seasonal, and international influx of residents to Las Vegas.
25% of all Las Vegas residents are college educated and the median household income is $52,727.
It’s interesting to note that renting instead of owning a home doesn’t offer much financial relief, with the median rent in Las Vegas a sizable $1,490.
Las Vegas residents have an average credit score of only 632, or in the bottom 9th percentile of all cities in the United States. With more education about best credit practices and smart credit repair initiatives, tens of thousands of Las Vegas renters may be ready to become homeowners, invigorating the real estate market.
If you are in the market for buying a new house in Las Vegas, you can save on financing costs if you have a high credit score. Contact Blue Water Credit Las Vegas to learn how to increase your credit score.Share