The Las Vegas real estate market has risen from the grave in recent years, recovering from many of the worst effects of the 2008 housing market crash. Since reaching their nadir in 2012, home sales, new construction and median prices have all significantly increased across the Valley. Forecasts indicate all are all set to increase in 2018 as the recovery continues.

A strong, healthy economy combined with low delinquency and foreclosure rates indicate that the recovery over the past few years is sustainable. With mortgage rates still near historic lows, this is an ideal time for buyers to purchase a home at a great price and secure future equity in a growing market.

The Return of the Las Vegas Real Estate Market

The 2008 housing market crash proved devastating for tens of thousands of families across the Las Vegas Valley. However, the worst effects had largely passed by January 2012. Over the past five years, demand for homes has slowly grown in Las Vegas and surrounding communities. As new buyers entered the market, new construction resumed as the city’s available housing stock slowly cleared.

By every measure, the recovery appears set to last. Declining foreclosure rates, increases in new home construction and median prices indicate that demand is healthy and speculation is playing a minimal role in growing home values.

Foreclosures Have Slowed

Foreclosure rates in the Las Vegas Valley have steadily declined since 2012, despite a recent spike in 2015. Realtytrac reports that foreclosures declined by 31% from May 2016 to June 2017, and by 18% from May to June 2017. Foreclosure rates spiked before 2007, signaling a bubble, but today’s declining foreclosure rates indicate that current growth is sustainable.

The Home Building Market in Booming

Spurred by growing demand, nearly 8,000 new homes sold in 2016, with another 1,200 sold in January and February of 2017 alone This is a marked decrease from pre-crash highs, when nearly 40,000 permits were issued for new homes in 2005. However, most observers view this modest growth positively, as it indicates a low risk that speculators are driving the market.

Home Prices Have Risen

The Review-Journal reports reports that the median price for a home in Las Vegas during April 2017 was $269,900. This is a dramatic increase from a low of $118,000 in January 2012, and a 12.9% increase from the previous year. As prices get closer to historic highs, more buyers are making the decision to enter the market.

Market Predictions for 2017

Forecasts indicate 2017 will continue to be a strong year for the Las Vegas housing market. Zillow.com reports that the median home value in Las Vegas is $218,600, which is expected to climb another 6.2% in 2018.

Is it Safe to Buy Again?

Some analysts have suggested that another housing bubble is on the rise. However, according to the UNLV Center for Business and Economic Research, 67.7% of local business leaders asked had a positive outlook on the Las Vegas economy.

Data from the Bureau of Labor Statistics also show a steady increase in employment since 2011.

The window for buyers looking to capitalize on the recovery is closing, so contact me, Kym E. Booke, today to take advantage of the deals that remain on the market.