Las Vegas has been a stable market for years. Recent activity resulted in considerable volatility but the market has corrected and the future outlook for housing looks very promising. Multiple factors in the valley indicate that the real estate market will remain quite strong.
Las Vegas Appreciation in Past Years
Las Vegas has been a market of stability until recent years. It oscillated up and down moderately like much of the rest of the nation. The early 2000's marked a change. September 11th triggered some drastic changes in interest rates and inventories plummeted. The combination resulted in high demand and low supply. Prices shot up around the country and Las Vegas became a hot spot featured in the national news. A frenzy erupted as inventory sold in hours.
Las Vegas Market Correction
Years later, builders were able to replenish the supply and interest rates moderated the buying power so demand decreased. Inventories rose past normal levels and prices flattened generally. Interestingly, in Las Vegas the median home price was still higher in 2006 amid reports from national news reports that 2006 showed the least amount of sales in 17 years. Market factors other than inventory and interest rates keep the market strong. Home prices on average throughout the valley have remained steady. Certain neighborhoods have seen value drops but sellers have not seen a need to take huge cuts at this point. They haven't seeing price increases like they were accustomed to in 2003. The market had corrected itself in 2006 while remaining fairly strong.
Las Vegas Appreciation in the Future
Analysts from several industries including, fuel, airline, housing, etc. have done multiple studies collecting all sorts of data to understand the future demand for their products over the next decade. They anticipate a steady flow of buyers will be entering the valley. They estimate 7,500 newcomers on average per month. The valley will increase by approximately 50% (900,000) in 10 years. The growth in the job market alone will account for a majority of these new residents.
Las Vegas Real Estate Decisions
Las Vegas homeowners and investors are making wise decisions as they make home and property purchases here. They will see great equity increases in their assets over the long term.