The Las Vegas real estate market if affected by many economic factors. Some of these factors affect the supply of homes available to buyers and some affect the demand of buyers looking to enter the valley. Each person has a motive to come or leave Las Vegas but general there are certain factors that influence many.
Las Vegas Real Estate Factors Affecting both Supply and Demand
- The job market - as long as there is a strong need for employees the wages will be strong and people will move into the valley from other cities. If the number of jobs decreases then the demand for housing will decrease.
Las Vegas Real Estate Supply
- Rise in home values - residents will sell their homes if they feel they can cash out and move to another city and pay cash for a home. Many people improve their lifestyle a great deal when they sell and move out. Many homes go on the market after a rapid rise in home values.
- Economic outlook - when factors in the stock market, energy market, or social events cause fear for investors they pull back in the development they fund (i.e. after 9/11). When these factors are strong, investors push forward with new developments.
Las Vegas Real Estate Demand
- Interest rates - when interest rates rise or fall they greatly affect buyer's ability to secure financing and as such their ability to buy.
- Other real estate markets - when markets like California, New York, Florida, etc. have a strong rise in home values people will cash out and move where they can improve their way of life.
- Entertainment - people want to get away. They want to retire. They often come to Las Vegas looking for something.
Las Vegas has a strong outlook. Economic factors for the next decade are strong.