Like so many markets in the US, the real estate market in Las Vegas is in a persistent hot phase, with record low inventories, rising prices and properties selling ever faster.
“It’s a shortage across the board, similar to other places,” said Corcoran Global Living agent Don Kuhl. “We just can’t keep up with demand and we only have a little more than a month and a half on offer for single-family homes.”
According to data collected by realtor.com for Mansion Global, the inventory of homes for sale in Clark County, Nevada, which includes Las Vegas, declined 48.1% year over year in June – nationwide stocks fell 43.1% over the same period – while average stock market price growth rose 18.7% year over year (compared to a nationwide increase of 12.7%). The average market time in June was only 25 days, a decrease of 28 days from June 2020.
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In the luxury sector, the number of homes priced at $ 1 million and above declined 16.7% year over year, and the list price for the top 5% of homes by price hit 1.9 million in June US dollars, a 45.3% year-over-year increase, the data showed. (Mansion Global is owned by Dow Jones. Both Dow Jones and realtor.com are owned by News Corp.)
“Vegas is definitely one of the hottest real estate markets in the country and, according to many statistics, outperforms the US as a whole,” said Danielle Hale, chief economist at realtor.com.
For luxury shoppers hoping to get into one of the country’s most sought-after markets, there are still some relative opportunities, as well as signs that current momentum may ease somewhat soon. According to realtor.com data, the number of newly listed homes in Clark County rose 8.7% year over year in June, meaning sellers – many of whom were on the edge during the pandemic – are starting to hit the market to return .
If you want to break into the Las Vegas market and still want a bargain comparison or a property with strong growth potential, here’s how:
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Condos may offer more flexibility – for now
As in the rest of the country, demand for single-family homes has been particularly intense in Las Vegas as buyers moved in to larger, more private spaces – and away from overcrowded condominium towers – in response to the pandemic.
There are signs that the city’s luxury towers are already recovering, but fast moving buyers may find more options available and potentially more negotiability (or at least fewer bidding battles) for a condo than a comparable single-family home.
“In the midst of the lockdown when the Strip closed last year, no one wanted a skyscraper,” said Kyle Northup of Synergy Sotheby’s International Realty in Las Vegas. “November was when everyone [started] availed of discounts and average condominium sales down 10% year over year [at that point]. Now in June they are up 19% year-on-year. “
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Mr. Northup added, “There are definitely still options in high-rise buildings, but this window is closing. High-priced properties are snapped up. “
In the Waldorf Astoria Las Vegas, one of the largest luxury skyscrapers in the city, “Before [the pandemic]”You couldn’t get any of these units,” said Mr. Kuhl. “Now we have 24 units available, a little over 10% of the building. The price has held up, they are not giving them away, but the fact that there is stock is an opportunity. ”(According to Mr. Kuhl, the average prices in the building are between 2.5 and 2.75 million US dollars.)
According to realtor.com data, Clark County condo, townhouse, townhouse and cooperative listings spent an average of 35 days on the market in June, more than the overall average, compared with 23 days for single-family homes, lower than the overall market average.
“In this market, the denser apartments, condos and townhouses have tended to sit longer,” said Ms. Hale. “This can be an opportunity for those who are interested. We’re starting to see this turnaround in other markets, and I expect that if Las Vegas follows the rest of the US, the housing opportunities will wane as it draws level with single-family homes. “
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Older homes and neighborhoods get a second look
Ready-to-move apartments with modern equipment are always in high demand, especially in the wake of the pandemic, where buyers are less interested in a renovation project than in a safe haven in which they can live immediately. For Las Vegas buyers willing to look beyond brand new developments, there are still spacious homes that can be purchased without having to outbid dozens of other buyers.
“Las Vegas has adopted modern architecture and ‘desert contemporary’ styles, and this stuff is flying off the shelves,” said Northup. “The older Tuscan-style houses in areas like the Southern Highlands, South Shore, and Spanish Trail sit a little longer and have a lower price.”
Henderson, an area 26 miles outside of Las Vegas with a high number of older homes, was the zip code with the most discounted deals in June, according to realtor.com. (Despite the cuts, the average June list price in Henderson was $ 499,000, up 21.1% year over year.)
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“Some of the areas in Henderson are older neighborhoods with more mature landscaping and larger gardens, and people are visiting them again and will just spend the money on renovations,” said Kuhl. “The cost of new home has obviously increased and a lot of people will be looking at the resale market.” Despite the potential renovation costs to give a property a new feel, it is beneficial to already have the pool and landscaping, which often makes an older home investment in the area cheaper or more budget efficient, according to Mr Kuhl.
The area is also experiencing an influx of sought-after new development properties such as those in Ascaya, a luxury residential community. “There was luxury in Henderson before, but not at the level we have at Ascaya,” said Mike Leipart, managing partner for new developments at The Agency. “Henderson is the climber.”
“If you look at the prices in the market, you could even have a neighborhood of $ 300 per square meter and a property of $ 750 per square meter, and the construction date is the main indicator of why that is “, Said Mr. Leipart. “At Ascaya, we’ve had some transactions recently that cost well over $ 1,000 per square foot, which was previously unknown.”
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That means buyers looking to get a relative bargain or avoid overheated bidding wars may be drawn to older properties in established neighborhoods. But you shouldn’t expect to be able to drive a bargain too hard.
“My office was marketing a $ 2.2 million property, it still had the ’90s feel and look and lack of all the luxury amenities, despite being on a golf course in a great area with a beach access pool said Aldo Martinez, President of Las Vegas Realtors and Broker at Berkshire Hathaway HomeServices. “You thought you’d only get $ 1.7 million or $ 1.8 million, but an offer came for $ 2 million.”
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Mr. Northup added, “If [the seller] hits the right price point, no matter the style, you still get the bidding wars. But at least you don’t have 47 offers in one weekend. “
The current pace of price increases and inventory shrinking is expected to slow somewhat as more sellers enter the market. But given the current combination of pent-up demand, low interest rates, and a booming stock market, buyers looking to get to Las Vegas are unlikely to benefit from playing the waiting game.
“I think we probably will [continue] To see healthy demand for luxury real estate, the market will continue to be competitive, ”said Hale. “The reality is that we are still at an all-time low. The hardest part is to find a home that you want and love. So when you’ve found it, you should go for it. “
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