Why is buying a home in Las Vegas during 2023 a smart financial decision?
It’s no secret that the housing market is constantly changing. Almost every day there is a new headline about listing prices or mortgage rates, ultimately leaving buyers confused and wondering “Should I buy a home this year? Or, is waiting to buy a home a good idea?” There has been a large infusion of fear into the housing market, however, there are still many reasons why this year is still a great time to consider buying a home. Home ownership is ultimately always the best option compared to renting a home in every aspect. Securing financial stability, and security through a favorable home ownership purchase can weather the worst financial and economic low and provide substantial financial returns and gain when the market inevitably recovers.
Mortgage Interest Rates and Builder Offers
As of July 6, 2023, the 30-year fixed-rate mortgage sat at 7.2% according to the S&P/Case-Shiller U.S. National Home Price Index. This rate plays a pivotal role in shaping buyer affordability and overall market trends.
On a monthly basis, here’s how the Las Vegas housing market ended in June 2023
While it’s completely understandable that new aspiring buyers would be put off by higher Mortgage interest rates this year, it is extremely important to note that you have the ability to refinance your home for a better interest rate later after you purchase your new home and this alone should not discourage you from making the move to purchase that new dream home you and your family have always wanted especially when now it can be secured at a lower price and has the strong potential in the Las Vegas Market to appreciate and only increase in value according to the overwhelming majority of Las Vegas Market forecasts.
Las Vegas Housing Market Forecast 2023-2024
What are the Las Vegas real estate market predictions for 2023? The Las Vegas real estate market is one of the most dynamic and ever-changing markets in the United States. One factor contributing to this growth is the strong job market in Las Vegas. With major industries such as hospitality, gaming, and entertainment, Las Vegas has a strong job market that attracts many people to the city. This, in turn, increases the demand for housing in the area, which drives up home values.
Another factor contributing to the growth of the Las Vegas housing market is the city’s reputation as a popular tourist destination. As more people visit Las Vegas and enjoy the city’s amenities, they may be more inclined to purchase a home in the area, which can increase demand and home values. Which is an incentive for 2nd and 3rd homeowners to purchase in theLas Vegas market.
Current Market Snapshot
As of June 30, 2023, the average home value in the Las Vegas-Henderson-Paradise area is estimated at $402,054. This figure reflects a decline of 6.7% over the past year, showcasing the market’s adaptability to changing conditions.
- Key Metrics at a Glance
- Typical Home Values: $402,054
- 1-year Value Change: -6.7%
- Median Sale to List Ratio (May 31, 2023): 0.988
- Percent of Sales Over List Price (May 31, 2023): 20.6%
- Percent of Sales Under List Price (May 31, 2023): 58.6%
- Median Days to Pending (June 30, 2023): 16
Market Forecast: What Lies Ahead?
The housing market’s future trajectory is a matter of speculation, influenced by various economic factors. According to a 1-year market forecast provided by Zillow, the Las Vegas housing market is predicted to see a growth of 4.1% by June 30, 2023. This projection suggests a potential recovery from the recent decline, indicating positive momentum in the coming months.
Insights and Implications
The Las Vegas housing market, like any other, is influenced by a complex interplay of supply, demand, economic indicators, and external factors. The decline in home values over the past year might indicate market adjustments, possibly influenced by broader economic conditions. The data also reveals interesting trends in terms of sale price ratios. With a median sale-to-list ratio of 0.988, it’s apparent that homes are selling relatively close to their listing prices. Furthermore, the distribution of sales over and under list prices highlights a diverse market, where some properties are fetching prices higher than the list while others are closing under the listed price. This variability suggests the importance of strategic pricing and negotiation tactics.
The median days to pending, standing at 16 underscores the speed at which properties are moving in the market. This could indicate a strong demand for homes and a competitive landscape that prompts buyers to act swiftly.
Las Vegas Real Estate Market: Is It A Good Place For Investment?
Is Las Vegas a good place for real estate investors? Many real estate investors have asked themselves if buying rental property in Las Vegas is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Las Vegas housing market’s historical and current trends for answers on why to put resources into this market.
It isn’t just about casinos, medicine is a growing industry as well. The University of Las Vegas and Zappo’s, the internet shoe store, is also based in Vegas. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends. New businesses are propping up at a much faster rate than the national average. Las Vegas has a mixture of owner-occupied and renter-occupied housing units. It is a big rental property market. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Las Vegas.
Remember Your “Why” in Buying a Home
Yes, inflation and interest rates are sometimes reason enough to hit pause on the home buying process. However, it’s just as important to prioritize your “why” when considering buying a home. Are you looking to make a sound investment? Or in need of a place to call your own? Do you want to start a family in a brand-new place? Your motivation for buying a home should stay at the forefront of your home buying journey. Home ownership is a long-term investment that can produce a good number of benefits for years to come – so remember, buying a home is about a lot more than just current interest rates. It’s about securing peace of mind for yourself and your family in the year of 2023.
Dulcie has over 24 years of local real estate expertise. She understands the city and its trends and opportunities more than anyone. Dulcie has watched Vegas rise and fall and rise again, and can help you pinpoint and locate the perfect home for you.
To find out more about working with Dulcie and her award-winning team, or to get more information about the current housing market conditions, properties featured on this blog, or our Hot Market Listings, please contact Dulcie Crawford directly at (702) 505-2775.
