The real estate market in Las Vegas has been hot since the early 2020s. Single-family home sales continued to rise in the summer of 2021 from the previous year. As a result, Las Vegas has become a target destination for people in the western United States who want something affordable in an exciting entertainment city. Moreover, the area is particularly attractive to residents of Southern California looking to cut their cost of living. Here's a deeper look at the Las Vegas housing market trends in 2021.
Signs of a Hot Real Estate Market
One of the key real estate trends of 2021 has been increasing median sales prices of Las Vegas homes. Prices have reached all-time highs in the area, as the median price of previously owned single-family homes jumped from $395,000 in June to $405,000 in July. That's a 2.5% month-to-month increase and an uptick of 22.7% from the previous year. The strongest indicator of a fast-paced market is that 89% of homes sold in July were on the market for only 30 days or less. In July 2020, by contrast, it was about 60%.
Las Vegas Real Estate Outlook
The growing attraction to Las Vegas is expected to continue as it parallels an increase in population. Nevada Census data shows a 1.46% rise in median income for the period 2020 through 2025. Home demand continues to overshadow supply even as home building expands. Since builders are not keeping up with demand fast enough, the supply shortage is driving up prices in the Las Vegas real estate market.
Rental prices are also rising in Las Vegas, despite high unemployment. The average cost of renting a one-bedroom apartment in the city is about $1,150 per month, which is up 14%from the previous year. In July, Nevada's unemployment rate stood at 7.7 % but was 9.4% in Las Vegas. However, this high rate of unemployment has had no visible impact on the Southern Nevada housing market.
Meanwhile, the luxury home market in Las Vegas has done well. Las Vegas currently ranks in the top 30% of the nation for rising median home prices. Industry analysts say the market is on a hot streak, although sales are expected to slow down next year.
Contact Valerie Brown (702) 826-1545 if you want more information about the Las Vegas housing market.