Las Vegas Real Estate
Here we are just over half way through 2015, and it is time to take an updated look at the economy in Las Vegas real estate. I did a video about Las Vegas real estate towards the end of 2014 to talk about what some thought our home prices would look like in Las Vegas in 2015.
When the recession hit, the local Las Vegas real estate economy took one of hardest hits in the country. The foreclosure rate in Nevada was the highest in the country for several consecutive years. Home prices in Las Vegas, North Las Vegas, and Henderson all plummeted. Commercial real estate, luxury homes, town houses, single family homes and condos all saw prices decrease. Many mortgage lenders, real estate companies, and realtors went out of business when real estate prices dwindled and foreclosures saturated the local market.
It was during this time that many real estate investors came to Las Vegas buying homes with cash. These cash investors were purchasing houses to either do home repairs and flip for a profit. The other option for these cash buyers was to keep the house and use it as a rental property for new tenants-single individuals as well as families.
From the information I had gathered at the end of 2014 it seemed that a fair amount of local real estate agents and experts felt that 2015 was going to be a year of slow, gradual growth in real estate for Las Vegas. That prediction has proven to be accurate thus far into June 2015. This slow growth was predicted because the cash real estate investors were not buying as many properties because they were no longer able to resell them for the same amount of profit as they were over the past couple of years.
With investors not buying as many homes with cash to use as rentals it opened up more opportunity for local buyers to purchase a home with a mortgage. This gives individuals and families a chance to purchase a Las Vegas home for their own personal use.
Loan rates to buy a home are a little cheaper than they were at this time one year ago. With lower loan rates it becomes easier for people to borrow money to purchase a house in Las Vegas, North Las Vegas, or Henderson, NV.
The overall home sales have also increased a few percent from this time just one year ago. Between January 2015 and June 2015 the median sale price in Las Vegas has increased 10% from $200,000 to $220,000.
Despite this good news in our local economy update, the Las Vegas real estate market still has a hill to climb. We still have 25% of our homeowners that are underwater on their home mortgage. Although Nevada no longer leads the nation in foreclosure rate, it still has the 4th highest foreclosure rate in the United States.
The Las Vegas real estate market still has quite a distance to go for the market to be strong again, but I would expect home prices to steadily increase in the near future as the local market and overall economy in Las Vegas gradually improve in 2015.
Las Vegas Real Estate: Home Prices Update 2015