Las Vegas Real Estate Market Update; April 2021

Las Vegas real estate is on FIRE! The demand for homes outstrips the supply as historically low interest rates and consumer confidence rise. The average home price is at a new high of $374,206, up from $291,924 in April 2020.

We are often asked "What is HAPPENING here?!" There is concern that we are building up another bubble, but there are several very important differences between now and the mid 2000's.

A large number of buyers in the pre-recession days were real estate investors, many inexperienced. Today, we are seeing a much larger number home buyers including the market-driving first-time buyer.

Lenders were approving mortgages for people who did not have the ability to pay back the loans from the start. There was the underlying idea that the loan was secured by the real estate itself, but when too many people couldn't make their payments, this left banks holding more real estate than they could handle. These days, banks are a lot more careful to vet applicants before writing loans. Combined with the Federal Reserve's holding down interest rates, buyers are being qualified for attractively low interest rate loans.

After the bubble burst of the mid 2000's, new home building all but ceased and has only fairly recently reached pre-recession levels. New home construction is a major driver of the resale market, and builder hesitation is a large part of the current shortage we are seeing. As more new homes are constructed, we will see supply increase and remove some of the pressure on pricing that low inventory tends to cause.

It's a crazy market for sure, but both buyers AND sellers can profit. If you are thinking of buying or selling, contact us and let us show how we can help get YOUR best deal!