Anyone who is conversant with the Las Vegas real estate would know that it has been plagued with several economic shocks and let downs but over the past five years, there has been a major improvement in the market almost to the extent that it seems that Nevada might be getting close to its goal for long term stability.
There have been significant improvements in the real estate industry and this is in major part due to the resilience of the luxury niche. The current trends in the city point at more stable situations instead of the previous fluctuations that were a plague on it.
Real Estate Market Stability
It can be said that the city’s present state of stability is in major part due to the heavy investment in the luxury niche by both foreign and domestic investors hoping to earn big from the buy and hold the market. The luxury real estate market alone over the past 5 years has seen an increase in the amount of buying and selling activities.The luxury homes for sale in Las Vegas are still seeing some positive respond in the market. The outright cash purchase of properties which is a prominent feature in the Las Vegas market was in a decline in the fourth quarter of the year 2014 but have now picked up momentum.
At the moment, the Las Vegas luxury real estate market has a median home price of $1,120,000 which is almost $120,000 more than the national average. This is currently an improvement from where it was 5 years ago but there had to be a lot of adjustments made by the real estate agents to get there.
The last year has seen the value of Las Vegas real estate appreciate to a value of over 11%. The rate of appreciation is currently easing but this does not change the fact that the economy has recovered from where it was. Although we can say that from the few years before the recession Las Vegas homes would appreciate to over 60% but there is still a long way to go with the recession recovery for the city so 11% is a major step there.
Going by the recent three years, there have been high values of appreciation which have caused equity to increase in the luxury housing market. The following are highlights on how much equity has been gained:
Three strong years of historically high appreciation have increased equity in the Las Vegas housing market. Subsequently, the typical Las Vegas real estate investment has seen spreads increase between the period of Nov 22 to Feb 23, luxury real estate prices appreciated from $199,000 to $210,000 per square foot. This is an indication that within the next 3 months or so, the value could possibly be up to $250,000.
The Zillow site recently tagged Las Vegas as the fourth best market for luxury real estate and this conclusion was arrived at using valuations founded on the income of residents, home value growth and the number of luxury homes on the market. If Las Vegas is able to recover its previous state before the recession within the next 3 years, then it can attain top spot.