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Las Vegas, NV: Real Estate Market & Trends 2016

Published on Tuesday - September 13, 2016

The Las Vegas real estate market is booming in 2016, as home prices, appreciation rates, and home affordability continue to skyrocket past the national average. The median home price for Las Vegas real estate was $242,300 during the second quarter, compared to the national average of $239,167. Gains in the last three years have extended the trend of positive price growth since the recession. With both home prices and appreciation rates continuing to surge past the national average, running on all cylinders is an understatement for the Las Vegas real estate market in 2016, and the trend should continue in the second-half.

Las Vegas, NV Real Estate Market Statistics:

Las Vegas real estate investments

Despite being a poster child for the real estate bust in 2006, Las Vegas real estate investing continues to gain steam. The one-year appreciation rates for the Las Vegas real estate market were 12 percent during the second quarter of 2016, while the rest of the country saw its homes appreciate at 4.9 percent. Like Miami and Los Angeles, those numbers get dramatically better during the three-year mark, which saw homes in Las Vegas appreciate at a rate of 41 percent compared to the national average of 17.8 percent. That said, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. For those considering Las Vegas real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Las Vegas, NV housing market one year ago have appreciated, on average, by $29,571. The national average was $14,963 over the same period.
  • Homes purchased in the Las Vegas, NV housing market three years ago have appreciated, on average, by $79,538. The national average was $46,878 over the same period.
  • Homes purchased in the Las Vegas, NV housing market five years ago have appreciated, on average, by $126,039. The national average was $82,353 over the same period.
  • Homes purchased in the Las Vegas, NV housing market seven years ago have appreciated, on average, by $116,074. The national average was $77,054 over the same period.
  • Homes purchased in the Las Vegas, NV housing market nine years ago have appreciated, on average, by $27,271. The national average was $31,126 over the same period.

Not surprisingly, Las Vegas real estate investment activity continues to heat up in 2016, as appreciation rates continue to outperform the national average. The Las Vegas real estate market saw its biggest returns during the five and seven-year mark, with equity gains growing past $100,000. Las Vegas real estate investors should continue to see positive returns in the second-half of 2016 and beyond.

As of July 2016, there are currently 8,501 properties in the Las Vegas area in some stage of foreclosure. According to RealtyTrac, the number of Las Vegas foreclosures in the month of July was 14 percent higher than the previous month and 24 percent lower than the same period in 2015. Additionally, the number of REO properties in Las Vegas jumped 81.3 percent from the previous month, but only 1.8 percent from the same time last year.

Las Vegas, NV: Real Estate Market Summary:

Las Vegas real estate investors

  • Current Median Home Price: $242,300
  • 1-Year Appreciation Rate: 12.0%
  • 3-Year Appreciation Rate: 41.0%
  • Unemployment Rate: 6.9%
  • 1-Year Job Growth Rate: 2.7%
  • Population: 603,488
  • Median Household Income: $51,214

Las Vegas, NC: Real Estate Market (2016) — Q2 Updates:

Las Vegas housing market

Along with thriving home prices and appreciation rates, the Las Vegas housing market is also one of the most affordable. Homeowners paid 12.5 percent of their income to mortgage payments in the second quarter of 2016, which is actually better than its historical average of 14.3 percent. The national average, on the other hand, paid 15.9 percent. Another component to consider about the Las Vegas real estate market is new housing construction. As one of the top markets in need of residential redevelopment, he level of construction in the second quarter was 43.2 percent above the long-term average, while single-family housing permits rose to 10 percent, mirroring the national average of 10.6. That said, the Las Vegas housing market should remain one of the most affordable in the nation.

Another aspect Las Vegas real estate investors should pay attention to is the local economy. The current unemployment rate continues to lag behind the national average, as the second quarter saw an unemployment rate of 6.9 percent, compared to the national average of 4.9 percent. However, job growth in Las Vegas is strong compared to other markets, with the one-year job growth rate rising to 2.7 percent in the second quarter, better than the national average of 1.9 percent.

Moving forward, the Las Vegas real estate market should continue to see positive growth in the second-half of 2016. The National Association of Realtors (NAR) has forecasted higher price growth in Nevada than in the rest of the U.S. in the next 12 months. As of July, price expectations for Nevada real estate is currently at 3.9 percent, compared to the national average of 3.6 percent. That said, the Las Vegas real estate market is quickly reclaiming its dominance as one of the hottest real estate markets in the country in 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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