What are the Las Vegas real estate market predictions for 2020? Las Vegas housing market 2020 was shaping up to continue the trend of the last few years as one of the hottest markets in the U.S. We get to find that on Zillow, the median home value in Las Vegas is $165,613. Let us look at the price trends recorded by Zillow over the past few years. From 2017 to 2018, the median home price in Las Vegas appreciated by 30.4%, from $217,000 to $283,000.
In two years, Las Vegas home values rose significantly due to the low availability of homes and very high demand. It was named as the number one real estate market in the USA for 2018 by Realtor.com based on the price and amount of existing homes, new home construction, and local and economic trends. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices).
However, in 2019, the local market was almost flat throughout the year. The Las Vegas home prices have risen by just 1.8% over the last 12 months alone, making it the seventh consecutive year of home price gains.
The Zillow Buyer-Seller Index (BSI) shows that Las Vegas is currently the buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in Las Vegas, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the marketplace.
The latest Las Vegas real estate market forecast is that the home prices may remain flat or decrease by 1.3% – in the next twelve months. This could be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire nation. Buyers are looking for opportunities but there are fewer homes. This will lead to less supply and will help keep the home values strong.
The question is whether it is going to remain a buyer's real estate market amid the ongoing Coronavirus pandemic?
OUR TAKE ON LAS VEGAS HOUSING MARKET FORECAST
Las Vegas has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in single-family rental properties. This area is skewed to sellers due to a very low level of inventory that can’t meet the demand of the rising population. The impact of the pandemic has been a drop in home sales and a small increase in inventor, both of which are short term. The uncertainty lies only in the lasting of this crisis. Whenever it ends, things would be back to normal.
There is a temporary drop in home sales but without affecting the prices. If buyer demand eases again in the coming months, we could see a positive influence on Las Vegas' low inventory levels while at the same time seeing a negative impact on sales. The Southern Nevada region is so hot that it cannot shift to a complete buyer’s real estate market, for the long term.
In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, it can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s probably not going to happen anytime soon. Currently, there is a 3.4 months housing supply in Southern Nevada, up 11.1% from April and up 42.2% from the prior year.
Therefore, given how hot the local economy was before the pandemic, the Las Vegas real estate market remains strong and skewed to sellers due to a growing population and booming economy — which leads to a persistent imbalance in supply and demand.
Here is a short and crisp Las Vegas housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Las Vegas is 71% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Las Vegas is 71% during this period. If this price forecast is correct, the Las Vegas home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.