Las Vegas real estate is some of the fastest appreciating real estate in the country. A recent analysis of home prices across the nation found that Las Vegas home prices have increased over 30% in the last year, making it the fastest recovering market since the housing crash.
The news might seem like a frustrating turn for Las Vegas home sales, but with the median home price in Vegas still below $150,000, the Sin City market is still in the bottom 30% of the national price range. Las vegas real estate, just like real estate across the United States, is still recovering from the crash. Yes, Las Vegas is recovering at a faster rate, but prices are still not back to their “pre bubble” norms.
Following the crash, many borrowers were faced with foreclosure, and had to leave the area. Investors picked up the properties for a massive discount, and, knowing they probably could not sell them right away, turned many of the foreclosed properties into rentals. Even those who managed to avoid foreclosure realized they would be able to generate more money with a rental than they would earn in appreciation.
But now that tide has turned. The number of Las Vegas homes for rent by owners is shrinking, as people are once again purchasing homes as residences. With the surge in pricing, Las Vegas real estate investors are seeing a huge opportunity to make serious money by buying property.
Analysts recommend caution, though. These massive price increases are only a market correction. Certainly the correction is large and unprecedented, but so was the crash that brought the prices down, so we should expect massive gains before the market levels out and prices normalize once again. Still, the lure of quick and profitable real estate turnaround is drawing many investors to the Nevada desert, to carve out their piece of the Las Vegas pie.Share This : by