Trends & News 3 Las Vegas Real Estate Market Trends to Expect in 2020 by Heba Baker October 1, 2019September 30, 2019 by Heba Baker October 1, 2019September 30, 2019 There is a new projection for the hot Las Vegas real estate market: it’s now transitioned into being the most stable it’s been in years. Let’s cover some major Las Vegas housing market predictions and trends for 2020. Las Vegas Real Estate Market Trends 2019/2020 The Las Vegas housing market is no stranger to attention. It’s had some heightened levels of real estate investment activity over recent years. At one point, for example, investment in short-term rentals got so out of hand, the City Council found it necessary to pass a law restricting Airbnb Las Vegas rentals to only a host’s primary residence. So Las Vegas isn’t one of the most Airbnb friendly cities in the country. But regardless of the restriction on some aspects of investment activity, the general condition of the Las Vegas housing market forecast is pretty positive. And while the craze seems to be dying down a bit, the housing market is still very active. Here are some of the major Las Vegas housing market trends we’re expecting to carry on in 2020. 1) Las Vegas House Prices Increasing at a Slower Rate The Phoenix housing market nudged Las Vegas out of the number one spot for the fastest-growing prices. According to a report published by the Greater Las Vegas Association of Realtors, after 12 months of rising at the fastest rate nationally, Las Vegas home prices finally seem to be slowing down, and everyone’s happy about that. But will house prices go down in 2020? The latest data for this city in the Southern Nevada real estate market shows that they won’t as prices are still increasing, just at a much more gradual rate now. This is why real estate experts are saying the real estate market in Las Vegas is the most stable it’s been in 20 years. However, home values will drop slightly. As we continue to see softer real estate market trends and less pressure on Las Vegas real estate, investors can expect real estate appreciation to slow down. Home values are projected to drop 0.6 percent within the next year. A slight drop in home value after a year of intense price spikes just supports the trends of a stabilizing real estate market. Las Vegas real estate investors shouldn’t be worried about the rate of price growth or the home value trends, as there is a general slowdown across the US housing market as a whole. Less pressure on prices can mean that the Las Vegas real estate market forecast for 2020 will not include a housing bubble or a housing market crash. 2) More Inventory on the Market Goodbye seller’s market. According to Zillow, a buyer’s market is in the Las Vegas real estate market forecast 2020. And after a look at inventory levels from July, we’re seeing more Las Vegas homes for sale stay on the market without any offers. According to the Greater Las Vegas Association of Realtors: About 7,800 houses were for sale in the Las Vegas real estate market without offers at the end of July, a 63 percent year-over-year increase About 1,864 condo and townhouse units were on the market for sale without offers at the end of July, a 112 percent year-over-year increase According to Redfin, homes typically receive one offer and sell at an average of $279,000 (up 3 percent year-over-year). This should make buying an investment property in Las Vegas easier as you likely won’t face heavy competition. These are good signs of a cooling market, where buyers now have more leverage when making a Las Vegas real estate investment. Related: Is It a Buyer’s Market or Seller’s Market? How to Tell the Difference 3) Real Estate Developers Pulling Away From Single Family Homes The optimal real estate strategies differ based on shifting trends. If you want to invest in Las Vegas real estate, you need to keep up with the real estate construction trends as well. As buyers are edging away from the more expensive properties on the market, we’re noticing higher transactions in the more affordable condo and townhouse sector. This shift in demand is also seen in Las Vegas real estate market developments. In the homebuilding outlook for 2020, we’re seeing a pullback from single family homes. And even though builders closed 4,245 sales of single family homes this year so far, this number is down 7.4 percent from the same time last year. A 17.1 percent increase, however, was seen in the sales volume of attached homes, which is 684. So clearly, it is important to keep tabs on all aspects of the real estate market as the homebuilding market in Las Vegas reflects buyer demand. So, Is Las Vegas a Good Real Estate Investment for 2020? Mashvisor’s Investment Property Calculator provides all the data an investor needs to decide if Las Vegas real estate is a good investment. We’ve pulled our data on rental property performance in the Las Vegas real estate market: Median Property Price: $378,735 Price per Square Foot: $202 Average Days on Market: 76 Price to Rent Ratio: 23 Monthly Traditional Rental Income: $1,375 Traditional Cash on Cash Return: 1.6% After taking a look at this data, is Las Vegas a good real estate investment? We’re still going to tell you yes. Why? Because even though the average return rate for Las Vegas rental property is low, further real estate market analysis of the neighborhoods will show us higher performance. The Best Neighborhoods in Las Vegas If you want to invest in the Las Vegas real estate market, you need to be smart about it. You need to target neighborhoods and areas which project a high rate of return on a rental property. To find those neighborhoods, you need real estate data: The Strip Median Property Price: $525,155 Monthly Traditional Rental Income: $1,343 Traditional Cash on Cash Return: 2.2% Downtown East Median Property Price: $207,013 Monthly Traditional Rental Income: $1,059 Traditional Cash on Cash Return: 2.0% Winchester Median Property Price: $258,640 Monthly Traditional Rental Income: $1,168 Traditional Cash on Cash Return: 1.9% Get access to an in-depth evaluation of the Las Vegas real estate market and find out where the best places to invest in real estate are in the city by signing up for Mashvisor. Sign Up for Mashvisor We said the further you analyze a housing market, the better results you see, right? So why stop at the neighborhood level? Mashvisor has got yet another great tool called the Property Finder which makes it easy for you to find lucrative investments that match your criteria in any US housing market. We’ve used the tool and pulled a couple of very attractive listings with high rental income and good cash on cash return. Check the stats: Investment Property #1: List Price: $198,000 Comparable Rental Income: $3,272 Traditional Cash on Cash Return: 11.4% Investment Property #2: List Price: $69,999 Comparable Rental Income: $1,313 Traditional Cash on Cash Return: 11.3% Investment Property #3: List Price: $145,000 Comparable Rental Income: $2,340 Traditional Cash on Cash Return: 11.2% You can easily find rental properties and other investment property for sale in Las Vegas with projected return rates just like the three we’ve listed above. Sign up to Mashvisor to get access to this kind of rental property analysis data and invest in Las Vegas 2020. Related: What Is Mashvisor? What Can It Do for Real Estate Investors? Start Your Investment Property Search! START FREE TRIAL Buyers MarketLas Vegas NVNeighborhoodProperty for Sale 0 FacebookTwitterGoogle +PinterestLinkedin Heba Baker Heba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post Why You Should Consider Buying Multi Family Foreclosures (and How To) Next Post Is Property Management a Good Career for 2020? Related Posts 6 Reasons Virtual Leasing and Home Buying Is the Future Kansas City Real Estate Market 2020: 4 Trends Florida Real Estate Market Forecast 2021 Florida Real Estate Market Trends of 2019: What to Expect What to Expect in US Real Estate Trends Over the Next 10 Years iOS 14 Update: How It’s Affecting Real Estate Ads on Facebook Phoenix Real Estate Market Forecast 2018 Columbus Ohio Real Estate Market Trends 2020 What’s the Current State of the American Real Estate Market for Investments? San Jose Housing Market Forecast 2020 How Will 5G Technology Affect Real Estate? How Joe Biden’s Presidency Will Affect Real Estate 1 Comment Efrain Felix October 6, 2019 - 2:23 pm Who don’t want to live in Las Vegas no matter what experts say tons of people will like living here the facts is it’s always nice and sunny no rain all the time no snow in the winter no ice in the roads no hurricanes no tornadoes no major earthquake in Las Vegas and there’s is tons of store’s every where night entertainment of all kind marijuana is legal and there’s all kind of people from all over the world living life there’s so much to explore that it never ends why Las Vegas is so low to live here if California home price is beyond than why Las Vegas should follow with California it’s the same valleys the only thing Las Vegas don’t have is a beach but hey California is around the corner I think home prices should be appreciated in Las Vegas because it’s extremely too low for this state. 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