5 Things We Have Seen In the Las Vegas Real Estate Market in 2015
A Brief Look at What has Happened in The Las Vegas Real Estate Market As We Approach June of 2015
Posted: May 31, 2015 by Jesse Olive
“Is the market still struggling?” If we had a nickel for every time that question was asked, we could….go buy a piece of real estate. The answer to that question is a resounding, “no!”
The Las Vegas real estate market has been resurging for the last three years or more with strong sales, a drastic decrease in distressed inventory and steady home price gains in both the residential and the commercial markets. This trend is not stopping any time soon and is preparing us for a positive outlook ahead for 2016 as well – and you don’t have to simply take our word for it, here are five things we have seen this year that will back up our claims and give you confidence in the Las Vegas real estate market as you question, “is now the right time to buy/sell?”
- The North Strip is On a Winning Streak: All you have to do is look at the Las Vegas Strip today to see the myriad of new developments either under construction from the ground up or older properties being rehabbed. From the recently opened SLS Hotel and Casino at the corner of Sahara Avenue and Las Vegas Boulevard to Resorts World across the street in the development stage, the northern part of the Strip is poised to make a dramatic impact in providing our guests more entertainment options when they stay and play in our dynamic city. Renowned architect, Paul Steelman, of Steelman Partners is the brains behind the design of Resorts World and also happens to be selling his multi-million dollar residence with Coldwell Banker Premier Realty. Additionally, the Lucky Dragon Hotel and Casino is being developed in that same area and, moving farther down to the south Strip, a new 18,000-seat arena is currently under construction next to the New York-New York Hotel and Casino that is poised to house an NHL franchise when it opens in early 2016.
- Residential Market Remains Steady: The Las Vegas area residential market may be boring to some analysts who are looking for more dramatic results, but the fact that it continues to steadily rise is a very good thing because it shows that the consistent growth is not a flash in the pan and is sustainable. In fact, the average sales price for a Single Family Residence in Las Vegas has jumped from $159,926 in 2012 to $232,125 in 2014 up to $255,610 in 2015, which is a 10 percent increase just from last year. The market here still offers sellers options to upgrade and investors opportunities to liquidate while keeping real estate affordable to buyers as interest rates are still at historic lows.
- Interest Rates May Rise: Federal Reserve Chair, Janet Yellen, has suggested that the Fed will raise interest rates slightly later this year, creating urgency in some buyers and spawning multiple offers on homes. The projected lack of inflation and recession in 2015 combined with a rise in interest rates should spur home prices to continue to increase as well, keeping it a seller’s market.
- Commercial and Industrial Real Estate Improving: Commercial and industrial real estate has made massive improvements overall, with CoStar reporting that industrial vacancy rates were at 10.9 percent during the first quarter of 2014 then dropping to 8.5 percent for the lowest number since 2007. While that may not seem like a big difference to the general population, it is and equated to 3,106,484 square feet of absorption (space becoming occupied). The commercial/industrial and residential markets have always been closely related in market in trends with commercial/industrial in the midst of a massive recovery mode - also showing that a wide variety of business sectors are also positively impacted. It doesn’t take a statistician to visibly see that the stalled projects from many years ago are coming alive all around the valley (i.e. Downtown Summerlin office space, Tivoli Village’s second phase.)
- Market Expansion Continues: The vast majority of new building in Las Vegas continues to push its way towards the outskirts of the city in multiple directions, as the new home entry level product continues to deplete. The entire west side of Vegas, north and south, along with the south valley and Henderson have seen have seen growing developments of commercial and entertainment districts along with parks and community areas, which play integral roles in rising home prices there.
Coldwell Banker Premier Realty is at the forefront of providing the best client services for buyers and sellers alike in Vegas and across the country. And at CBPR, we pride ourselves on being on top of the latest and greatest sales trends and providing that valuable information to you so you can make the most educated buying and selling decisions possible.