While Las Vegas is primarily known as the live entertainment capital of the world, it is also a thriving metropolis. It is a metro area home to over 2 million people, the largest in the state. While the nightlife and gambling attract most of the headlines, Vegas also has one of the best food scenes in the country and some of the top real estate options on the market. Las Vegas has seen a significant real estate surge in the past several years. While the affordability in the big city is better than most major metropolises, there is a likelihood of this changing in the near future.
2021 was a wild year for the Las Vegas real estate market, unprecedented even. Prices rose rapidly, and homes were very quickly swept off the market. Vegas’ desirability as a full-time living destination is growing. The warm weather, great entertainment and restaurants, and nearby golfing and natural scenery make it an attractive destination for people of all ages.
As we enter 2022, forecasting the housing market remains a difficult task. Across the country, it is still a major seller’s market, but predicting the future is far from easy. Let’s look at the current state of the Vegas market and make predictions about what the future might hold.
2021 a Wild Year for Sin City’s Market
Las Vegas is in a similar situation to many other desirable markets around the country. There is a significant surge in buyer interest, fueling massive demand. However, the limited supply of options can’t match the excessive demand, driving up competition and prices. This has led to prices in the Las Vegas Valley reaching new highs.
The median list price of homes in Las Vegas has recently hit $395,000 in November of 2021, according to Norada. This was a 21.6% increase over November of 2020. While $395,000 may sound affordable, the area’s real estate has been steadily climbing every year and maybe pricing some residents out.
According to Redfin, in November of 2016, the median price of a home in Vegas was roughly $225,000. That number grew every year, but in 2021, it began to surge. Entering 2021, the median sales price in Vegas was roughly $315,000. That price surged around $75,000 from the start of the year to the end, a near 25% increase. A large reason for this is that housing inventory is at 0.9 months, much below the market’s healthy range.
Growing Popularity of the Suburbs
Like other big cities, there are numerous smaller cities on the outskirts of Vegas that attract residents who want to be near the city without being in it. Vegas is surrounded by suburbs big and small that have many residents that commute to and from the city every day. These suburbs have long been popular for buyers, but in 2021, that level of buyer interest only increased.
Numerous great suburbs around Vegas offer quieter lifestyles but easy access to the bright lights of Sin City. One such suburb is Summerlin, near the Red Rock Canyon National Conservation Area. From December 2020-December 2021, the median listing price surged 22.1% year over year, according to Realtor.com. Spring Valley, a different suburb, surged 21.5% year over year. Henderson surged 23.7%.
Just about every major suburb near Las Vegas experienced rapid growth in 2021. Surging 20% in a given year isn’t normal, but that seems to be the trend for the area. While the home prices remain roughly around the national average, these are large increases for the area that signal times are changing.
Looking Ahead to 2022
There are no signs that the real estate market in Las Vegas will slow down. Projections differ as we head into 2022. Housing is in short supply, and buyer interest is high, and when this is the case, prices only seem to go up. However, some experts believe that this makes the Vegas real estate market overvalued. According to Fox5 Vegas, Las Vegas was ranked 9th on a list of the ten most overvalued housing markets.
While there might be some cause for concern, and it is better to be a seller in this market than a buyer, this might just reflect an increased interest in living in Vegas. It is much more affordable than most cities, has great nature and hiking, and, of course, the vibrant entertainment and party atmosphere don’t hurt.
