Las Vegas Housing Market: Trends and Forecast 2024-2025

The Las Vegas housing market trends in 2024 are showing signs of a shift, with increasing home sales and new listings, but median home prices remain relatively stable. While some buyers anticipated a significant price drop, the market seems to be finding a new equilibrium, balancing buyer and seller activity.

As we approach the end of 2024 and look towards 2025, it's crucial to understand the current trends and how they might impact future market conditions. In this in-depth analysis, I'll be exploring the latest data, sharing insights, and providing a comprehensive overview of the current state of the Las Vegas housing market.

Las Vegas Housing Market Trends in 2024: A Deep Dive

Home Sales

One of the most notable changes in the Las Vegas housing market in 2024 is the increase in home sales. Data from October 2024 shows a 7.1% rise in single-family home sales compared to September and a substantial 12.9% increase year-over-year. This surge in sales indicates a renewed interest from buyers who may have been hesitant earlier in the year.

This increased activity can be attributed to various factors. The post-election period has likely encouraged buyers who were on the sidelines to make a move. Additionally, with mortgage interest rates showing some signs of stabilization, buyers are becoming more confident about entering the market.

While the increase in sales is a positive sign, it’s important to keep in mind that the pace of sales is still relatively moderate compared to the peak activity seen in previous years. This suggests that the market is not experiencing a sudden boom but rather a gradual increase in buyer activity.

Home Prices

While sales activity has picked up, the Las Vegas housing market trends regarding home prices are more nuanced. The median sales price of previously owned single-family homes in October 2024 decreased slightly to $475,531 compared to the previous month, but it's still a significant increase of 5.9% from October 2023.

Here's a breakdown of median prices over the past few years:

Year	October Median Price (Single-Family Homes)	October Median Price (Condos/Townhomes)
2024	$475,531	$315,000
2023	$449,000	$275,500
2022	$440,000	$266,000
2021	$410,000	$236,000

As you can see, despite the small month-to-month dip in October 2024, the overall trend still points to an upward trajectory for home prices. This is especially true when we look at the year-over-year increases.

The condo and townhome market has seen even more substantial growth. The median price for condos and townhomes in October 2024 reached $315,000, a 5.2% increase from September and a 14.3% year-over-year gain.

Are Home Prices Dropping?

Based on the recent data, we can see that while there have been some slight month-to-month decreases in the median price of single-family homes, the overall trend in 2024 has been upward, particularly when compared to the same period last year. So, while we haven't seen a significant drop in prices, it is true that the rate of increase has slowed down. This shift in the market is a natural response to a variety of factors, including higher mortgage rates that have been in place for much of 2023 and the first half of 2024, increased inventory, and the overall economic conditions.

Housing Supply

The Las Vegas housing market is also experiencing a shift in the housing supply. The number of single-family homes listed without offers in October 2024 rose to 5,784, reflecting a 6% increase from the previous month and a significant 37.3% year-over-year jump. This signifies an increase in inventory, suggesting a more balanced market than we've witnessed in the past couple of years.

The increase in housing supply has led to a slight increase in months of inventory. We are now at about 3 months of inventory, compared to 2.5 months in October 2023, indicating that the market is moving towards a more balanced state. However, this is still considered a seller's market.

A balanced market, generally, is considered to be around 6 months of inventory. A seller's market is usually considered 4 months or less, whereas a buyer's market is considered to be 6 months or more of inventory.

Market Trends

The Las Vegas housing market trends are undeniably pointing towards a transition. While the market remains favorable to sellers, the increased inventory and a more cautious approach from buyers indicate a move towards a more balanced market.

• Increased Sales Activity: The surge in home sales is a clear indication that buyer demand is on the rise.
• Stable Home Prices: While we haven't seen a substantial price drop, the rate of price increases has moderated, suggesting a more stable market.
• Growing Inventory: The increase in housing inventory is giving buyers more choices and potentially impacting negotiating power.
• Moderating Market: The combination of increased inventory and more balanced buyer-seller dynamics indicates a shift towards a more stable market environment.

My personal opinion, and this is just my opinion, is that we are most likely at or near the peak of the housing market. If mortgage rates remain relatively stable, I believe that we will likely see a slow and steady decline in home prices for the next couple of years.

Is Las Vegas a Buyer's or Seller's Housing Market?

Given the current trends, the Las Vegas housing market is still leaning towards a seller's market, although it is becoming more balanced.

Here's a breakdown of the key aspects that favor sellers:

• Increased Demand: Buyer activity is increasing, contributing to continued competition in certain areas.
• Still Low Inventory: While inventory is rising, it is still not at a level to be considered a buyer's market.

However, buyers are finding more leverage in the current market:

• More Options: Increased inventory provides buyers with more choices and negotiating power.
• Less Pressure: The pressure of bidding wars has eased, giving buyers more time to consider their options and make informed decisions.

I believe that if you are a buyer, now is the time to be in the market. You have more options and do not feel the pressure of having to make hasty decisions. You can take your time and find the right home at a fair price.

Las Vegas Housing Market Forecast 2024-2025

You're probably curious about the Las Vegas housing market forecast. The good news is that while the market has seen some changes, experts don't predict a drastic crash, at least not in the near future. Instead, we're likely to see a gradual cooling in the market with some modest price declines in the coming months. Let's dive in and look at the projected changes in the Las Vegas housing market.

Outlook for Las Vegas Home Values

I often look at data from reputable sources like Zillow, and I recently reviewed their predictions for the Las Vegas housing market. They've offered some projections that provide a pretty good idea of what we might expect. According to their data, the Las Vegas MSA (Metropolitan Statistical Area) is predicted to experience a slight decline in home values in the upcoming quarters.

Here's a breakdown based on the Zillow data:

Date	Projected Change in Home Value (Year-over-Year %)
October 2024	-0.1%
December 2024	-1.2%
September 2025	-0.8%

It's important to note that these are just forecasts, and unexpected things can happen in the market. But, they can give us a sense of the general direction.

How Does Las Vegas Compare to Other Parts of Nevada?

If you're looking at different areas of Nevada, the Las Vegas housing market forecast isn't too far off from some other regions. For example, Reno is also expected to see a slight dip in home prices, with a projected decline of -1.2% by September 2025. Fernley and Carson City also have projections for similar declines.

However, some areas like Elko, show a different picture, with a projected increase of 0.4% in October 2024. Similarly, Pahrump has a more optimistic forecast, with home values projected to increase by 0.8% by September 2025.

Will Home Prices Drop in Las Vegas? Could There be a Crash?

Based on current predictions, it seems unlikely that the Las Vegas housing market will crash. But it's important to acknowledge that a significant economic downturn could change things. For now, we can expect a slowdown in price growth and some minor declines, rather than a dramatic crash.

My opinion is that the market is adjusting to a more sustainable pace after the rapid growth of the past few years. The increased interest rates played a large role in slowing things down. It's important to remember that the housing market is cyclical and subject to both local and national economic factors.

A Possible Forecast for 2026

Extrapolating beyond the available data, I'd say it's plausible that the Las Vegas housing market could start to stabilize in 2026. It's possible that we might see the market flatten out or experience modest growth. However, predicting beyond a year out becomes more difficult due to a number of variables.

The Future of the Las Vegas Housing Market

Predicting the future of any market is always challenging, but based on current Las Vegas housing market trends and my experience, here's my outlook:

• Balanced Market: I anticipate the market continuing its transition towards a more balanced state.
• Gradual Price Adjustments: While I don't foresee a significant crash, we might see a gradual and controlled adjustment in prices over the next couple of years.
• Increased Inventory: I expect inventory to continue to rise, giving buyers more leverage.
• Buyer Confidence: As interest rates stabilize and the market becomes more balanced, buyer confidence is likely to continue to grow.

My perspective is that the Las Vegas housing market has been on an incredible run for several years. It is my belief that the market is now returning to a more normal and sustainable pace.

I hope this comprehensive overview of the Las Vegas housing market trends in 2024 has been insightful. If you're considering buying or selling a home in the Las Vegas Valley, please don't hesitate to reach out. I'd be happy to discuss your needs and help you achieve your real estate aspirations.

Should You Invest in the Las Vegas Real Estate Market?

Las Vegas, known for its glitz and glamour, also offers intriguing possibilities for real estate investors. This section explores the current Las Vegas housing market to help you decide if it aligns with your investment goals.

The Las Vegas real estate market has seen significant movement. While sales activity slowed last year, new listings also declined, creating a more balanced market compared to prior periods. This doesn't necessarily signify a downturn; it suggests a shift from a seller's market to a more neutral environment.

While some price moderation might have occurred, affordability remains a challenge due to limited inventory. So, competition can be intense, particularly for desirable properties.

Reasons to Invest in Las Vegas Real Estate

Las Vegas offers potential advantages for long-term investors:

1. Steady Growth

The Las Vegas metro area boasts impressive growth, attracting new residents thanks to its diversified economy. Tourism, entertainment, gaming, along with technology, healthcare, and education contribute to a stable income base for the population.

2. Rental Market Strength

Las Vegas enjoys a robust rental market, with many residents choosing to rent. This presents opportunities for investors to generate consistent rental income, especially in popular neighborhoods and areas near employment hubs.

3. Proven Resilience

Las Vegas has a history of bouncing back from economic downturns, as evidenced by its recovery from the 2008 recession and the COVID-19 pandemic. The city continues to see revitalization efforts through new projects and initiatives.

4. Strong Economy and Population Growth

Las Vegas has been experiencing consistent population growth due to its economic opportunities, affordable cost of living, and desirable lifestyle. A growing population creates sustained demand for housing, making it an attractive option for long-term investors.

Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.

The Las Vegas Valley was the 30th fastest-growing metro in the country last year, according to new data from the U.S. Census Bureau. Last year the valley added 14,038 new residents, a 0.6 percent increase over 2022, according to the census, and has added 71,098 residents since 2020.

5. Infrastructure Development

Las Vegas has ongoing infrastructure development projects, including new roads, public transportation, and community amenities. These investments can enhance the quality of life and property values, making it an appealing choice for long-term real estate investors.

Several significant projects are shaping Las Vegas's future:

• The Resorts World Las Vegas: A $4.3 billion mega-resort opened in June 2023, offering over 3,500 rooms, a casino, a theater, and more.
• The MSG Sphere at The Venetian: A $1.8 billion entertainment venue expected to open in late 2023 or early 2024, featuring a spherical shape and state-of-the-art technology.
• The Las Vegas Convention Center Expansion: A $980 million project added 1.4 million square feet of space, enhancing the city's event capabilities.
• The Allegiant Stadium: A $1.9 billion stadium that opened in July 2020 as the home of the NFL's Las Vegas Raiders and host for events and concerts.
• The Boring Company's Loop System: A $52 million underground transportation system connects various locations in Las Vegas using autonomous electric vehicles.

6. Economic Diversification

Las Vegas has diversified its economy beyond the entertainment and tourism sectors. The city now boasts thriving industries in technology, healthcare, and manufacturing. Economic diversification contributes to stability and long-term growth potential in the real estate market.

7. Appreciation Potential

The Las Vegas real estate market has historically shown the potential for property appreciation. As the city continues to grow and evolve, property values may increase over time, providing long-term investors with capital gains opportunities.

8. Low Property Taxes

Nevada is known for its favorable tax climate. The state has no personal income tax, and property taxes are relatively low. This can translate into better returns for real estate investors, making long-term ownership more attractive.

9. Tourism and Hospitality

Las Vegas remains a global tourist destination, and the hospitality industry continues to thrive. This ensures a steady flow of short-term rental and vacation rental opportunities, which can be a lucrative segment for long-term investors, especially in the right locations.

10. Education and Workforce

The city has been making investments in education and workforce development. A well-educated and skilled workforce can attract businesses and professionals, leading to increased demand for housing and real estate investment potential in the long term.

11. Wealth of Investment Options

Las Vegas offers a wide range of real estate investment options, from single-family homes to multi-unit properties and commercial real estate. Diversifying your portfolio with different types of properties can provide a solid foundation for long-term financial growth.

Before investing in Las Vegas real estate for the long term, it's crucial to conduct thorough research, understand market conditions, and consult with local real estate experts to make well-informed investment decisions. Long-term real estate investment can be a promising path to building wealth and financial security in this dynamic and growing city.