The effect of COVID-19 on the Las Vegas, Nevada real estate market has been unexpected, to say the least. Many industries have been brought to a standstill, including the Nevada Casino Gaming Market, and has led to many people losing their income in the sector. The unemployment rate in Las Vegas jumped from 7.2% in March to 34% in April according to the Nevada Department of Employment, Training and Rehabilitation.
Yet, the real estate industry saw local home prices break all-time records, and even multiple offers being received on homes in some areas. Luxury deals are still being closed, and as recently as the end of June a condo was sold for $782 a square foot, despite other properties in the building going for around $454 per square foot.
What does all of this mean for sellers, buyers, and investors? Well, there might be a window of opportunity here that you won’t want to miss.
1. Buyers are increasing due to tax benefits and remote work opportunities
Even with a much-needed rebound in the Las Vegas real estate market in June, where record-high prices in single-family homes were achieved, the demand for real estate in the area continues to climb. This could be due to increasing remote work opportunities offered by many companies in neighboring states, especially in Silicon Valley, California, where real estate is expensive.
When comparing real estate prices in California to those in Nevada, it’s clear why there is an influx of buyers. In addition, tax benefits, such as zero personal income tax, could make Nevada the next best remote work location.
2. Sellers are listing to make the most of the market
Indicators are also showing that now might be a great time for longstanding homeowners to sell. It’s estimated that, over the last 10 years, Las Vegas real estate prices have appreciated by as much as 99.29%.
In addition, Las Vegas is one of the metropolitan areas expected to see an increase in existing home sales because of the high concentration of owners who are reaching nine years of tenure. With the rising demand, many homeowners are opting to cash-in.
3. Investors are seeing opportunities to purchase
A sad reality of the pandemic is that not all residents can continue to afford rent. The State of Nevada issued a ban on evictions and foreclosures in an attempt to protect tenants. However, this will end around the 1st of September. While the idea is that tenants should repay missed rent, we could see some cases where tenants opt to move out.
This situation could lead to a number of multi-unit complexes hitting the market as well as sought after condos and prime properties. With the current trend in house flipping, this could be the ideal opportunity for investors to buy up these properties, revamp, and sell at a higher price to the new influx of buyers.
Las Vegas is a diamond in the rough, and as more and more people realize the value of the wide-open spaces, high-speed fiber connectivity, and overall lower prices on properties, it’s only a matter of time before the window of opportunity is closed.
