NEVADA – If you’re looking to invest in Nevada real estate, now is the time to do it. The housing market is currently riding a wave of record prices and rising sales, and this trend is expected to continue in the coming years. Home values in the Las Vegas-Henderson-Paradise Metro and Las Vegas City have already reached record highs and are expected to continue to rise.
Las Vegas, Real Estate Market, Is Riding A Hot Streak Of Record Prices And Rising Sales Despite The Bleak Economy
Despite the bleak economy, the Las Vegas real estate market is riding a high-speed roller coaster of rising prices and sales. The pace of new home construction has declined in the past five months, although multifamily construction is up about 20 percent from last year. The economy faces challenges related to the supply chain and persistently high inflation.
While inflation is near four-decade highs, the economy still shows signs of recovery. The S&P 500 is up 7% from its 2022 low, while the unemployment rate is at a half-decade low. Meanwhile, the Federal Reserve is pursuing an aggressive rate-raising strategy, which may be helping the market.
Rents Are On The Rise
The forecast for Nevada rental properties shows that rents will continue to rise. According to the Federal Reserve Bank of Dallas, annualized rent price increases will reach 8.4% by 2023. This growth rate is expected to continue despite rising mortgage costs and a housing shortage.
The low supply of industrial space contributes to the upward movement in rental rates. In the second quarter of 2021, the average asking triple-net lease rate was $.59 per square foot, but this number shot up to $.81 in the third quarter of the year. This increase was partly driven by expensive flex and light industrial buildings, which artificially inflate the asking rate. While the fundamentals of the industrial market in Northern Nevada remain strong, there are concerns over the capital markets.
In addition to the rising demand for rental properties, Las Vegas is also becoming a business and entertainment hub. While Las Vegas is known as the world’s entertainment capital, it is becoming a destination for people and businesses from around the world. The tax-friendly environment has helped make the city desirable for investors and property owners.
Fear Of Missing Out On Nevada Real Estate In 2023
In the year 2023, home prices in Nevada could begin to decline. This fear of missing out is fueling the current euphoria. However, this wave of optimism is based on a poor understanding of future trends. Home prices could fall as the economy struggles to recover from the recent recession.