Key Indicators to Gauge the Las Vegas Housing Market

Key indicators of the housing market, including population, employment, visitor volume, home sales, and median sale price, is helpful in your decision-making process

Key Indicators to Gauge the Las Vegas Housing Market

If you're looking to gain insights into the current state of the housing market in the Las Vegas metropolitan area, look no further than this comprehensive analysis. By identifying key indicators such as population, employment rates, visitor volume, and more, this report provides a detailed picture of the local real estate market. With relevant statistics and data for each indicator, this analysis highlights their potential impact on property values and demand for housing in the area.

Whether you're a homebuyer, seller, or investor, this report can help inform your decision-making and give you a competitive edge in the market.

The Las Vegas housing market has been of interest to homebuyers, renters, and real estate investors alike. This article aims to identify the key indicators that can help gauge the current state of the housing market in the Las Vegas metropolitan area.

Population:

Population trends can be an essential indicator of the demand for housing. A growing population can indicate more demand for homes and potentially higher property values. Conversely, a shrinking population can lead to lower demand and property values. Renters may also benefit from population growth if it leads to job creation and a more vibrant local economy, which can improve their job prospects and quality of life.

According to the U.S. Census Bureau, the population of Las Vegas has been steadily increasing over the past decade, from 583,756 in 2010 to 651,319 in 2020, representing a growth rate of 11.6%.

Establishment-Based Employment and Unemployment Rate:

These data can be relevant to homeowners, renters, and real estate investors to gauge the strength of the local economy. A low unemployment rate and increasing employment can indicate a growing economy with more job opportunities, potentially leading to higher demand for homes and higher property values. Conversely, a high unemployment rate and decreasing employment can indicate a weaker economy, potentially leading to lower demand and property values. Renters may also benefit from a strong local economy, as it can lead to better job prospects and potentially higher wages.

According to the U.S. Bureau of Labor Statistics, the unemployment rate in Las Vegas was 6.8% in January 2022, down from 10.8% in January 2021. Additionally, there were 1,055,100 non-farm payroll jobs in the Las Vegas metropolitan area in January 2022, up from 1,023,900 in January 2021, representing a 3% increase.

Average Weekly Hours Worked and Wages:

Homeowners, renters, and real estate investors may find these data useful to gauge the strength of the local job market. Increasing hours worked and wages can indicate a strong job market, potentially leading to higher demand for homes and higher property values. Conversely, decreasing hours worked and wages can indicate a weaker job market, potentially leading to lower demand and property values. Renters may also benefit from a strong job market, as it can lead to better job prospects.

According to the US Bureau of Labor Statistics, as of February 2022, the average weekly hours worked in the Las Vegas-Henderson-Paradise Metropolitan Statistical Area (MSA) was 33.9 hours, and the average hourly wage was $26.91.

It is worth noting that these figures can vary by industry and occupation. For example, the average weekly hours worked in the Leisure and Hospitality industry (which is a significant sector in Las Vegas) was 26.4 hours, and the average hourly wage was $18.97. On the other hand, the average weekly hours worked in the Professional and Business Services industry was 37.1 hours, and the average hourly wage was $38.89.

Visitor Volume and Convention Attendance:

According to the Las Vegas Convention and Visitors Authority, visitor volume to Las Vegas was 18.9 million in 2021, up from 14.5 million in 2020, but still significantly lower than the pre-pandemic level of 42.5 million in 2019. Additionally, convention attendance was 1.6 million in 2021, up from 0.4 million in 2020, but still lower than the pre-pandemic level of 6.6 million in 2019. These figures suggest that demand for short-term rentals may be slowly recovering, but still not at pre-pandemic levels.

Home Sales and Median Sale Price:

Homeowners, renters, and real estate investors may find these data useful to gauge the strength of the local housing market. Increases in home sales and median sale price can indicate higher demand for homes, potentially leading to higher property values. Conversely, decreasing home sales and median sale price can indicate lower demand for homes, potentially leading to lower property values.

According to the Greater Las Vegas Association of Realtors, there were 5,172 home sales in the Las Vegas metropolitan area in January 2022, up from 4,530 in January 2021, representing a 14.2% increase. Additionally, the median sale price was $415,000 in January 2022, up from $320,000 in January 2021, representing a 29.7% increase. These figures indicate a strong demand for homes in the area and potentially higher property values.

Housing Inventory and Days on Market:

Homeowners, renters, and real estate investors may find these data useful to gauge the availability of homes for sale and how quickly they are selling. A low housing inventory and decreasing days on market can indicate a strong demand for homes, potentially leading to higher property values. Conversely, a high housing inventory and increasing days on market can indicate lower demand for homes, potentially leading to lower property values.

According to the Greater Las Vegas Association of Realtors, there were 1,182 homes available for sale in the Las Vegas metropolitan area in January 2022, down from 2,277 in January 2021, representing a 48.1% decrease. Additionally, the median number of days on market was 7 days in January 2022, down from 23 days in January 2021. These figures indicate a strong demand for homes in the area and potentially higher property values.

Mortgage Rates:

Homeowners, renters, and real estate investors may find mortgage rates useful to gauge the affordability of buying a home. Lower mortgage rates can make it more affordable for people to buy homes, potentially leading to higher demand for homes and higher property values. Conversely, higher mortgage rates can make it less affordable for people to buy homes, potentially leading to lower demand and property values.

According to Bankrate, the average 30-year fixed mortgage rate in Las Vegas was 3.01% in January 2022, down from 3.12% in January 2021. These figures indicate that mortgage rates have remained low, potentially making it more affordable for people to buy homes in the area.

Foreclosure Rate:

Homeowners, renters, and real estate investors may find the foreclosure rate useful to gauge the health of the local housing market. A high foreclosure rate can indicate a weak housing market with low demand for homes and potentially lower property values. Conversely, a low foreclosure rate can indicate a strong housing market with high demand for homes and potentially higher property values. According to RealtyTrac, the foreclosure rate in Las Vegas was 0.01% in January 2022, down from 0.03% in January 2021. These figures indicate a low foreclosure rate and potentially a strong housing market in the area.

If you're looking for a place to call home, there's no better time to invest in the Las Vegas metropolitan area. This in-depth analysis of the housing market shows that the city is booming with a steady increase in population, a strong job market, and rising visitor numbers. Plus, with fantastic mortgage rates, there's never been a better time to take the plunge.

Here's the best part - the current median sale price and days on the market data suggest that properties are still affordable and accessible to all kinds of buyers. That means whether you're a first-time buyer or a seasoned investor, Las Vegas has got something for you. Don't wait to jump on this opportunity to invest in the city's vibrant and growing community. Get ready to be a part of the exciting Las Vegas housing market and make a smart, profitable investment today!

March 27, 2023