Home prices have been climbing in Las Vegas thanks to low supply and high demand. The result is a seller’s market with bidding wars and intense bidding competition.
According to the most recent statistics available from the Greater Las Vegas Association of Realtors (GLVAR) the median price for existing single-family homes sold in Southern Nevada in July was $290,000, up 11.5 percent from the same month last year when it was $260,000. If the market continues at this pace over the next year, the area’s median prices could surpass $315,000, the last real estate peak in 2006.
For buyers and sellers who are trying to sort out the numbers, the statistics only further prove what they already know – it’s an ultra-competitive market that could continue to climb.
It can be hard to make a decision in a hot market but the last thing real estate experts recommend is trying to predict and time the market. Sellers who want to cash out the equity in their home and downsize have an easier choice on their hands – selling a single-family home is a good option right now as there are plenty of eager buyers willing to pay above asking price for existing homes, sometimes sight unseen.
Sellers who are looking to trade up have a harder decision to make as they will be competing against the same pool of buyers who are competing for their home. For this reason, it may be more cost effective to remain in their existing home and expand. Home renovation experts such as those on the home improvement platform Emprove, provide cost estimates outlining what it will actually cost you to complete a renovation.
“We understand that the home renovation industry is broken, complicated and a burden on homeowners,” said James Noel, CEO of Emprove. “We want to make this easier, more streamlined and enjoyable so you can readily dream up your ideal room, cost out options to match your budget and connect with a pre-approved local contractor to get your renovation up and running faster.”
Given the hot market, many sellers can forgo making major investments or upgrades to their homes and still receive multiple cash offers. According to the GLVAR, 22.6 percent of all local properties sold in July were purchased with cash, compared to 24.6 percent a year ago. But for those sellers who need help evaluating what home projects to undertake, if any, real estate and construction experts like those behind Emprove can help sort that out. Contractors, for example, can estimate the cost versus benefit of making an expensive repair or improvement before putting a for sale sign on the front lawn.
As for buyers, because there is so little inventory, they are often buying what they can and making it their own. Or they are looking to build new. Home builders in Las Vegas are pulling more permits and are on pace to reach 12,000 permits by the end of the year signaling an increase in the supply of new homes is on the horizon. During the peak in 2007, home builders pulled 18,000 permits and 32,000 in 2004. While the number of permits pulled indicates that the supply of new homes will increase, builders are being cautious and not overbuilding or building homes on a “speculative” basis or without a buyer. Rather than building large, expensive homes, builders are responding to the market creating more affordable options for buyers.
The benefit of buying a newly constructed home is the ability to customize finishes and make changes to plans if buyers work with a builder before construction starts. Finding a reputable builder is the first step in the process and requires research. Emprove’s platform can match homeowners with qualified contractors complete with references that can take a project from start to finish.
Las Vegas’ residential real estate market is strong and presents opportunities for both buyers and sellers. It can also be a challenge to build new or renovate, but using new sites such as Emprove to help you make the right decisions can help you sleep better at night — in your new master bedroom.
Members of the editorial and news staff of the Las Vegas Review-Journal were not involved in the creation of this content.