Since the Boom of 2006, to the Bust’s lowest point of 2012, Las Vegas Real Estate has been a roller coaster ride, much the same as epic nights of gambling that has made this city famous Worldwide. Behind the rebirth of Las Vegas and likely much of the country, is a story of hard work. Many professional gamblers on the strip, know the odds of their bet from many hours of studding the statistics. Real Estate is no different, to make a wise investment, you should know the statistics. The following is simply my view as a Realtor of what I can share, regarding Las Vegas Real Estate.
It’s been said by many that Las Vegas is healthy when there is a six month supply of homes available in the market (the number of homes generally sold in six months), yet Las Vegas Has not seen inventory like that since the bottom of the crash in 2012. What most economist should find important, is the affordability of those homes, based on household income.
Looking at the data on Household income, it shows the average income for Las Vegas is under $59,000 a year (as reported by www.census.gov). Using a conventional loan, the maximum Debt to Income ratio of 40% means you need to make a minimum of $49,999 per year. Additional financial obligations such as a car payment would be added to the formula in calculating the minimum income required. If you were to use an FHA loan, your income could roughly be as low at $31,000, to qualify for an FHA loan. But who of us does not have other payments we need to make, other than the mortgage? This in turn has in my opinion helped to fuel what we saw as flat prices in the spring of 2019.
Las Vegas continues to build new homes, but at a slower rate than during the boom period, due to availability of land and a smaller work force capable of building a quality home. With new opportunities like the Raiders moving to Las Vegas and the expected influx of west coasters looking for a tax friendly environment, builders will continue expand the city to the West, Northwest and Southern parts of valley.