Las Vegas Real Estate Trends

In January 2023, prices were down 0.26% compared to last year, selling for a median price of $385K. Right now, houses sell after 75 days on the market compared to 33 days in 2022. There were 660 homes sold in January this year, down from 1,268 last year.

The sale-to-list ratio in Las Vegas was 97 percent in December, meaning that a typical home sold for 3 percent below list price. And more than 23 percent of homes had a price drop, a 9.4 percent increase over December of 2021. Not only have home prices been falling, but the number of homes sold has also been dropping. Also, properties are staying on the market for far longer than they were in the spring of last year.   Bankrate sees nationwide prices falling around 7 or 8 percent.

Here is an interesting analysis from Redfin showing what people are thinking. In Dec ’22 – Feb ’23, 24% of Las Vegas homebuyers searched to move out of Las Vegas, while 76% looked to stay within the metropolitan area. The net population continues to grow.

Map of Las Vegas inbound & outbound migration trends

Wholesalers Everywhere

Lately I have been running into a lot of these guys.  According to Attom Data, foreclosure activity continues to rise for the 21st consecutive month. They also reported there were a total of 31,557 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 36 percent from a year ago, and up 2 percent from the prior month.

”The uptick in overall foreclosure filings nationwide points toward a trend that may suggest more increased activity is on the horizon as we enter the new year,” said ATTOM CEO Rob Barber.” While both completed foreclosures and foreclosure starts have stalled slightly over the past month, the annual increase in overall activity seen over the past 21 months may indicate a more substantial trend that could continue into 2023.”

These wholesalers descend on homeowners who have been issued a default notice. They make low cash offers in the hopes they can quickly resale the property at a higher price. It’s a dangerous game to play in a downward market. It will be years before we hit bottom.

Luxury Homes Bucking The Trend

Mark Wahlburg EstateMark Wahlberg’s bling bling temporary pad looks pretty awesome. Wahlberg bought a $14.5 million bungalow in The Summit Club while waiting for a mansion to be built. He purchased a 2.5 acres lot for $15.6 million for his next destination. The Las Vegas new-home luxury market hasn’t shown any sign of slowing down despite rising mortgage rates impacting new-home sales as a whole.

Las Vegas-based Home Builders Research reports there were 544 closings of new homes worth $1 million during 2022, a 26 percent increase over the 432 in 2021. Those 2021 closings were 38 percent higher than the 313 in 2020. The 313 closings were 27 percent higher than the 247 in 2019.

According to Las Vegas builder Blue Heron’s Chris Beucler. The executive said it’s constructing 17 luxury custom homes for clients — a number that typically ranges between seven to 10 — and has another 17 in development, a number that typically ranges from five to 10.

Siegfried & Roy Mansion for Sale – only $3M!

Need tiger cages? Ya. We got that.

You can now own a piece of history. Built in 1954, the “Jungle Palace” includes four parcels on the 8,750 square-foot lot, including the main house with two bedrooms and four bathrooms. Three additional guest houses, three pools, a casita and cabana occupy the remaining parcels.

Located at 1639 Valley Drive in Las Vegas, the Moroccan-themed residence was home to German-born duo Siegfried Fischbacher and Uwe Ludwig Horn — known in the industry as Roy — who lived in separate homes on the estate.

About The Author

Jim Eagan is the BrJim Eaganoker at Limestone Investments (license 1000724) and has been managing investment properties for over 30 years. He has written two books on the subject of property management has taught hundreds of other property managers the art of managing property.