Las Vegas Real Estate Market Update
Forbes wrote an excellent in depth article specifically about Las Vegas. Not only does it have good analysis, it also provides stats on specific areas of Las Vegas. If you have multiple investments in Las Vegas, this may be something you would want to roll up your sleeves for.
In May, home prices were down 6.3% compared to last year, selling for a median price of $405K. On average, homes in Las Vegas sell after 41 days on the market compared to 15 days last year. There were 1,209 homes sold in May this year, down from 1,457 last year.
In summary, Forbes believes a great crash in the Las Vegas housing market seem unlikely. Cooling off of investment activity in the Las Vegas housing market from 2022 to 2023 reflects what has occurred in many other major cities. I believe there will be a steady decline and another drop after the summer “primary buyer” season is over. Nothing is going off a cliff but we expect steady declines in 2023. Returns on investments are going to remain dismal. Even if prices remain steady, rents are decreasing while the government is becoming more hostile towards investors. There is simply no reason to invest in real estate in Las Vegas right now.
Rental Update – Waiting on the Governor…
There are a bevy of laws that have passed the house and the senate in Nevada. Any of these would make a real estate investor cringe. Cross your fingers he will not sign any of them. If the governor does sign any of these ridiculous laws, you can expect a drop in revenue on new vacancies. The supply of rentals has increased causing market pries to drop in most categories. With these news laws, Limestone Investments will become even more stringent on tenant screening. This translates to longer vacancy periods and reduced income.
Zillow has a really nice interactive map on rentals. The graph below is sobering and explains why we will not likely increase rents on many of our tenants. A standard 3/2/2 has dropped about $75. If the trend continues, many of our tenants will be paying above market soon.
Vacant Property Solutions
There has been a sudden surge of customers who have hired us to get rid of their naughty tenants. This video describes what we do to prevent homeless people from getting into properties.
Vacant Properties
Quick snapshot of our staff.
We have more folks to help manage our properties now. Vennetta and Victoria will be managing some of our portfolio. Our goal is to provide even better customer service than before. Recent customer reviews on Yelp and Google have been excellent!
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