Trulia Names Las Vegas as Market to Watch in 2016
2016 may be a “hot” year for Las Vegas real estate or so one national real estate website promises. While local experts do not see this happening, Trulia named Las Vegas as its No. 9 “market to watch” for 2016 for its “strong growth potential.” The reasons for this include demographics, job growth, and online home-searches.
Caution Is Essential
Local experts say that they see the climate as more lukewarm than “hot” and urge caution. With the single-family home median resale price stalling since the summer at $220,000, this is a sign that the market is steady, rather than ramping up for a big jump. Sales during the summer stayed at around 3000 a month and the market is said to be more “balanced.”
While the national exposure is great local realtors say, it is important to remember that the market has had to come a long way in just a few years since the recession. Job growth is predicted to grow almost 5 percent in 2016, which is above the median national rate and homes are attainable, but it is still important to remember that our market is steal healing and trying to find that new normal.
Job Growth is Good Sign
Job growth and formation of new jobs could be the impetus that the Las Vegas real estate market needs. However, population growth is essential as well, which means bringing more people in to live. All of this goes hand in hand to help increase real estate sales.
Brian Gordon of SalesTraq, a local housing research firm, said, “The growth of the economy in Southern Nevada is heads and tails above most other markets around the country. When we talk about population and employment growth as key drivers for housing demand, they have the potential to provide pricing stability, and even upward pressure on median home prices.”
Other Challenges
While it looks like the market is heading into a new norm, it is important to note that there are still some challenges. Credit challenges are still an issue and there are still those homeowners who owe more than what they owe on their mortgage. This means that they are unable to buy.
In addition, interest rates and land rates are both expected to go up, which will make it more expensive to buy a home. If spending by consumers goes down due to a downturn in the economy, this could really affect the market. That is why caution is the best move.
While caution is being urged locally, the Trulia prediction could be correct. It is something to keep in mind and watch in the new year.