Forecast for Las Vegas market shows differed signs
Many people are still concerned with real estate market in Las Vegas, despite improvements that have occurred over the past four years, according to CBS News. Real estate in Las Vegas has posted a 41 percent decline in costs and unemployment is up 52 percent since fall 2008, but it is steadily rising. The overall economy in Sin City is looking up because there are more international travelers visiting, lending a hand to the struggling city.
In the Valley, the inventory of foreclosed properties has gone down by 55 percent and the number of properties entering the process has dropped 78 percent since the housing bubble burst. Compared with 2008, the amount of sold foreclosed properties has gone down slightly, about 6 percent. This is because there are fewer homes that are being foreclosed and many properties are going through short sales instead. A law that was put in place last October played a major role in this shift. The state is now requiring lenders to go through a much more expansive paperwork process than before, making many resort to short sales that are easier to do in the real estate market.
Las Vegas rising
During the past year, Las Vegas home prices rose faster than the national rate, but the overall growth of the market is less significant. According to the Las Vegas Sun, the median home price rose 7 percent year-over-year in the third quarter to $121,500. Median prices are expected to rise an additional 0.1 percent in the coming year. However, nationwide, home prices have risen 3.2 percent in the past year and are expected to increase by another 1.7 percent throughout the next year. The most promising location in the Valley is in North Las Vegas where home values rose by 8.3 percent to $102,200.
The economy in Las Vegas is seeing an upturn, as well. Attractions in the city saw a record year in 2012 for international travel. Through August, international visitors spent $109.2 billion, which is more than an 8 percent increase over the same period year-over-year, according to the Las Vegas Sun. The Obama administration has made international travel more convenient, especially for Brazilian and Chinese nationals, in hopes of reaching the goal of attracting 100 million annual international travelers by 2021.
Unfortunately, many people who are looking to purchase property aren’t able to unless they have cash-in-hand. Cash investors are winning battles in Las Vegas, leaving traditional house buyers with few or no options.