If 2021 made one thing clear about real estate in Nevada it’s this: we are now firmly in a seller’s market. Mirroring the market situation in the United States at large, there is a considerable shortage of inventory compared to a historic surge in demand in the state of Nevada. This has led to trench-like bidding conditions, and frequent disappointment and discouragement among buyers.
We can trace the disparity between housing supply and housing demand to the unprecedented number of new residents flooding into Nevada. With a relatively manageable cost of living, strong economy, good weather, and beautiful scenery, Nevada has never looked more attractive, especially now that so many young professionals are working remotely – almost half, as of October 21.
With a lumber shortage still in full swing, developers and builders simply cannot keep up with demand, leaving many buyers empty handed. Home value growth in the Vegas metro area showed 25% year-after-year growth in 2021, compounding the issue.
Any Changes for Buyers in 2022?
In short, no. But that’s not a bad thing.
If you’re looking for a house in Las Vegas for example, you might think these market conditions are signaling, “don’t buy now – wait until prices go down,” but that’s not exactly great advice to follow. Because interest rates are currently low, it’s still a great time to buy. You’ll be able to trade some of your interest budget for more home budget, meaning you won’t have to compromise as much as you would when interest rates are higher.
And it’s still a good time to be a first-time home buyer. Not only are there homes for most budgets, but there are various programs available to help Nevadans snag their first home. Consult the Nevada state Public Utilities Commission webpage for more information.
Even though all hope isn’t lost, buyers should maintain realistic expectations. The lack of supply means you most likely won’t find everything you’re looking for. Be prepared to make compromises, but walk away with more than you thought you would get.
Any Changes for Property Owners in 2022?
This year, property owners will be faced with a choice: to sell or rent?
With property values soaring, and buyers champing at the bit to score any house they can get their hands on, it’s hard to imagine a better time to sell, especially if you purchased property after the 2008 financial crisis. However, there’s no sign that property values will dip significantly any time soon. (https://youngmedicalspa.com)
That means it might be an even better idea to hold on to your property and rent it instead, if you’re not already. With such an influx of new residents in Nevada, the rental market is absolutely booming. Out-of-luck home buyers and preferential renters alike are in need of rental housing, and that need might just keep growing, since there doesn’t seem to be much supply relief on the way in 2022.
If you’re curious about being a landlord, don’t hesitate to contact us. At Utopia Management, we do everything we can to ensure your rental properties run smoothly and efficiently, and that you don’t have to lift a finger to make it happen.
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