The following analysis of the greater Las Vegas, Nevada real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
Job growth in the Las Vegas metropolitan area continues at a very brisk pace. A total of 32,300 new jobs were added over the past 12 months, representing a very strong annual growth rate of 3.3%. For perspective, the U.S. as a whole is growing at around 1.6%, or half the rate of Las Vegas.
Even as jobs are added to the local economy, the unemployment rate is still higher than one would expect to see. The seasonally adjusted rate is 4.9%, which is down from 5.25% a year ago but still well above the national rate. This can be attributed to a rapidly rising labor force that has grown by over 34,000 in the past year as people who had been on the sidelines start to look for employment.
The average time it took to sell a home in the region dropped five days compared to the third quarter of 2017.
Region-wide it took an average of only 27 days to sell a home in the third quarter of this year.
Days on market fell in all but two of the sub-markets compared to a year ago. The exceptions were in the Queens Ridge area (+4 days) and in Green Valley (+1 day).
The greatest drop in days on market was in Northeast Las Vegas, which took 10 fewer days than in the same quarter of 2017.
The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Though employment growth in Clark County continues to be very robust, this has yet to be reflected in any major growth in earnings. Home prices have been growing at some of the fastest rates in the U.S., which is affecting affordability. With the lack of real wage growth, and in concert with rising inventory levels, I believe that the market will start to trend toward more balance, but we have a ways to go. Because of this, I have moved the speedometer a little more toward buyers.
Mr. Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.