Las Vegas Housing Market Update - Home Prices vs. Recession

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Everyday, I get asked, with all of the scary headlines in the news, like “recession” and “housing crash”, “how is the national housing market news affecting our local market?”

In this video, I’ll share the 3 trends I’m watching & 4 fundamentals to answer the questions about what is happening with home prices in town.
1. Median home prices came down a little over the last few months, from $482K to $465K…still way up from $410K this time last year. In the last 7 days, there were almost 2,500 price cuts on active listings, which is 250% more than the 7 day average in June.

2. The absorption rate, a measure of supply and demand, we get by taking the number of homes sold in a month and dividing it by the number on the market. We can find a percentage that determines how quickly homes sell…which is about 27%.

3. So, with Inventory at 7,300 homes, there are 3 ½ months of supply. Traditionally, 5 to 6 months is considered a normal market.

At what some would call the peak of the market, end of April, there were less than a month of supply, and I could expect 5-10 offers on my listing. In this NEW market, homes that are priced correctly still sell quickly. Some agents and sellers are still hungover from the crazy market we had for a year and a half, coming off record breaking price appreciation last year.

So, yes, the market has slowed, which is a benefit for buyers to not be rushed in making such an important decision. And, don’t believe the BS in the news, or uneducated realtors.

We’ve heard this term “recession” over and over…and, nobody would argue that the Great Recession was painful and miserable for most. However, that’s a once in a lifetime event. If we look at the real history, real estate prices have been stable or increased in almost every recession since 1955.

Now, here’s the big news, and why smart people are buying in Las Vegas. THE MARKET FUNDAMENTALS HAVEN’T CHANGED.

1. There have been less homes built in the last 10 years than any decade since the 60s…while the population has grown more than ever

2. headline stats like “Foreclosures are up 100%...” right, because there was a moratorium for 2 years…and, foreclosures today September 2022 are at the lowest rate in over 2 decades.

3. Locally, already the Entertainment capital of the world, becoming the SPORTS capital of the world…Boxing, MMA/UFC, NFL, WNBA, NHL… with MLB + NBA coming…several more arenas planned, and they’ve already closed on the $100MM land deals

4. Mineral Effect (least known)- While we are known as The Silver State, Nevada is the top gold mining state in the US, has the largest proven gold deposits, and is the largest gold mine in North America. It’s more important than ever before for the following reasons-

Gold is needed for energy production in computers and battery products. So, Nevada is poised to become the new energy leader and will most likely become the number one energy economy in the United States.

The largest known lithium deposit in the United States is in northern Nevada. The Mountain Pass mine, 53 miles from Las Vegas, is the second largest producer of rare-earth minerals. This will allow employees of the mining operation to take advantage of the low-cost of living in Las Vegas while commuting to their employment site. These minerals are necessary for cell phones, electric vehicles, and a lot of other newer technology.

The higher end positions, executives, engineers, scientists, IT will be relocating in bigger numbers to NV.

I’ll be going into a lot more detail in future videos. So, be sure to subscribe, and let me know any thoughts or questions in the comments below…I look forward to sharing the truth with you.

So, call, text, or email me with any thoughts or questions.
Call or text me at 702-239-8400

Disclaimer: Randy Milmeister is not a practicing tax accountant, licensed attorney, or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video - it is for entertainment purposes only. Randy Milmeister is a licensed real estate broker-salesman with Keller Williams in Nevada Lic.# 64289