Las Vegas Set to Dominate Home Value Growth in 2019
While the rest of the country worries about housing market cooling, Las Vegans are expecting more than double the national home appreciation rate in the New year. According to realtor.com, Las Vegas home prices are likely to rise nearly 8 percent (7.9 percent) in 2019, compared to a national median resale value of 2.2 percent. By comparison, Zillow is predicting national appreciation for the 2019 calendar year of 3.79 percent.
Although higher mortgage rates will certainly affect Southern Nevada homebuyers along with the rest of the country, the local market’s version of “cooling” is likely to be much warmer than many others. This past September, Las Vegas home prices were up 13.5 percent year-over-year, and Southern Nevada’s growth rate topped the S&P CoreLogic Case-Schiller index list for fastest growth for that month and the three preceding.
The only potential dark cloud on the horizon for Las Vegas housing, said one Las Vegas-based consultant Brian Gordon, is that housing prices could begin growing markedly faster than incomes, as they already are in much of the country. “The local economy will play a significant role” in determining how much of a factor this is for Las Vegas in particular, he said. “If the job market keeps strengthening [and] the valley’s population keeps growing,” local housing demand will rise and, with it, prices. “The market’s ability to sustain that type of gap is impractical,” Gordon warned.
Consumer sentiment will play a big role in Las Vegas homebuying and national homebuying as well. Danielle Hale, realtor.com’s chief economist, described the buyers’ thought process in 2019 as very different from the past decade. “Some buyers will be thinking, ‘I can’t even afford a home.’ They will have to struggle with the decision of what they want versus what they really need.”
“Consider there are still good profits to be made, only not the huge windfalls we’ve been seeing,” advised long-time Forbes contributor Ellen Paris in a recent article on the topic.
Are you buying in Las Vegas? What markets look good to you these days?