After more than a year of lockdown and COVID restrictions, Las Vegas – a city highly driven by the entertainment, tourism, and hospitality industries – is finally (slowly) getting back on its feet.
As of June 1st, Las Vegas has returned to pre-pandemic guidelines. These remove restrictions on capacity limits for establishments and large gatherings. With this promising transition, businesses across all industries will have to proactively navigate the new normal, while ensuring the health, safety, and best interests of their clientele.
The same applies for Sin City’s housing and real estate market. While the market has been red hot for the past few months now, buyers and sellers, along with their agents, will need to pay attention to what these changes could bring about.
Let’s dive into what the lifted COVID restrictions in Las Vegas could mean for you, if you're thinking of buying or selling a home.
How Lifted Coronavirus Restrictions Could Impact the Las Vegas Housing Market
Open Houses Will *Likely* Make a Comeback
One of the changes the pandemic caused was the halt on public listings and open houses. Due to health and safety concerns, many homeowners were hesitant to welcome potential buyers to check out their homes. Add to that the lockdown that required people to stay at home as much as possible.
Fast forward to today, and increasing vaccination rates across the country have driven many homeowners to feel more confident in having interested parties come in for a look. As a result, there could be more available properties for buyers to choose from. This, in turn, could limit the bidding wars and slow down the demand to potentially cool off the market.
On the opposite side, many experts think that home inspections will remain rare for now. Health concern has become secondary. Homes are selling too fast on their own that it’s been unnecessary to stage them for walk-throughs.
An Influx of Out-of-State Movers
With the absence of state income taxes and its great cost of living even at a luxury level, many people are drawn to move to Las Vegas. That’s why the city is seeing an overwhelming inflow of buyers from California and other neighboring, more expensive states.
In addition, more and more people are working from home. As such, newcomers who are in search of bigger, more comfortable, yet better-priced properties look to the valley for their home. With this comes high offers that outprice the locals, a shortage of available properties, and sales closing within hours or days of listing.
Ultimately, the inflow of out-of-towners moving to Vegas makes the housing market all the more competitive.
The Hot Market Remains
Many people fear that if the red-hot streak continues, a crash in Las Vegas’s housing market — similar to that of the Great Recession of the early 2000s — could happen anytime soon. The majority of experts say otherwise. In fact, many have predicted that things won’t slow down, at least not until the end of the year.
Additionally, because the cost of materials has gone up, particularly copper and lumber, inflation will continue to impact the housing prices. With the rise, the cost of building homes, resale homes, and mortgage rates can inch up as well.
However, several factors suggest that the market will remain the same until the second half of the year. In great part, this trend is driven by the lowered interest rates, financial capabilities of potential buyers, and tightened lending practices.
At worst, experts predict that a correction or sharp drop could happen. And when this occurs, bids could drop, sellers might adapt their sale prices, and prices would slowly decline.
What it All Means for Buyers
As a buyer, timing is of great importance. If you’re seriously considering purchasing a property under these market conditions, you’ll have to be prepared to pay above the asking price. As the Las Vegas Review-Journal notes, a full-price offer is a weak offer as competitors are now willing (and able) to stretch their budgets.
But that’s not to say that you don’t have opportunities to find and land a good deal, because you can. Be sure to coordinate with your agent on how to go about the search and buying processes.
Agents who are well-versed in the local market will be able to help you best. Most of the time, they have the knowledge and access to pocket listings, off-the-market homes, and properties that are yet to have for-sale signs set up.
What it All Means for Sellers
Since people are on a buying frenzy, it’s highly possible that you’ll receive multiple offers for your property. While it’s always tempting to go for the highest bid, it’s best to first consult with your agent on the next best steps. Some agents might do due diligence on the buyers, while others may require relevant documentation.
If you’re selling a luxury home, it’s still vital to price it well if you want to sell within days. Again, your agent should be able to guide you – from marketing your home to closing the right deal with the right buyers.
The lifted COVID restrictions in Las Vegas brings in promising changes to the city’s industries, including the booming housing market. While everyone hopes things will continue to head in a positive direction, no one can fully predict what will happen. As such, it’s still best practice to remain updated with the trend and insights surrounding Las Vegas’s real estate.
Are you looking to buy or sell your Las Vegas home? Our team of experts at The Brendan King Group can guide you on the next best steps to take. Contact us today to learn more.