Type: Single-family
Configuration: 1,000 SF to 3,000 SF, 2+ bedrooms, 2+ baths, 2+ garages, minimum lot size is 3,000 SF, one or two stories.
Price range: $320,000 to $475,000
Location: All zip codes marked in green below have one or more of our client’s investment properties (click to enlarge).

How’s the Market Doing in 2024?

Prices and rents continue to increase steadily.

Sales - $/SqFt by Month

(Click to enlarge.)

The median sales $/SF was up 9% YoY and 6.7% YTD.

Rentals - $/SqFt by Month

Rents rose 4.3% YoY and 6% YTD.

The Market Remains Hot

Following the rapid inventory decline starting in Q1, the number of days on the market for sales remained below 17 and for rentals below 19, indicating strong demand for both.

Sales - List to Contract Days by Month

Rentals - List to Contract Days by Month

Rental trends tend to follow sales. When prices are high, more people are forced to rent, which results in increased demand and rising rents.

Inventory has been frustratingly low and is not getting better

Sales inventory plummeted at the beginning of the year and has remained below one month in Q2. 6 months is considered a balanced buyer/seller market. We are firmly in a seller’s market.

The rental inventory had a similarly rapid decline in Q1 and has remained below one month in Q2.

The stubbornly low inventory for both sales and rentals can only mean one thing—rising prices and rents.

Interest Rates in 2024

The interest rate dipped by about 0.5% starting in mid-December 2023 and January, which triggered an unseasonal price rise for both months (See Q1 2024 Las Vegas Market Update). The 30-year fixed rate ranged between 6.625% and almost 7.25%. See the chart below.

[Source: Freddie Mac]

Where Will the Market Go for the Remainder of the Year?

Interest rates

With the cooling inflation reports, the Fed is expected to start cutting rates in September. Whether that will happen remains to be seen. Additionally, lower Fed rates do not necessarily translate into lower mortgage rates. If the Fed does not increase buying of mortgage-backed securities, the mortgage rates will not drop significantly. I expect mortgage rates to remain within the same range as we have seen throughout 2024.

Prices and rents

Assuming interest rates remain stable for the remainder of the year, given the sub-one-month inventory for both sales and rentals, I expect the prices and rents to continue to rise for the remainder of the year. However, the rate of increase may be lower than that of Q1 and Q2. We’ve noticed a slight increase in inventory in July and a slight increase in time on the market. Time will tell whether that’s a blip or a trend. Based on our participation in the market in July, good properties priced correctly are still selling within days. Attractively priced properties still receive multiple offers, often above the asking price. The demand is still very strong.

Summary

The investment market in Las Vegas grew strongly in the first half of 2024 and is expected to continue growing, though potentially slower in the second half of the year (as long as the interest rate does not change significantly).