You May Be Busier Than Ever in Nevada’s Hot Real Estate Market
Despite the onset of the COVID-19 pandemic last year, the Nevada real estate industry has remained strong. In 2021, markets across the state are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Nevada should gear up for another booming year.
2021 Nevada Real Estate Outlook: Hot
In November 2020, the average home in Nevada was priced at $327,714, a 7.5% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 10.2% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
Along with rising home prices, home sales in Las Vegas alone grew 26.7% year-over-year in December 2020 despite inventory falling. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even in historically slower months. Between lasting low-interest rates bolstering demand and a consistently low supply, Nevada is a seller’s market as 2021 unfolds.
As more and more people flock to the Silver State, rent prices increased 3.5% statewide and 6.4% in the Las Vegas metro area. Meanwhile, only 0.5% of Nevada homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 2.7% of homes statewide. So, while new renters flock to Nevada, current homeowners continue to thrive as well.
2020 Nevada Real Estate Market Data
|Zillow Home Value Index||$327,714|
|1-Year Change on Home Values||+7.5%|
|1-Year Change on Rent Prices||+3.5%|
|Homes With Negative Equity||2.7%|
|Delinquent on Mortgages||0.5%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Nevada
Though Nevada’s lucrative tourism industry took a hard hit last year, the resilient housing market is a bright spot in 2021. Stimulation in the tourism and hospitality industries as well as a gradual return to air travel could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate.
This momentum isn’t limited to just residential either - commercial real estate is hot, too. Highlights include the Raider’s $191 million practice facility, the $46 billion acquisition of MGM Grand and Mandalay Bay real estate, Zappos’s $65 million headquarters, and a $110 million Amazon warehouse. These major investments in Nevada’s economy should have a positive impact on the local economy in the coming year.
In November 2020, Nevada’s Department of Employment, Training, and Rehabilitation reported that the state’s unemployment rate had dropped 1.8%, landing at 10.1% statewide. While still higher than the national average, Nevada’s improving job market shows promise. As healthy economic activity often correlates with growth in the real estate industry, narrowing unemployment rates are a positive sign for agents the year ahead.
With a strong 2021 forecast, Nevada real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Nevadans. This year, agents can expect to benefit from and help contribute to a booming local and national economy in the hot Nevada real estate market.
Take On 2021 With the Best Nevada Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Nevadans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Nevada? Join the Western Real Estate Facebook Group!