Las Vegas Housing Market for 2018

It's Vegas, baby! Is anyone suprised? Of course not! As a Las Vegas native--born and raised here--I have seen us through 3 of  recessions (the last one was a depression, if you ask me) and when the hotels were closing the showrooms back in 1985 and restaurant chains like Bonefish closed their doors in 2010, it was dark days for the Entertainment Capital. But, when things are tough, the spirit of our city hangs in there and we always come back.

When I short-saled my own home in Green Valley, I moved to Southern Highlands. The builders had all but closed up shop. Royal Highlands closed up their standing inventory to wait out the market. Homes with brass fixtures and Tuscany styled design sat empty. But now, the vacant lots are filling up again with new homes. Southern Highlands home builders are building again.. only this time, it's up the mountain with huge, beautiful luxury homes.

Then I watched the Downtown Summerlin finally get its opening. The rusty old metal frame that was left to weather the elements back in 2010.. is now a bustling shopping mall with great food and entertainment. And directly to the East of that mall is a brand new development of modern condos and an event center!

Mountain's Edge community FINALLY has it's own grocery store (and it's a Walmart superstore) and now--wait for it--we are getting a new sports stadium! With no state tax, and affordable property taxes.. great entertainment at any time of day...Las Vegas is a great place call home.

The following is an excerpt from the Realtor.com By  | Dec 4, 2017

Everyone loves predicting the future. ... We're setting our sights on prognosticating which housing markets will soar to new heights in 2018!

Americans track the up-and-down trajectory of the nation's housing markets these days, the way previous generations obsessed over stock prices, NBA rankings, or Furby sales. Give the credit (or blame) to skittishness over the last decade's housing crash, or the roller-coaster ride of home pricing, or maybe even the ascension of HGTV flipping shows. But real estate matters: The fortunes of cities rise and fall, sometimes quickly, other times in agonizing slo-mo. And the last thing you want to do with the biggest investment of your life is buy into a housing market that is heading in the wrong direction.

What are the hot markets where you can still afford to buy? Which are ones where home prices are almost certain to appreciate? The ones with burgeoning economies and lots of job growth? The ones where you actually want to live?

To determine our predictions for the best real estate markets of 2018, realtor.com's® economic data team took a look at the number of sales of existing homes and their prices, along with the amount of new home construction in the 100 largest markets. We also analyzed the local economies of each area, along with population trends, unemployment rates, median household incomes, and other factors.

"People are going to continue to seek out pockets of affordability that remain in the market," says Danielle Hale, chief economist of realtor.com. "A lot of these places are more affordable than surrounding areas, yet still have strong economies. Even though prices are expected to grow, most of these markets will still remain relatively affordable in 2018.”

So which will be the hottest markets in 2018? Be prepared for some surprises.

Top 10 Housing Markets for 2018
Top 10 Housing Markets for 2018

Tony Frenzel

1. LAS VEGAS, NV

Median home price: $285,045
Predicted sales growth: 4.9%
Predicted price growth: 6.9%

Residential Las Vegas neighborhood in view of the Strip
 

The future of Las Vegas is eye-searingly bright—and it's not just because of all those lights on the Strip.

The economy of the once-downtrodden city is expected to grow about 8.7% in 2018—compared with 6.4% for the rest of the top 100 markets, according to realtor.com. That means a lot of people moving in, moving up, and looking for places to live.

Things weren't always so rosy. Vegas was devastated by the financial crisis of the late 2000s and the wave of foreclosures that followed.

“We like to say we were ground zero for the Great Recession: We fell further than many other metros,” says Stephen Miller, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas. “So we had more ground to cover to catch up.”

One of the things drawing folks to settle down and stay in Vegas, long after their 72-hour bender has become a distant memory, is the city's still striking affordability.” Miller says. “People in California are retiring and selling their houses and moving [in]. ... They want a lower cost of living.”

With the influx of new residents and the return of buyers who lost their homes to foreclosures, well-priced homes in good neighborhoods are practically flying off the market, says local real estate broker Bryan Kyle of First Serve Realty. Low interest rates are also luring more buyers.

“What keeps this market as hot as it is right now is the lack of inventory,” Kyle says. Those shortages may be exacerbated by still-underwater homeowners reluctant to plant a For Sale sign in their yard until their equity recovers. But there are fewer of those properties today as prices continue to nudge up.

2. DALLAS, TX

Median home price: $339,300
Predicted sales growth: 6%
Predicted price growth: 5.6%

Apartment complex in Dallas

This oil town is pumping, thanks to a steady flow of companies relocating, expanding, or opening up in the region. Those firms are attracted to the low taxes and cost of living. And that's brought busloads and planes filled with new residents searching for For Sale signs.

“Most of the houses that are being sold right now are new-built, and the builders can’t keep up,” says Yolanda Dittmar, a local real estate broker at Dittmar Realty. With the rising prices, existing homeowners are reluctant to part with their abodes and trade up.

“It’s going to cost them a lot more money to sell their house and buy another in the same area they’re living in,” she says.

Existing homes in good shape in good neighborhoods will set buyers back about $500,000 in the city limits, she says. New homes run between $700,000 and $2 million. In the suburbs, they're a bit less, about $350,000 for an existing abode and over $400,000 for a new one.

3. DELTONA, FL

Median home price: $275,050
Predicted sales growth: 5.5%
Predicted price growth: 6%

Deltona's location, sandwiched about 30 minutes between Orlando and Daytona Beach, is tough to beat.

The city is still clawing its way back from the recession. The metro's economy is expected to grow about 8.3%, while employment is to increase by about 2.9%, according to realtor.com.

Investors have helped boost this market. When prices were their lowest, they scooped up whatever single-family houses they could get deals on, fixed and flipped them, or rented them out. More of those redone rentals are now going on the market, says Stephanie Agosto, a local real estate agent at NextHome Professionals. Those homes, with their many renovations, are selling at a premium.

 

4. STOCKTON, CA

Median home price: $385,050
Predicted sales growth: 4.6%
Predicted price growth: 6.4%

Waterfront in Stockton, CA

Crime-plagued Stockton, far from the California coast, doesn't exactly have the best rep. It's not known for being an economic powerhouse. But it's becoming the place to be.

Buyers can get score a home in Stockton proper for a median $285,000—less than a quarter of what they'd pay in San Francisco, about an hour-and-a-half away. (The median price in SF is a head-spinning $1.3 nmillion.) Priced-out Bay Area denizens are moving in for deals like this four-bedroom, two-bathroom fixer-upper for $250,000.

"Stockton is going through a revitalization," says Jerry Patterson, a real estate at Cornerstone Real Estate. Many of the downtown's historic buildings are being restored, and new neighborhoods are in development. "Stockton has a lot to offer, and it’s very reasonably priced."

5. LAKELAND, FL

Median home price: $224,950
Predicted sales growth: 3%
Predicted price growth: 7%

View of downtown Lakeland, FL

Like Deltona, Lakeland's allure lies in its location. It's about 40 minutes east of Tampa and an hour southwest of Orlando, making it a desirable place to be for cost-conscious commuters.

The city's now growing, with a downtown revival and new subdivisions going up outside of the city. What a difference a few years can make: Lakeland, like many other metros on this list, was clobbered by the financial crisis.

"During the recession, there were a lot of [vacant storefronts,]” says Michelle Schaal, a local real estate agent at Keller Williams Realty. But now, she adds, the city is "starting to revitalize a lot of the old buildings on the major thoroughfares. It’s opening it up for more small businesses to move in.”

 

6. SALT LAKE CITY, UT

Median home price: $360,828
Predicted sales growth: 4.6%
Predicted price growth: 4.5%

Residential neighborhood in Salt Lake City

Salt Lake City is so hot that potential home buyers will likely need to duke it out with competitors.

Buyers in the city, which entered the global spotlight in 2002 when it hosted the Olympic Games, are now offering 20% to 25% above the asking price, says Kenny Parcell, real estate broker at Equity Real Estate Utah.

“You’re seeing people who are tired of paying higher taxes, or they’re tired of dealing with traffic and congestion [elsewhere]. They can sell their house in Silicon Valley and get four times the house in Salt Lake or the surrounding suburbs," Parcell says. "We have a lot of corporations coming in, which means good-paying jobs, a good tax base, and good schools."

7. CHARLOTTE, NC

Median home price: $325.045
Predicted sales growth: 6%
Predicted price growth: 3%

Similar to Dallas, much of the boom in Charlotte's housing market is thanks to all of the out-of-staters moving in. Many of them are relocating for work, as Charlotte is a big financial hub. Others are coming there to retire, attracted by the low cost of living.

“A lot of people are wanting to move here," says Scott Hartis, a local real estate broker with Keller Williams Realty. "We have a great climate, strong business tax incentives."

Employment is expected to grow about 2.5% in 2018, while the population will shoot up 2.2%, predicts realtor.com's economic team. Continued growth has made buying a home challenging.

8. COLORADO SPRINGS, CO

Median home price: $375,000
Predicted sales growth: 3.1%
Predicted price growth: 5.7%

Residential area with view of Garden of the Gods in Colorado Springs

Home prices aren't the only thing in Colorado Springs getting higher and higher. The entire state's economy has been getting a buzz since Colorado legalized recreational marijuana in 2012. And the prices show no signs of coming down.

"I’ve met a lot of people who moved here for the marijuana," says local real estate agent Monique Allison-Vollmer of Williams Partners. "That’s put our rental market in demand too.”

"There's a lot of new construction," says Allison-Vollmer. Over the summer, she would receive four to six offers per property, with offers promising $10,000 to $25,000 over the asking price. But it's slowed down considerably since then, with prices falling just a little.

9. NASHVILLE, TN

Median home price: $358,501
Predicted sales growth: 1%
Predicted price growth: 7.7%

Things are looking up in Nashville.

The headlines coming out of Nashville these days have little to do with which country music star dumped whom. The area has become the "It" city for the far-less famous as of late. And that's pushing home prices to new heights.

List prices skyrocketed 89% in the last five years. Prices jumped 10.8% just this year. And the population is also rising, as more folks are moving in.

"It's crazy," says Lisa Peebles-Chagnon, an affiliate broker at Benchmark Realty in Nashville. Single-family homes in the best suburbs of Nashville can go for multiple offers above asking—"overnight," she says. But homes with ambitiously high price tags are sitting on the market longer.

10. TULSA, OK

Median home price: $199,586
Predicted sales growth: 7.5%
Predicted price growth: 1%

2018 looks bright for Tulsa, OK.

Those who dream of owning a home but have limited means shouldn't overlook Tulsa. The Oklahoma city is the most affordable on our list, with a median price well below the nearly $275,000 national average.

Buyers can score gems like this three-bedroom, 1.5 bathroom, single-family home for a whopping ... $99,900. Or they can snap up this three-bedroom, two-bathroom condo for just $72,000.

The local economy is expected to increase by an impressive 7%, but employment will only rise by a measly 0.2%, according to realtor.com predictions. Rising sale prices, growing about 10.3% in the first eight months of this year, are what helped to put this metro on the list.

If you want more information about the Las Vegas real estate market, or you want to buy or list a home, contact me today! With an 8% growth projection for 2018 Las Vegas home prices, it's a great time to buy or sell.