Thanks to recent statistics from Redfin, we know that investor home purchases increased in Las Vegas by over 105% in 2021, over the previous year.
This makes sense considering that 2020 was the first year of the pandemic, and much of the business world ground to a halt, while 2021 was when the United States started to slowly resume normal life.
As we get farther into 2022 most analysts are predicting that this year will be another record year for real estate, especially in Southern Nevada, where investor activity accounted for close to 20% of real estate purchases in the fourth quarter of las year.
What’s Driving Investor Activity In Las Vegas?
One major reason why investors are still flocking to Las Vegas is value; home prices there are still averaging about $420,000; while in California, home prices are averaging $775,000 or higher.
Besides great deals, Las Vegas also offers great weather, plenty of things to do, a thriving economy and it’s airport makes it possible to easily fly out to any destination in the United States.
The Las Vegas area has also traditionally been an ideal place to own a vacation rental but with more limitations on short term rentals coming (AB 363), it’s likely that investors are sinking more cash in Las Vegas rentals because they feel that the long-term rental market will continue booming for years to come.
Rising Rents Continue To Lure Investors
Besides great prices on Las Vegas homes, investors have also been lured to the Las Vegas real estate market by rising rents, which have increased by 29.8% in the last year, and are predicted to climb in 2022 as the local economy continues to improve.
Investors have also continued to be drawn to LV homes thanks to low mortgage interest rates, which remained under 3% for much of 2021, and now are starting to pass 5% thanks to recent activity by the Federal Reserve.
Will rising interest rates slow down investor activity in Las Vegas? It’s unlikely that we will see a decline in activity anytime soon considering that more than three-quarters of investors paid cash for Las Vegas properties in 2021 and it’s likely will do the same in 2022.
Contact GoldenWest Management
At GoldenWest Management, we specialize in property management for single-family, and multifamily properties in Las Vegas, Phoenix, and San Diego.
To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.
