Local home prices have risen in Nevada for May 2016, according to the Greater Las Vegas Association of Realtors (GLVAR).
The average price of single-family homes rose to $229,250 from $211,250 one year ago – an 8.5 percent rise. However, this rise was only reported in southern Nevada, and not the entire state as a whole.
The average price of other property types has also risen.
For example, condominiums and townhouses – which include high-rise condominiums – have risen 5.4 percent in the past year (from $112,000 to $118,000).
Nevada home prices – the cause?
According to the president of the GLVAR, Scott Beaudry, the reason for this increase can be found because, “as we head into the summer, we’re seeing more demand for the limited number of homes that are available for sale”.
Beaudry also notes that demand is exceeding supply more so in southern Nevada than across any other part of the state. There is currently insufficient production of entry-level homes, and this is squeezing property prices up at a crucial time.
The GLVAR report that the number of homes (which include local homes, condominiums, and town-homes) sold in May was 3,349 – which is down from 3,363 sales from the same time last year.
However, the number of homes listed for sale in May 2016 is higher.
There are also declines in distressed sales and an increase in traditional home sales – where lenders are not able to control the transaction. 6 percent of sales in May were bank-owned, which is down from 8 percent approximately 1 year ago.
How investors behave
Investors are more willing to engage with property, and to profit from it, in a way we haven’t seen for some time. Investors see that opportunities have now arisen in the property market where a profit isn’t just wishful thinking, but something that can be solidly achieved.
This explains why more and more investors are turning to Las Vegas property management as a mechanism to maximize their income potential. Rather than seeing real estate management as a cost, they now appreciate its role in maximizing the property’s potential.
And this hasn’t come about by chance.
With the economy now in some degree of recovery – at least when contrasted with 6-8 years ago – credit is more accessible than ever, and property prices continue to rise. The property environment is ripe for investors at present, and they know it.
Home price rises are likely to continue in the months ahead not only in southern Nevada, but across the state as a whole. It’s an exciting time for landlords, as well as for prospective investors, who want to turn their hand toward
If you’d like to learn more about Las Vegas property management, check out this page for more information. There, we detail what these services are and how they’ve come to enhance the income prospects of any given property.