Vegas in 2019
I get a lot of questions from friends, family, and past clients about the health of the Vegas real estate market. Having lived through the #GreatRecession we are all worried about it happening again 🥴. With that in mind I put together some questions and answers as we head into 2019... (Hint, its good news 💁🏼♂️)
1. 🤔 How real is Vegas' Economic and Real Estate Growth?
For years people who live outside our city have viewed us as a bunch of casinos and nightlife, with a few homes around for people to live in who also cocktail waitress on the side... Well, we know the difference and things like the Vegas Golden Knights are helping the world to know the truth.
"Las Vegas is hot and it’s not because of its casinos and vibrant nightlife.
Sin City is the hottest housing market of 2018 based on home price growth. It has become a place where people want to live, not just play. Vegas has benefited from the high cost of homes and generally high cost of living in southern California and other neighboring cities. While Vegas’s home prices have skyrocketed this past year, the southern Nevada city is still among one of the cheaper metropolitan areas to live in the U.S.
“People are coming to Las Vegas. We have been seeing major job creation and diversification in industries,” said Chris Bishop, president of the Greater Las Vegas Association of Realtors. “All those things together led to a perfect storm.” - Yahoo Finance
2. 😬 Has the Market Hit the Peak Again? It Feels Like 2006 All Over Again...
With the violent growth and even more violent crash of 10 years ago, we've all been watching for peak and concerned for another crash. The reality is the housing market is built on very different principals. In fact, we are far from where we were when things went south last time.
"Home prices are still 20% below its peak, according to Lawrence Yun, chief economist at National Realtors Association. Home prices plunged 62% to its bottom in 2012 from their peak in 2006, according to ATTOM Data Solutions, a real estate tracking firm.
Although prices have been heading upward, buying a home in Vegas is still far cheaper than most parts of southern California. In the third quarter, median home price in Vegas was $294,600, compared with $628,900 in Los Angeles, $830,000 in Orange County-Anaheim and $650,000 in San Diego, according to Yun. Earlier this year, Trulia noted that people living in coastal California markets tend to migrate to Sun Belt areas, namely Vegas. Similarly, Redfin examined searches from more than a million of its users in 90 metro areas and found the top destination for people leaving Los Angeles is Las Vegas." - Yahoo Finance
3. 👩🏻🔧 Where Will All These New Vegans Work?
The days of "every dollar earned in Vegas comes from a slot machine" are long gone. In fact, the diversification of our economy is one of the most exciting things happening in Vegas.
"The job creation in recent years is also not necessarily from the usual sources: entertainment, hospitality and mining. While casinos like Wynn Resorts still dominate the Vegas economy (there’s an estimated $15 billion worth of development along the Vegas Strip in the works), the city is also home to online shoe retailer Zappos, which renovated Las Vegas City Hall for its headquarters in 2013. Zappos has been credited for the revitalization of downtown Vegas.
Meanwhile, Zappos’s parent company Amazon is constructing a 855,000 square-foot fulfillment facility in North Las Vegas that is expected to create 1,000 jobs — the third such warehouse it has in the area. Cosmetic retailer Sephora is also building a 714,000-square-foot distribution warehouse in North Las Vegas that will service 12 states in the West."
The Vegas Golden Knights have brought a lot of awareness to our local community and all Vegas has to offer. Keep in mind, there are only a hand full of players and coaches VGK has, and the NHL is generally considered 4th among professional sports...
Now just imagine what will happen when the 100's of players, coaches, and staff for the #1 professional sport in America, the NFL, come to Vegas and are constantly asked whats its like to live in our AMAZING city!
The bottom line is i'm VERY excited about our future. We are seeing the transformation happen right before our eyes! Not to mention, the bedrock of what driven our economy for decades, the sin trade, is not going ANYWHERE. Vegas will continue to be Americas playground for decades to come.
My advice, do what the rest of America, Californians, and Professional Sports are doing... Bet on VEGAS!