In 2009, the city of Las Vegas suffered from a major economic recession that resulted in the crash of many industries – one of those which were significantly affected was the real estate market. However, almost 10 years have passed since the economic depression that took the Las Vegas real estate scene into a whirlwind and the city has been slowly picking up the pieces, trying to build a prosperous economic stability that has been interrupted by the startling event.
Take a look at the current state of the city’s home market to safeguard your decision of owning the best of Las Vegas luxury properties today!
The Great Recession
Although The Great Recession started in 2007, it was not until 2009 that its effects were greatly felt. Foreclosures and construction halts were rampant during those days, while housing prices decreased tremendously. It was not necessarily a good thing because people still could not own these “affordable” homes due to the low unemployment rate.
Since then, Las Vegas struggled to rise up again. The foreclosure rate continued to increase in 2010, rounding up to 9.6 percent. The development of many properties were stopped – from hotels, to casinos, to real estate properties.
The road to recovery
Many investors believed that Las Vegas is recession-proof, prompting many of them to spend their money on different investments. So when unemployment climbed high, it led to the downfall of various economic aspects. During that time, 70 percent of homeowners owed more than their properties’ value.
The recession shook the Las Vegas real estate scene to the core and many economic experts noted that it almost tipped the collapse of the entire city. Good thing Las Vegas rose up from the remnants while employment steadily rose and tourism became as copious as ever.
The halted construction of complexes continues, like The Cosmopolitan which stands as one of the most popular structures in the city today. Start-ups opened in a rapid pace and established companies were prompted to hire new employees.
Although there are still traces of the recession, like the high foreclose rate last year, it is safe to say that Las Vegas has recovered predominantly, especially its real estate scene.
Real estate value and statistics
The median listing price has been rising impressively since 2015. As of last month, it hit $350,000, surpassing the February 2017 record by 11.3 percent.
In January this year, 2,261 family homes are already acquired, while 3,718 homes are still not being optioned. However, the inventory is low although the median price and the sales are stable and growing. As a result, many home seekers are running out of property options due to the limited offerings.
Nevertheless, Las Vegas is hailed by Realtor.com as the Hottest Real Estate Market in 2018 based on the home price and value, as well as new property offerings. This is a major factor that proves Las Vegas is once again hitting its stride and that the past ranking of the city as the hottest real estate market was not by chance, but because of the city’s dedication to recover.
Looking into the future
While business and living are improving again, there are still many Las Vegas residents who fear for the recurrence of the Great Recession. As of today, numerous Las Vegas companies and organizations are on the move in making the city recession-proof by keeping costs and taxes low and following Regional Plans that aim to create economic strategies to avoid another recession.
If you are a home seeker looking for Las Vegas luxury real estate offerings, take your time in searching the gorgeous communities of Las Vegas and economic standings to ensure that your home investment in the city will be worthwhile.
For your queries about the city’s home market and for available luxury real estate properties, contact Kamyar Zargari, broker and founder of Triumph Property Management (TPM) in Las Vegas and his team at Triumph Luxury Homes on (702) 799-9999. They will be more than eager to assist you!
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