The Problem
The 2022 Las Vegas Real Estate Forecast is something that is a hot topic these days. After the phenomenal 2021 real estate market growth and appreciation for Las Vegas, the rumors started flying. People asked “Will the Las Vegas real estate market crash in 2022?”. Then, the media posted stories saying Las Vegas is one of the most overpriced areas in the United States. Every neighbor became an “expert” and wanted to tell you what their cousin’s mailman said is going to happen. However, the truth is, in really understanding this market, we need to look at the bigger picture – the wide angle lens as it were.
The Solution
We need to look at a number of factors effecting the Las Vegas real estate market. So we need to be aware of how the Las Vegas real estate market will be effected by factors such as:
- Record high demand
- Appreciation at record levels
- Record low inventory
- Lumber prices
- Rising interest rates
The factors of the 2022 Las Vegas real estate forecast
#1 2022 Las Vegas real estate forecast shows record high demand
For our 2022 Las Vegas real estate forecast, we must remember we have been seeing a record high number of Californians moving into our state. Las Vegas real estate has been the beneficiary of the changes due to COVID. After all, if you can work from home, why not work from a home that costs you half as much in Las Vegas as it would in California?
#2 2022 Las Vegas real estate forecast shows record high appreciation
Yes, Las Vegas has seen appreciation of over 22% in the last year. And yes, that is abnormally high for real estate. Also, yes, normally that means a market crash is coming soon. However, in the big picture, we need to look at how many homes depreciated over 40% between 2006 and 2013. The truth is that when we look at the big picture, much of what Las Vegas has done is to regain previous losses. This leads many people to wonder what their home is worth in today’s market.
#3 Record low inventory in the 2022 Las Vegas real estate forecast
With the market factors in Las Vegas real estate coming together in a “perfect storm”, both single family homes as well as condominiums and townhomes have less than a 1 months supply. Generally, we want a 4 to 8 month supply for an ideal market. Many folks are looking to see where the market inventory is today.
#4 Lumber prices for Las Vegas real estate
The Las Vegas real estate market has been effected by the cost of new construction as materials like lumber have risen as much as 400% in a year. Naturally, the rising costs to build a home are always going to raise the cost to buy a home – new or resale.
#5 Rising interest rates affecting 2022 Las Vegas real estate forecast
The 2022 Las Vegas real estate market forecast will be heavily influenced by rising interest rates. Already this year, we have seen interest rates rise by 1%. Since the Fed is seeing record inflation in items like groceries, gasoline and more. Remember, the last time inflation was this high, interest rates rose to over 15%. This makes many folks wonder what can they afford in today’s market.
The big picture
For more information on the Las Vegas real estate market forecast for 2022, take a quick look at this video detailing the factors that Las Vegas faces in 2022. The key to the Las Vegas real estate market forecast is to understand how to use the upcoming changes to your benefit.
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