Is Las Vegas Real Estate Overpriced? An Expert's Perspective

Las Vegas is now one of the most overrated real estate markets in the United States, with homes selling 41, 88 percent above their long-term price trend. According to a study published by Florida Atlantic University, the overvaluation range of Las Vegas rose from 25 percent to 29 percent in the fourth quarter of last year, making it the highest among the country's 50 most populated metropolitan areas. Home prices in the Las Vegas area skyrocketed last year despite the enormous loss of jobs caused by the coronavirus pandemic, which devastated the tourism industry. Real estate agent Jennifer Graff has received a lot of calls from buyers in other states looking for homes in the valley. Arya Bina moved from Los Angeles to the Las Vegas Valley and witnessed the competitive market firsthand when she bought her home. Home prices in southern Nevada rose to record levels again last month, and Brian Gordon, director of consulting firm Applied Analysis in Las Vegas, said that the rate of home price growth is “clearly unsustainable”. According to Zillow, the typical rental rate for a home in the Las Vegas area skyrocketed by more than 17 percent year-on-year in May. Meanwhile, CoreLogic Case-Shiller S&P indices reported that home prices across the country rose 19.1% in October compared to the same month last year. But home prices in Las Vegas continue to hit record highs, homes are selling fast, and buyers reversed a recent drop in sales last month. Today, inventory is low in Las Vegas, but as Gordon noted, “that wasn't the case in the mid-2000s”. The current market conditions make it difficult for buyers to find affordable homes and for sellers to get a good return on their investments. With prices continuing to rise and no sign of slowing down anytime soon, it's clear that Las Vegas real estate is overpriced.