In 2018, home values in the Las Vegas valley increased significantly. With higher demand than available supply, there was a period where not enough homes were available for purchase. In response to this increased demand, an initiative to construct more homes was put into place. By December, more than 7000 homes were on the market.
The Las Vegas valley is considered a desirable location for families to settle down, but many properties are beyond their budgets. With this influx of home construction, more affordable homes have been built on the east side, resulting in lower prices and an increase in residency.
The eastern valley saw in increase of 89.5% of home sales in 2018 from the previous year. With more than 500 properties sold, this area was regarded as the most affordable area, but save for one region, all other areas of the valley experienced more sales, some exceeding three thousand sales in 2018.
Increased housing construction occurred not just in the eastern valley but in the other areas of Las Vegas as well. The eastern valley arguably saw the most growth, largely due to the universal rise in home prices last year driving buyers to the more affordable area. Home construction company LGI Homes purchased land that could have been considered unpleasant due to previous tenants, neighboring camps, proximity to vandalization, and more. However, their goal in purchasing these plots and building homes was to meet a demand for new homes from more price-conscious home buyers.
With the rising cost of living across the nation, Las Vegas witnessed one of the fastest rates of increasing home prices. More affordable options in regions like the eastern valley have created construction and investment opportunities, along with more options for families who want to settle in the area.
It is anticipated that home prices in Las Vegas will continue to rise, potentially at a higher rate than the rest of the nation, in 2019. Additionally, mortgage rates are expected to experience similar growth. For sellers, the price growth is good news. With more affordable homes being built and sold in areas like the eastern valley, buyers will also have an advantage when it comes to settling down in the Las Vegas area.