Bouncing back from historically one of the worst housing slumps in the country's history, Nevada and Las Vegas specifically, are recovering at a fast rate. Nevada home prices are rising at a rate that is moving faster than other areas of the country, putting Nevada home prices in top ranking for highest national gains.
While Nevada home prices are on the rise, they still remain below maximum level. Economists are speculating on whether home value appreciation will continue at its current rate. Currently, cash buyers and real estate investors rule the local real estate financial sector. An average single-family home in Las Vegas currently lists for $167,000, which is up 30.6 percent from a little over a year ago. Average price for town homes and condos is up almost 42 percent, at $85,000.
In March 2013, Nevada ranked highest in the United States in appreciation reporting annual price gains of just over 22 percent- a figure that is double the 10.5 percent national increase. Higher priced homes increase the need to build more housing in order to satisfy inventory demands. Raised Nevada home prices are an indication that the economy in Las Vegas is on the mend, as home buyers are now able to afford pricier housing.
As home prices continue to rise, the economy responds by maintaining the real estate come back that pushes homebuyers to purchase property before prices surge any higher. In a sellers market, homeowners who are looking to sell their home in order to recover a profit, are more apt to jump on rising home cost trends; Nevada home price gains are positively effecting the local economic climate.
In Las Vegas, population has increased by adding close to 20,000 new residents to the local population since one year ago. As population increases, there are positive fluctuations in economic spending, with consumers making up close to 70 percent of fiscal activity.