According to a recent report by KNPR, we are not. Even though Nevada has experienced the largest annual gains for the past three years, below are reasons why the current housing market is on solid ground.
STRONG JOB AND POPULATION GROWTH
According to Ralph McLaughlin, the chief economist for Trulia, housing bubbles are caused by unexplained changes in the economy and that’s not likely, he told KNPR. More jobs and a larger population leads to more demand for housing. Last year alone Las Vegas netted over 35,000 more residents. When that happens, he said, prices will rise. Also, Forbes listed Las Vegas the 16th fastest growing city in the country. One of the reasons why is because our economy is more diversified than before the last recession. New types of businesses have moved into Nevada. The NHL just started an expansion team in Las Vegas and the NFL is not far behind with the relocation of the Raiders.
Housing inventory over the last two quarters has dropped around 25%, McLaughlin said. The drop in inventory combined the strong job and population growth means a major price correction won’t happen anytime soon.
That doesn’t mean prices can or should increase by double digits year after year, said Jeremy Aguero of Applied Analysis. Although homeowners are loving the current rate of growth, Aguero hopes a little sanity will return the market and it stabilizes. But what makes conditions different than the last recession is the lack of entry-level homes today, Aguero says.
All of these reasons are why buying new construction is an excellent option right now. There are a number of new neighborhoods with standing inventory, and when you consider the long-costs as new homes are much more energy efficient than ever before, it’s easy to see why their such a great investment.
To see how we can save you thousands on a new home purchase, please call us today at 888.512.2289 or email us at information@LVNewHomeExperts.com.
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