Las Vegas Real Estate Investment Update - July 2024 Market Report

Jul 18

Written By Cleo Li

In This Report

Mid-Year 2024 Las Vegas Market Check In
Potential Investment Properties
About the Fernwood Real Estate Investment Group

Mid-Year 2024 Las Vegas Market Check In

We are now in Q3, and it is a good time to check in on the Las Vegas investment market's performance for the first half.

Please note that the following applies only to our target property segment, not the entire Las Vegas metro. Click here to see the property profile we target.

How’s the Market Doing in 2024?

To see all the charts, click here.

Prices and rents continue to increase steadily.

Sales - $/SqFt by Month

The median sales $/SF was $255 for June, up 9% YoY and 6.7% YTD.

Rentals - $/SqFt by Month

Rents rose 4.3% YoY and 6% YTD.

The Market Remains Hot

Following the rapid inventory decline starting in Q1, the number of days on the market for sales remained below 17 and for rentals below 19, indicating strong demand for both.

Sales - List to Contract Days by Month

Rentals - List to Contract Days by Month

Rental trends tend to follow sales. When prices are high, more people are forced to rent, which results in increased demand and rising rents.

Inventory has been frustratingly low and is not getting better

Sales inventory plummeted at the beginning of the year and has remained below one month in Q2. 6 months is considered a balanced buyer/seller market. We are firmly in a seller’s market.

The rental inventory had a similarly rapid decline in Q1 and has remained below one month in Q2.

The stubbornly low inventory for both sales and rentals can only mean one thing—rising prices and rents.

Interest Rates in 2024

The interest rate dipped by about 0.5% starting in mid-December 2023 and January, which triggered an unseasonal price rise for both months (See Q1 2024 Las Vegas Market Update). The 30-year fixed rate ranged between 6.625% and almost 7.25%, in line with my expectations in My 2024 Interest Rates Forecast.

[Source: Freddie Mac]

Where Will the Market Go for the Remainder of the Year?

Interest rates

With the cooling inflation reports, the Fed is expected to start cutting rates in September. Whether that will happen remains to be seen. Additionally, lower Fed rates do not necessarily translate into lower mortgage rates. If the Fed does not increase buying of mortgage-backed securities, the mortgage rates will not drop significantly. I expect mortgage rates to remain within the same range as we have seen throughout 2024.

Prices and rents

Assuming interest rates remain stable for the remainder of the year, given the sub-one-month inventory for both sales and rentals, I expect the prices and rents to continue to rise for the remainder of the year. However, the rate of increase may be lower than that of Q1 and Q2. We’ve noticed a slight increase in inventory in July and a slight increase in time on the market. Time will tell whether that’s a blip or a trend. Based on our participation in the market in July, good properties priced correctly are still selling within days. Attractively priced properties still receive multiple offers, often above the asking price. The demand is still very strong.

Summary

The investment market in Las Vegas grew strongly in the first half of 2024 and is expected to continue growing, though slower in the second half of the year (as long as the interest rate does not change significantly).

Potential Investment Properties

Below is a link to this month's list of candidate investment properties. Our proprietary data mining software selected these candidate properties from thousands of available properties, and this is just the first step in our multi-step validation process, as shown below.

This Month’s List of Candidate Properties

About the Fernwood Real Estate Investment Group

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For the last 16+ years, we've helped clients build highly reliable, passive income streams through real estate that they will not outlive. Several are now retired and living entirely on their rental income. Most never invested in real estate before they started working with us, and most live in other states or countries. Below is a two-minute video of the services we provide.