Las Vegas homeowners, investors, and real estate agents had grown accustomed to increasing home values over the past 10 years or so. Home prices have bounced back from the mid-$100,000s to the low $300,000s since the housing crash of 2008.
As of July, though, home resale values in Las Vegas have flattened out. The city saw the fourth fastest deceleration in resale value year-over-year. The only cities that saw even steeper decelerations were San Jose, CA, San Francisco, and Seattle.
In a report from John Burns Real Estate Consulting, the rate is calculated by comparing the year-over-year value of housing to calculate the appreciation. For example, San Jose was up 20% in last year's report, but in the negative 6% this year. That yields a deceleration of 26% over last year's figures.
While the median home price in Las Vegas is still around $300,000, there is a significant slowing in appreciation and that price is likely to stick around.
One of the worst parts of this for Las Vegas homeowners if they guess their home's value based on what a neighbor got a year ago, they're hurting because the value of their is either flat or slightly down. In other words, many homeowners are not realizing the appreciation in their home's value that they held on for.
What does this mean?
It means that there's a softening the market and it might be the start of a decline in home values. If you're planning to sell, this is the time. You might not see the massive gains you had hoped for, but you shouldn't see any large depreciation yet.
It also means that this is an excellent time to refinance a home. Your home will likely appraise for less than it would have six months ago and mortgage rates are very low.
What about renting?
Renting in Las Vegas is getting more and more expensive. Las Vegas and Phoenix have among the fastest-rising rental rates in the US.
Rents in Las Vegas were up 6.8% year-over-year with a median home rental of $1,465. A one-bedroom apartment rose by 7% to $1,025 over last year's rental median.
What does this mean?
It might mean that now is a great time to buy a home. Homes are still going to be affordable and the values are softening, making deals a bit easier to find. In the meantime, it looks like rental rates will continue to climb for the foreseeable future.