LAS VEGAS (KTNV) — First-time home buyers have been struggling to find the American Dream in Southern Nevada. A Florida Atlantic University study shows Las Vegas is one of the most overpriced real estate markets in the country.
Arya Bina moved from Los Angeles into the Las Vegas valley and has witnessed the competitive market firsthand when he bought his home.
“Between April and September about a $50,000 increase in the price for what the house is going for now,” said Bina.
Bina closed on his home back in April. He bought it for $270,000. When he checked the price for his new home it was listed at $320,000. He said prices are going up significantly due to the influx of people coming in from California, like himself.
“If you try to get a home that is on the market and available to move in, you are going to be bidding against six or seven people, even back when I was shopping, and that is why I went for new construction because if you are paying top dollar, it might as well be new,” Bina said.
The study released by Florida Atlantic University shows Las Vegas is among the top 10 most overvalued metropolitan areas in the country. Homes in Las Vegas selling for 42% above their long-term pricing trend.
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Jennifer Graff, a Vegas real estate agent, has received many calls from out-of-state buyers looking for homes in the valley. She says the prices for homes have gone up because of the record-low number of homes available and the high demand to buy them.
“We are less than 30 days’ worth of inventory and that is why when sellers are putting their homes on the market there is a flurry of buyers,” Graff said.
Even with a low number of homes available, she says our home prices are not overpriced.
“I really do feel like Las Vegas is still a great value and I think we are seeing that every day with more and more out-of-state buyers who are now calling Las Vegas home,” said Graff.
Jeremy Aguero, a principal analyst, says these studies don’t take a lot of things into consideration.
“Las Vegas remains among the fastest-growing metropolitan areas anywhere in the United States which means a huge amount of home equity is flowing into our community,” Aguero said.
For people who consider buying a home here in the valley, Graff says do not wait. The Las Vegas area's prices are still reasonable and interest rates remain low.