LAS VEGAS (KTNV) — Real estate experts say the housing market has been red hot with low inventory and record home prices. With the eviction moratorium ending July 31, things could change.
Median home prices in Las Vegas have jumped over 20% from one year ago, and real estate agents say it’s a supply and demand issue.
Derrick Tran lives in California but he’s ready to make Las Vegas his new home. He owns Bigstrraw Boba in Oxnard and says the pandemic showed him Las Vegas is a better spot for cost of living and operating a small business.
“I noticed California isn’t really for small businesses and I noticed that my friends that live in Vegas have businesses that are thriving and things weren’t shut down as long as they were here,” Tran said. “Vegas is where I feel is home, I can’t wait to be out there.”
Tran is ready to make the life change, but he’s been on the waiting list for a new home build since February. He says there are more than 100 people in front of him.
Tran isn’t alone. Real estate broker Kirby Scofield says California and New York residents are coming to Southern Nevada in droves- pricing many first-time or entry-level buyers out of the market.
There’s no crystal ball for knowing what happens next, but Scofield believes we’ll see a slight shift 30 to 90 days after the eviction moratorium expires because the eviction process takes time.
“I think it’s going to give us a little bit of inventory in ways that certain homes landlords have not been able to sell due to not being able to get into them, like restrictions or non-cooperative tenants,” Scofield said.
Scofield says Las Vegas could see a bigger shift by the end of the year when FHA loan limits are increased. Right now, Scofield says the limit on an FHA loan is $378,000, but the median price for a single-family home in Las Vegas is $420,000.
The president of Las Vegas Realtors says builders are not constructing enough homes to meet demand. That could also shift as lumber prices begin to drop.
For potential buyers like Tran, patience will be key. Scofield says the time is now for those looking to cash out and sell their homes, but the trouble will be finding a new place to live.