2017 was a strong year for real estate inside the Las Vegas valley, in all categories. Free-standing home prices were up approximately 11% from the previous year. Condos and townhomes are way up, over 20%. High-rise condos were flat, up around 2.6%. New residential construction is up, with around a 35% increase in building over the previous year.
One of the biggest real estate stories for the year, apart from the strong market, was the closings of several golf courses throughout the valley and the subsequent impact on real estate in those areas. One course, the Legacy Golf Course in Henderson, has re-opened. But I doubt that story is finished.
What to expect for 2018? The increases in prices for 2017, I do not think will be matched in 2018. Historically, prices do not justify those type of increases, long term. There will be conflicting forces at work here. The October 1 shootings took a toll on visitor traffic. Will there be a residual effect, long term? I doubt it, but that is a possibility. Major league professional sports coming to Las Vegas is a big plus, with the Golden Knights here and the Raiders coming. Incidentally, that could be a boost to the somewhat flat high-rise market. I have noticed a significant drop in inventory, especially in the condo/hotel areas.
This market is not an island into itself. National and global economic conditions affect this market greatly. Our highs are generally higher and our lows are lower.
In my next blog post I will discuss the congressionally-designated disposal boundary and how that affects the future, especially in terms of local real estate and what gets built.
