Las Vegas real estate market predictions and forecasts for 2021 – 2022 suggest that home values across the Valley could continue to climb for the foreseeable future. House prices in this metro area rose steadily throughout 2020 (despite the COVID pandemic) and into the first part of 2021, when this page was last updated.
Here are the latest housing market trends and forecasts for the Las Vegas-Henderson-Paradise metropolitan area, with a look ahead into 2022.
Las Vegas Housing Market Outlook: 2021 – 2021
Home prices in the Las Vegas Valley have risen steadily and significantly over the past 12 to 18 months (as of spring 2021). In April of 2021, the real estate data company Zillow reported that the median home value for the Las Vegas-Henderson-Paradise metro area rose by 8.6% over the previous 12 months. The median was around $320,000 when this page was last updated, in mid-April 2021.
Zillow’s research team also issued a positive forecast for the Las Vegas real estate market, extending into 2022. The group predicted that the median home value for this metro area would “rise 10.5% in the next year.” This prediction extends into April of 2022.
Granted, housing market forecasts for Las Vegas (or any other city) are the equivalent of an educated guess. So we shouldn’t get too caught up in the exact numbers being projected here. It’s the underlying point that really matters, from a home buyer’s or investor’s perspective.
And the key point is this:
The current supply and demand situation within the Las Vegas area housing market will likely produce additional home-price gains through the end of 2021 and into 2022. Most (if not all) of the current forecasts for the Las Vegas real estate market appear to agree on this point. Zillow’s prediction above is just one example of a broader consensus among housing analysts and economists.
There Are Fewer Properties for Sale in 2021
A lack of inventory is one of the main factors driving the positive housing market predictions for Las Vegas, Nevada and surrounding cities. The short version is that there just aren’t enough properties listed for sale, as of spring 2021, to satisfy the demand from local home buyers.
An April 2021 real estate market update from Realtor.com showed that the Las Vegas area had experienced a decline in property listings over the past year. (In this context, the term “listings” refers to homes that are listed for sale on the Realtor.com website.) According to that report, active real estate listings within the Las Vegas-Henderson-Paradise metropolitan area dropped by -40.9% from March 2020 to March 2021.
A separate report showed that the Las Vegas Valley housing market had about a 1.5-month supply of homes for sale in March of 2021. Note the decimal there … that’s one and a half months of supply. A more “balanced” market has closer to a 4- or 5-month supply of homes for sale. So, from an inventory standpoint, Las Vegas is more of a seller’s market in 2021. Buyers should take note of this.
Tight supply conditions, combined with steady demand from buyers, are giving sellers the upper hand. These conditions are also putting upward pressure on home prices, resulting in strong forecasts for the Las Vegas housing market into 2022.
Homes Are Selling Faster Than a Year Ago
Real estate reports issued in 2021 have also revealed faster home sales, compared to a year earlier. This is not surprising when you consider the decline of housing market inventory in the Las Vegas area, mentioned earlier.
For instance, the April 2021 Realtor.com report cited above showed that homes listed for sale in the Las Vegas metro area spent a median of 34 days on the market. That was five days lower than a year earlier, and below the national average.
A separate report showed a sharp increase in the percentage of homes that went off the market within two weeks of the initial listing data. These and other trends indicate that the Las Vegas Valley real estate scene has essentially “accelerated” from 2020 to 2021, in terms of home sales.
Steady Population Growth, Especially in Henderson
Population growth is another factor influencing housing market forecasts for Las Vegas and Henderson, Nevada into 2022. Both of these cities (and the metro area as a whole) have experienced significant population growth over the past decade. Henderson, Nevada in particular has seen tremendous growth in recent years.
- According to the U.S. Census Bureau, the population of Las Vegas (city) grew by 11.4% from 2010 to 2019.
- The population of Henderson, Nevada grew by a whopping 24.6% during that same nine-year timeframe.
- By comparison, the U.S. as a whole had a growth rate of 6.3% from 2010 to 2019.
Population growth has brought more home buyers into the local real estate market, boosting demand and putting upward pressure on prices. These effects are magnified even more by the tight inventory conditions outlined earlier.
Summary: A Strong Real Estate Market in Las Vegas
Forecasts and predictions for the Las Vegas housing market suggest that home prices will continue to climb through 2021 and into 2022. As shown above, this is largely the result of strong demand from buyers combined with limited supply. This kind of “imbalance” tends to put upward pressure on house values, as is the case here.
That being said, the Las Vegas real estate market is not as competitive or fast-paced as some of the other major metros across the U.S. It’s certainly a competitive market, one that currently favors sellers over buyers. But it’s not an extremely competitive one like Austin, Denver or Seattle.
Disclaimer: This article includes third-party predictions relating to the Las Vegas real estate scene in 2021 and 2022. Such forecasts are the equivalent of an educated guess, not a foregone conclusion. The publishers of MetroDepth make no claims or assertions about future housing trends.