The state of Nevada is a booming region that is home to the city of lights; Las Vegas! Also known as the 'Silver State' due to the role that silver has had in the economy and history of the area. It is the 32nd most populous and 7th largest state by area in the US, meaning there are many
The state's population has been growing steadily, with the average increase over the past decade being 1.22%.
According to HouseCashin, house prices have fallen by a relatively minimal 0.07% in Nevada, which is a compelling reason to invest in this market. In comparison, the national average home price in the US has risen by 0.13% over the past ten years.
At the same time, compared to most states, Nevada is quite expensive. Median prices are close to $205,000.
In case you are looking to invest in the local market at the moment, here are some elements to bear in mind:
Start with a specific area
Nevada is vast in land area. Some cities offer more profitable real estate investment opportunities than others. For instance, Summerlin is a great community in Nevada, worth investing in. But, finding property here can be tricky if you don’t have experience.
Moreover, the market has fallen by more than 13% since last year, so finding an experienced property expert like Summerlin real estate would be ideal. With proper guidance, you’ll find an affordable and good place from an investment standpoint.
Las Vegas attracts millions of visitors annually, with many people also moving to this city for better employment prospects.
At the same time, other cities like Carson City, the capital of Nevada, along with Henderson, Paradise, and Reno, are all ripe for investment opportunities in real estate.
The costs of various properties
Once you know which area to invest in, you must compare real estate costs in each region. Your fundamentals for this search should be your budget and the type of property you are looking for.
The price range is usually the primary factor for most people. You'll find different properties in different areas according to your budget. For example, at the price of a two-bedroom apartment in Las Vegas, you may find a three- to four-bedroom home with a yard in a relatively less populated area.
The prices can also differ depending on whether you are looking for a residential or commercial property. Even in residential, you can be looking for a complex with tenants which can make you passive income, or you may be looking to start small by buying a single-family home and then flipping it for a profit.
Either way, the prices will vary, and once again, you'll need to look at your budget. Of course, there are avenues through which you can increase your budget, like financing or raising money from other investors, but you need to be thoughtful about whichever way you choose.
Demand and supply
In Nevada, demand and supply can vary from month to month. This is why you must look at the recent relevant statistics and constantly observe the market.
If you are considering a short-term investment, ensure the market is open for such an opportunity; otherwise, your investment might be stuck for a long time. When shopping, you can ask how long a property has been unsold on the market. It can be a red flag if it has been for sale for a long time.
Unless you are sure that you understand why the property has not been sold and you can get it at a bargain price, eventually turning it around, you need to stay away from this particular home.
When you are looking to sell a property, you are looking to make a profit, meaning the price will be higher than the one it was purchased at. This is another reason you need to clearly understand the supply and demand of real estate in the area.
Like any other state, Nevada is a seasonal real estate market where the timing can impact your chances of selling a property. In 2022, the average year-round time for a house to sell was 70 days, including the entire process from listing to closing the deal.
The factors impacting this time include demand, the overall market, prices, and the agent's strategy elements like networks and marketing.
At the same time, the month of the year can also impact how fast a home can sell. According to available data of Nevada from 2022, May was the best time to sell a home, with the median time on the market being 25 days.
October was the worst time, with days on the market more than doubling to 57 days. In case you are wondering, these times are quicker than the national average. Now that you know, it is best to consider this factor too.
As an investor, you can buy and hold, explore long-term and short-term rental opportunities, fix and flip, and practice wholesaling or mortgage note investing. Each strategy has its pros and cons, with several other factors depending on your level of experience in real estate.
You can even learn on the go, as you’ll find many freelance property agents in Nevada, making a decent living while still enjoying what the silver state offers.
Investing in the real estate market of Nevada can offer a host of benefits for you. When it comes to property investment, you’ll need time to understand how the market works here.
You’ll also need experience understanding how to talk to people here and find solutions to common issues related to property management, as that, too, is an area often left unexplored.
We hope you learned something from this article; if you think we missed something, let us know in the comments below.
Leave a Reply