Cash buyers bought 161K homes in Las Vegas Valley since 2011, report says
Cash buyers have purchased approximately 161,084 homes in the Las Vegas Valley since the start of 2011, according to historical data from Redfin obtained by the Las Vegas Review-Journal.
Several factors are driving this market trend, said Robert Little, a real estate agent with Re/Max Advantage in Henderson.
“Many buyers are relocating from higher-priced markets like California, Seattle and Hawaii. Many of these individuals are retiring and selling more expensive homes, allowing them to downsize and purchase less expensive properties in Las Vegas with cash,” he said.
According to a Redfin report from August, cash buyers now make up close to a third (30.7 percent) of all home purchases in the country, which is a small percentage increase from 2023.
Cash buyers hit an all-time high in the Las Vegas Valley back in 2013 when they made up approximately 63.8 percent of all residential real estate purchases.
Little said favorable market conditions, such as elevated mortgage rates which has pushed many would-be buyers to the sidelines is also factoring into the equation.
“Las Vegas offers strong investment opportunities in rental properties, supported by landlord-friendly laws and a high demand for rentals,” he said. “Investors also find appeal in the region’s newer construction, lack of state income taxes, fewer natural disasters and the overall growth potential, which makes for an attractive return on investment.”
Home sale prices in the Las Vegas Valley broke a record in January as the median price of a house sold in Southern Nevada last month was $485,000, the highest ever recorded, breaking the record set in May 2022 ($482,000). This is also a 9 percent increase ($445,000) from January of last year. LVR pulls its data from the Multiple Listing Service where the vast majority of homes for sale are listed.
The Las Vegas Valley had the second biggest year-over-year increase in the amount of home down payments (up 40.7 percent from $32,328 to $45,500) as of June. This is above such cities as Washington, D.C. and Nashville.
A recent Redfin report found that the Las Vegas metro is now less affordable for homes than cities such as Denver, Phoenix and Tampa Bay.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
