Profit margins from 2007 are returning to Las Vegas homeowners who sell their properties. Between 2007 and 2013, however, Las Vegas homeowners primarily sold their homes at a loss. Now, homeowners in Las Vegas are seeing more than 22 percent profit margins over their initial purchase price on home sales, according to RealtyTrac. Put another way, Nevada home buyers are making money, and lots of it.
Las Vegas homeowners seeing green
The increases in profit margins might not match the once booming market upswings realized all around the country 10-15 years ago, prices appear stable. Specifically, the Greater Las Vegas Association of Realtors recently noted the median home sales price locally is unchanged at $220,000 since June 2015, which hints at a stabilization of home prices in the Las Vegas market.
Further guiding this welcomed profit uptick and stabilization is the comparison of Las Vegas’ profit margin percentage to the national average, which is a less than stellar 17 percent. Upon reflection, Las Vegas’ almost 6 percentage point lead on the average national home sale profit stands as a solid indicator that local real estate market trends are moving in a positive direction.
In other key hot-beds of home sales, such as Phoenix, Miami, and Riverside, California, homeowners see profit percentages closer to 30%. Taking into account the higher median home prices in these hot-bed markets, Las Vegas seems to again offer homeowners and potential investors alike strong returns on investment. Although the hand-over-fist profit margins seen in years past are not back, homeowners and potential investors are now seeing cause to step back into the market.
As this market trend develops, Schwartz Realty will continue to share the latest insights such sales trends that can potentially provide new revenue opportunities for both homeowners and potential investors. To stay informed, enjoy commentary from the top realtors and agents in Las Vegas and please check out our blogs each week.