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Las Vegas Housing Market Info (Oct ）)

Hello,

I hope everyone has calmed down a bit now that the presidential election is over. I am sure that you are now starting to prepare for the holiday season in earnest.

Well, last weekend, Las Vegas hosted the Formula One Championship, which was a great success again last year. Tickets were sold out again this year and the place was packed with people from all over the world. I did not go near the Strip area to avoid traffic jams, but the view of the Strip from the high ground in Summerlin during the daytime last week was very impressive with the dust spreading under the blue sky and covering the tops of the buildings.

The Grand Prix brings in more tax revenue than any other event in Las Vegas history, with an estimated $1.5 billion in economic impact. In addition, the average F1 tourist spends 3.6 times more than the average tourist, spending more than $4,000 during an average four-day stay, according to reports.

Now for some information on the Las Vegas real estate market for October 2024.

Single-Family Homes:
Sales: 5,784 (+5.6% MoM, +37.3% YoY)
New Sales: 2,867 (+22.9% YoY)
Sales: 1,718 (+12.9% YoY)
Median sales price: $ 475,531 (+5.9%CMMoY)

Condominiums ・ Townhouses:
Number of sales: 1,799 (+50.5%CMMoY)
New sales: 830 (+9.9% over the same month last year)
Number of sales: 540 (13.9% over the same month last year)
Median sales price: $ 315,000 (+14.3% over the same month last year)

Although the number of sales is currently on the rise, there are still many properties that are attractive to buyers and are not priced appropriately. The number of properties for sale is currently on the rise, but still continues to attract multiple offers when attractive properties are put on the market at the right price for buyers. On the other hand, some properties remain unsold, so appropriate pricing and property attractiveness are key.



Next, we would like to inform you of three notable points that indicate a bright outlook for the real estate market in 2025.

1. Predicted Improvement in Mortgage Rates

Rising interest rates have been a major issue over the past few years. However, mortgage rates are projected to improve significantly by 2025. It is hard to imagine from current conditions, but all of the major economic institutions （ Fannie Mae, MBA ™ (Mortgage Bankers Association ™), Wells Fargo, and NAR ™ (Narional Association of Realtors ™) ）, expect interest rates to decline over the next year or so. If this forecast comes to fruition, conditions will be favorable for many buyers.

2. Transaction Recovery Projections

Fannie Mae projects that total U.S. home sales at the end of 2024 will be about 4.74 million, the slowest pace since 1995. By 2025, however, it is projected to rebound to about 5.4 million units, which would represent an increase in transactions of about 14% over the previous year. This sign of recovery is expected to have a positive impact on the overall housing market.

3. Historical data for the year following an election

In 9 of the last 11 elections, the number of home sales in the year following an election has exceeded the number in the election year. This trend is further fueling expectations for increased transactions in 2025. Please refer to the chart below. As this data shows, the post-election year market is typically more active.

These projections indicate a bright outlook for the real estate market heading into 2025. A combination of factors such as lower mortgage rates, a recovery in the number of transactions, and market trends in the year following the election are expected to bring positive changes to the market over the next year.


Economic Impact of F1 Events

Now, back to the topic of F1 events, I am curious to know how much benefit these events that restrict traffic in the city on such a large scale actually bring to Clark County Las Vegas? I am curious.

Reports indicate that Clark County employees spent an astounding 17,059 hours on race-related duties in connection with the 2023 F1 race. This resulted in an overall cost to Clark County government of $4,301,630. On the other hand, the amount of money that Clark County received as revenue from F1 is estimated to be $3,838,764, which is not profitable at this time. This loss is most likely being covered by taxes, but it is certain to benefit related businesses such as casino hotels, restaurants, and transportation. Since there is also tax revenue generated by this, it is not a complete loss. In addition, the publicity that would promote Las Vegas around the world would also be very significant.

Unfortunately, Japan's Toyota Motor Corporation, which competed in F1 from 2002 to 2009, withdrew from the sport after failing to achieve the desired success due to the global financial crisis. Similarly, Honda withdrew from F1 at the end of the 2008 season, but has since focused its efforts on other areas, including the development of fuel cell and electric （ EV ） technologies.

However, on a happy note, I heard that Honda plans to return to F1 racing in 2026. This is something I am proud of as a Japanese and have great expectations for.

Some people think that F1 is a field far removed from the development of production cars, but Toyota is focusing its efforts on other motorsports such as 24-hour racing, the World Endurance Championship, and the World Rally Championship. Whichever path they choose, Toyota and Honda are representative of Japan, and as Japanese we will continue to pay tribute to these companies.


Now, if you have any questions or concerns about real estate, please feel free to contact us anytime.

Have a wonderful Thanksgiving!