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Category Archive : Economy

Vegas Street

Home Sales in Las Vegas Continue to Improve in Aftermath of COVID-19 Pandemic

LAS VEGAS, NV – After the housing market in Las Vegas came to a virtual standstill amid the chaos of the COVID-19 pandemic, initial reports indicated that the market was bouncing back at a higher than anticipated pace; more recent reports indicate this is still the case, with sales reaching their highest point yet since the advent of the pandemic.

When COVID-19 first hit the region, Southern Nevada’s housing market practically collapsed due to the economic devastation, with sellers drying up and cancellations of pending sales running rampant. However, the lows, while bad, never quite hit the points that experts first predicted, and efforts on the part of sellers – including virtual walk-throughs and online forms, among other methods of maintaining social distancing – have enabled business to improve over the past month.

June saw a major improvement in the number of sales contracts signed, with 1,230 people signing on the dotted line, which is the highest number reported since February when the pandemic had just started making its presence felt in the United States. In addition, June also saw just 208 sales cancellations, which represents a drop of 43 percent of the cancellations that occurred in May; obviously this is also a good indication of recovery for home builders.

Also, despite the rocky road for builders during the past few months, a saving grace came in the form of home price stability; prices on new homes did not lower significantly, and sellers did not provide many significant incentives in an attempt to attract sellers, citing that demand was still present and that sales would bounce back eventually.

The resale market also has continued to improve recently, with 2,460 homes selling in June for a median price of $325,000, representing a 45 percent jump from the previous month. Clearly, the basic need for home ownership will eventually outweigh concerns over a pandemic as long as proper precautions are taken.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Retail Space

Las Vegas Retail Space Takes Heavy Hit from Pandemic, Real Estate Report Says

LAS VEGAS, NV – According to a recent report, retail in Las Vegas has been especially burdened with hardship amid the ongoing – and currently resurging – coronavirus pandemic. In addition to heavy job losses, approximately 75,000 square feet of retail space has been put back on the open market due to business closures, with an additional 500,000 square feet potentially on the chopping block after several major chains announced closures.

Many of the impending vacancies revolve around the upcoming end of the moratorium issued by Nevada Governor Steve Sisolak, forbidding commercial and residential evictions due to coronavirus-related issues. While the moratorium on residential evictions has been extended until September, its commercial equivalent ended on July 1, allowing landlords to begin charging late fees, initiate lockouts, or start eviction actions for non-payment of rent.

In contrast to the woes suffered by retail, the rental and sales of industrial space – in particular, warehouse and distribution space – actually increased throughout the pandemic, with the second quarter of 2020 seeing over two-million square feet of industrial space change hands. Other types of industrial space that rely more on small businesses, however, suffered losses and are waiting for the economy to recover to see if leases increase once again.

Office space continued to be acquired throughout the pandemic, reports say, although not to an impressive degree, with just 10,000 square feet being leased; however, considering the degree of job losses in the second quarter, any leasing activity is seen as a positive, experts say.

The hospitality industry also suffered losses during state-mandated shutdown orders intended to slow the spread of the pandemic; given that Las Vegas’ economy relies heavily on tourism, it remains to be seen what impact this will have on Vegas’ recovery going forward, assuming the current resurgence of the coronavirus – which occurred when the state began a phased reopening – can be brought back under control.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Mortgage

Report: COVID-19 Has Many Las Vegas Residents Behind on Mortgage Payments

LAS VEGAS, NV – The economic damage inflicted upon the economy by means of the COVID-19 pandemic has left many experiencing financial difficulties, even in the wake of attempts by many states to re-open their economies to prevent the spread of the disease. Unemployment has been rampant, and as a result, bills are becoming harder to pay for many Americans.

Reports indicate that more and more people are, in particular, falling behind on ‘mortgage payments;’ 6.1 percent of April 2020 mortgage payments nationally were 30 days late, up from 3.6 percent the month before. Las Vegas is not immune, and is in fact one of the more worse off regions of the country in this regard.

Part of the reason for Las Vegas’ mortgage issues is its current high level of unemployment; in April 2020 it was a whopping 34 percent, up from just 3.9 percent in February. The cause of skyrocketing unemployment was due to Nevada Governor Steve Sisolak issuing a mandate that all non-essential state businesses close in light of the pandemic. Recently, attempts have been made to re-open businesses, but a resurgence of COVID-19 cases have made this problematic, slowing the state’s economic recovery and preventing job re-growth.

A foreclosure moratorium, issued by Governor Sisolak in March, is due to finally end in September, adding more pressure to families that are experiencing money problems. However, there are hopes that millions of dollars in federal coronavirus relief funds can help keep unemployed Nevadans in their homes while reducing the financial burden on lenders who have not been receiving mortgage payments throughout the pandemic.

Despite the current financial strain on homeowners, the amount of delinquent payments have yet to reach the low levels they did during the mid-2000’s recession. In addition, the housing market has not suffered the same level of damage, and is bouncing back faster than analysts have predicted.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Las Vegas Sign at dusk

Las Vegas Named by Forbes as Among Housing Markets Closest to Recovering from COVID-19

LAS VEGAS, NV – According to Forbes, the national housing market is managing to bounce back faster than anticipated from the damage caused by the COVID-19 pandemic, and they said that among the cities that are showing the most signs of a positive recovery is Las Vegas, Nevada.

Mortgage applications have been increasing over the course of the last two months, Forbes noted, and both demand and prices for homes are at the same level – or even higher – than they were in January 2020, prior to the COVID-19 outbreak, indicating a “recovery trajectory,” they said. Loan applications for early June 2020 were 13 percent higher than they were during the same period one year ago, and represented a straight eight weeks in a row of growth.

Forbes attributes this rapid recovery to the fact that, unlike some industries during an economic downturn, housing is an “essential good” and thus is to some degree recession-proof. Other factors that have helped the housing industry counter the damage done to the economy by the pandemic are current low mortgage rates and the ways that realtors have adapted to the pandemic with virtual walk-throughs and online paperwork.

Home prices displayed slower growth in recent months, but never actually started to decrease; however, growth has begun to increase more quickly recently – driven both by demand and an overall lack of supply, with new listings down nationwide 21 percent year-over-year – indicating a recovering marketplace.  

According to Forbes’ article, Las Vegas and Denver are leading the pack in terms of housing market recovery, with Boston, San Francisco and San Diego following closely behind. Many of these marketplaces are already seeing strong sales and prices that are on par with – or even higher – than they were before COVID-19 hit. In contrast, Buffalo, Columbus, Providence, Chicago are currently showing the least evidence of housing market recovery.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Man Sitting Home for Sale

Coronavirus Causes Las Vegas Home Sales to Drop to Half Pre-Pandemic Levels

LAS VEGAS, NV – According to recent reports, the effect of the coronavirus pandemic has been cumulative in regards to its impact upon the Las Vegas real estate scene. While home sales were immediately affected when the pandemic approached its zenith in March, they nonetheless persisted by way of demand and the continued efforts of real estate agents who embraced industry safety-related changes including virtual walkthroughs and online paperwork.

However, after the pandemic has all but ground the American economy to a halt, its long-term effects upon the real estate market have begun to set in. In a report released for May 2020 by Las Vegas Realtors, sales are currently at half of the levels that were achieved during the same time period last year. In May 2019, Las Vegas saw 4,045 homes sold; in May 2020, that number has dwindled down to 2,075, including condominiums and townhomes.

In addition, month-to-month sales have decreased as well, with May 2020 seeing 300 fewer homes sold than in April and down nearly 1,400 since March, reports say.

The problem is that, due to the prolonged shutdown of non-essential businesses in Southern Nevada – leaving many laid off or furloughed from their jobs – families and individuals who were contemplating purchasing homes have been holding off due to the economic uncertainty in their lives.

However, with Las Vegas beginning the early stages of reopening its economy, there is a potentially bright future in store in regards to real estate that experts are predicting a timely rebound for housing market. The amount of money being put into escrow in order to begin the home-buying process has increased by 64 percent in May when compared to April, indicating that buyers are setting themselves up for home purchases now that shelter-in-place restrictions are in the process of being lifted.

Once the local economy is fully operational again, those experts are predicting it won’t take long for the Las Vegas real estate scene to start firing on all cylinders again.One indication that sellers are confident that things will eventually get back to normal are home prices, which have remained relatively unchanged during the pandemic, maintaining their recent record highs amid a four-month supply. The median home price in May is $315,000, which is only down slightly from the all-time high of $319,000 set in March.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Vacation Rental

Amid COVID-19, More Travelers Turning to Home Rental Getaways for Socially-Distant Vacationing

LAS VEGAS, NV – Despite the ongoing COVID-19 outbreak winding down in some respects and states across the country starting the reopening of their local economies, the specter of the pandemic – and the possibility of an eventual resurgence – will continue to shape American’s vacation plans for some time to come.

According to a recent report, due to this “new normal” that we are all living in, many people who have been enduring home quarantines and are itching to get away from it all – yet still to maintain social distancing and safety guidelines – are turning to vacation home rentals this summer, with Las Vegas being one of the most popular destinations in question.

Reports also indicate that the vacation home rental industry is changing to meet these new times. Mainly used for short-terms stays of a few days, many are now encountering increased demand from clients who are looking to stay longer than usual – average stays have increased from a few days to as long as a month – after having been cooped up in their own homes for the last several months. In addition, new cleanliness and sanitation guidelines to help prevent the spread of COVID-19 are ensuring that landlords will make sure their properties are in full compliance to keep their renters safe.

The appeal of a vacation home rental is that it is possible to maintain a degree of social distancing that normally is not possible to do in a large and crowded hotel resort. These people are often on the lookout for large properties with plenty of amenities – such as a pool or a fire pit – that are adjacent to attractions that they can visit safely, such as the famed Las Vegas Strip, which is currently in the process of reopening for business after being shut down during the height of the pandemic.

The hotel industry has been one of the hardest-hit by the pandemic, not expected to fully recover until late 2022, but records show that the home rental industry – led by companies such as Airbnb and Vrbo – have continued to receive bookings thanks to people afraid to travel to crowded regions but desperate to get away in some form. Labor Day bookings of vacation homes, in fact, were reported to be comparable to last year’s figures, according to Airbnb and Vrbo.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Skyline Image of Las Vegas

With Las Vegas Finally Starting to Reopen, What Will the Long-Term Effect of COVID-19 Be on the Housing Market?

LAS VEGAS, NV – According to reports, the housing market in Southern Nevada has managed to avoid total collapse amid the financial strain brought upon the region – and, indeed, the entire country – by the conronavirus pandemic. And with Las Vegas beginning the initial stages of reopening its economy, real estate experts are attempting to access the damage, both short-term and long, and how business will continue to be conducted going forward.

The early days of the pandemic did have an impact upon home sales in Las Vegas, which were in the midst of a high point following its recovery from the mid-2000’s recession. Homes were still selling, apartments were still being rented, and properties were the subject of intense bidding. However, as rampant unemployment continues to spread – it’s currently at a record 28.2 percent – and it’s vital tourism industry put on-hold, it’s being questioned how long the real estate market can continue to resist the effects of the pandemic, even with Vegas eyeing a full reopening soon.

While still considered a seller’s market, the continued unemployment – combined with lenders increasing qualifications for loans – have some experts predicting that Vegas could become a buyer’s market in the near-future if things don’t improve soon.

Nonetheless, other experts are predicting a timely rebound for the Las Vegas housing market, noting that the market had hit a peak just before the pandemic hit, with the median price for a single-family home reaching $319,000 while in the midst of an overall housing shortage. Even now, sellers are reporting home sales that have multiple offers on them, particularly in Henderson, where demand for housing is such that even the pandemic is not taking all of the wind out of the marketplace.

While inventory may go up slightly, these experts say, the strong demand for homes will remain and will likely create a win-win scenario for both sellers and buyers. For example, a six-month supply of available homes in any given region’s market is considered balanced; in April 2020, Las Vegas only has a three-month supply, so there is indeed some wiggle room.

And given how hot the local economy was prior to the pandemic, it is likely that Southern Nevada will bounce back faster than many other regions in the country once things finally get back to normal.

The photo used, in this article, an aerial view of Las Vegas strip casino resort towers in Southern Nevada, is for editorial use only. It is credited to TrekAndShoot and licensed through Shutterstock.com.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

The Raiders Are Coming Sign

Sale of Expensive Homes Adjacent to Las Vegas Raiders Headquarters, Practice Facility Doubled, Reports Say

LAS VEGAS, NV – The arrival of the Raiders NFL team to the Las Vegas region has sparked numerous aspects of the local economy, creating jobs and attracting businesses and even fans that have deemed it necessary to transplant themselves to the new city of their beloved team. But the latest news is that the team’s new Henderson-based headquarters and practice facility has had an interesting effect of essentially doubling the sales of nearby high-end homes during the first quarter of 2020, many in the $1 million range.

This has been dubbed in some real estate circles as “The Raider Effect.”

In addition of existing homes costing in the $1 million range in the area surrounding the Raiders’ Henderson headquarters jumping up to twice their normal levels so far this year, sales of residences in general – both new and existing, at all price points – have increased as well.

According to recent reports, 32 homes costing $1 million or more were sold in the first quarter of 2020, spread out among Seven Hills, Anthem Country Club, and Southern Highlands, all of which are situated within the corridor surrounding the Raiders’ $75 million headquarters. In contrast, that same region only saw 17 sales of such financial magnitude in the first quarter of 2019.

Obviously, not every home sale in the area is influenced by die-hard sports fans wanting to be in the vicinity of the NFL team’s new base of operations – opening in late 2020 – but it does reflect how much the Raiders’ headquarters has contributed to the overall growth of the Henderson region, leading to an increase of retail, jobs, and construction that has brought new residents from all walks of life seeking homes.

And of course, some of those homes were likely purchased by Raiders players themselves as they begin the process of uprooting themselves from their previous home of Oakland, California, where the team had previously been playing for the majority of its existence. The Raiders will be playing out of the newly-constructed Allegiant Stadium, scheduled to open in July 2020, although the currently ongoing coronavirus pandemic may cause potential delays to that plan.

Photo: Billboard on the Las Vegas Strip announcing that the Oakland Raiders NFL team are moving to Las Vegas in 2020. Photo credit: Steve Bruckmann, December, 2018, Shutterstock.com, licensed.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Young Couple

Many Las Vegas Homebuyers Facing Quandary Due To Shaky, Uncertain Future From Conroavirus Pandemic

LAS VEGAS, NV – With the ongoing coronavirus pandemic, crushing financial issues are causing people living in Las Vegas, Nevada to re-think home purchases due to a shaky, uncertain future brought about by lock-down orders placed upon the populace in order to curb the spread of the disease.

Reports are coming in of hopeful couples who have placed sizable deposits on homes – sometimes in the tens of thousands of dollars – only to have the rug pulled out from under them by losing their jobs or being furloughed by their employers. With their incomes suddenly removed from the equation, many buyers are finding themselves in an untenable situation- mainly, the very real possibility of not being able to get their deposit back on a home purchase they can no longer afford to make.

Throughout Las Vegas, home buyers are stuck in a quandary- whether or not to cancel buying their homes and eat the loss of their deposits, or tough it out despite the financial risks and see what happens?

In March 2020, government mandates resulted in the closure of many jobs and businesses that were deemed non-essential, effectively shutting down the city’s lucrative tourism industry and leaving many without ordinary sources of income. That month, the number of unemployment insurance claims filed ballooned 2,125 percent from the same period one year prior, with a record-setting 208,869 residents signing up for assistance.

The spring season is typically a busy one for the Las Vegas real estate industry; however, the scourge of coronavirus has caused record drops in sales, with a 28.5 percent month-to-month drop in home sales – representing only 1,970 single-family dwellings – occurring in April.

Despite the financial uncertainty in the region, many homebuyers are making the decision to stick it out and see what happens. However, Vegas home builders are also feeling the crunch, with a low 459 contracts signed in April and 215 cancelled sales; this represents a major drop from the over 1,000 sales a month during the previous three months this year.

Also, in an attempt to provide some degree of security for potential home-buyers, some real estate firms are attaching addendums to their sales contracts offering some protection for both parties, including the ability for buyers to recover their deposits in the event of financial distress brought about by the pandemic. It is hoped that this addendum – dubbed the “COVID Clause” – will help families who were mulling over possibly buying a home to feel safer about taking the plunge and, subsequently, assist in helping the marketplace to recover.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Couple Moving

Developer Notes that COVID-19 Could Provide Long-Term Benefits for Las Vegas Real Estate

LAS VEGAS, NV – While Las Vegas is feeling a variety of short-term negative impacts from the ongoing coronavirus pandemic currently hitting our nation, a prominent high-rise developer is noting that there could be long-term benefits, as eventually new business and residents seeking to economize could be driven to Southern Nevada from neighboring states. Strict stay-at-home orders and the closure of businesses deemed non-essential have brought the Las Vegas economy to a near-standstill and subsequently slowed the previously skyrocketing local real estate industry. However, Uri Vaknin, a partner at KRE Capital LLC, noted that while some high-profile deals have indeed gone awry amid the financial uncertainty brought about by the coronavirus outbreak, there nonetheless have been a few glimmers of hope as well that could lead to better things.

For instance, from March through early April, a number of expensive condo sales went under contract in downtown Las Vegas; Vaknin said that this is due to a number of residents and investors in neighboring states such as California – where the high cost of living is making the stay-at-home orders financially unfeasible – taking the plunge and finally moving to Southern Nevada, which has been lauded for it’s much more affordable lifestyle.

“Californians have historically made up a large percentage of our buyers for all the obvious reasons, including traffic congestion, quality of life, high taxes, pollution and unaffordable housing — all things for which the Golden State is known,” Vaknin said. “While COVID-19 is everywhere and can’t be escaped, a few of our buyers have mentioned their concern over being in lock-down in homes that are relatively unaffordable long-term and in areas with high taxes and other quality-of-life issues.”

This trend could continue as more economic refugees seek to flee the expense involved with living in California, as the overall financial impact of the coronavirus pandemic is likely to be felt nationwide for years to come. The fact that local economies will be impacted for such a potentially long period of time will likely encourage those who live in neighboring states to finally move in an attempt to live a more affordable lifestyle in nearby Las Vegas.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Couple Sitting Talking

North Las Vegas Landlords Who Violate COVID-19 Emergency Orders Now Facing Fines, License and Permit Revocation

LAS VEGAS, NV – The North Las Vegas City Council recently unanimously voted at an emergency meeting to pass an ordinance allowing fines and other penalties to be imposed upon landlords and property managers who are in violation of state and city emergency anti-eviction decrees.

Amid the state of emergency brought on by the ongoing coronavirus pandemic, Nevada Governor Steve Sisolak had issued a statewide moratorium on March 29 against evictions, citing the economic issues faced by residents in light of strict business closure and stay-at-home orders. But some landlords have nonetheless defied that decree and have locked out and/or evicted tenants who have been behind on their rent.

The eviction decree by Governor Sisolak applies to all renters in the state of Nevada, be they monthly or weekly, residential or commercial, and applies while the state of emergency is still in effect; in addition, all late fees for back rent during the emergency period are waved. However, the non-eviction order does not apply to individuals who pose a threat to either their property or to others.

The moratorium had a mixed response, with some legal advocates supporting the move while others supported landlords and property managers, noting that they also have their own bills to pay throughout the crisis.

The North Las Vegas City Council, on a vote of 5 to 0, approved an ordinance that will seek penalties imposed upon anyone who violates Governor Sisolak’s decree – or any similar decrees issued by the city of Las Vegas – including fines in the amount of up to $1,000 a day as well as the potentially revoking the businesses licenses and permits.

In addition, according to Councilman Isaac Barron, misdemeanor charges resulting in jail sentences up to six months could also be imposed upon violators. The new rule went into effect immediately following the council’s vote, meaning that enforcement could start right away. “The goal, very specifically, is to stop a handful of bad-actor landlords and property managers from locking people out for failure to make rent,” he said.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Editors Correction: An earlier version of this article mentioned the ordinance was passed this week; it was passed in early April.

Hard Hat Workers

Despite Workers Testing Positive for Coronavirus, Work Continues on Las Vegas’ Allegiant Stadium

LAS VEGAS, NV – Despite two on-site workers testing positive for coronavirus – which causes the respiratory disease COVID-19 – it was announced this week that work would continue on the new home of the Las Vegas Raiders NFL team, Allegiant Stadium. The $2 billion, 65,000-seat venue is expected to be completed in July 2020 in time for the 2020 NFL season, currently scheduled for August 16.

Most recently, a worker for the Mortenson-McCarthy construction company tested positive last week for COVID-19, but the company noted that strict social distancing guidelines at the worksite prevented the infected worker from coming into contact with others, minimizing chances of the disease spreading further. A previous worker had tested positive for COVID-19 in March.

Mortenson-McCarthy representatives relayed their “heightened concern” for the safety of their workers, and have made adjustments to their labor volume and the timing of shipment deliveries to increase the precautions taken at the worksite.

Much of Nevada is currently under a stay-at-home order issued by Governor Steve Sisolak, with only businesses deemed to be “essential” allowed to remain open. Construction projects, which have been included in the “essential business” category, are still allowed to continue, but nonetheless a number of projects have been cancelled or postponed until the pandemic has subsided. Also, some contractors have reported delayed shipment of materials needed for their projects from China and Italy, areas of the globe where the coronavirus has hit the hardest.

Allegiant Stadium isn’t the only active construction site in Las Vegas with workers testing positive for COVID-19; recently, four workers at the Resorts World construction site and a worker at the Circa site have also tested positive for the disease.

In the wake of the ongoing pandemic, the Nevada Occupational Safety and Human Administration (NV OSHA) recently sent safety guidelines to construction companies state-wide, documenting precautions and procedures to ongoing projects to adhere to.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.