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Category Archive : Economy

Housing Market

Rising Borrowing Costs Begin to Slow Las Vegas Homes Sales, While Prices Continue to Increase

LAS VEGAS, NV – The housing market in Las Vegas has experienced a historic degree of growth in the past year, with fierce competition for the city’s limited inventory resulting in fast sales, multiple offers – many well above the asking price – with cheap money in the form of low-interest mortgage loans fueling the activity to levels not seen before the mid-2000’s recession.

However, one vital piece of the puzzle – and one of the main driving factors – of that sales activity is quickly going away. Borrowing costs have been steadily rising as of late, and the resulting higher-interest home loans have been slowing down sales, both in Las Vegas and nationwide, reports say.

One year ago, the average interest rate on a 30-year home loan was just 2.98 percent; however, as of last week, that average is now up to 5.1 percent, which represents a significant addition to a borrower’s monthly payment.

As a result of steadily rising interest rates, the buying frenzy that the country has been in the grip of is starting to abate, according to Freddie Mac chief economist Sam Khater in a news release.

“The combination of swift home price growth and the fastest mortgage rate increase in over forty years is finally affecting purchase demand,” he said, noting that currently skyrocketing home prices should slow down to “a more sustainable pace later this year” as a result.

Overall, nationwide home prices have increased by almost 20 percent year-over-year in February, and while Las Vegas has experienced fluctuations in real estate activity on a regular basis over the years, the city’s increasing housing costs are still comparably higher than other major marketplaces across the country, driving concerns over affordability.

However, there are signs that the local market is beginning to show signs of stability; in March, sales of pre-owned single-family homes were down 12 percent year-over-year, and Southern Nevada builders recorded almost 1,260 net sales in March, the largest number in a year.

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 Median Home Prices Hit Record $460,000 Amid Lowering Sales Overall, Report Indicates

LAS VEGAS, NV – A new report released this week indicates that home prices in Las Vegas continue to increase on a regular basis, despite the fact that home sales in Southern Nevada overall have begun to slow down when compared to the same period of time one year ago.

According to Las Vegas Realtors (LVR), the median price of existing single-family homes sold in Las Vegas in March 2022 was $460,000, which once again breaks the all-time record, as has been the case each and every month for the last several months. Just one year ago – in March 2021 – the median price was just $363,000, which was 26.7 percent lower than it is now.

Another all-time real estate-related record was set in March as well – the median price of local condos and town homes sold in March hit $270,000, smashing last month’s record and representing a 39.2 percent jump from March 2021, when that price was $194,000.

In contrast, the lowest homes reached in terms of cost in recent times was during the mid-2000’s recession, when the median price of existing single-family homes bottomed out at a mere $118,000.

However, LVR President Brandon Roberts noted that the number of homes selling on the market is starting to ebb slightly, driven by several factors.

We keep expecting prices to slow down at some point, but it’s not happening, yet,” Roberts said. “With mortgage interest rates rising recently and the inventory of homes available for sale as low as it has ever been, it’s no surprise that we’re starting to see fewer homes being sold.”

For example, there were only 2,005 single-family homes on the Las Vegas marketplace without any offers, which is an increase of 13.1 percent from the same period of time in 2021. In addition, 4,205 existing local homes, condos and town homes sold in March, which is 12.2 percent less for homes and 6.5 percent less for condos and town homes than one year prior.

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 Strip

Developer Announces Plans to Construct $3 Billion Entertainment Venue Near Las Vegas Strip

LAS VEGAS, NV – A new $3 billion entertainment venue has been announced by developer Oak View Group that will be constructed south of the famed Las Vegas Strip that will feature a plethora of attractions sure to appeal to both tourists and local residents.

Oak View Group has been behind the development of several high-profile venues across the country in recent years, including the $1.5 billion UBS Arena at Belmont Park in New York and the rebuilding of Seattle’s Climate Pledge Arena.

However, Oak View is now throwing their considerable weight behind the Las Vegas entertainment industry – which is still recovering from the COVID-19 pandemic – with an as-yet unnamed entertainment project that is scheduled to officially break ground in 2023.

As it is currently envisioned, the facility will feature an 850,000-square-foot arena, a casino, a hotel and an additional amphitheater to host concerts, sports events, family entertainment, conventions and award shows.

The project is slated to be built upon a 25-acre plot of land that is located on over 66 acres situated in the vicinity of two major freeways, I-15 and I-215. The venue is being designed by two prominent architecture firms – Gensler and Populous – and construction duties will be handled by President of Global Venue Development and Special Projects at Oak View Group, Steve Collins.

The news of this project comes amid the slow-but-sure recovery of the Las Vegas tourism industry post-COVID; in February, 2.6 million people visited Las Vegas, near 70 percent more than February in 2021, but still 1 million fewer than February 2019. Nonetheless, local hotel and recreation-related construction saw an increase of 67 percent year-over-year from 2020 to 2021, which is indeed a positive sign.

However, pandemic and supply chain issues have created hurdles for this development recently, with major projects originally scheduled to debut in 2022 – such as the Fontainebleau Las Vegas and the MSG Sphere – delayed to 2023.

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.

Henderson, Summerlin

No Sign Vegas’ Housing Boom Ending as Report Indicates Prices Still Rising; Rapid Sales, Low Inventory, Climbing Costs

LAS VEGAS, NV – A new report indicates that Las Vegas’ housing boom isn’t showing any signs of slowing in the near future, as prices continue to increase at an incredible rate when compared to many other markets across the United States.

In January 2022, home prices in Las Vegas had increased year-over-year from January 2021 by an amazing 26.2 percent; this is in contrast with the average gains across the country, which was approximately 19.2 percent, according to the S&P CoreLogic Case-Shiller index released last week by S&P Dow Jones Indices.

It also must be noted that, according to the Case-Shiller data, this represents the eighth month in a row that Las Vegas has seen its homes prices increase faster than the national average, with its highly-competitive market being driven by rapid sales, low inventory, and climbing costs.

In addition, the median sales price of previously owned single-family homes in Las Vegas was $450,000 last month, which represents a jump of 26.8 percent – or $95,000 – from February 2021, reports say.

The report covers 20 major metro areas, and while it illustrated that Vegas is far outpacing much of the country in terms of rising home prices, the king of the pack remains Phoenix, Arizona, which saw the cost of housing increase year-over-year in January by an astonishing 32.6 percent.

The housing boom – both in Las Vegas and nationwide – has been driven by historically low interest rates on mortgages that have allowed buyers to get more for their money; even with interest rates now beginning to increase slowly, the average rate on a 30-year home loan in February 2022 was 3.76 percent. This rate is indeed still quite low, but nonetheless higher than it was in February 2021, when it was a mere 2.81 percent.

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.

Housing Market

Amid Record Prices, Las Vegas Realtors President Predicts Market Stabilization Coming; Increases “Not Sustainable”

LAS VEGAS, NV – Las Vegas Realtors Association President Brandon Roberts is predicting that, as Southern Nevada’s home prices continue to break record after record – causing intense affordability concerns – the market will eventually right itself and stabilize, noting that the current situation is “not sustainable” long-term as it is.

In February 2022, the median price of existing single-family homes in Las Vegas reached a new record – $450,000 – which itself leapfrogged the previous record just the month before. Overall, the median price was just $355,000, with the new record representing a whopping 26.8 percent year-over-year increase and over three times the $118,000 existing homes were fetching in January 2012 during the recession.

It’s easy to see how much the intense housing demand is driving home prices up in the region; in 2021, there were 38,601 home sales in Vegas, and over 50,000 when townhouses and condominiums are added into the equation. However, this represents a situation that Roberts says can’t last.

“Local home prices can’t keep going up this fast, forever. The increases we’ve been seeing in the last year or so are just not sustainable,” he said. “It remains to be seen how much higher these prices can go and when we might start to see the market stabilize, as many national experts have been predicting. Either way, I seriously doubt you’ll see home prices more than triple again in a single decade.”

Given the record-setting nature of the real estate industry in 2021, Roberts said that he expects this trend to continue into 2022 but that prices and demand will start to level off as interest rates on home loans begin to slowly rise from the historic lows they hit during the COVID-19 pandemic.

“That affects people’s buying power, which could affect the demand on some of the properties,” Roberts said. “I do think we will stay strong because we have low inventory, and we will continue to see that. As soon as they are coming on the market, they’re selling. We’re in a shortage of housing, I don’t think builders could build it fast enough because of supply, labor and permits. I think we will see increases (in prices) but not at the level we saw last year.”

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

Las Vegas Home Prices Now Outstripping United States Average; Limited Inventory And “Persistent Demand”

LAS VEGAS, NV – Ever-increasing home prices in Las Vegas are now outstripping the current average in the United States, according to a recent Case-Shiller report, with the end of 2021 setting the stage for what to expect in 2022.

House values in Southern Nevada in December 2021 had shockingly jumped 25.5 percent from the same period of time in 2020; this runs in contrast with the 18.8 percent price climb on a national basis, according to reports. Vegas home prices have been accelerating past the national average now for the past seven months in a row.

Arizona, specifically Phoenix, is also a region where home prices have been rising fastest over the course of the past year, blasting past the national average to an even greater degree than Vegas. As of press time, home prices in Phoenix have jumped a whopping 32.5 percent year-over-year, illustrating the exuberant degree that home prices have raised overall in the United States during the past 365 days, despite – or perhaps because of – the impact of the pandemic.

Among the 20 markets covered by S&P Dow Jones, home prices are at an all-time high despite high unemployment caused by the COVID-19 pandemic; this factor has been mitigated by rock-bottom interest rates on home loans that have allowed buyers to maximize their budgets.

Rising home costs, both in Las Vegas and nationwide, have also been driven by limited inventory and “persistent demand,” real estate experts say.

However, of the 15 markets tracked by the Case-Shiller report, Southern Nevada has been proven to be an especially popular place for people to move to due to its low cost of living when compared to other regions with higher tax brackets and overall lower – for the time being – home prices.

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.

Circus Circus

Northern Las Vegas Strip in Midst of Long-Awaited Turnaround as Multiple Construction Projects Take Shape

LAS VEGAS, NV – The north edge of the Las Vegas Strip was in the midst of multiple construction and development projects that – with the arrival of the mid-2000’s economic recession – instead resulted in huge empty tracts of land and little-to-no foot traffic. The vibrancy and excitement of the Strip had failed to carry to the end of Las Vegas’ casino corridor… until now, it seems.

Originally, plans for megaresorts and other projects were slated for the north edge of the Strip, but the recession stalled these plans indefinitely; however, new development is finally being spearheaded, and local residents are hopeful that the turnaround they’ve been long hoping for is finally set to take place.

In June 2021, Resorts World Las Vegas – a $4.3 billion casino and resort – opened for business, representing the first new resort constructed at the northern end of the Strip in over ten years. Fontainebleau Las Vegas, derailed by the recession, is finally back under development and is slated to finally open in late 2023, after being purchased once again by its original developer. And finally, a $1 billion, 1.4 million-square-foot expansion Las Vegas Convention Center’s West Hall was completed and opened in June 2021.

In addition to projects that have been started from scratch, there are others that are centering on pre-existing properties that are currently being renovated or upgraded in some way, such as the Sahara Las Vegas, which is remodeling its 1,100 rooms and pool to the tune of $150 million, along with adding new restaurants.

Also, The Strat recently finished a $110 million facelift as well – adding a new coat of polish to its rooms, casino, and restaurants – and Circus Circus expanded its arcade and carnival game area, added a new ride, and is in the middle of a $9 million renovation of their food court.

With the Las Vegas economy bouncing back and tourism picking up again in a big way with the (hopefully) final days of the COVID-19 pandemic, experts are expecting the new-found interest that developers are paying to the north edge will result in the area possibly becoming the “hot side of the Strip” within the next five years.

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 Valley

Another Month, Another Record: January 2022 Las Vegas Home Prices Reach Highest Ever Yet Again

LAS VEGAS, NV – At this point, it may be a moot point, but the numbers for January 2022 are in, and once again home prices in Las Vegas have set yet another all-time record, showing that – even with the advent of yet another new year – the real estate scene in Southern Nevada does not appear to be showing any signs of slowing down.

Reports indicate that last year’s red-hot market has carried over into 2022, with January’s median sales price of previously-owned single-family homes – which makes up the majority of home sales in Las Vegas – was $435,000, an increase of 2.4 percent – or approximately $10,000 – over December 2021, which itself was yet another record-setting month.

In addition, last month’s new record represents a whopping 26.1 percent increase – or about $90,000 – year-over-year from January 2021.

However, both sales overall and the amount of homes available on the market have both dropped recently; 2,561 houses were sold in January, which is a drop of 19.4 percent from December and 2.9 percent year-over-year. Only 1,821 single-family homes were listed in January without offers, which is a 19.1 percent decrease from December and 21.3 percent less than January 2021.

In addition, January’s record was a threefold increase from ten years ago following the national recession, at which time home prices in Southern Nevada reached a record low of $118,000 in January 2012.

Experts say that Las Vegas’ home sales are still being driven in-part by current low interest rates on home loans, which are expected to steadily rise as the year goes on but are still expected to remain historically low for the foreseeable future; this has resulted in fast sales and rapidly rising prices, making Vegas currently very much a seller’s market.

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.

New block of modern apartments with balconies and blue sky in the background

2021 Las Vegas High-Rise Marketplace More Than Doubles Sales; Had Dropped Every Year Until 2021 Turnaround

LAS VEGAS, NV – With all of the real estate milestones that occurred in Las Vegas over the course of 2021 – perhaps one of the unlikeliest years for this to have taken place, given the ongoing COVID-19 pandemic – the local high-rise condo marketplace is yet another aspect of this industry that broke records over the course of last year.

Las Vegas’ high-rise market saw itself break its all-time record in 2021, recording more than twice the sales than it did in 2020; in addition, the highest price ever paid for an individual unit was eclipsed in 2021 as well with the $16.25 sale of a condominium at The Martin, a luxury tower located in Paradise, Nevada.

2021 represents an amazing about-face for Las Vegas’ high-rise industry after it sank to concerning lows in 2020 due to the pandemic; that year, high-rise condo sales dropped 18 percent to 584, whereas that number had been 692 in 2019. The reasoning for the decrease year-to-year was attributed to buyers purchasing more homes in an attempt to isolate themselves during the peak of COVID-19, eschewing densely-populated high-rises.

However, 2021 saw all that change once vaccinations were rolled out, and the many amenities that high-rise condos offer for tenants – such as pools, gyms, spas, salons, restaurants, retail, and more – proved to be very attractive, especially for those weary from long-standing lockdowns.

Las Vegas saw 1,321 condo sales in high-rises of five stories in 2021, a number which waylaid the previous record-holding year of 2017, when 970 condos were sold; every year forward, that number had dropped annually until 2021’s turnaround.

In addition, a report that tracks 21 high-rises along and near Las Vegas Boulevard and downtown, One Queensridge Place in the west valley showed 1,161 sales in 2021, up from 505 in 2020 and 607 in 2019. The average price paid for a unit in one of those 21 high-rise towers in 2021 was $561,252.

High-rise condos are expected to continue to be red-hot going into 2022, although the buying frenzy in 2021 means there are far fewer units on the market this year; currently, reports say that just 228 units were listed at the end of 2021, averaging in price at $1.15 million.

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.

Transplants

As Las Vegas Luxury Home Sales Skyrocket, Experts Still Expect New Wave Of Residents Fleeing California

LAS VEGAS, NV – Last year, no segment of Las Vegas’ real estate market exploded quite like the luxury market, and experts are anticipating even greater heights in 2022. In 2021, the market skyrocketed, with an increase in the number of sales of many expensive properties – including those costing millions – being driven by residents of neighboring states transplanting themselves to Southern Nevada during the era of COVID-19.

Records indicate that 1,686 sales of homes costing at least $1 million or more were made throughout 2021, as compared to 825 in 2020 and 596 in 2019. And that just covers homes sold via the Las Vegas Realtors association’s Multiple Listing Service; any off-markets sales wouldn’t be covered in those totals, which could be significantly higher in reality.

With such high sales, experts have speculated that the trend will continue into 2022, even though developers have been struggling to build enough high-end luxury homes in order to keep up with the vast demand.

When it comes to percentages, the biggest increases in sales were in the $4 million-plus market; 101 single-family homes in this category were sold in 2021, compared to 51 in 2020 and 20 in 2019.

Luxury homes in the Southern Nevada region have attracted numerous buyers since Las Vegas re-opened after its government-imposed shutdown due to COVID-19. Vegas saw many transplanted residents from neighboring states –with homes at all price points being snapped up – but the largest demand of all was directed at luxury residences.

The momentum in the luxury market is expected to continue into 2022, considering the fact that glut of sales in that category – 223, to be exact – took place right at the very end of 2021. Real estate experts are bullish on 2022 due to several pending pieces of legislation in California aimed at increasing the state’s already insufferably high taxes even higher;  given the fact that these bills are due to go into effect in the very near future, a new wave of transplants into Las Vegas are expected shortly.

This impending influx of wealthy new residents already has some luxury homeowners in Southern Nevada gearing up to sell their homes, and experts are expecting the low inventory to potentially fetch some extraordinary prices, possibly even eclipsing 2021’s all-time record luxury sale amount of $25 million, which was paid for a residence in MacDonald Highlands in Henderson.

Experts say there are properties out there that can possibly command higher prices in 2022, especially considering that pricing and price-per-square-foot has continued to break records consistently in the region.

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

Expert: Las Vegas’ Streak of Rapid Sales, Record-High Prices Expected to Continue Into 2022

LAS VEGAS, NV – Despite the ongoing COVID-19 pandemic, 2021 saw a record-breaking year in Southern Nevada – its highest ever, in fact – both in terms of home prices and sales, driven by demand and low borrowing costs. And according to real estate experts, that trend is expected to persist well into the new year, with 2022 likely to continue breaking records time and again.

According to Frank Nothaft, chief economist with housing tracker CoreLogic, the pandemic initially caused a large drop in the real estate market; however, once the summer of 2020 hit, things started taking an unexpected turn for the better when mortgage rates dropped.

“Mortgage rates fell to 3 percent or even lower, and for many prospective homebuyers who didn’t lose their jobs, they saw this opportunity presented by record-low, rock-bottom mortgage rates, and the affordability that introduced,” he said. “We saw a lot of prospective homebuyers jump into the market, first-time homebuyers in particular. They saw this as an opportunity to trade up, buy more house, and more house, more room is exactly what they wanted during the pandemic. They needed more space because they needed the office from home. And if they had kids, at that stage of the pandemic, they had to plan for a school room from home, too.”

Nothaft noted that he was surprised at how long Las Vegas’ hot streak has lasted, saying that he had expected interest rates on home loans to have increased by now.

“Our forecast was that we’d see mortgage rates rising by now…well, they didn’t. Mortgage rates reached record-low levels. That has been a very powerful stimulant to the housing market,” he said. “In Vegas, we’ve got buyers coming in who earn a lot more money than the typical Vegas household who are able to buy a much more expensive home.”

However, Nothaft stated that the boom has made it harder for some Las Vegas families to be able to afford homes in the region, previously well-known for its low cost of living.

“You see prices really getting bid up. It makes it just that much harder for households, families that have been living in a market like Las Vegas to afford to buy,” he said. “What we’ve observed during the summer is something that we’ve never seen in the last 20, 25 years in the country. In the summer of ’21, more than one-half of the homes that sold on the MLS sold above the list price. And it’s not just that they’re selling above the list price, they’re selling quickly.”

Nothaft said that he’s expecting mortgage rates to eventually begin to climb, but most likely that will not happen at a rate that will have an impact upon Las Vegas home sales in 2022, which are expected to continue to climb… along with prices.

We’re expecting a gradual rise in mortgage rates,” he said. “So, if that scenario comes to pass, and we see mortgage rates gradually rise and return back to some type of normal level, by the time we get to 2023, 2024, then we’ll see a gradual slowing down in home sales activity and in home price growth.”

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, Nevada

Despite Lasting Effects Of Pandemic, Home Sales In Vegas Reach All-Time High in 2021

LAS VEGAS, NV – 2021 was many things to many people, but for Southern Nevada, it represented the all-time record-setting year in the region’s real estate history, despite the lasting effects of the COVID-19 pandemic upon its economy still being felt to this day.

A record 50,010 residential properties – encompassing houses, condominiums, and townhomes – were sold in Las Vegas in 2021, which is a jump of 21.5 percent from the year before.

In December, the median sales price of previously owned single-family homes reached a never-before seen $425,000 – an increase of 1.2 percent over November’s record, and 23.2 percent year-over-year – with 3,178 single-family homes purchased.

The previous all-time high for home sales in Las Vegas was originally sent back in 2011, and that number was 2,000 homes less than the record set in 2021; experts called what was achieved last year in “remarkable,” considering the fact that these records were set in the midst of a pandemic, during a period where local home prices have never been higher and the supply never lower.

The COVID-19 pandemic contributed to high unemployment rates throughout Las Vegas – 33 percent of the workforce was unemployed in spring 2020 – but despite an early hit the real estate market rebounded far faster than experts had expected, driven in-part by super-low mortgage rates that allowed buyers to get the very most for their money.

As for sellers of Las Vegas homes, most were inundated with offers, and many sold at or even well above their respective asking prices; median sales prices often set new records nearly every month. Buyers jockeying to purchase newly-built homes, due to fierce demand, were often forced to join waiting lists and at times even drew names for the chance to submit a bid on a home.

The real estate market in Las Vegas is mainly driven by single-family homes, but demand increased for attached dwellings during 2021 as well; condos and townhomes also set records last month, with the median sales prices of both hitting $242,000, a 30.1 percent year-over-year increase. Who knows what 2022 will bring?

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.