Las Vegas Area Real Estate News, Market Trends and Community Events!

 

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you about about Las Vegas Real Estate.

Sept. 28, 2020

Market Amid Pandemic and High Unemployment

LAS VEGAS (KSNV) — Las Vegas has been hit hard with high unemployment numbers this year, but through all the apocalyptic insanity that came with 2020, area home prices are up nearly 8% in August.

The average price of a home in the Las Vegas metro area grew 7.8% year over year to $310,000 in August, according to Redfin.

But why is this happening amidst such economic pressure?

“A lot of sellers are asking me the same question: How is my neighbor’s house going under contract in two days, but I pick up the local newspaper and it’s all doom and gloom for the economy?” said Las Vegas Redfin agent Shay Stein, adding, “It’s because there’s so much more demand than supply, driven by two groups: People coming from high-priced places like California, Hawaii and New York who can suddenly work from home, and locals whose needs have changed due to the pandemic.”

Now that workers don't have to roll into an office every day, people who once were forced to commute to their jobs in places like San Francisco and New York, no longer need their high rent homes. So they're looking at less expensive places, like Las Vegas.

“I helped a New York couple who sold their home for $1.9 million, bought a larger home here for $475,000 and pocketed the remaining equity. Plus, their property taxes went from $23,000 per year to $2,500," said Las Vegas Redfin agent Patrick Thomas.

The influx of new residents may also change the political landscape of the state.

“The wave of migration could also impact the area’s politics. Some of the people coming from big coastal cities are fleeing liberal business and tax policies for a place more in line with their views, and some are strict Democrats who are moving for other reasons. It will be interesting to see if it results in a more conservative or a more liberal Nevada," Thomas said.

 

by Mat Luschek

 

Sept. 23, 2020

Home Prices Amid Pandemic

The median sale price of an existing home in Southern Nevada hit $335,000 in August, a new record, according to the Las Vegas Realtors trade organization.

The previous record was $330,000, which was set in July.

The rising prices have come despite the coronavirus pandemic, which has battered the economy and sent unemployment skyrocketing.

Tom Blanchard, a longtime agent and president of Las Vegas Realtors, said the region’s housing market “continues to defy expectations.” But, he said, he’s not sure how much longer the market can perform like it is now.

“Those that can purchase have been purchasing, pretty much since this pandemic started,” Blanchard said. “That part of our business has been steady and constant. The only thing I’m concerned about is if the assistance people are getting — unemployment insurance, the Cares Act, all of the government assistance out there — goes away and the jobs haven’t come back, we’ll see us fall off the crevasse.”

The median price for an existing home last month was up 10% from August 2019, according to the monthly Las Vegas Realtors report.

Townhomes and condos sold for a median price of $185,000 last month, a 5% increase from August 2019.

In 2012, the median price for a home in Southern Nevada bottomed out at an all-time low of $118,000, according to LVR figures.

Blanchard said the number of homes for sale remains well below the six-month supply generally considered to represent a balanced market.

By Bryan Horwath 

Posted in Market Updates
Aug. 31, 2020

EVICTIONS

LAS VEGAS (KTNV) — Thousands of Nevadans could be facing homelessness for the first time.

Many people across the state have been facing eviction since the start of the coronavirus pandemic. The moratorium in Nevada expires in one month, but a new law could protect renters.

Gov. Steve Sisolak ordered an eviction moratorium in late March, protecting Nevadans from housing insecurity during the COVID-19 pandemic. That moratorium expires on Sept. 1, meaning landlords can start kicking tenants out again if they can't pay their rent.

Monday, state lawmakers passed a bill that would buy renters a little bit more time.

About 300,000 people across Nevada could lose their homes. In an effort to prevent a backlog in the court system, and keep people in their home, renters would be able to remain in place for 30 days while they work out some sort of mediation with their landlord.

Aug. 27, 2020

Las Vegas Real Estate Market Forecast 2020 – 2021

What are the Las Vegas real estate market predictions for 2020? Las Vegas housing market 2020 was shaping up to continue the trend of the last few years as one of the hottest markets in the U.S. We get to find that on Zillow, the median home value in Las Vegas is $165,613. Let us look at the price trends recorded by Zillow over the past few years. From 2017 to 2018, the median home price in Las Vegas appreciated by 30.4%, from $217,000 to $283,000.

In two years, Las Vegas home values rose significantly due to the low availability of homes and very high demand. It was named as the number one real estate market in the USA for 2018 by Realtor.com based on the price and amount of existing homes, new home construction, and local and economic trends. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices).

However, in 2019, the local market was almost flat throughout the year. The Las Vegas home prices have risen by just 1.8% over the last 12 months alone, making it the seventh consecutive year of home price gains.

The Zillow Buyer-Seller Index (BSI) shows that Las Vegas is currently the buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in Las Vegas, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the marketplace.

The latest Las Vegas real estate market forecast is that the home prices may remain flat or decrease by 1.3% – in the next twelve months. This could be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire nation. Buyers are looking for opportunities but there are fewer homes. This will lead to less supply and will help keep the home values strong.

The question is whether it is going to remain a buyer's real estate market amid the ongoing Coronavirus pandemic?

 

OUR TAKE ON LAS VEGAS HOUSING MARKET FORECAST

Las Vegas has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in single-family rental properties. This area is skewed to sellers due to a very low level of inventory that can’t meet the demand of the rising population. The impact of the pandemic has been a drop in home sales and a small increase in inventor, both of which are short term. The uncertainty lies only in the lasting of this crisis. Whenever it ends, things would be back to normal.

There is a temporary drop in home sales but without affecting the prices. If buyer demand eases again in the coming months, we could see a positive influence on Las Vegas' low inventory levels while at the same time seeing a negative impact on sales. The Southern Nevada region is so hot that it cannot shift to a complete buyer’s real estate market, for the long term.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, it can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s probably not going to happen anytime soon. Currently, there is a 3.4 months housing supply in Southern Nevada, up 11.1% from April and up 42.2% from the prior year.

Therefore, given how hot the local economy was before the pandemic, the Las Vegas real estate market remains strong and skewed to sellers due to a growing population and booming economy — which leads to a persistent imbalance in supply and demand.

Here is a short and crisp Las Vegas housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Las Vegas is 71% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Las Vegas is 71% during this period. If this price forecast is correct, the Las Vegas home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Posted in Market Updates
Aug. 24, 2020

Why Is Las Vegas A Good Place For Real Estate Investment?

 

LAS VEGAS' DEMOGRAPHICS

  • Las Vegas is a beautiful city of million-lightbulb signs and fantastic architecture.
  • It is an internationally renowned major resort city.
  • It is known primarily for its gambling, shopping, fine dining, entertainment, and nightlife.
  • It is often known as “The Entertainment Capital of the World” – because of its “broad scope of entertainment options including nightlife, shows, exhibits, museums, theme parks, pool parties, and so on.
  • Las Vegas has 68 beautiful parks.
  • It is one of the country’s leading vacation destinations, drawing far more tourists than the Grand Canyon or Yellowstone National Park.
  • More than 41 million people visit Las Vegas each year.
  • Over 22,000 conventions are held in Las Vegas every year.
  • It has been one of the fastest-growing major cities in the United States.
  • It is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
  • The current metro area population of Las Vegas in 2020 is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.

LAS VEGAS HOUSING MARKET STATISTICS

  • The most prevalent building type in Las Vegas single-family detached homes.
  • The city has a mixture of owners and renters, with 51.07% owning and 48.93% renting – “Neighborhoodscout.”
  • Las Vegas is in the top 10% nationally for real estate appreciation.
  • Las Vegas real estate has appreciated by 99.29% over the last 10 years.
  • Which amounts to an average annual home appreciation rate of 7.14%.
  • From 2017 t0 2018, in 2 years, the home prices rose by roughly 30.4%.
  • The median home value is $288,195 – Zillow.
  • The market is currently cool – It is the right time to buy a property.
  • 18.2% of Listings had a price cut in Feb 2020.
  • 3.4% 1-yr forecast till Feb 2021.
  • The average days on market is 91.
  • Las Vegas rental real estate market remains healthy and affordable for most renters.
  • The median rent price in Las Vegas is $1,500.
  • There’s also no slowdown on the horizon for the number of people moving to Las Vegas.

LAS VEGAS' ECONOMIC & JOB GROWTH INDICATORS

  • The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
  • Las Vegas is home to more than half of the 20 largest hotels in the world.
  • There are more than 150 casinos and roughly 150,000 hotel rooms in the Las Vegas valley area.
  • Las Vegas annually ranks as one of the world's most visited tourist destinations – famous for its mega casino-hotels and associated activities.
  • Diversified Economy is driven by health-related, high-tech, and other commercial interests.
  • The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
  • Mining constitutes the mainstay of the region’s industrial sector.
  • Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
  • No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
  • Construction is also a significant component of the economy.
  • The government is the metropolitan area’s single largest employer.
  • The low unemployment rate of 3.5% as of Dec 2019 – U.S. Bureau of Labor Statistics.
  • The average weekly wages for all industries in Las Vegas Metro Area is $950 (the U.S. = $1,093).

These are just some of the highlights that make Las Vegas a great place to live and invest in real estate. The list can go on and on. Let’s continue to explore the Las Vegas housing market to understand what it will look like in 2020.

Please note that real estate prices are deeply cyclical because its demand side is impacted by economic cycles. Much of it is dependent on factors you can’t control. The recent example is COVID-19 which has badly impacted our economy. Therefore, many variables can potentially impact the value of the real estate in Las Vegas in 2020 (or any other market) and some of these variables are impossible to predict in advance.

Posted in Las Vegas Growth
Aug. 14, 2020

Small Business Grant

LAS VEGAS (KSNV) — The city of Henderson has launched a small business grant program to help those affected by COVID-19 and the ensuing economic fallout.

The recovery program is available for Henderson licensed businesses with 20 or fewer full-time equivalent employees, according to a city press release.

Grants range between $2,500 and $10,000 depending on the number of employees on staff. The funding can be used for rent, utility payments, inventory, payroll and license fees.

"It is vital for the city to help local small businesses, which are the backbone of our economy, through these difficult times and ensure they are able to recover and continue to operate and provide jobs for our residents," Mayor Debra March said in a statement.

Applications must be submitted by Monday, Aug. 24, at 5 p.m. They must include the following:

Must be headquartered and have a physical commercial location in Henderson city limits

Must have an active City of Henderson business license

Must have been in business for at least six months prior to March 15, 2020

Must have 20 or fewer full-time equivalent employees

Must provide a summary of business operations prior to the COVID-19 pandemic and demonstrate how there has been a financial hardship

The city says priority will be given to businesses that haven't received any federal aid, like through the Payroll Protection Program, though businesses that have may still apply for a grant.

Some businesses will not qualify, including adult-oriented businesses, bail bonds, non-profits, home-based businesses, liquor stores and cannabis-related businesses.

 

Visit hendersonnow.com/COVID19 to learn more.

Posted in Market Updates
Aug. 11, 2020

Evictions in the Valley

Worried about eviction? Take these steps

As coronavirus cases increase in Southern Nevada and businesses are shut down to slow the spread, many Valley residents may soon face financial hardships that could inhibit their ability to pay rent. Here’s what to do if you’ve fallen behind on rent payments, or fear that you might.

 

1. Talk to your landlord. “I’ve heard from a lot of landlords where the resident has been very proactive and they’ve maintained open lines of communication. Then, all of a sudden, MGM [or] the Culinary Union cuts them a check for the rent that they’re past due, and then they’re good,” says Susy Vasquez, executive director of the Nevada State Apartment Association. “Maintaining a good relationship and good communication with your landlord is imperative right now. I cannot stress that enough.”

 

2. Learn all you can. “Collect as much information as possible,” says Jim Berchtold, directing attorney for the Legal Aid Center of Southern Nevada’s Consumer Rights Project. “I would get my pay stubs. I would get my unemployment statement. I would talk to my landlord and get a ledger that says exactly how much rent I owe. I would review that ledger to make sure it doesn’t improperly include late fees, so that I know exactly, to the dime, how much that landlord might need to be paid … if I should stay in that unit.”

 

3. Assess your situation realistically. “It doesn’t make sense to say, ‘I want to pay all my back rent,’ if I’m living in a unit that I can’t afford,” Berchtold says. “If I have [a limited or] no prospect of future employment, have no idea what my unemployment [insurance] is going to kick in or have no idea when I’m going to return to work, maybe I should think about downsizing … moving in with a roommate, moving back home, changing my situation. … I would advise tenants to really take a really critical look at their current situation, start gathering documentation, wait for that [rental assistance] plan to come online and then figure out … how they can use it to most effectively put themselves in the best situation they can be in.”

 

4. Apply for rental assistance, or look for other kinds of help. Preapplication for the City of Las Vegas Housing Assistance Program has begun and will continue until July 31 or until the funds are depleted; visit lasvegasnevada.gov/residents/housing-assistance-program to begin the application process. Similar assistance programs, provided by Clark County and the State of Nevada, should be available soon; watch for them. If you’d like to find a subsidized apartment suitable for a diminished-income household, visit hud.gov/states/nevada/renting. And if you have legal questions, head to Legal Aid Center of Southern Nevada’s COVID-19 “tool kit”—lacsn.org/covid-19—for a series of “virtual town halls” on evictions and repayment plans.

 

This story appeared in Las Vegas Weekly.

Posted in Market Updates
July 29, 2020

CARES Housing Assistance Program

LAS VEGAS (KTNV) — After the first week of the State of Nevada’s rental assistance program, significant funds remain available for renters who have been financially impacted by the COVID-19 pandemic, the state says.

Since the launch of the program last Monday, a total of 3,085 statewide applications had been submitted by tenants seeking assistance.

The CARES Housing Assistance Program is being administered by the Nevada Housing Division in coordination with Clark County Social Services, the Reno Housing Authority, and the Nevada Rural Housing Authority.

In Clark County, the program is being administered through a network of 14 community non-profits.

As of July 24, 1,963 applications had been submitted among the various entities.

The Reno Housing Authority has received 688 applications for rental assistance, while the Nevada Rural Housing Authority has received 434 applications.

The majority of applicants are requesting between two and three months of assistance to cover missed rental payments that occurred during the eviction moratorium.

Payments are expected to start being dispersed to landlords over the next two weeks.

It is estimated that the state's portion of the program will be able to cover 15,000 months of missed rent payments.

 

HOW TO APPLY

Tenants who have been financially impacted by COVID-19 and have missed rent payments are encouraged to visit housing.nv.gov to begin the application process.

Applicants will be directed to the appropriate housing agency based on their county of residence.

Upon successful completion of the application, tenants will be notified upon approval and funds will be disbursed directly to the tenant’s landlord. Funds will be provided on a first-come-first-serve basis.

More information about the program can be found in both ENGLISH and SPANISH or by calling 2-1-1.

Posted in Tips for Buying
July 28, 2020

EVICTION MORATORIUM- LAS VEGAS

The statewide eviction moratorium that has been in place since late-March because of the coronavirus crisis will be lifted, Nevada Gov. Steve Sisolak announced today.

The statewide eviction moratorium that has been in place since late-March because of the coronavirus crisis will be lifted, Nevada Gov. Steve Sisolak announced today.

Evictions can resume Sept. 1 for non-payment of rent for residential tenants. Commercial evictions begin on July 1.

Late fees or penalties for non-payment of rent or mortgages cannot be charged retroactively.

“It is just as imperative today as it was when I signed the original directive to allow Nevadans to stay home and stay safe as much as possible, while also providing clarity and a timeline in which rental obligations must be met,” Sisolak said in a statement.

Some residential evictions can begin before September, including for waste, unlawful business, and violations of lease conditions other than non-payment of rent.

In a statement, both Sisolak and Attorney General Aaron Ford encouraged landlords and tenants to work together on repayment agreements.

Ford’s office has created a template lease addendum, which can be use by landlords and tenants to create a repayment plan for missed payments. Using the addendum is voluntary.

The Nevada State Treasurer’s Office is also working to create a rental assistance program it hopes will be operational by mid-July. Initially, the program will cover residential tenants, with a commercial tenant program coming thereafter.

That program will be funded with $50 million of federal coronavirus aid funds, with $30 million earmarked for residential assistance and $20 million for commercial assistance. More information on the program will be announced in coming weeks, the state said.

July 23, 2020

Mortgage Relief During the COVID-19 Pandemic

by Rachel Basinger, Contributor

If you are struggling financially due to the COVID-19 pandemic, there may be mortgage relief options available to you as a homeowner under the CARES (The Coronavirus Aid, Relief, and Economic Security) Act . 

Under the CARES Act, borrowers who have federally-backed mortgages can suspend their monthly payments for up to 12 months due to lost income from COVID-19. We’ll dive into what exactly that looks like, as well as options for borrowers whose mortgage loan is not federally backed.

 

What Mortgage Relief Options are Available Under the CARES Act?

There are a variety of mortgage relief options under the CARES Act that should help you and your family out during this financially difficult time.

Up to 12-month forbearance: If you are experiencing financial hardship due to COVID-19, you can receive forbearance on federally-backed mortgages for up to 180 days with the opportunity to renew for another 180 days.

Up to 3-month forbearance: If you are a landlord with multifamily housing (5 or more units) and have a federally backed loan, you can receive forbearance for 30 days on payments and up to two 30-day extensions. Additionally, if you are a landlord receiving forbearance, you cannot evict or initiate the eviction of renters during the time that you receive forbearance.

No extra fees, penalties, or interest: During this time, servicers are not allowed to assess fees, penalties, or interest beyond what would have occurred had payments been made on time.

No reporting to credit bureaus: Lenders are not allowed to report late or missed payments for those in a forbearance plan.

Foreclosures and foreclosure-related evictions will be suspended: There is a 60-day moratorium on foreclosures and foreclosure-related evictions, beginning March 18, 2020. It does not apply to vacant or abandoned properties.

 

What Mortgages Are Backed By The Federal Government?

The text of the CARES Act lists the mortgages loans that are backed by the federal government:

Insured by the Federal Housing Administration (FHA)

Insured under section 255 of the National Housing Act

Guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992

Guaranteed or insured by the Department of Veterans Affairs

Guaranteed or insured, or made by the Department of Agriculture

Purchased or securitized by the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae)

How Can I Find Out if My Loan is Federally Backed?

If you’re still not sure if your loan is federally backed after looking at the list above, you have several options. 

You can use Fannie Mae ’s or Freddie Mac ’s tools to find out if either of these government-backed providers own your mortgage or use the Mortgage Electronic Registration Systems (MERS) website to find your servicer if you don't know who that is. If you know which mortgage servicer you have, you can contact them to find out the details of your loan.

 

How Do I Request Forbearance on My Federally-Backed Loan?

To request forbearance, you will need to contact your servicer and let them know that you are experiencing financial hardship due to COVID-19, and you will receive forbearance. You do not need to submit any additional documentation.

If you have additional questions, you can visit Freddie Mac’s page or Fannie Mae’s page specifically focused on COVID-19 concerns.

What Mortgage Relief Options are Available to Me if My Mortgage is NOT Backed by the Government?

If you do not have a federally-backed loan, there may still be some options available to you. 

 

First, you should contact your loan servicer to ask about your options. Some servicers have announced suspension for mortgage payments for eligible individuals due to financial hardship from COVID-19, so it’s definitely worth reaching out.

Additionally, some states and local governments have also instituted policies to assist homeowners dealing with financial hardship as a result of COVID-19, including the states of New Jersey, New York, and Washington, and the city of Chicago. So, check your state's government website for details.

Finally, although private lenders are not required to offer relief under the CARES Act, if you and your lender come to any type of loan modification agreement, your lender is not allowed to report reduced or paused payments to credit bureaus. 

As a word of caution, it’s definitely a good idea to reach out to your lender even if you don’t have a federal government loan, but beware of third parties offering mortgage assistance. There’s a good chance that it could be a scam, so you’ll want to only go to your lender for mortgage relief.

 

What About When Forbearance Under the CARES Act is Over?

As a matter of policy, it’s good to stay up-to-date on when grace periods may be ending for mortgage relief. 

However, under Fannie Mae , mortgage servicers will attempt to contact homeowners a month before forbearance ends to see what the next steps are. Currently, for Fannie Mae, this could be full repayment, short-term repayment plans, COVID-19 payment deferral, and loan modification. Freddie Mac has a similar plan, which does include loan servicers reaching out about a month before the current forbearance plan is expected to end.

If you have a loan owned by the FHA , you may also be eligible for standard mortgage forbearance, which can last up to six months or special forbearance if you are unemployed, which can last up to a year or more. The VA  also has a special forbearance, which may help you after the CARES Act period.

 

Conclusion

This is definitely a challenging time financially for many Americans, and especially so if you’re struggling to make your mortgage payments. If you’re a homeowner facing financial hardship due to COVID-19, know that there are options available to help you if you need it. 

A mortgage forbearance could mean that you won’t have to worry about making mortgage payments for a period of time while you deal with the financial implications of COVID-19. Remember, however, that this forbearance is not automatic and you will need to be proactive and speak with your servicer about wanting forbearance if you foresee missing any payments.

For more information regarding coronavirus mortgage relief options, the Consumer Financial Protection Bureau (CFPB) offers a guide for homeowners , including tips for what to do once you've received a mortgage relief option.

The content provided here and throughout the site is for information only, on the topic of financial wellness. Due to the volatility of the Coronavirus and the COVID-19 pandemic, details about the illness, public response, policy, and more, are subject to change. Please consult your state and local offices for the most accurate and up-to-date information about COVID-19 in your area; for global updates, consult the World Health Organization website at: https://www.who.int/emergencies/diseases/novel-coronavirus-2019

Posted in Tips for Buying