Housing Market in Las Vegas Stands to Improve as Mortgage Rates Fall Below 5 Percent

LAS VEGAS, NV – While the ongoing inflation crisis in the United States, coupled with rapidly-rising interest rates on mortgages, have resulted in the once white-hot housing market significantly cooling in recent months, a ray of sunshine has poked through the clouds as home loan interest rates dropped below 5 percent for the first time in months, providing hope that the market may rebound some for sellers in the near future.

For the past year, home prices and demand in Southern Nevada have surged, breaking records on a monthly basis; however, as inflation has gradually increased along with mortgage rates, the market in Las Vegas has shown some distinct signs of slowing down. But according to this week’s announcement by mortgage buyer Freddie Mac, the average rate on a 30-year mortgage dropped to 4.99 percent, a noticeable reduction from last week’s 5.3 percent.

Interest rates on mortgages have not fallen below 5 percent since April, but while this week’s number is just barely below that level, it has given experts hope that the marketplace is beginning to stabilize to a degree where both buyers and sellers can each find their respective advantages.

Nonetheless, even with this week’s drop, interest rates on mortgages are still much higher than last year’s historically low numbers, and it’s certainly not a sign that cheap money will be on the table once again for those looking to buy a home. But amid slowing sales in Vegas – and growing inventory as a result – continued drops in interest for home loans could once again drive sales, experts say.

However, for the time being, Freddie Mac Chief Economist Sam Khater noted that sellers shouldn’t get their hopes up too much, as loan rates will most likely “remain variable” due to the nature of the nation’s current economic turmoil.

Currently, 2,670 single-family homes were sold in Las Vegas in June, representing an 8 percent drop from the month before and a 25 percent drop year-over-year. The June median sales price was $480,000, a decrease of 0.4 percent from May, and the first time home prices in Southern Nevada have decreased – as opposed to increased – in over two years.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – Upholding the decision previously made by City Clerk Jackie Rodgers, the North Las Vegas City Council at their August 3 public meeting voted 4-1 to remove a historic measure from the upcoming November ballot that would have established the first rent control measure in Nevada amid steadily-raising cost-of-living concerns for residents.

Rodgers previously determined that out of 3,396 signatures on a petition to include the measure on the November ballot, only 2,679 were valid, dropping the amount below the required 3,968 signature threshold. In addition, Rodgers claimed that there were differences in language from the original petition and the proposed rent control measure, which also rendered it invalid.

At the August 3 meeting, North Las Vegas Mayor John Lee led the motion to approve the city clerk’s determination that the rent control measure was “insufficient” to be included on the ballot. Only Councilman Richard Cherchio opposed the vote.

Prior to the decision, city attorneys, real estate agents and officials from the Culinary Union – the organization officially backing the rent control measure’s inclusion on the ballot – had presented hours of testimony to the Council, but ultimately, Lee stated that he felt that the decision should be decided in the legal system instead.

“Everything that was spoken today looks like it’s going to be interpreted in court,” Lee said. “I can’t interpret state law and I do believe that this needs to be somewhat adjudicated.”

Currently, there are no rent control or rent stabilization laws in Nevada. The proposed measure would have established a law that would have prevented rent increases of over 5 percent per year.

Culinary Union Secretary-Treasurer Ted Pappageorge pledged to appeal the City Council’s decision – if necessary, in the Nevada Supreme Court – in a statement released shortly after the vote.

“The actions of the North Las Vegas City Council today is a clear example of how the current leadership has failed to respond to the urgent crisis North Las Vegas residents are facing,” he said. “Voters, not politicians, should decide on Neighborhood Stability and the only way that can happen is if the measure is on the ballot on November 8, 2022.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – While the national housing market has showed distinct signs of slowing down after mid-pandemic buying frenzies fueled by low mortgage rates dominated the industry, the high sales rate of new luxury homes in Las Vegas appears to remain red-hot in 2022, with the market already showing a distinct increase when compared to the same period of time in 2021.

Reports show that 235 homes costing $1 million or more have closed during the first six months of 2022 in Las Vegas so far, which represents a 16 jump over the number of luxury homes closed on during first six months of 2021.

These numbers show a dramatic jump in sales of new luxury homes in Vegas when compared to prior to the COVID-19 pandemic. For example, in the first six months of 2017, 52 luxury homes were sold in the region, 87 in 2018, and 123 in 2019; sales only dipped slightly to 115 in 2020 due to the pandemic.

Some of those record-breaking figures for 2022 can be attributed to the rising cost of construction supplies brought about by COVID-19-related supply chain issues, which in-turn contributes to the rising costs of home-building overall.

And despite record-breaking sales of luxury homes in the Southern Nevada region continuing unabated so far this year, developers report they are seeing some high-priced buyers being a tad more cautious about how exactly they spend their hard-earned dollars in the face of the 40-year high inflation that is bombarding the country.

However, even the recently-rising interest rates on home mortgages that have slowed the real estate industry as a whole have not significantly impacted the Vegas luxury marketplace, according to Blue Heron CEO and founder Tyler Jones, a developer of high-end homes in the region.

“These are people that aren’t as affected by interest rate changes,” Jones said. “If you’re going to buy a multimillion-dollar home, and interest rates go up a point, that’s not going to stop you from buying the home.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – The housing market in Las Vegas, after spending a considerable amount of time on fire, is now not only showing initial signs of cooling, but doing so at a rate that appears to be faster than some other major metropolitan marketplaces in the United States.

Reports indicate that the number of homes in the Southern Nevada region that are being sold are decreasing, and despite the fact that sellers are cutting prices of their homes for sale in an attempt to entice more buyers, the amount of available inventory is starting to increase steadily.

In this, Las Vegas is not alone; after the national real estate market skyrocketed during the midst of the COVID-19 pandemic – with home prices soaring amid fierce competition between buyers, who would regularly drive up prices further by consistently outbidding each other – the country has finally appeared to have reached its breaking point.

High prices, low inventory, and climbing interest rates on home mortgages have finally put many off of searching for a home, with buyers now appearing to be taking a “wait and see” approach as far as what the marketplace’s future holds.

However, Las Vegas seems to be feeling this phenomenon more acutely than many other metro areas in the nation in several key ways; while the overall market in Vegas nonetheless remains competitive, the cracks are showing. For example, in June over 27 percent of pending home sales in Las Vegas failed to go through; while the market is experiencing similar issues from coast-to-coast, the Vegas numbers represent the highest home sale cancellation rate in the country currently.

In addition, 20.3 percent of the homes on sale in Vegas in June had experienced a discount – the fourth-highest number in the country – and inventory increased 22.2 percent month-over-month, the highest increase in the U.S.

This follows one of the hottest stretches of real estate activity in Las Vegas perhaps ever, with home prices and sales consistently breaking records month-after-month, due in-part to record-low interest rates on home loans that allowed buyers to get the most for their money.

But this drop-off in sales in Las Vegas hardly is a death knell; in fact, the overall market in Southern Nevada still remains quite healthy, and mortgage rates – while higher than they were just last year – have dropped off slightly as of late, which could serve to spark a home sales frenzy once again, experts say.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – The efforts of North Las Vegas residents to get a proposed rent control measure voted upon in the upcoming November elections has been rejected after the City Clerk determined the number of signatures on the petition was “insufficient” and, therefore, the measure was unable to be included on the ballot, reports say.

The rent control measure, which is sponsored by the city’s Culinary Union, sent a challenge to the determination on Friday that maintains the method that North Las Vegas City Clerk Jackie Rodgers used to determined the number of signatures required for the measure had violated the Nevada Constitution.

Currently, there are no rent control or rent stabilization laws in Nevada.

The attorney alleged that the Clerk had used turnout figures from the June 14, 2022 primary election, as opposed to the June 11, 2019 general election to determine the needed signatures; according to the state Constitution, the number of signatures from registered voters for an initiative petition is “equal to 15 percent or more of the voters who voted at the last preceding general county or municipal election.”

Ted Pappageorge, secretary-treasurer of the Culinary Union, insisted that – according to the Nevada Constitution – the rent control measure was completely valid and deserved to be included on the upcoming ballot.

“We will not be deterred,” he said. “The Culinary Union submitted 3,396 signatures, and we are confident in their validity. The City of North Las Vegas is misreading the law as to how many signatures are required.”

However, City Clerk Rodgers determined that out of the 3,396 signatures on the petition, only 2,679 were valid; 3,968 signatures are required for a measure to be included on November’s ballot. In addition, Rodgers claimed that there were differences in language from the original petition and the proposed rent control measure, which renders it invalid.

The Culinary Union’s attorney has requested that the North Las Vegas City Council review the Clerk’s decision not to include the rent control measure on November’s ballot at their next public meeting on August 3.

“The Committee respectfully requests the City Council to review and disapprove the Certificate and instruct the City Clerk immediately to complete her review by using 476 as the required number of valid signatures for sufficiency,” the attorney said.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – A Spanish Hills “ultra-contemporary” mansion that purportedly offers breathtaking views of the entirety of the Las Vegas Valley has been listed on the open market for $8.9 million.

Located at 5198 Scenic Ridge Drive, the 9,084 square-foot residence – according to Jim Ross, owner of Unique Custom Homes, whose company built the house – is an entirely unique property that has the best views in all of Southern Nevada.

“This property has one of the best views in Las Vegas,” he said. “I wanted to capture those views from every room.”

The mansion began construction in 2017 as a “spec home” and was completed one year later. According to Ross, the residence offers six bedrooms – with two of them being primary suites – along with cutting-edge design techniques that emphasize “clean horizontal lines,” a warm, neutral color palette, distinctive detailing, and eye-catching curb appeal.

5198 SCENIC RIDGE DRIVE, LAS VEGAS – $8,900,000.00

The home’s design showcases “seamless indoor-outdoor living,” with a spacious great room with 12-foot ceilings leading to a formal dining area, gourmet kitchen, and an exterior deck that has retracting glass walls that blur the line between the indoors and outdoors.

There is also a vast wine cellar; a resort-style exterior with a pool with fire edge, covered patio, barbecue area, elevated spa and an outdoor gazebo; oversized four-car garage that can accommodate the installation of vehicle lifts to expand its capacity; and, of course, access to the Spanish Hills’ guard-gated community’s many amenities, including parks, swimming pools, tennis courts, a fitness center and clubhouse.

“The beauty of buying in Spanish Hills is it’s a hidden gem,” listing agent Ivan Sher said. “Whoever buys this not only gets these incredible views, amenities and fully built-out neighborhood but you’re getting it at a price you couldn’t get anywhere else.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – Citing ongoing droughts in the region, the Southern Nevada Water Authority (SNWA) board of directors last Thursday voted 7-0 to support a proposal that, if passed, would limit the construction of new residential pools to 600 square feet; this supports a similar recommendation recently made by the Las Vegas Valley Water District.

Despite opposition from local businesses and homeowners, Clark County Commissioner Justin Jones noted that the water situation in Southern Nevada is reaching a critical juncture at the moment, necessitating the move to limit new pool sizes.

 “We’re in a water crisis,” he said. “We don’t have the luxury of nonfunctional pools right now.”

The Las Vegas Valley Water District had previously voted last Tuesday to approve a service rule change – including the ability to enforce it – that would limit new pools to 600 square feet; this would affect any projects where the construction permits were obtained after September 1, 2022.

But while the SNWA voted to approve a similar measure last Thursday, the agency currently lacks the ability to enforce its ruling; it is merely a show of support for the Las Vegas Valley Water District’s new initiative.

Other municipalities in Southern Nevada are set to vote upon similar measures in the coming months in response to water shortages, including Boulder City in August and North Las Vegas and Henderson in September.

However, stakeholder groups have been critical of the process to establish the new limits on pool construction size; despite the SNWA inviting over 100 pool developers to meetings in March and June, Terence Thornton – project manager at Ozzie Kraft Enterprises Inc. – said that many have stated they felt “shut out” of the process.

“We reached out to SNWA staff and were granted a Zoom meeting,” he said. “During that meeting, we were told that a 600 square-foot size limitation was pretty much a done deal.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – Throughout the COVID-19 pandemic, Las Vegas residents saw their rents increase by what some would consider to be unsustainable degrees; the subsequent increase in gas prices and inflation – which, as of June, hit a whopping 9.1 percent – have only served to put additional financial stress upon not only Southern Nevada residents, but people nationwide.

Currently, the local average Vegas rent is $1,480 a month, which is still $140 cheaper national average of $1,620; nonetheless, it still represents a steep increase over previous years, when the average rent jumped 23 percent year-over-year from 2019 to 2020, and then an additional 11 percent in 2021.

However, experts are predicting that as 2022 continues, rents should finally start to stabilize as local Vegas residents’ leases come up for renewal, offering them a slight respite from the economic onslaught so many Americans are dealing with on a daily basis.

According to Nevada State Apartment Association (NVSAA) Executive Director Susy Vasquez, the skyrocketing rents that have plagued so many Vegas inhabitants should start to calm down as the year progresses, with an additional increase of only approximately 5.5 percent expected by the close of 2022.

“Currently, the apartment market appears to be normalizing and stabilizing,” she said. “We are not going to be experiencing that year-over-year rent growth that we have been seeing in the double digits. We’re going to be experiencing more single-digit rent growth moving forward.”

While the economic chaos and uncertainty seen during the pandemic may be waning, Vasquez says new headwinds in the economy could impact the rental market. That includes inflation’s impact on driving up mortgage rates, and consequently, slowing home sales.

While rising home mortgage rates and house prices are driving up demand for rental units from those who are currently priced out of homeownership, local and state lawmakers are working with developers to fast-track construction on new housing; this goes hand-in-hand with the 7,440 units currently under construction in Clark County, which is expected to reduce the demand for rentals and drive lease prices down.

“They really are looking to minimize the amount of time that it takes to get those shovels into the ground, not only with affordable housing, but any housing development,” Vasquez said. “I think they’re looking more at land areas that they have, and looking to see what they can put on that land in a quick amount of time in order to relieve the pressure of supply.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – Crystal Pointe Estate – a massive, lavish abode overlooking Lake Tahoe’s Crystal Bay – has been listed on the Nevada real estate marketplace, with the sellers hoping to fetch a massive payday of $64.5 million when or if it sells.

Crystal Pointe Estate, located at 300 Highway 28 in Crystal Bay, is an astounding feat of architecture. The home is a custom, private-gated estate consisting of a huge, 16,232 square-foot main residence, adjoining guest wing, detached garage pavilion and a 3,600 square-foot beach house, all interconnected by two hillside funicular trams enclosed in glass.

The asking price, if met, is record-breaking for the region; the previous record-holder is $56 million for the purchase of the Whittell Estate – including the historic Thunderbird Lodge – that took place back in 1998 by the Del Webb Corporation.

Crystal Pointe Estate was originally the brainchild of Stuart and Geri Yount, a couple who painstakingly designed every aspect of it from the ground-up. After buying the property it stands upon in 1994, the development of the main residence alone took five years; due to permit issues, the beach house took an additional 10 years to finish, having been completed in 2016.

The estate is comprised of 5.1 private acres that includes 525 feet of lakefront with a terraced beach, four buoys and a pier. The house itself has eight bedrooms, 12 baths, formal dining and living rooms, 13 fireplaces, a primary bedroom office with leather door inlays and a Brazilian mahogany library, an old English pub-inspired billiards room with bar, 1,687-bottle wine cellar, game room, movie theater, and caretaker’s apartment.

The home also features floor-to-ceiling windows, custom-designed fireplaces, wood vaulted ceilings, grand wood pillars and custom lighting. Throughout the estate intricate detail abounds and no two rooms look the same, with Geri Yount stating that when designing the home, “We went room by room and I insisted nothing be the same anywhere. Everything in the house is unique to its own space.”

Upon completion of the home, the couple resided there for the 24 years, only recently deciding to put it up for sale in order to move to be closer to their grandchildren.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – The Las Vegas home of late comedian Jerry Lewis, which has changed hands several times over the years since his passing, has been listed on the real estate marketplace once again, with its current owner asking for a cool $2.7 million for the former abode of the legendary funnyman.

Lewis had resided in the home – located in Las Vegas’ swanky Scotch 80s neighborhood – for almost 35 years; upon his death in 2017, it initially had difficulty in finding a buyer before eventually being sold to Jane Popple in 2019 for $1.2 million. It was then auctioned off for the sum of $2.5 million, but when the bid fell through, it was listed on the open market for $1.8 million.

Thereafter, the property, 1701 Waldman Ave, Las Vegas, was sold to Iddo Gavish of Century 21 Gavish Real Estate for approximately $1.4 million.

Gavish had spruced up the property before putting it up for sale, modernizing the home – while not taking away from the home’s nostalgia or history, he said – with several large-scale updates due to its need for “rehab and renovation.” The work included a renovation of the landscaping, gates, pool, master bathroom and kitchen.

The home, coming in at 7,230 square-feet and offering an impressive six bedrooms and six bathrooms, will officially be listed on the market this week for $2.7 million

Gavish also noted that he wanted to pay homage to Lewis’ legacy – especially due to his history as a long-time advocate of the Muscular Dystrophy Association with his famous “Jerry’s Kids” fundraisers – by hosting several charity events sponsored by his agency, with the proceeds going to the organization that Lewis represented for so many years.

The main fundraiser will take the form of a “socialthon” – the date of which will be announced – will run on multiple social media platforms, during which supporters can make online donations.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – After months and months of an infamously tight inventory driving up prices in the ultra-competitive Las Vegas residential real estate marketplace, that slim inventory is finally showing some signs of growing due to a number of contributing factors, including rising interest rates on home mortgages cooling the market somewhat for the time being.

Previously, Las Vegas has been inundated with constant bidding wars between homebuyers, with some even being willing to purchase a property sight unseen in order to get an edge; low inventory, combined with historically-low interest rates on home loans, were seen as the main driving factors of the home buying frenzy.

However – due to rate increases on the part of the Federal Reserve to combat skyrocketing national inflation – the interest rate on a standard 30-year fixed-rate mortgage is currently hovering near the 6 percent mark; this is a big increase compared to the same point in time one year prior, when rates averaged just 2.93 percent.

According to Jennifer Graff, founder of New Home Experts Las Vegas with Coldwell Banker, now that money is growing more expensive to borrow, it’s little surprise that the demand for housing is starting to show signs of dropping, leading to increases in overall home inventory in Vegas.

“About $480,000 right now is essentially the median home price for here in Las Vegas,” Graff said. “So when you take into account, when we talked back in January, to when we’re speaking today…that payment for your average conventional loan is up almost $1,000 for that $480,000 home.”

Experts say that at the tail end of 2021, a monthly mortgage payment of $2,500 could get you a home worth $517,000; however, with interest rates currently being what they are, that same monthly payment could only get you a home valued at $400,000.

However, Graff noted that Las Vegas will always remain a hot real estate market, and she expects that the current economic woes facing the nation will do little more in Southern Nevada than stabilize the market.

“We have about 5,600 homes on the market right now,” she said. “That is almost double from last year.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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, NV – Amid skyrocketing rents in Las Vegas driving very real cost-of-living concerns, two new affordable housing apartment complexes – both being constructed by the same developer – are set to open soon, allowing families and individuals on a budget a way to put a roof over their heads.

Decatur Commons Family and Decatur Commons Senior – neighboring buildings located at Decatur Boulevard and U.S. Highway 95 near Meadows Mall that are being developed by Nevada HAND will offer 480 residential units between them both when the $110 million project is completed.

Nevada HAND President and CEO Audra Hamernik noted on Friday that development on both apartment complexes will be finished by August; tenants have already started to rent and move into units in February, she said.

Las Vegas has a very real need for more affordable housing options for its residents; high demand, limited inventory, and rapidly-rising prices have created a serious issue for many families looking for a place to live that fits within their budgets, already stretched thin by record-breaking national inflation. However, Hamernik said the company is doing whatever it can to cater to families priced out of the typical Vegas real estate market.

Currently, the average rent for a home in the region was $1,847 in May, representing a 18.8 percent increase from the same period of time one year prior; however, as per Hamernik, the average rent of a unit in one of Nevada HAND’s properties is just $733 per month.

Hamernik said that Nevada HAND receives constant contact from Las Vegas residents looking for affordable housing options; the company currently has a portfolio in the city spanning 4,700 units, but vacancies are rare due to the highly-competitive pricing.

“The demand is just outpacing our supply,” she said.

For more information on the coming Decatur Commons Family and Decatur Commons Senior communities visit https://www.nevadahand.org or call them at (702) 739-3345.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las 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.