COVID-19 Pandemic Causes Las Vegas Home Sales to Drop Nearly 30 Percent

LAS VEGAS, NV – According to recent reports, the economic impact that the ongoing coronavirus pandemic is having upon the Las Vegas real estate market continues, causing a substantial drop in the number of homes sales from March to April and into early May.

Rampant job losses reported amongst mandated stay-at-home orders and non-essential business closures in order to contain the spread of the coronavirus has dried up Las Vegas’ main source of income – tourism – and as a result, the normally busy spring home selling season has experienced a major speed bump. In April 2020, 1,971 single-family homes were sold, representing a 28.5 percent drop from March. In addition, the number of homes put on the market to be sold in April – 2,516 – represented a drop of 30.2 percent from March.

The home building industry, which had been ramping up efforts in the past year in order to meet the previous high level of demand for housing prior to the pandemic, has also been feeling the pinch; the number of contracts signed by builders in April experienced a 56 percent drop from March, with only 459 signing on the dotted line.

Lenders have been doing their part to alleviate the issues causing the plunge in sales by attempting to lower borrowing costs for prospective homeowners; sliding mortgage rates have proved to be helpful, but nonetheless, numerous buyers are getting cold feet and many are still not biting due to fear over their immediate financial futures.

As for unemployment in Las Vegas, it is approximately 25 to 30 percent. However, perhaps there is a light at the end of the tunnel. Despite the drop in builders’ contract signings, cancellations have slightly decreased, and Nevada Governor Steve Sisolak has begun the first phase of jump-starting the state’s economy by allowing some businesses to re-open on a limited basis. These developments will have a corresponding effect upon the real estate market, but regardless it will still be a slow climb to return to the status quo – or – the new normal, whatever that is.

Shelter Realty Property Management specializes 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 – According to recent reports, a new “coronavirus addendum” – nicknamed the “COVID Clause” – has been adopted by the Las Vegas real estate market in an effort to instill confidence among buyers who may be holding off on taking the plunge in purchasing properties amid the ongoing coronavirus pandemic. Since the end of the mid-2000’s recession, the Las Vegas real estate market has been on an upward swing and, in recent years, has been setting records in terms of skyrocketing property values and overall consumer and developer demand. However, with the advent of the coronavirus outbreak – which causes the respiratory disease COVID-19 that has resulted in over 76,000 deaths – sales have been dipping due to numerous stay-at-home orders and the mandated closure of non-essential businesses by state and local government.

Homes, condos, and properties in Vegas are still selling, but the number has been shrinking. Real estate agents have been attempting to roll with the punches and adapt by holding virtual home walk-throughs and dealing with customers online as much as possible, but in order to restore a sense of security on both sides of the equation – both buyers and sellers – the “COVID Clause” has come into existence.

Created by the Las Vegas Association of Realtors, the clause is a new addendum to housing contracts that essentially states if either a buyer or a seller is being negatively impacted as a result of the coronavirus pandemic – such as the loss of a job – they will have a layer of protection.

Usually, contracts have “force majeure” clauses that allow for parties to delay performance or actually get out of certain obligations in the event of unforeseen or uncontrollable events such as the coronavirus pandemic, including allowing for time periods and dates to be extended, however, this is an added protection.

The clause isn’t only there to protect buyers either; it is also there to protect sellers, who have been hesitant to put more properties on the market due to the currently lowering demand, as well as more strict requirements put out by lenders. Ultimately, these series of circumstances have resulted in fewer choices for those looking for a place to live in Las Vegas, and the addition of this clause into housing contracts – you can read the details HERE – are expected to help to stabilize things – at least until the pandemic finally ends and life returns to – the new normal.

Shelter Realty Property Management specializes 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 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 Property Management specializes 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 – According to recent reports, the Las Vegas Strip-based property that the Tropicana Hotel and Casino currently occupies has been purchased by Gaming & Leisure Properties Inc., formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 44 casino properties, and operates two of them.

As a result of the ongoing coronavirus pandemic sweeping the nation, Penn has been facing money problems brought on by resort closures; currently, they have 41 properties that are closed due to governmental stay-at-home mandates and business shutdown orders, which is causing serious financial issues for the company. Currently, Penn has approximately $730 million of cash and equivalents, according to reports.

In order to preserve their liquidity, Penn sold the land occupied by the Tropicana to Gaming & Leisure Properties Inc. for $337.5 million in rent credits, finalizing the sale on April 23. The rent credits will be applied to existing leases beginning in May.

Going forward, Penn will continue to run the day-to-day operations of the Tropicana for the next two years, or until the resort and land are sold. If Penn sells within the first year, they will receive 75 percent of the net proceeds above $307.5 million; if the sale occurred during the second year, they will receive 50 percent of the net proceeds above the same amount, $307.5 million.

Going forward during the pandemic, Penn will be reducing their daily operating costs, lowering compensation to its executives and board of directors, and has furloughed its 26,000 nationwide employees. Penn shares began a sharp decline at the end of February falling from $38.28 to today’s $17.87, as of press time, 3:45 PM.

“We believe that these collective steps will allow us to successfully weather the state-mandated closures related to the COVID-19 crisis,” said Penn CEO Jay Snowden.

The Tropicana Las Vegas is a franchise of Hilton’s DoubleTree chain. It offers 1,467 rooms, a 50,000 square foot gaming floor, and 72,000 square feet of convention and exhibit space.

Editors note: The particular photo of the Tropicana Las Vegas featured in this article requires editorial credit to Kobby Dagan, Shutterstock.com, licensed.

Shelter Realty Property Management specializes 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 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 Property Management specializes 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.

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

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 Property Management specializes 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 – According to recent reports, the ongoing coronavirus pandemic – the virus responsible for causing the dreaded COVID-19 respiratory disease that has claimed over 40,000 lives so far in the U.S. alone – has played havoc with the Las Vegas housing market, only just recovered from the mid-2000’s recession.

Las Vegas has been hit worse by the pandemic than much of the country, due to the city’s primary reliance on tourism. The stay-at-home order instituted by Governor Steve Sisolak – with similar orders issued by state governments nationwide – has closed all non-essential businesses, leaving many people stuck at home and without paychecks coming in. In March, 208,869 unemployment insurance claims were filed in Nevada, a whopping 2,125 percent jump from the same period one year prior.

This, of course, is drastically affecting the economy, but regardless of that, people in Las Vegas are still building and buying homes…but sales are decreasing fast while the state of emergency is in effect.

The number of home sales in Vegas for the month of April so far has dropped sharply when compared to March, with a large percentage of the drop contributed to the cessation of local house-flipping in the face of the pandemic. In addition, while construction – which is considered an essential service, and thus allowed to continue – is still underway, a number of projects have nonetheless been cancelled or postponed until the pandemic has subsided.

And while purchasing homes is considered essential, several measures have been passed by state government that makes that essential service more difficult to carry out. Real Estate open houses have been banned temporarily to prevent the spread of coronavirus, as have evictions and foreclosures as a way of protecting renters and homeowners who may be out of work, putting stress on existing landlords and property owners.

There are still many variables that will figure into just how badly Las Vegas’ housing market will be affected by the coronavirus, including how long the stay-at-home order lasts and when businesses will be allowed to open their doors once again.

Shelter Realty Property Management specializes 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 number of mortgage delinquencies in Nevada had reached its lowest point in years. Unfortunately, then the coronavirus came along and set things back once again, according to recent reports.

In January 2020, Las Vegas homeowners had reached a milestone, with records indicating that the sheer number of them behind on their mortgages was at a recent record low; only an estimated 1.3 percent were at least 90 days past due at that time, and had remained essentially “flat” since July 2019. This rate is the lowest the region has seen since January 2007.

However, with the ongoing coronavirus pandemic sweeping across the nation, that record was quickly finding itself undone as 2020 continued. With state governors issuing stay-at-home orders and only businesses deemed “essential” allowed to remain open, many people began finding themselves furloughed or laid off, and no longer able to make home mortgage payments.

The number of unemployment claims made in Nevada in 2020 through April 4 numbered at 271,530; this is over double the previous two years put together, reports say.

This, coupled with a degree by Governor Steve Sisolak not allowing landlords to begin eviction proceedings due to non-payment of rent or mortgage while a coronavirus-fueled state of emergency is in effect – except in the case of individuals who are a threat to others or the property itself – will likely see the number residents behind on their payments quickly balloon. And the longer the pandemic lasts, the greater that number will become.

In addition, numerous mortgage relief programs are now available that will likely contribute to the growing number of people behind on their home loans; for example, many lenders have instituted policies where, as the state of emergency continues, borrowers can defer payments for up to 90 days. Also, late fees and/or penalties due to nonpayment have been outlawed by state government; however, all back rent and/or mortgage is expected to be paid to the lender or landlord once the state of emergency has been officially lifted.

Shelter Realty Property Management specializes 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 Nevada Occupational Safety and Human Administration (NV OSHA) recently sent safety guidelines to construction companies state-wide, documenting precautions and procedures to adhere to in the wake of the ongoing coronavirus pandemic sweeping the nation.

In light of recent “stay at home” orders issued to help curb the spread of the coronavirus outbreak, construction in Nevada has been deemed an “essential” business, allowing development projects to currently remain in effect.

However, in light of some construction workers testing positive for COVID-19 – the respiratory illness caused by exposure to the coronavirus – NV OSHA Chief Administrative Officer Jess Lankford sent out a letter to active construction sites in the state, outlining personnel safety procedures that must be adhered to going forward, including social distancing guidelines.

“It is visibly obvious that employees are still being directed/allowed to work in close proximity [less than 6 feet apart] to other staff,” Lankford’s letter said.

The guidelines outlined in the NV OSHA letter include the following:

• Restrict meetings, safety meetings//tailgate talks, and gatherings to no more than 10 people.
• Establish effective social distancing protocols, which ensure that staff maintain a 6 foot personal separation from other staff during meetings, discussions, etc., where 10 people or less are present. Ensure that social distancing protocols are maintained during operation of mobile service equipment designed for two or more passengers.
• Provide sanitization and cleaning supplies for addressing common surfaces in multiple user mobile equipment and multiple user tooling.
• Maintain 6 foot separation protocols for labor transportation services, such as buses, vans, etc.
• Conduct daily surveys of changes to staff/labor health conditions. NV OSHA is emphasizing the need for construction leadership to be working with and aware of the health and well-being of its labor force. Many leaders in the construction industry have implemented entry surveys of labor health conditions that have, and may, include temperature scans and in person Q&A.
• Ensure that any identified first responders in the labor force are provided and use the needed personal protective equipment (PPE) and equipment for protection comes from communicable or infectious disease.
• Provide access to portable and sanitary water.

In order to ensure that all developers are in compliance with these guidelines, NV OSHA noted that they would be sending representatives to randomly inspect construction sites; penalties for non-compliance could range from fines all the way up to the full closure of a project. Recently, workers at the Resorts World and the Raiders’ Allegiant Stadium construction sites were confirmed to have tested positive for COVID-19.

Shelter Realty Property Management specializes 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.

CARSON CITY, NV – Yesterday, April 7, 2020, Nevada Attorney General Aaron D. Ford announced $2 million in settlement funding for emergency rental assistance transferred to United Way of Southern Nevada and United Way of Northern Nevada and the Sierra. This funding will go directly to Nevada families in need of emergency assistance. Additionally, the Attorney General’s Office created an informational flyer (below) on the Governor’s Directive halting evictions to help renters and landlords understand their rights.

“One of the most important things we can do as state leaders and as human beings is to keep Nevada families in their homes and prevent further suffering,” said AG Ford. “Every minute, another Nevada family calls my office for help so they won’t end up homeless. I am immensely proud that my office is able to prevent wrongful evictions, as well as provide emergency rental assistance funding to our trusted community partners at United Way.”

The funding is part of the previously announced settlement agreement with Wells Fargo. The transfer of the funding received approval from the Nevada State Legislature’s Interim Finance Committee Tuesday morning.

United Way of Southern Nevada and United Way of Northern Nevada and the Sierra are the state’s administering agencies for the Emergency Food and Shelter Program established by Congress in 1983. This additional funding from the Office of the Attorney General will supplement that program until the next set federal appropriation is released next fall. The funding will help thousands of Nevada families stay in stable housing and prevent a further crisis of homeless families in the state.

The Office of the Attorney General has received an unprecedented number of calls from constituents seeking help and information relating to eviction and rental issues. The attached informational flyer on the Governor’s Directive is intended to help renters and landlords understand their rights and obligations during the State of Emergency and answer frequently asked questions.

Editors Note: The appearance of Nevada Attorney General visual information does not imply or constitute Office of the Attorney General endorsement.

Shelter Realty Property Management specializes 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 – In a recent research report, financial analysis firm Moody’s noted that out of the numerous states feeling the pinch due to the ongoing coronavirus outbreak, Nevada is the one most likely to be hit the hardest financially.

The spread of the coronavirus is making it difficult for experts to pin-point all of the specific factors that can determine what regions will be hit harder than others in terms of statewide economy. However, Moody’s research focused on several key factors – including demographics, trade and travel, tourism, finance, and commodities – and they have used those factors to determine the areas that are most assuredly to be the hardest hit financially.

Unfortunately, Nevada – and the city of Las Vegas in particular – is forecast to be the most affected, due to the fact that it relies on the lucrative tourism industry more than most states. As a result of non-essential business closures and stay-at-home orders instituted by state officials in the early days of the pandemic in order to help prevent the spread of COVID-19 – the respiratory disease caused by the coronavirus – the city has already suffered great financial losses.

This early and deep impact upon Vegas’ economy does not bode well for the speed of its recovery, according to Moody’s Analytics Chief Economist Mark Zandi.

“If you’re getting hit hard now and businesses are failing, and there’s bankruptcy and people are taking on debt or starting to default on debt, it’s going to be harder for those economies to recover,” he said. “So the No. 1 criteria for determining who recovers more gracefully will be who gets hit least hard during this period.”

Hawaii and Washington come in at number two and three, respectively, as states that are expected to experience severe financial woes due to the impact of the coronavirus upon the tourism industry. New York also ranks highly on the list, and currently contains the most cases of COVID-19 out of anywhere else in the nation.

In contrast, West Virginia and Missouri have seen the least coronavirus exposure – at least for the time being – and as a result their economies have been damaged far less, making their eventual recovery a less arduous task. But given the nature of the coronavirus outbreak, these factors and their effect upon statewide economies are subject to change as time goes on.

Shelter Realty Property Management specializes 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 – According to reports, despite a statewide moratorium issued by Nevada Governor Steve Sisolak against evictions during the state of emergency brought on by the ongoing coronavirus pandemic, some landlords have 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, monthly or weekly, and applies while the state of emergency is still in effect. 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.

But despite the moratorium, reports indicate that some landlords are disregarding it and are continuing to issue eviction notices and, in some cases, outright lock tenants out of their residences, especially in cases of rent-by-the-week apartments and homes.

Nevada Legal Services report that they have received an elevated number of phone calls from tenants who are facing eviction despite the non-eviction decree from Governor Sisolak. Some are complaining that the exact nature of their rights in these circumstances have not been made clear as well.

“There’s just so many violations, you would think it were a movie” a representative of the Nevada Legal Services was quoted as saying. “You hear about these things and expect that everyone will just follow the rules, but there are illegal lockouts happening left and right.”

Violations reported by Nevada Legal Services allegedly include eviction notices still being served, landlords stacking plywood in their parking lots in order to board up apartments, and hired security guards harassing non-rent paying tenants. The Nevada state attorney general’s office notes that landlords and property managers who disobey the ongoing non-eviction rule could face legal action, including being sued for deceptive trade practices, although the office has stated that lawsuits are a last resort due to the financial strain that landlords state-wide are also going through.

Shelter Realty Property Management specializes 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.