Category Archive : Economy

LAS VEGAS, NV – Las Vegas is one of the most coveted marketplaces in terms of office space in the United States, as a new report currently ranks the city as number two in the country when it comes to the lowest amount of office vacancy.

The City of Las Vegas is experiencing its lowest office vacancy rates in over 15 years, according to the Avison Young’s Third Quarter Office Market Report, which notes that the city’s office market has bounced back from the COVID-19 pandemic and recovered 73.1 percent of its occupancy numbers.

In the third quarter of 2022, Vegas had an office vacancy rate of just 12.7 percent, with $234 million being invested in the office market, the highest level since just before the pandemic. The average office rental price was approximately $315 per square-foot, a bump up from the previous average of $299 per square-foot in the second quarter of 2022.

Avison Young – which ranked Charleston, South Carolina at the number one office marketplace in the country, with Nashville, Tennessee coming in third – said that the factors that landed Vegas in the number two spot included a lack of inventory in a hot job market, ensuring that business rents should continue to increase if the country does not enter a recession.

“Rent growth should continue, but concerns surrounding a potential recession and rising interest rates could act as potential headwinds,” Avison Young reported. “The Summerlin and Southwest submarkets are on track to garner office sale prices starting in excess of $400 per square foot over the next few years. Companies and employees alike want to live and work in these desirable suburban Vegas communities.”

North, Southwest, and West Las Vegas currently have the highest average office rents in the Southern Nevada region.

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 dropping for three straight months in a row, prices of houses in Las Vegas held their ground in September, signaling that the market may be re-gaining a foothold and achieving a new measure of stability, experts say.

As it was in August, the median price for a pre-existing one-family home in Southern Nevada was $450,000; that price represents a 10.7 increase from the same period of time in 2021 – when that price was $406,500 – but nonetheless represents a drop from the region’s all-time high of $482,000, which was originally set in May.

But while home prices held steady in Las Vegas in September, the median price for condominiums and townhouses increased over the previous month by approximately two percent, coming in at $270,000; this represents an increase of over 17 percent year-over-year, but still down from May 2022, when that price hit its all-time record of $285,000.

In September, there were over 8,100 single-family homes listed for sale without any offer, which was an increase of over 134 percent when compared to September 2021; the number of condos and townhouses available are up over 194 percent year-over-year as well.

A total of 2,554 existing homes, condos and townhouses were sold in September; those sales numbers, according to Las Vegas Realtors president Brandon Roberts, indicates that Southern Nevada currently possesses a nearly four-month supply of properties for sale.

“It’s interesting to see local home prices level off, at least for now. Home prices and sales had generally been declining since mortgage interest rates started rising,” he said. “The good news for buyers is that it has been at least three years since we’ve had this many homes available for sale.”

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 – As the Federal Reserve continues to raise interest rates in an attempt to curb the 40-year high inflation that has been holding Americans in its crushing financial grip, home mortgage interest rates have been correspondingly raising along with them, hitting 6 percent last Thursday for the first time since the housing market crash of 2008.

The loss of the cheap money that was fueling the nation’s home-buying frenzy during the COVID-19 pandemic has resulted in an overall slowdown of the market, both in Las Vegas and nationwide, as prospective buyers have been putting the brakes on their house hunting and sellers – who lately have been lowering their asking prices after seeing them skyrocket for the past year – have seen offers dwindle.

Last Thursday, the average rate on a 30-year home loan reached 6.02 percent – the highest level since November 2008, which was 14 years ago – up from 5.89 percent last week and 2.86 percent at this point in time one year ago.

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. Nonetheless, numbers still remain at higher levels than last year, and higher than average for the U.S. overall.

At the end of August 2022, there were almost 8,000 pre-owned houses on the market without offers, representing a 146 percent increase over August 2021; the median sales price of these homes was $450,000 in August, down 3.2 percent, or $15,000, from July, but still 11 percent higher than they were year-over-year. Nonetheless, August was the third month in a row that home prices in Southern Nevada have decreased, following a hot streak where they failed to drop for nearly 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 – The housing market in Las Vegas, once completely on-fire and breaking records left and right, has now just experienced yet another month of cooling as prices of homes have continued to drop for the third month in a row.

In August, the median sales price of previously owned single-family homes – which makes up the majority of the market in Southern Nevada – was down 3.2 percent to $450,000, which represents a $15,000 drop from the previous month.

However, all is not grim; despite the drop, home prices are still 11.1 percent higher year-over-year, but the decrease is still raising eyebrows due to the fact that – prior to three months ago – prices consistently increased month-to-month for over two years.

In addition, sales overall in the Las Vegas marketplace have decreased as well amid higher mortgage interest rates, high home prices, and national inflation hitting a 40-year high. 2,002 single-family homes sold in August in Southern Nevada, which was a drop of 3.1 percent from the month before; also, the end of August saw 7,997 houses were on the market without offers, an increase of 9.1 percent from July.

This isn’t a situation that is unique to Las Vegas, as currently homes in the United States are now selling below their asking prices for the first time in 18 months, whereas previously cheap mortgage interest rates during the pandemic had fueled a slew of homes sales and – as a consequence – that demand drove home prices to skyrocket.

But due to a series of rate increases on behalf of the Federal Reserve in an effort to curb inflation, those low-cost mortgages are now becoming a thing of the past; in August, the average rate on a 30-year home loan was 5.22 percent, as opposed to being just 2.84 percent in August 2021.

However, according to Zillow senior economist Nicole Bachaud, despite the drop in home prices and purchases as of late, sales overall are “still up substantially from last year,” and, despite not yet being a buyer’s market, “it’s becoming a better time to buy, with more time to consider options and less chance of being dragged into a bidding war.”

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 swanky home located in Summerlin’s high-end The Ridges master-planned community was Las Vegas’ top-priced sale in July, fetching a cool $8 million. This goes a long way to proving that while the housing market in Southern Nevada is experiencing an overall slowdown – much like the rest of the country – its luxury homes can still generate some very impressive sales figures regardless.

The home in question is located on Promontory Ridge Drive in The Ridges and is situated upon 0.54 acres; originally built in 2005, the home comes in at 12,345 square feet with six bedrooms, 7.25 baths, and a four-car garage, and has recently undergone a complete remodel with higher-end finishes.

Also, the home boasts an indoor basketball court, a gym, putting green, game room and movie theater, and the backyard has a resort-style pool/spa and outdoor kitchen.

Overall, the luxury housing market in Las Vegas is in the midst of its slowest period since January 2021 – an issue that is affecting the majority of the housing industry nationwide amid skyrocketing inflation, mortgage interest rates, and overall economic woes – but it still managed to net 105 closings on homes with values of $1 million or more in July.

Nonetheless, this number still represents a significant decrease from the 155 luxury closings in June, and the 167 luxury closings year-over-year. However, July’s figures certainly eclipse January 2021’s luxury sales figures, when just 86 luxury homes were closed on.

In addition, these are still 157 sales of homes valued at $1 million or higher currently pending – just 10 fewer then June – which experts say cements the fact that while Las Vegas luxury real estate has indeed taken a hit from the nation’s current economic turmoil, the $1 million or higher marketplace is still proving to be an overall significant money-maker.

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 – Due to rising interest rates on home loans marking the end of cheap borrowed money – combined with national inflation currently at a 40-year high – home prices in Las Vegas have actually dropped for the second consecutive month in a row after over a year of consistent, record-setting monthly gains, leading experts to remark that the market in Southern Nevada is “definitely turning.”

In July, the median sales price of previously owned single-family homes was $465,000, representing a drop of 3.1 percent – amounting to $15,000 in value – from June, at which time the median sales price was $480,000, down from $482,000 in May.

However, home prices in July remained 14.8 percent higher year-over-year, which amounts to a $60,000 increase overall. The reality of the last two months can’t be denied, as June’s price drop was the first time home values in Southern Nevada have decreased at all in over two years, and July only served to reinforce that trend.

It remains to be seen if the same occurrence happens in August and prices dip yet again, but the current market is seeing home inventory in the region – previously scarce – steadily rising now as buyers pull back to see what happens next. But buyers still looking to acquire a home in Vegas are now finding themselves with lowered prices and a degree of bargaining power they could only dream of just a few months ago, according to Las Vegas Realtors (LVR) President Brandon Roberts.

“We’re definitely seeing a shift in the housing market. We haven’t seen prices slow down like this in several years,” he said. “This is encouraging news for people looking to buy a home, although rising interest rates and today’s prices still present challenges for many potential buyers.”

2,066 single-family homes sold in Las Vegas in July, a decrease of 22.6 percent from the prior month and 38.4 percent year-over-year. 7,331 were available on the market without offers when July ended, an increase of 27.6 percent from the month before and 143.8 percent from July 2021.

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 market for high-rise condominiums in Las Vegas has finally begun to slow after enjoying a period of red-hot activity, reflecting the rest of the cooling real estate scene in Southern Nevada due to rampant national inflation and rising mortgage rates.

While many are anticipating some degree of improvement with the announcement earlier this week that mortgage interest rates have dropped below 5 percent for the first time in months, experts note that the scorching hot Vegas summer is also playing a factor in lower high-rise sales, with fewer people willing to brave the heat at the moment to house-hunt.

According to the Las Vegas Realtors’ Association Multiple Listing Service, 644 high-rise condominiums of five stories and above were closed on through the first six months of 2022, which represents a 2.5 percent increase over the 628 closings in the same period of time in 2021. However, the 87 closings that were recorded in June fall short of the closings achieved year-over-year, with 129 closings taking place in June of 2021.

Since the high-rise condominium sales initially slowed due to the onset of COVID-19 – which can be attributed to buyers wanting more space for the sake of health – the market in Las Vegas became extremely popular as the pandemic began to wane and restrictions aimed at curbing the spread of the virus were dropped.

According to experts who examined 21 high-rises – most located along the famed Las Vegas Strip – there were 618 closings between January and June 2022, which represented a 14.2 percent jump over the same period of time in 2021, when there were 541 closings. This contrasts with the mere 225 closed upon in the first half of 2020, and the 204 in the first half of 2019.

The average sale price of high-rises sold in Vegas in 2022 was $595,508, with a square-foot price of $486.

While the market for high-rise condominiums is indeed showing some degree of cooling with the economic uncertainty in the country, experts are nonetheless predicting the market will remain to perform well, and with the possibility that mortgage rates may be sliding downward slightly, may begin to pick up once again in the very near future.

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 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 – 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 – 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 – 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.