Category Archive : Economy

LAS VEGAS, NV – Many Las Vegas residents can recall the period in the mid-2000’s when home prices in Southern Nevada were skyrocketing – much as they are now – and then came crashing down when the Great Recession hit.

However, while circumstances are painting a similar picture these days, experts are noting that there are enough major differences this time around that local residents need not fear another real estate crash, as Las Vegas is most likely proving to be “bubble resistant” – at least for the time being.

Low inventory and rising interest rates on mortgages are two factors that are contributing to the greater stability of the Las Vegas housing market this time around, and while these issues can spell frustration and affordability concerns among homebuyers, they should also prevent yet another bubble from forming – and bursting – once again in Southern Nevada, realtors say.

Experts note that the rising interest rates are slowing things down – which is a good thing – and due to the relative lack of inventory, Vegas isn’t currently seeing price drops on the homes available for sale.

A solid job market is also helping to create stability when it comes to home prices, as are the greatly-improved lending standards that have appeared since the previous mid-2000’s market crash. Previously – from 2004 through 2006 – lenders were practically giving loans to just about anyone who applied for them; however, nowadays, the more stringent qualifications in-place are ensuring that individuals that receive loans actually deserve to have them.

Rising interest rates have created a sense of urgency among home buyers, who are desperate to lock in lower rates before they get too high; not too long ago, the average buyer could lock in a 3 percent mortgage rate, whereas nowadays that number is currently over 5 percent. However, while rates are indeed going up, they still remain historically low; in 1981, the average 30-year fixed rate was 16.6 percent.

For the time being, there’s no better time to buy a house in Las Vegas, provided you can find one.

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 board of directors of the Las Vegas Convention and Visitors Authority (LVCVA) voted to approve its 2022-2023 budget last week, and among those funds are an impressive $600 million that is earmarked towards an extensive renovation of the Las Vegas Convention Center (LVCC) as the end of the COVID-19 pandemic has seen a significant uptick in the number of organizations holding large-scale events in Vegas once again.

As one of the largest convention centers in the world, the LVCC has 2,500,000 square feet of exhibit space and can host shows that can accommodate as many as 200,000 participants. The venue is adjacent to the Westgate Las Vegas Resort and Casino and the Renaissance Las Vegas Hotel and is accessible from the Las Vegas Monorail at the Convention Center station.

The reasoning for the large allocation of its 2022-2023 budget towards renovating the LVCC, according to LVCVA Chief Financial Officer Ed Finger, is the fact that life is returning to normal after over two years of lockdowns, and with a new slew of convention-goers beginning to frequent Vegas once again, the funds are needed to bring the venue up to modern standards.

Finger noted that the $600 million will be applied in-part towards to renovating the convention center’s three main exhibition halls.

“The LVCVA has scheduled construction around major conventions so that they won’t have to go elsewhere during the building process,” he said. “A major part of the renovation will be construction of a climate-controlled corridor linking the North, Central and South halls.”

The LVCVA is anticipating that tourism will finally be returning to normal in Las Vegas as the pandemic is (hopefully) seeing its final days, with the origination expecting to receive room tax revenue in 2022 in the amount of $306.2 million; full recovery of the tourism trade is expected to take place in 2023-2024.

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

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

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 new report released this week indicates that home prices in Las Vegas continue to increase on a regular basis, despite the fact that home sales in Southern Nevada overall have begun to slow down when compared to the same period of time one year ago.

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

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 new $3 billion entertainment venue has been announced by developer Oak View Group that will be constructed south of the famed Las Vegas Strip that will feature a plethora of attractions sure to appeal to both tourists and local residents.

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

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 new report indicates that Las Vegas’ housing boom isn’t showing any signs of slowing in the near future, as prices continue to increase at an incredible rate when compared to many other markets across the United States.

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 – Las Vegas Realtors Association President Brandon Roberts is predicting that, as Southern Nevada’s home prices continue to break record after record – causing intense affordability concerns – the market will eventually right itself and stabilize, noting that the current situation is “not sustainable” long-term as it is.

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 – Ever-increasing home prices in Las Vegas are now outstripping the current average in the United States, according to a recent Case-Shiller report, with the end of 2021 setting the stage for what to expect in 2022.

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 edge of the Las Vegas Strip was in the midst of multiple construction and development projects that – with the arrival of the mid-2000’s economic recession – instead resulted in huge empty tracts of land and little-to-no foot traffic. The vibrancy and excitement of the Strip had failed to carry to the end of Las Vegas’ casino corridor… until now, it seems.

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

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

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

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

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

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

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of 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 – With all of the real estate milestones that occurred in Las Vegas over the course of 2021 – perhaps one of the unlikeliest years for this to have taken place, given the ongoing COVID-19 pandemic – the local high-rise condo marketplace is yet another aspect of this industry that broke records over the course of last year.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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