Category Archive : Real Estate

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 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 – 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 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 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 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 – 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 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 – 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 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 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 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 the disturbance that the ongoing coronavirus pandemic is causing in the real estate industry word-wide, house-flippers in Las Vegas – as well as across the nation – have taken a temporary pause while riding out the effects of the devastating outbreak upon the economy, according to recent reports.

Among the organizations putting the brakes on buying homes to quickly renovate and put back on the market to make a profit is the Zillow Group, which is ceasing such activities in Vegas as well as 23 other markets where it engages in flipping, through its “Zillow Offers program.”

The main driving factor behind Zillow’s decision, reports say, is compliance with ordinances passed by many local municipalities dictating that businesses deemed as “nonessential” temporarily close to reduce the spread of coronavirus. But while refraining from acquiring new properties, Zillow will still be selling homes already in their inventory.

In addition, numerous other flippers, both present in Vegas or with a web presence – including Opendoor of San Francisco – is reporting a pause from buying homes in the Southern Nevada region as well while quarantine measures are in effect.

According to experts, the Las Vegas real estate scene stands to be hurt more than average due to the effects of the pandemic for a number of reasons, not the least of which being its massive tourism industry; due to travel restriction measures and temporary business and retail closures – and no certain timetable yet for their re-opening – tourism in Vegas is completely off the table for the time being. This, unfortunately, is causing economic havoc in a city that was previously skyrocketing back to the top after recovering from the mid-2000s recession.

Real estate sales are expected to take a large dip while the coronavirus scare persists, but experts are also predicting a fast turnaround of Las Vegas’ fortunes once again when the pandemic eventually levels off. It’s simply a matter of riding out the storm until it subsides.

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 – Owing to the rapid spread of the coronavirus pandemic across the United States – and globally – the International Council of Shopping Centers (ICSC) announced last week that they would be suspending the annual REcon convention – the largest Real Estate-based event in the nation – that was due to be held in Las Vegas in late May.
In addition, ICSC announced that they would be suspending all other organization events planned through June 30.

Recon normally attracts tens of thousands of attendees to Las Vegas ever year; the 2019 event boasted over 36,000 attendees, according to ICSC. However, ICSC representatives were quick to point out that this was a “postponement” and not an outright cancellation of the event; a memo issued by ICSC noted that they are already in the process of evaluating alternate venues and dates for the 2020 Recon, giving hope to the fact that it will still take place later in the year.

Recon, the largest real estate show in the country, offers a variety of programming and events for attendees, ranging from retail deal making, networking, information, seminars, and more. In addition, guests will often partake in extracurricular events as well as the night life that Vegas offers during the off-hours, feeding into and benefiting the local economy.

A number of conferences and industry events have been postponed or outright cancelled, both in Las Vegas and across the country, as measures have been taken to slow and contain the spread of the coronavirus pandemic. Unfortunately, while such measures will likely contain the outbreak and prevent long-term economic damage, the fact is that there will absolutely be – at the very least – very real and significant effects in the here and now to the industries – such as hotels, caterers, entertainment, and more – that depend on these events for their very livelihoods.

Currently, the number of events in Las Vegas that have been cancelled due to coronavirus are approximately 30.

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 – According to recent reports, the skyrocketing economy that Las Vegas has been enjoying since miraculously recovering from the mid-2000’s recession has hit a bit of a stumbling block in the form of the infamous coronavirus outbreak. Tourism had increased, multi-million dollar construction projects and development deals were constantly springing up, unemployment was dropping, and the real estate industry was enjoying a huge surge not seen since before the burst of the housing bubble. But in the wake of the coronavirus, business are shutting their doors – both in Vegas and nationwide – and the economy of Southern Nevada is starting to feel the pinch.

Casions and resorts are starting to see decreased demand as tourism drops amid airline flight restrictions and overall travel fears, and employment cuts are expected to take place in a variety of industries. This holds especially true in the hospitality industry, the very lifeblood of Las Vegas. MGM Resorts International is expected to begin layoffs starting next week, and according to reports it could amount to as many as 150 employees. MGM is one of the largest employers in Nevada.

In a city where tourism is king and people come in droves to be entertained in crowded casinos and event venues, the coronavirus is not an ideal situation, although it will take some time to ascertain the full extent of its impact on the local economy. It’s possible that the measures being taken now to limit exposure via social activity will prevent long-term economic damage and minimize the job, revenue and development project losses.

The degree to which tourism is important to the economic well-being of Las Vegas cannot be overstated, and the coronavirus is sure to have a trickle-down effect to almost every industry in the city. According to reports, tourists poured $35 billion in Southern Nevada in 2017, through which over 234,000 tourism jobs were supported. Currently, construction jobs are not being majorly affected, although some contractors have reported delayed shipment of materials needed for their projects when coming from China and Italy, areas of the globe where the coronavirus has hit the hardest.

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 – According to recent reports, home prices in Las Vegas, already in a constant state of increase, have finally managed to surpass pre-recession housing bubble-era prices after over 13 years of recovery, when not adjusted for inflation.

The median sales price of a single-family home set a record last month when it hit an all-time peak of $316,000, $1,000 more than the previous all-time record established in 2006, before the burst of the housing bubble lead to a deep recession that almost decimated the housing market in Southern Nevada for over a decade.

That amount, however, still manages to lag behind pre-recession peak prices when inflation is taken into account, reports say, which shows how pricey property had gotten in the region before the economy went south. When adjusted for inflation in 2020 dollars, the 2006 peak price would translate to approximately $400,500, which represents an additional $84,500 above today’s market.

Median home prices in Las Vegas have increased 6.7 percent from the same period one year earlier. In addition, February 2020 was an especially busy month for sales, with 2,471 houses sold, with represents an increase of 25.7 percent from February 2019. This represents good news for the market, as sales had previously leveled off in the region due to concerns regarding affordability began affecting the market overall.

Despite the fact that home prices still lag behind their pre-recession peak when inflation is taken into account, this new financial milestone is important given the fact that the recovery of the Las Vegas real estate market in particular lagged behind much of the rest of the United States after it began to recover from the recession.

Essentially, the real estate market in Las Vegas has finally come “full circle” and, given its continued positive momentum, it may only be a matter of time before more records are set.

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 – According to the experts, if you’re in a rush to sell your home for top-dollar, there are a number of tried-and-true methods to approaching that transaction in order to ensure you get the most for your investment in the least amount of time. After all, the longer that a home is one the market, the lower its asking price tends to dip, so expediency is key, and this is how it’s done.

Asking Price

First of all, you want to make sure that your asking price right off the bat is the right one; if that’s the case, you will often find yourself with several offers within the first few days the house is on the market, as real estate agents often check each and every day and quickly go for the good deals. Knowing what does and doesn’t sell in your neighborhood is important to achieve this.

Home Inspection

Getting a home inspection before putting the property on the market is a good idea as well, just to avoid running into a situation where issues are discovered while showing the home, which can delay your sale or lower your price.

Prime Times

Also, waiting until a time of year where the overall inventory of available homes on the market is lower than normal is a good idea, if you can spare the time; late summer and late fall are usually the best times to list in this regard, as new listings tend to stand out at those times of years, despite not being known as “prime” listing times.

Curb Appeal

Establishing good “curb appeal” is a nice idea as well, as first impressions are important. Make sure your landscaping is up-to-date, that your property is clean and uncluttered, and that your home needs no major aesthetic repairs. Also, a fresh coat of paint and perhaps even a new front door – if it’s needed – never hurts when it comes to wowing a potential buyer.

Buyer Perception

As for the interior, a simple paint-job works best, with white being a great choice due to the fact that it will make your home appear clean, bright, and will give off the illusion of it being larger. To that end, also make sure that your rooms are not cluttered with unneeded items; this especially holds true to personal items such as family photographs, which will not only make the rooms look smaller but will also make it harder for a buyer to envision the home as “theirs.”

Advertising Methods

And as for advertising, traditional methods are still very effective and reliable, but don’t forget about the power of social media – particularly Facebook ads – as well. Also, set up regular open houses, and make sure your home is clean and well-lit when you’re showing it.

These are just a few tips to help sell your home quickly and for the maximum price. Feel free to speak with one of our agents if you are considering selling and ask for a free market analysis.

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 – According to recent reports, the Las Vegas Raiders’ practice facility – which is still currently under construction – was sold by team officials last week for the hefty sum of $191 million. But where will the Raiders practice then, you might ask? Why at that very same facility, since right after the sale Raiders officials leased the facility right back, a growing and popular trend in Las Vegas real estate known as a “leaseback.”

A form of flipping – buying a property, building upon it or renovating existing structures, and then selling it for a profit – the leaseback takes the concept to the next level by having property owners sell a building, only to rent it right back for whatever use they may need it for. The practice has generated billions of dollars in revenue in Vegas in recent months, and apparently the Raiders are the latest entity to get in on the action… and they’re not even officially residents of the city yet.

The Raiders sold their Henderson-based headquarters and practice center – which is still being built – to Mesirow Financial of Chicago in February 21, and then immediately entered into a lease agreement with Mesirow for 29 years, with the option of extending that lease for a total of 70 years, divided up into seven separate ten-year options, according to Clark County records.

The rent the Raiders will be paying to Mesirow is not currently known.

Leasebacks are common occurrences in many industries in Las Vegas, including fitness centers, fast-foot restaurants, and casino hotels; the advantages are many, including a large influx of cash up-front to the seller and the opportunity to establish a lock in long-term lease. For the buyer, the advantage is that they have an instant renter for their property, as opposed to acquiring it and then having it sit vacant – and not generating a dime in revenue – while they search for a tenant. However, leasebacks have their potential pitfalls as well, especially if the seller has financial issues or closes their doors for business; but regardless, leasebacks are growing in popularity in Vegas, as the benefits often far outweigh any potential issues that might come down the line.

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.