LAS VEGAS, NV – The high rents that many Las Vegas residents have been struggling with recently are expected to remain at their current levels for the time being, according to a new report.

The one-two punch combination of 40-year high levels of national inflation and increased interest rates brought about by the Federal Reserve’s several recent rate hikes – done in an attempt to curb inflation – have contributed greatly to the strain that’s hitting many Southern Nevada renter’s wallets, said Las Vegas economist Mike PeQueen.

“Rent is probably the single largest expense for anybody at this point,” he said. “While it’s a bad sign for the community, it’s not really unexpected because we’ve all watched with interest the last couple of years as residential real estate prices have increased. That is great for people that own homes. For people that rent residential units, it makes the price of living in residential units more expensive, and that over time does hurt a community.”

In addition to inflation and higher interest rates, the realities of supply and demand have also remained a constant factor; simply put, there are fewer apartments in Vegas than people who want to rent them, allowing some landlords and property managers to charge premium rates.

Also, the mid-2000’s recession saw a drastic reduction in the number of homes being built; that, coupled with another construction decrease during the COVID-19 pandemic, has resulted in a high degree of scarcity when it comes to residential homes. With that being the case, many prospective homebuyers are turning to rentals to tide them over, exacerbating the demand for them even more and correspondingly driving up rent even further.

Currently, the average rent for a 2-bedrrom apartment in Las Vegas runs $1,600 a month, with that number reaching as high as $1,800 in more affluent and in-demand places such as Henderson.

PeQueen notes, however, that rents will eventually drop down to more manageable levels once more apartments and houses are built in Southern Nevada and the national economy stabilizes; it will just take some time for that to happen, he said.

“Until we see lower interest rates, and a chance for developers to catch up with what’s in the pipeline of building already, we’re probably not going to see much relief on rents,” PeQueen said. “We have seen recently the rate of increase of rents in Southern Nevada has started to top out. So I don’t think they’re going to shoot up a lot from here, but we’re probably not going to see decreases in rent at this time.”

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 – 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.

LAS VEGAS, NV – Amid skyrocketing rents in Las Vegas driving very real cost-of-living concerns, two new affordable housing apartment complexes – both being constructed by the same developer – are set to open soon, allowing families and individuals on a budget a way to put a roof over their heads.

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

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

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

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

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

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

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

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – Experts are reporting this week that mortgage rates – which have been skyrocketing since the new year after hitting historic lows during the COVID-19 pandemic – have unexpectedly dropped, giving beleaguered prospective homebuyers a modicum of leverage but also signaling potential bad news for state of the U.S. economy.

The average rate of a 30-year fixed mortgage, which was 5.81 percent one week ago, dropped this week to 5.70 percent. While that decrease will give some homebuyers some breathing room in terms of interest on a home loan, it also signals just how much rates have climbed, since at the same point in time one year ago, that rate was a mere 2.98 percent.

Nonetheless, according to Freddie Mac’s chief economist Sam Khater, this is a sign that the housing market – long thought to be heading in an unsustainable direction – may finally be starting to stabilize in the face of an ongoing national surge in inflation, which is straining the finances of most buyers. However, Khater noted, it could also be a grim sign that the country may also be on the verge of a recession.

“The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” he said. “This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.”

But in the meantime, the lowering rates – combined with a cooling market may give buyers the upper hand, at least in the short-term, according to real estate agent Lilly Rockwell.

“It’s fabulous. Finally. Tons of choices, very little competition,” she said. “It’s crazy how quickly the tables have turned!”

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 – During the depths of the COVID-19 pandemic the housing market unexpectedly started to boom, propelled by record-low interest rates on home mortgages and buyers enticed by acquiring homes with cheap money. But as demand continued to increase, home prices began to swell, with buyers taking solace in the fact that interest rates nonetheless remained very affordable.

Unfortunately, this is no longer the case, as an attempt to lower out-of-control inflation and prevent a potential recession, the Federal Reserve has begun increasing their interest rates. This, sadly, has correspondingly caused a significant jump in the cost of home loans as well, and combined with record home prices – the median price of a single-family home in Vegas in May 2022 was $482,000 – has caused the market to slow as some buyers are now finding themselves priced out.

With demand decreasing due to financial concerns, sellers – who have been consistently raising their asking prices for months, breaking records each and every time – have finally begun showing signs of relenting, and as a result Vegas-area listings are now slowly starting to appear with newly-applied discounts.

Reports show that sellers of a southwest Las Vegas Valley home for sale recently shaved $25,000 off their asking price; last Thursday, a Henderson home saw a $31,000 decrease; and a northwest valley area home has had a total of $110,000 in price cuts since it was first listed.

In fact, in May 2022, 13.7 percent of active listings in Las Vegas had a price cut, as opposed to the 11.5 percent average across the United States, reports say; while listings overall continue to climb in price, May represented the third month in a row where active listings showed price cuts, with Zillow economist Nicole Bachaud saying that the overall marketplace may be showing distinct signs of much-needed stabilization.

“Sellers are finally being challenged to price their homes competitively, after a period in which buyers seemed willing to meet almost any asking price, and in many cases bid over list price to beat out other interested buyers,” she said. “It’s absolutely true that there is an affordability crisis in the housing market, but low mortgage rates had kept monthly payments in check even while prices rose at a record pace.”

Housing markets – especially in Las Vegas – can often turn on a dime, but the current developments may be indicating that sellers may not be able to overprice anymore, opening up the potential for renewed affordability; time will tell if this ends up being true or not.

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 – Following the Federal Reserve’s hike of 75 basis points to its key benchmark rate in an attempt to lower crippling inflation gripping the United States and head off a possible recession, interest rates for home mortgages have been steadily increasing after having hit record lows during the COVID-19 pandemic; that factor, combined with inflation and skyrocketing home prices, have caused a recent slowdown in home sales nationally.

The current interest rate on a standard 30-year fixed-rate mortgage hit an average of 5.78 percent this week; this is up from 5.23 percent just last week, and a big increase compared to the same point in time one year prior, when rates averaged just 2.93 percent.

Currently, interest on home loans is at its highest point since 2008, causing Americans that are already hurting financially due to whopping retail, grocery, and gas prices to rethink the possibility of buying a home in the here and now, according to National Association of REALTORS Senior Economist and Director of Forecasting Nadia Evangelou.

“These rising mortgage rates hurt affordability and decrease the purchasing power of many buyers,” she said. “In addition to increasing the amount buyers will pay to borrow for their mortgage, higher interest rates lower their purchasing power since a larger portion of their monthly payment will be put toward interest.”

Due to the Fed’s decision to raise basis points by the highest amount in 28 years – in addition to several other hikes planned throughout the rest of the year – more buyers are adjusting their shopping budgets for homes, as rising interest rates lower their respective buying power. In January, the average buyer could have afforded a $360,000 home with a $1,400 monthly mortgage payment; now, with the most recent interest increase, that same $1,400 monthly payment would only procure a home worth $270,000.

With interest rates now at 5.78 percent and climbing, buyers’ money is not only worth less, but they will also be paying more over the course of the loan itself; at last week’s 5.23 percent interest rate, the monthly payment on a $300,000 loan – excluding taxes and insurance – would have been $1,653. However, with rates now being 5.78 percent, the monthly payment on the same loan would now be $1,756, which represents an additional $1,236 per year.

But all is not bleak- experts are saying that the high interest increases may simply be a case of over-correction on the part of lenders, and if the Fed’s basis point increase indeed proves to be successful in curbing inflation, mortgage rates could start to come down once again, especially amid a slowdown in demand for home loans, which have decreased 16 percent year-over-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.