Las Vegas and Henderson Rental Housing Market Articles

The Las Vegas real estate market has been the talk of many homeowner’s and investors for a long time. The uniqueness of the city itself dazzles many and the recovery of the market continues to draw attention. As a matter of fact, the Greater Las Vegas Association of Realtors recently stated that Septembers average home price reached $310,000, just $5,000 short of the peak during 2006. What is on the horizon, as we head into 2020?

Though prices inched up, the market has slowed down. More homes are available on the market with no offers and buyers are finding more room to negotiate. After years of steady appreciation, the market has stabilized. This will allow buyers to gain some traction. For first time home buyers, this is no doubt relief, as they will hope to find a home without the same competition as months and years prior.

However, not to be understated is that there is still demand for housing. Investors are looking for opportunities. And new home builders are continuing to expand with new communities, such as a new multi builder community in northwest Las Vegas. Interest rates are still low as well, contributing to an interest from buyers.

With sales price appreciation came rental rate appreciation as well over the last few year, and so the reason investors are interested in the market. Rental property owners are finding that their properties are leasing for substantially higher rates than in years prior and many existing and new investors want to capitalize on a more stable market and higher rental rate returns.

Homes below $300,000 are still in demand since they fall into the affordability range of most buyers. Those properties we expect will continue to be in demand throughout 2020. Though we do expect the market to stabilize more and even see prices pull back some, we anticipate there to be strong demand for housing.

Contributed by Nicklin Property Management.

What does a recession look like for real estate?

For most of us, just hearing the word “recession” brings stress and a feeling of uncertainty. The “Great Recession” which ended about 10 years ago brought untold financial loss to many, leaving them homeless and jobless. Recently, however, there has been much talk about a slowing economy, softer real estate market and potential for a recession. If that is true, what we can expect?

A recession usually turns real estate into a buyers market. Prices are softer, perhaps even decreasing some, since the the economy adjusts and even corrects after years of having an upward trend. Because spending usually slows down by the average consumer, the general economy slows down. Homeowners who need to sell their properties may reduce their price as a result to generate a buyer.

However, if you have a rental property and no need to sell it, you may be able to weather the storm. Rental prices may become softer to a certain degree, however, real estate is a commodity that everyone needs.

And even during the great recession, most rental properties ended up leased. So, rather than trying to sell your property, you may be able to weather the storm of a recession and wait until the market improves and see both rental prices and resale values climb, perhaps to a new high that you weren’t expecting. At the same time, you may find real estate values attractive to the point of purchasing another rental property or finding another primary residence for yourself and leasing your existing home.

Many investors capitalized during previous downturns. Perhaps you can be one as well!

 

Contributed by Nicklin Property Management.

With so much talk in the news about a healthy and steady real estate market in Las Vegas, what is happening in the rental market?  Many individuals are tenants, renting a home from a private party, through a management company or at an apartment complex.  What have landlord’s and tenants experienced over the last couple of years, leading up to the middle of 2019?  Is it now time for you to become a landlord?

Well, its no secret that things have become more expensive since 2017.  As a matter of fact, the current median resale price of a single family home in the Las Vegas valley is right around $300,000, with projected increases.

The rental market has likewise taken a spotlight more recently.  Las Vegas used to be home to affordable rents, however, now there is talk about housing affordability.  Landlord’s who have had rental properties the last few years have seen this first hand.  Nicklin has seen this appreciation as well, especially as we look and see what properties used to rent for compared to today’s market.  What have we observed?

It is not uncommon to have seen a 30 – 50% appreciation! While this may sound unbelievable, this has become a common occurrence!  For example, some homes that used to rent for around $1000 / month are now closer to $1500. Of course, every location within the city is different and the exact rate of appreciation varies, however, nearly all of the properties Nicklin has managed have appreciated in value, significantly in many cases.  Driving this appreciation is a low unemployment rate and stable economy.

So, if you have contemplated leasing your home, this may be the time to do it!  Rents are high and you may be surprised with what you can get for your home, especially as you contemplate making your home a long term investment, thinking about retiring and looking for rent profitability.

There is no doubt that Las Vegas is experiencing a strong economy, solid job growth, an influx of new residents and exciting new developments throughout the city.  Here are some notable new developments within the Las Vegas valley that are taking shape:

  1. New Raiders Stadium: The nearly 2 billion dollar project is already making a statement – both visually and economically.  The project is moving along on schedule to be ready for the 2020 NFL season and has already raised the value of surrounding real estate.
  2. Google Data Center: The new $600 million dollar project sitting on over 1200 acres in Henderson will create 50 jobs over 5 years. It is slated for completion towards the end of 2020.
  3. Las Vegas Convention Center Expansion: The nearly 1 billion dollar expansion will allow for more convention space and businesses to come to Las Vegas.
  4. Resorts World Las Vegas: The currently under construction mega resort on the north end of the Las Vegas Strip will create thousands of jobs, plenty of hotel rooms and a unique theme for a portion of the strip that has long had minimal development.
  5. The Drew: The former unfinished Fontainebleau Las Vegas on the north end of the strip has been renamed The Drew and slowly will be finished.  Once completed, it will be one of the tallest resorts in the valley.
  6. Madison Square Garden: The new sphere like music arena will be one of a kind.  A developer has been chosen recently and the project is moving forward.
  7. New Golden Knights Hockey Rink: Construction is underway for a new hockey rink in Henderson, in place of the Henderson convention center.
  8. Real Estate Development: The last few years have shown that the Las Vegas real estate market has made a comeback.  Real estate and rental values have appreciated considerably and new home, apartment and condo development has taken off.

All of these developments show that Las Vegas is once again gaining momentum and investor confidence.  A positive economy benefits everyone and contributes towards economic stability.

Stay tuned for our video blog which will illustrate the developments we discussed.

For professional property management, contact us at 702-903-HOME or send us a message at nicklin@nicklinpm.com.

Contributed by Nicklin Property Management.

September 2018 – As summer bids farewell, the Las Vegas market is seeing a cooling trend after months of steady appreciation at one of the fastest rates in the country. This is in line with national trends. Inventory for resale homes has increased and the rush of buyers has diminished some. In addition, with school starting, interest rates rising and the seasonal slowdown beginning, the market is starting to level off some. A recent report by the Greater Las Vegas Association of Realtors still showed average price appreciation during the month of August, with a single family home appreciating from an average sales price of $290,000 in July to $295,000 in August. As we head into fall and winter, we can expect inventory to be slightly higher and homes remaining on the sales market longer. Rental properties have likewise seen steady appreciation this summer, with high demand and limited inventory. Average sized homes specifically have seen the most considerable increases, being the most in demand due to price point and size preference. As the season changes, though, we can expect a more level market.

Increases in the local market are being felt by investors who are now eyeing multi family properties to achieve a greater return as well as properties in need of significant repairs and maintenance, though these are in more limited availability. Older properties that perhaps were overlooked are now being considered more and as a result, seeing price appreciation.

The Las Vegas economy has thrived in recent years and the drive to invest, manufacture and diversify the economy is playing a role in property appreciation.

January 2018 – As 2017 came to a close, it was apparent that the local housing market was in demand, yet, not much inventory was available. This led to price appreciation and competition with resale homes and new homes seeing high demand and higher pricing. The average resale home sold for nearly $270,000 on average and new homes closer to $370,000. Rents have been rising consistently as well, with the highest appreciation seen in smaller homes, up to 2000 square feet. Most have averaged close to $1400 per month.

The projection for 2018? Analysts predict a continued upward trend. While resale inventory may increase throughout this year, demand is still strong. The same applies to rental homes. Forecasts are showing that the Las Vegas market will show the strongest appreciation in the country throughout the year. This growth is being fueled by a number of factors, such as strong job growth, educational opportunities and a still lower cost of living compared to other western cities. As a result, Nevada has been one of the most popular states to relocate to during 2017 from other parts of the country. This has certainly been seen in the Las Vegas area. Population growth has fueled infrastructure improvements, mass transit discussions and a number of large projects in both the commercial and industrial sector. It has also led to thousands of new homes being built year over year along with multi family projects popping up across the valley.

As the economy expands, we can expect positive growth throughout the year.