Las Vegas and Henderson Rental Housing Market Articles

As the state of Nevada looks to re-open after weeks of closure to contain the COVID-19 virus, this will not be an automatic green light to resume life as normal. There is still much work to be done and social distancing to be followed. Many Realtors have been proactive to keep their clients and customers safe, adhering to safety guidelines.  This includes Nicklin Property Management.  Here are some updates as far as re-opening guidelines as pertain to the real estate and rental industry:

1. Showings and open houses of single family residences occupied by renters is prohibited until May 30, 2020.

2. Social Distancing will still need to be practiced when interacting with the public and face masks should be worn. Employees / Agents must wear face masks when interacting with others.

3. A COVID-19 addendum is available for sales transactions that has been approved by the Nevada Real Estate Division. It gives provisions to prospective buyers who may have a sudden change in employment / income due to the Coronavirus pandemic while purchasing a home.

4. Eviction postponement is tied to Nevada’s declaration of emergency, which is set to expire May 15. Any changes to this should be announced by the Governor’s office in the very near future.

As we have seen, the situation we have seen has been very fluid and subject to change. While it is encouraging to see that certain restrictions have been lowered, we must all still show vigilance in protecting the health of others and take necessary precautions.  We look forward to business as normal in the future, however, realize that this will not happen for some time.

Many rental property owners and those contemplating entering the rental market are now anxious about what will happen to the rental market – rent values, rent collection, etc. The truth is, the current COVID-19 pandemic is uncharted territory for most real estate professionals. We are constantly hearing about fluctuations in the stock market, unemployment reports and stimulus benefits. We are also learning that evictions are on hold and late fees can’t be charged (at least here in Nevada).

But what will this ultimately mean for the real estate market? Specifically the rental market?

The measures being taken by government officials to put evictions on hold and not charge late fees clearly indicates that the goal is to maintain relative stability for folks. To be able to get through this pandemic with as as little interruption as possible. On the flip side, many mortgage companies are offering relief to homeowners who can’t make their mortgage payments rather than charging them late fees and initiating foreclosure proceedings. Stimulus benefits and supplemental funding of unemployment benefits are intended to carry folks through this period of time as well. It appears that the plan and hope is that once the pandemic passes and things begin to resume to the way they were previously the economy can rebound without having the added stress of an untold number of evictions and foreclosures, which would be detrimental to the real estate and rental market.

In the end, it really depends on how long the shut down will go on for. That will indicate what we can expect with rental and sale values and demand; whether or not folks will be able to maintain relative stability during this time and once things pick back up again resume their lives without too much loss and have jobs to get back to. In that case, we hope that the market will prove overall stable. However, if we have long term closures, lack of benefits or other unforeseeable repercussions, we may have a different market to prepare for.

It does appear, though, that the ultimate and overall goal right now is to keep people status quo to prevent major shifts in the real estate market so that once an economic rebound occurs, the market can continue to grow and thrive.

How does this affect tenants?

There are provisions for tenants who land on hard times and only able to pay partial rent, such as waived late fees and postponement of evictions, which were authorized by government officials.  Additionally, many homeowners are willing to assist tenants during this time.  However, rent forgiveness is not obligatory.  Assistance may come in the form of rent postponement.  This means that eventually the postponed rent will still be due.  Thus, if a tenant can afford rent because their job has not been affected or has the means to pay rent, it would be in the tenants best interest to continue making their rent payment.  Many homeowners have mortgages on their rental properties and so, a lack of rent means that they may have to resort to other means for payment or qualify for assistance from their mortgage company.  Additionally, many homeowners may have also lost their jobs.

Ultimately, predicting what exactly will happen is dependent on many factors. Unfortunately, at this time, it is hard to say with any certainty what will happen.  We hope that this situation will be temporary and everyone can find financial stability sooner than later and we can get back to having a thriving real estate market.

In view of very recent developments nationally and internationally with COVID-19, it is safe to say that the world has turned upside down. Panic buying, social distancing and coronavirus have become everyday words. Beyond that, many businesses and government offices are closed for business. Talk of a recessive economy are gaining momentum.

As a result, the Fed has cut their interest rate even further in order to build confidence in society and as a result keep banks lending. However, the interest rate for home loans has actually ticked upward. In fact, just this month alone, interest rates went from an average of about 3.30% to nearly 3.75% (on a 30 year fixed loan). Many people are interested in a refinance or even purchase of a home because of how low interest rates are. So, why did rates go up?

Well, mortgage rates don’t necessarily follow the Feds interest rate always. They will adjust to a certain extent, however, they typically follow 10-year bond yields, such as the treasury note. The 10-year treasury note actually went up this month. This was due to the fact that a major stimulus package was approved in view of COVID-19, adding to the national debt and affecting the yield market.

However, rates will continue to fluctuate. Many people are applying for refinances right now or new loans and so banks and mortgage companies are back logged, affecting mortgage rates. The fed and other government agencies will most likely continue to implement new measures to help the economy, which will have an effect on this also.

While interest rates are still historically low, we can expect continued change due to market volatility. The quicker we see stability, the better the economy. The better the economy, the more confidence the consumer will have.

Contributed by Nicklin Property Management.

With some uncertainty about how 2020 would turn out for the Las Vegas valley housing market, it seems more likely that the market should remain stable, with modest appreciation.
As a matter of fact, according to the Las Vegas Realtors Association, the median sales price of a Las Vegas valley home reached $316,000 last month. This surpassed the previous peak of $315,000 reached prior to the recession over a decade ago!

This is an increase from just over 3 months ago, in December 2019, when the average sales price of a home was just under $313,000 (according to GLVAR).

Of course, inventory is still tight for those looking to buy a property. However, with the fed further reducing mortgage rates recently, buyers are anxious to purchase a property as this affords them an opportunity to have more buying power even though prices have increased. Some are looking into condos and town homes, since those are priced below single family homes and with a lower interest rate, a very reasonable monthly payment.

Investors have also been taking advantage of the lower interest rate for their investment purchase. Rental rates are up, appreciating and the time on the market is low – most properties leasing in under 30 days. For many investors who purchased years earlier, the current market is what they have been hoping and waiting for. And of course, many are hoping for continued appreciation and in the future, more equity.

Northwest Las Vegas has become a popular area to live in over the last 30 years, with tremendous growth over the last 20. What makes it unique? A few reasons.

Northwest Las Vegas is the one of the closest areas to Mount Charleston and Lee Canyon, known for its hiking and even skiing among bristle cone pine and aspen trees. The area is unique in how close it is to the desert valley – about a 20 – 30 minute drive from the northwest part of the Las Vegas valley. Many outdoor enthusiasts enjoy the proximity to the mountains and all it has to offer.
Additionally, the Northwest is close to Floyd Lamb State Park, which features vast green spaces and ponds, walking trails and fishing. The northwest in general has many parks and green spaces that many enjoy against the backdrop of the Spring Mountains.

Beyond this, the Northwest has seen much growth. A variety of housing, shopping and dining has taken hold, allowing for the area to grow and prosper. The area has two main hospitals, Mountain View and Centennial Hills. New developments currently in progress, such as Skye Canyon, allow residents to be within a very short distance to the Mount Charleston area, making it an attractive area to settle down. The Northwest is also home to many custom and semi-custom residences, allowing buyers to find a home with a large lot more easily.  New schools have also been developed to accommodate the growth along with new freeway interchanges and lane expansions to accommodate additional residents.

This development along with the natural beauty has become a popular area for many to call home. The drive to the strip and downtown is still reasonable and an available Ride and Share system exists that takes folks from the Northwest to the downtown area.

These amenities, reasonable cost of living and others continue to make the Northwest a desirable place to live!

Contributed by Nicklin Property Management.

The Southwest Las Vegas valley has been a popular destination for many years. Spring Valley, an original staple of the southwest, was developed more than 40 years ago through a variety of builders and featured many different types of homes, condos, town homes and apartments. A nice variety of parks were also incorporated in the planning stages. It was and is a popular destination due to its close proximity to the strip.

Beyond Spring Valley, the Southwest Las Vegas valley has a variety of residential properties, shopping and dining options and parks. The southwest has been a popular spot for builders over the last 10 years, with many new subdivisions which has led to commercial and even industrial development. The area has come to life with newer developments such as IKEA and Wet N Wild and the plan for multi-use entertainment and commercial venues has added an attractive appeal to the area.

The southwest is also close to most major freeways, such as the I-215 and I-15, allowing for a faster commute to most other areas of the city. Due to the population increase over the last several years, the city has also taken initiative to install new parks.

Today, the Southwest has momentum with even more appealing projects planned, such as a recently approved three story gym close to IKEA. As more amenities are added along with beautiful new communities, the Southwest will continue to thrive and be desirable place for people to call home.

Contributed by Nicklin Property Management.

Green Valley has been dubbed the very first master planned community in the Las Vegas valley, with planning beginning during the early 1970’s. It is comprised off various neighborhoods, or sub associations in the city of Henderson. To this day, it continues to attract both seasoned and new residents and investors. What does Green Valley offer? Here are the top 3 things:

1. The District and Green Valley Ranch Hotel and Spa: A pivotal feature of Green Valley, this hotel and casino offers high end shopping, dining, theater and entertainment. Additionally, the hotel is part of what is known as the district, a semi-downtown of Green Valley where residents and visitors can walk around and enjoy store front gazing and dining. It’s the perfect spot as a resident to enjoy a number of amenities without having to travel more than 10 minutes.

2. Housing options: Green Valley has a number of different housing options, from single family homes to town homes and apartment communities. Many homes in Green Valley were built in the 1980s and 90s, so they are in well established communities. Price points vary as well, so there are a number of options if you are interested in making Green Valley home.

3. Green space: Green Valley has plenty of green space, from tree lined streets to beautiful parks. If you enjoy the outdoors, there are also plenty of walking trails within Green Valley and various open areas. These are well maintained through the master association and various sub communities.
Many investors have also benefited from the master plan aspect, seeing rents rise considerably over the last few years. Homeowners have enjoyed steady price appreciation and demand when looking to sell.

So, if your looking for a home in Henderson and the amenities of Green Valley sound appealing, be sure to contact your Realtor. Or contact Nicklin at 702-755-5131. Be sure to stay tuned as we continue to explore Las Vegas.

Contributed by Nicklin Property Management.