The real estate market in Las Vegas continues to defy expectations. With inventory slim and buyers in full ready-to-buy mode, prices are rising. The median single family home sold for $405,000 in July 2021. Most properties are selling quickly too, especially when priced less than $400K. We are seeing about a 20% year over year appreciation in the valley, and there appears to be no stopping this train. While the pandemic continues to exact its toll on the economy to a certain extent, real estate seems almost immune.
Of course, affordability is the next point of discussion. Already, many are being forced into making compromises because of this spike in price. Some are choosing to look into smaller homes or consider condo’s or town homes due to their still relatively lower price point, though prices are rising steadily on those properties as well. Others are deciding to rent and wait it out, however, rent prices are sky rocketing as well. And thus this creates a dillema. This significant increase in housing is causing some to move in with others, such as family. Others are simply packing up and moving to areas less expensive. The next couple of years will no doubt show a migration of individuals to more affordable housing spots, especially as more work is done remotely.
In the meantime, homeowners and Landlord’s are the ones benefitting from significant property and rental appreciation with no end in sight.
Well, here we go again. Another eviction moratorium. Many landlord’s we’re finally breathing a sigh of relief when it looked like things we’re going back to normal at the end of July. And for 2 days, things we’re technically back to normal. Until August 3. That’s when the CDC enacted a new eviction moratorium, that this time goes through October 3, 2021. For those rental property owners who have been relying on mortgage forbearance because they lost rent income – income they relied on – this was unexpected.
To clarify, we’re not here to discuss the reasons for the moratorium, the motivation or why it was passed. We’re here to explain how this latest moratorium works and what you can do if you own a rental property that has had its income, in essence, frozen. While what we say is not going to be a automatic fix, it can be financial damage control.
So, how does this latest moratorium work?
It applies to any county in the Unites States that doesn’t already have a moratorium in place that meets or exceeds the CDC one, like a state or county moratorium, and where the county has a substantial or high COVID transmission rate. Where does your county fall? Here’s the link from the CDC that shows transmission rates: https://covid.cdc.gov/covid-data-tracker/#county-view
If your in Clark County Nevada, Las Vegas, Henderson, North Las Vegas, Boulder City, which is where we’re at, well, your in a high transmission rate location and subject to the CDC moratorium. A tenant, in order to be covered by the moratorium, has to meet some qualifications:
They have had to try and obtain rental assistance
They can’t make more than $99,000 in 2020 or if married and filing jointly, more than $198,000.
They cant make their rent payment due to loss of job, reduction in hours or have medical bills
They are trying to make partial rent payments to the best of their ability
They would become homeless if evicted
The moratorium covers a lot of situations.
Now of course, a tenant does have to complete a specific declaration via a CDC form to qualify. And the landlord can take steps to validate the truthfulness of it, to make sure their hardship is legitimate and meets the standard of the CDC moratorium. The moratorium does cover a broad spectrum.
So, say as a landlord, you get the declaration form from a tenant or maybe they already qualified previously under the moratorium we had between March 2020 until this past July and handed you the CDC declaration (which that is still in effect). What can you do?
Work on mitigating your losses. The eviction moratorium is in effect no matter how you look at things. Though tensions may run high, work hard to maintain a positive relationship with your tenant. This will help in preserving your property. A soured relationship, or one that turns into distrust, is never in the best interest of your property. It creates tension and hard feelings. Focus on the end result, one day getting your property back in hopefully, reasonably good condition. A positive relationship will go a long way in that.
And focus in on the options you have for mortgage assistance, beyond calling your bank for mortgage forbearance. Or simply throwing in the towel on your property. Now, this may take work and some research to find available resources in your state or county to help compensate you for lost rent. But it is possible and we’ve seen it first hand, owners getting checks for thousands of dollars for unpaid rent. Look up your states and counties housing department sites and see what available resources there are, what applications may need to be completed. Work to mitigate your losses as much as possible. In many cases, money has been set aside to offer help. It’s just a matter of finding it, applying for it and then collecting it.
So, while this is all far from the ideal and not what investors and rental property owners signed up for, it’s the new, temporary norm. And so, we’ve all had to change and adjust to the unexpected. If you approach it the right way, take the right steps, be proactive, get the help available, you might be surprised at how things work out for you.
https://www.nicklinpm.com/wp-content/uploads/2020/11/nicklin-property-management-300x66.png00Adrian Frankfurterhttps://www.nicklinpm.com/wp-content/uploads/2020/11/nicklin-property-management-300x66.pngAdrian Frankfurter2021-08-05 15:18:032021-08-05 15:22:51The New Eviction Moratorium – What to do?
Another month. Another record. That seems to be the trend for many months. The latest: June 2021 set another record for the median sales price in Las Vegas: $395,000; a nearly 22% year-over-year increase. It’s hard to believe that just 10 years ago, the median price of a home in the valley was just under $120,000. Much has certainly changed. So, what’s in store with these record prices? Are they sustainable?
While opinions vary as to sustainability, affordability is definitely the question on the minds of many. The current price point of many homes, even with low interest rates, is making the dream of owning a home impossible. As far as sustainability, we expect more homes to start coming onto the market as homeowner’s and investors decide to cash out with substantial equity. However, many investors are also entering the market in Las Vegas, looking for properties to buy, as rents have also been increasing considerably.
As a result, while we may see some slow down with real estate prices over the coming months, there is still a shortage of inventory and plenty of buyers. Barring any significant economic changes, prices should continue to remain strong and modestly appreciate.
The city of Las Vegas at dusk, with a golf course among a suburban neighborhood in the foreground. Nevada, USA.
It wasn’t that long ago that some doubted the local Las Vegas real estate market, wondering if it was a bubble in the making, whether it was sustainable and if it would all come crashing down. Yet, here we are. June 2021. Las Vegas is returning back to normal. And the real estate market appears to be pandemic and recession proof. On the other hand, investor confidence is high.
Consumer Confidence
The consumer confidence index shows that since December 2020, consumer confidence is on a steep upswing. As a matter of fact, last month, May 2021, the index registered a value of 100.01. If your not familiar with the index, don’t worry – most of us aren’t experts on it. However, the consumer confidence index pretty much summarizes how people feel about the economy – whether they feel inclined to save because of a poor economic outlook, such as a looming recession due to unemployment numbers or layoffs, or if they feel they confident about the economy and as a result, inclined to spend money.
So, what does 100.01 tell us. Well according to OECD.com, which tracks the metrics, “An indicator above 100 signals a boost in the consumers’ confidence towards the future economic situation, as a consequence of which they are less prone to save, and more inclined to spend money on major purchases in the next 12 months.”
What does this mean? That people will be looking to spend money, which should further contribute to a recovering economy, lower unemployment and strong demand. This usually spills over into the real estate market. And with inventory continually low and demand high, prices have been doing what we expected: rise!
As of May 2021, the median price of a home in Las Vegas topped out at $385,000.
As in prior months, cheap money due to low interest rates was a big contributing factor. However, Las Vegas is also entering a stretch where hotels and casinos are reporting steady and increasing income, the airport is logging in more travelers and more and more places are hiring.
So, the foreseeable future appears to be filled with consumer buying confidence and, more likely than not, a continually appreciating Las Vegas real estate market.
Aerial view of residential neighborhood in northwest Las Vegas, Nevada.
The Las Vegas real estate market is on fire. There is no doubt about it! A shortage of inventory continues to drive prices up as home buyers wish to take advantage of low interest rates. As a result, March 2021 was another record setter.
Average price of a single family home sold: $363,000 (according to Las Vegas Realtors)
Average price of a condo / town home sold: $194,000 (according to Las Vegas Realtors)
Single family homes are up nearly 14% from last March (2020).
As of right now, appreciation in the market appears to be a sign of things to come. While home builders are adding inventory, it is limited compared to buyer demand and a lack of new resale inventory is keeping supply short. Additionally, as Nevada plans to end COVID restrictions beginning June 1, we expect there to be a strong economic reaction as tourism is expected to increase and further reduce unemployment.
The Las Vegas real estate industry appears to be poised for growth and appreciation over the coming months.
Though it appears much of 2021 will resemble 2020 due to the COVID pandemic, higher unemployment and limitations on many businesses, certain sectors are actually booming within the valley! Real estate development is one of them. While housing is in demand and supply is low, other sectors of real estate are also moving forward – specifically new development. Here are a few we can look forward to during 2021:
NEW HOUSING DEVELOPMENTS
New home builders have been busy building new communities throughout the prior year and we expect them to continue throughout this year. With resale inventory is way below average and interest rates setting new record lows, many buyers are interested in purchasing a home. Granted, the median price of a new home in the Las Vegas valley is considerably higher than the median resale home. However, this is not deterring prospective buyers. We anticipate more new developments throughout 2021.
RESORTS WORLD
Still under construction, the new Resorts World on the north end of the Las Vegas strip is planned to open during Summer 2021. The 59 story hotel with some 3500 rooms will feature some modern tech, including a 100,000 sqft LED screen.
VIRGIN HOTEL LAS VEGAS
On the site of the former Hard Rock Hotel, Virgin Hotel – part of the Virgin group owned by Richard Branson – was expected to open January 15, 2021 but has since been delayed. Reports indicate that the current COVID situation may be to blame. However, with nearly a full year ahead of us, we anticipate the hotel to open its doors sometime this year.
These main projects do not include the many commercial, industrial and apartment developments currently under construction within Las Vegas. Other large projects were planned, however, due to the ongoing pandemic and disruption in supply chains, many have been put on hold, such as the Drew Las Vegas and MSG Sphere.
As the situation improves in the coming months, we look forward to seeing these unique projects once again move forward.
https://www.nicklinpm.com/wp-content/uploads/2020/11/nicklin-property-management-300x66.png00Adrian Frankfurterhttps://www.nicklinpm.com/wp-content/uploads/2020/11/nicklin-property-management-300x66.pngAdrian Frankfurter2021-01-15 13:02:522021-01-15 13:09:58New Developments Scheduled for 2021 In Las Vegas
Spectacular shot of Las Vegas suburbs sprawling across the Mojave desert. Real estate properties fill up the arid terrain leading up to the city of Las Vegas.
The Las Vegas real estate market continued to exhibit resilience amidst COVID restrictions, high unemployment and a re-instituted eviction moratorium (though this one is more specific and different than the previous one). The median price of a single family home was $345,000 according to the Las Vegas Realtors association. Year over year, this was a 10% increase in values, an extraordinary feat considering the type of year 2020 was.
Yet again, limited inventory coupled with record low interest rates motivated investors and first time home buyers to take advantage.
What does 2021 hold in store?
Time will tell. However, the outlook appears to have appreciation in store – at least for now. The market appears to have relative stability, interest rates are projected to remain low and inventory remain tight. As a matter of fact, the Las Vegas Realtors association reported just over 3,000 houses with no offers ending the year. Many buyers are coming from out of state, such as California, and purchasing properties in Las Vegas. Home values are expected to continue to rise throughout the year, which is good news for homeowners and landlords. For folks looking to buy, they will have to be prepared, determined and aggressive to find a home.
