Las Vegas Valley Real Estate and Community News

Jan. 19, 2022

No Wave of Foreclosures in the Housing Market

 

There Won’t Be a Wave of Foreclosures in the Housing Market | MyKCM
by Valerie M. Brown, Realtor at Realty Edge

When mortgage forbearance plans were first announced and the pandemic surged through the country in early 2020, many homeowners were allowed to pause their mortgage payments. Some analysts were concerned that once the forbearance program ended, the housing market would experience a wave of foreclosures like what happened after the housing bubble 15 years ago.

Here’s a look at why that isn’t the case.

1. There Are Fewer Homeowners in Trouble This Time

After the last housing crash, over nine million households lost their homes to a foreclosure, short sale, or because they gave it back to the bank. Many believed millions of homeowners would face the same fate again this time.

However, today’s data shows that most homeowners exited their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The latest data from the Mortgage Bankers Association (MBA) studies how people exited the forbearance program from June 2020 to November 2021.

Here are those findings:

38.6% left the program paid in full
  • 19.9% made their monthly payments during the forbearance period
  • 11.8% made up all past-due payments
  • 6.9% paid off the loan in full
44% negotiated work-out repayment plans
  • 29.1% received a loan deferral
  • 14.1% received a loan modification
  • 0.8% arranged a different repayment plan
0.6% sold as a short sale or did a deed-in-lieu
16.8% left the program still in trouble and without a loss mitigation plan in place

2. Those Left in the Program Can Still Negotiate a Repayment Plan

As of last Friday, the total number of mortgages still in forbearance stood at 890,000. Those who remain in forbearance still have the chance to work out a suitable plan with the servicing company that represents their lender. And the servicing companies are under pressure to do just that by both federal and state agencies.

Rick Sharga, Executive Vice President at RealtyTrac, says in a recent tweet:

“The [Consumer Financial Protection Bureau] and state [Attorneys General] look like they're adopting a ‘zero tolerance’ approach to mortgage servicing enforcement. Likely that this will limit #foreclosure activity for a good part of 2022, while servicers explore all possible loss [mitigation] options.”

For more information, read the warning issued by the Attorney General of New York State.

3. Most Homeowners Have More Than Enough Equity To Sell Their Homes

For those who can’t negotiate a solution and the 16.8% who left the forbearance program without a work-out, many will have enough equity to sell their homes and leave the closing with cash instead of facing foreclosures. 

Due to rapidly rising home prices over the last two years and the low inventory supply of homes, the average homeowner has gained record amounts of equity in their home. As Frank Martell, President & CEO of CoreLogic, explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

4. There Have Been Far Fewer Foreclosures Over the Last Two Years

One of the seldom-reported benefits of the forbearance program was that it allowed households experiencing financial difficulties prior to the pandemic to enter the program. It gave those homeowners an extra two years to get their finances in order and work out a plan with their lender. That prevented over 400,000 foreclosures that normally would have come to the market had the new forbearance program not been available. Otherwise, the real estate market would have had to absorb those foreclosures. Here’s a graph depicting this data:

There Won’t Be a Wave of Foreclosures in the Housing Market | MyKCM

5. The Current Market Can Easily Absorb Over a Million New Listings

When foreclosures hit the market in 2008, they added to the oversupply of houses that were already for sale. That resulted in over a nine-month supply of listings, and anything over a six-month supply can cause prices to depreciate.

It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals:

“Total housing inventory at the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.

 

A balanced market would have approximately a six-month supply of inventory. At 2.1 months, the market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.

Bottom Line

The end of the forbearance plan will not cause any upheaval in the housing market. Sharga puts it best:

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect. . . .”

Jan. 18, 2022

Sellers: Don’t Wait Until Spring To Make Your Move

 

Sellers: Don’t Wait Until Spring To Make Your Move | MyKCM

by Valerie M. Brown, Realtor at Realty Edge

As you plan out your goals for the year, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out of the sale of your current house. You also want to know you’re making a good investment when you buy your new home. What you may not realize is, that opportunity to get the best of both worlds is already here. Many homeowners feel they are losing the battle because they have to pay more to get into something new or similar to what they have, but leverage is your secret weapon. 

You don’t want to wait until spring to spring into action. The current market conditions make this winter an ideal time to move. Here’s why.

1. The Number of Homes on the Market Is Still Low

Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market than there are homes available, and that means buyers are eagerly waiting for your house. Listing your house now makes it the center of attention. As a seller, that means when it’s priced correctly, you can expect it to sell quickly and get multiple strong offers this season. Just remember, experts project more inventory will come to market as we move through the winter months. The realtor.com 2022 forecast says this:

“After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.”

Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.

2. Your Equity Is Growing in Record Amounts

Current homeowners are sitting on record amounts of equity thanks to today’s home price appreciation. According to the latest report from CoreLogicthe average homeowner gained $56,700 in equity over the past 12 months.

That much equity can open doors for you to make a move. This is where you leverage!  If you’ve been holding off on selling because you’re worried about how rising prices will impact your own home search, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion – if not all – of the down payment on your next purchase and be in a better position.

3. While Rising, Mortgage Rates Are Still Historically Low

In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. Current mortgage rates are still far below what they’ve been in recent decades:

  • In the 2000s, the average mortgage rate was 6.27%
  • In the 1990s, the average rate was 8.12%

Even with mortgage rates rising above 3%, they’re still worth taking advantage of. You just want to do so sooner rather than later. Experts are projecting rates will continue to rise throughout this year, and when they do, it’ll cost you more to purchase your next home just in interest, and it will cut your purchasing power quickly.

4. Home Prices Are Going To Keep Rising with Time

According to industry leaders, home prices will also continue appreciating this year. While experts are forecasting more moderate home price growth than last year, it’s important to note prices will still be moving in an upward direction throughout 2022.

What does that mean for you? If you’re selling so you can move into a bigger home or downsize to the home of your dreams, you want to consider moving now before rates and prices rise further. If you’re ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.

Bottom Line

If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect today to get set up for home selling & buying success this year.

Dec. 16, 2021

Buy Vs. Rent in Las Vegas: Which One Should You Choose?

 

Per the Las Vegas Review-Journal, Las Vegas is one of the best places to live in the U.S., especially for those looking for an affordable home. The city's real estate market has grown by a staggering 223.54% over the last decade. The market caters to the needs of both renters and buyers. Therefore, to decide whether you should buy or rent a home in Las Vegas, you need to understand the dynamics of the property market, particularly in relation to your housing needs.

Reasons to Buy a Home in Las Vegas

Buying a house is a good option if you have plans to settle in a particular location for the long term. You can also buy a house but choose to lease it out. In other words, your investment goals also matter when it comes to buying or renting.

Reasons to buy a home in Las Vegas include:

•    Affordable Homes

Las Vegas is among the top 30 most affordable places to buy a house in the U.S. The multiple housing developments that have been sprouting up in the city every year have significantly contributed to making the city affordable. Low property taxes and low mortgage rates have also contributed to affordable housing in Las Vegas. Moreover, the state of Nevada charges no income tax, which further reduces the cost of living. 

•    Strong Housing Market

Currently, the population of Las Vegas is growing by 1.23% annually, fueled by a positive net immigration rate. This has played a great role in the growth of the Las Vegas real estate market. Considering the lucrativeness of this market, it makes sense to buy a property for investment purposes here. Rents are also rising fast, and therefore, buying a home can help you hedge against inflation.

•    Settle Down

If you want to permanently settle in Las Vegas with your loved ones, buying a house would be the ideal option. Las Vegas is one of the best retirement destinations since the state does not charge taxes on pension benefits. Although the city has established its reputation as a go-to vacation destination, it is also an incredible place to settle for families due to affordable housing and several family-friendly neighborhoods. It also gives you access to spacious houses that are perfect for families. Additionally, buying a house gives you the freedom to customize it according to your liking.

•    Become Part of the Community

The average American moves residences about 12 times in their lifetime for various reasons. Any time a person moves, they risk losing touch with friends and communities. When moving to a new place, you likely want to make new friends and build a community for yourself, and buying a house makes it easier for you to achieve this, particularly because it enables you to settle for a longer time. This is unlike renting, which makes you open to moving at any desirable time, making it difficult for you to become a permanent member of any community.

Why Rent a Home in Las Vegas?

Depending on your situation and preference, renting may also be a better option than buying a house in Las Vegas. Keeping this in mind, you can also consider renting for the following reasons:

•    Familiarize Yourself

At least 40 million Americans move every year, with housing being the key reason for this movement. Some people also move just to change the environment and experience new things. This means that before deciding to settle in a particular area in Las Vegas, you should first explore several neighborhoods. This is important because each neighborhood offers specific benefits that you may want to experience in the long term. As such, rent first as you compare neighborhoods before settling on a perfect location.

•    Save Costs

In general, renting a house is cheaper as it comes with fewer living expenses. For instance, since rented houses are mostly smaller, utility bills will also be lower. Also, renting allows you to share some costs with your landlord, including insurance, repair, and maintenance. Rent insurance is, for example, cheaper than home insurance, helping you save on expenses.

•    Unstable Economy

The COVID-19 pandemic destabilized the economy in Las Vegas. For instance, as of September 2021, 7.4% of the city's workforce was unemployed. Therefore, if you're moving to Vegas to look for work or start a business, then you should consider renting as you wait for the economy to stabilize and create more income opportunities. Moreover, different parts of the city develop at varying paces, and therefore, you may want to rent first as you compare the economic growth rates of various locations. This way, you will have a high chance of identifying and settling in a prime neighborhood.

•    Access to Additional Amenities

Unlike buying, renting allows you to explore different areas and access more facilities and amenities. For instance, by renting a condo, you can have access to community-managed amenities such as pools, gardens, recreational centers, and gyms, things that may be difficult to find if you bought a house. Therefore, if access to more facilities is all you want, then consider renting until you find the perfect spot to buy a house.

To determine whether to buy or rent a property in Las Vegas, you should consider both your housing needs and the property market dynamics. Contact our experts to learn more about buying or renting a home in Las Vegas.

Posted in Las Vegas, Real Estate
Dec. 9, 2021

Moving to Henderson, NV? Here's What You Need to Know

 

On the outskirts of Las Vegas is Nevada's second-largest city, Henderson. It is a suburban area only 16 miles south of  Las Vegas.  Residents of Henderson experience the best of both worlds: a fast-paced entertainment center and a less congested family environment. Here are a few important facts you need to keep in mind before moving to Henderson.

Cost of living - The cost of living index in Henderson is 117.7, which reflects 17.7 percent higher costs than the average American city. The median home price in the area is $326,900, with about 60 percent of the market comprising homeowners. Groceries and utilities are only slightly more costly than the national average, whereas healthcare is more affordable.

Job market - Many of Henderson's 270,000 residents commute to Las Vegas for work. Employment opportunities in Henderson lean more toward independent small businesses rather than large corporations. Top employers include the City of Henderson and St. Rose Dominican Hospital, each with over 2,500 employees. Moreover, several casinos and resorts employ hundreds of people.

Popular industries in the area - Tourism is the biggest industry in Henderson. It encompasses golf courses, casinos, resort hotels, and tourist attractions. Other key industries include education, healthcare, IT, and finance.

Things to do in Henderson

  • Outdoor activities - Hiking and biking are two of the most cherished outdoor activities in Henderson. It's common for residents to hike or bike all the way to Hoover Dam.
  • Restaurants, breweries, and bars - Henderson has plenty of quality diners and eateries open 24/7. The city also has several breweries and bars that are easy to locate.
  • Nightlife - You can always visit The Strip, but there are enjoyable clubs with live music in Henderson as well.

Climate - Henderson has a comfort index rating of 7.4 out of 10 due to stable weather for about nine months per year. Since the city is in a desert, summers get pretty hot, over 100 degrees Fahrenheit. Over 140 days of the year surpass 90 degrees Fahrenheit. As with Las Vegas, rain is minimal, around 5 inches per year. The coldest temperatures are usually in January, dipping to 38 degrees Fahrenheit.

Traffic - Commuting from Henderson to downtown Las Vegas usually takes about 23 minutes. Over 80 percent of residents own vehicles versus 8 percent who carpool. About 8 percent work from home or take mass transit.

Alternative routes - Henderson has two major interstates (I-11 and I-215), along with several alternate routes to choose from when traffic gets too dense. Highway 582 is also a convenient option. The City of Henderson's website keeps the community updated on alternate routes.

Public transportation - Residents can choose public transit using the Regional Transportation Commission of Southern Nevada mass transit system. It provides over 50 routes on a continuous 24/7 basis.

Schools - The Clark County School District encompasses 29 elementary schools, nine junior high schools, and five high schools. College campuses include Nevada State College, College of Southern Nevada, and Roseman University of Health Sciences.

The city's love of the great outdoors makes it a healthy choice for people who appreciate good exercise. The pleasant climate, mom-and-pop shops, and booming job market ensure a comfortable living environment in Henderson.

If you are looking for an affordable place to live near Las Vegas, consider the city of Henderson, which offers a diverse variety of homes that fit different lifestyles from downtown to suburbia. Contact Valerie Brown to learn more about the city next door to one of the nation's top entertainment hubs.

Posted in Location
Dec. 3, 2021

10 Reasons Why You Should Move to Las Vegas

 

Not only is Las Vegas a world-famous vacation destination, but it's also one of the fastest-growing cities in America. Most people are attracted to the nightlife and the warm weather here. Here are other key reasons why people are interested in real estate in Las Vegas.

1. No state income tax - Many people move to Nevada, so they don't have to pay state income tax. The state makes money from casinos, tourist attractions, and an 8.25 percent sales tax.

2. City of entertainment - Las Vegas offers continuous music, dance, and comedy shows night after night on The Strip, which is why it's considered an entertainment capital.

3. Thriving job market - The city is full of tourism and hospitality jobs, with plenty of restaurants and bars.  However, it's also a city with job opportunities in high-paying industries such as technology, global trade, and healthcare.

4. Great place to retire - The combination of warm weather and affordability make Las Vegas a favorable place to retire.

5. Sports - Las Vegas is home to over 70 golf courses. As a growing major city, it has attracted several pro teams such as the Raiders NFL football team, the Golden Knights NHL hockey team, and the Aces WNBA women's basketball team.

6. Outdoor activities - Hiking is a popular outdoor activity in places such as Valley of Fire State Park and Red Rock Canyon National Conservation Area. Mt. Charleston is also a well-known ski resort in Las Vegas.

7. Affordable living - The city is surrounded by desert, so there's plentiful room to expand. Energy costs are lower than the national average, and property tax isn't as expensive as other large U.S. cities.

8. Great weather - The city typically has 310 days of sunshine per year. Winters in Las Vegas have minimal rainfall, accompanied by comfortable temperatures.

9. Rich suburban lifestyle - The affluent neighborhoods provide a wide range of recreational opportunities at parks, lakes, and bike trails.

10. Best-in-class restaurants - Las Vegas is celebrated for its top-quality restaurants that rival any other major city.

Weather, affordability, and endless entertainment lure Americans to explore real estate in Las Vegas. Many hotels double as music venues featuring popular vocalists, giving you multiple entertainment options. Contact Valerie Brown (702) 826-1545. 

Posted in Las Vegas
Nov. 18, 2021

Las Vegas Home Seller's Guide: How to Sell Your Home at the Right Price

 

Selling your Las Vegas home at the right price with the help of the right real estate professionals can be a major payoff since the market has been booming in recent years. Las Vegas attracts people who love the desert and entertainment, which makes selling more enjoyable.

Here's how our experts at Visit Vegas Homes can help you sell your home at the right price.

The Initial Meeting: Let's Discuss Your Home Selling Goals!

As soon as you connect with us, we will offer a free consultation to discuss your home selling goals in person or on the phone.

Schedule a Home Preview

Once you decide to work with us, schedule an appointment for us to come to visit your property. We'll evaluate your home and give you an objective estimate of its current fair market value.

Discuss Home Staging

There are various strategies you can use to stage your home as attractively as possible. We can provide you with staging tips that will make your home look more attractive, thus making it easier to sell.

Suggest Maintenance & Repairs

Consider repairs and renovation that could raise the value of your home. If you are just trying to sell the home at any liquidation price, you don't have to worry as much. Just remember it will be more difficult to sell your home "as is" except to bargain hunters. Ultimately, you should try to fix your home as much as possible if you are trying to sell it at the highest price.

Conduct Market Analysis

We will help you price your home appropriately after reviewing essential Las Vegas housing market data. Conducting market analysis is necessary to get a good idea of how the market will respond to your home's appearance and price. You need to understand overall market activity to gauge how fast your home may sell.

Devise a Pricing Strategy

Your pricing strategy should be based on market research, such as recent transactions in your neighborhood. You need to compare similar properties with yours that have sold recently. This knowledge, combined with the current economic climate, will give you a clearer picture of the market.

You don't want to promote your home at a very high price. However, if you keep lowering the price, buyers may notice and wait for the price to drop more. Therefore, it's better to post a price the market is willing to accept and then take higher bids if it gets competitive.

Implement Marketing Plan

Whenever you sell anything, it helps to have a marketing plan as a guide and structure. For example, you might post listings on real estate websites and advertise with signage and other forms of marketing. Your marketing plan should have a budget and a time frame for meeting your home selling goals. The plan should explain your target market and how you intend to get the word out about selling your home.

Sell Your Home Successfully with Us!

Las Vegas has been a hot market for selling homes at profitable levels. If you have plans to sell your property, contact Valerie Brown (702) 826-1545. .  Our experienced real estate sellers have deep buying and selling experience in the market and can help you get the best price for your Las Vegas home. Call us at (702) 826-1545 to learn more.

Posted in Las Vegas
Nov. 4, 2021

Moving to Summerlin, NV? Here Are Some Interesting Facts You Should Definitely Know!

 

Not only is Las Vegas a fun international destination because of its vibrant nightlife, but it's also an exciting place to start a business or raise a family. Here's your guide to buying a home in Summerlin, a community with about 60,000 residents.

Cost of Living in Summerlin

Summerlin residents pay roughly 7.7 percent more on living expenses than the average American. Nonetheless, healthcare is more affordable by the same amount. Transportation costs are about 24 percent higher, while utility costs are in line with the national average.

Real Estate in Summerlin

While the average studio apartment in America costs $821 to rent, in Summerlin, the cost is $980. The median price for a home in Summerlin is $420k vs. the national average of $231k.

Job Market in Summerlin

Summerlin is part of the Las Vegas metro, an international destination for tourists. While Summerlin's unemployment rate has recently surpassed the national average, the community's residents earn more income. Almost half of the employees in Summerlin work in these industries:

  1. Hospitality and food services
  2. Technical services
  3. Healthcare and social assistance
  4. Retail

Things to Do in Summerlin

You won't be far from the action in Las Vegas, the entertainment capital of the world. Here are popular places to go in or near Summerlin:

  • Red Rock Canyon National Conservation Area: Hiking and biking
  • Golf courses: Highland Falls, TPC Summerlin, and Palm Valley
  • Fox Hills Park: Theme park covering 18 acres
  • Multiple public parks and nightlife centers

Summerlin Climate

Located in a desert, Summerlin is naturally warm most of the year with minimal rain. Usually, February is the wettest month of the year. The coldest months are December and January, getting down to the mid-40 degrees. July is the warmest month, usually reaching up to 90 degrees.

Traffic in Summerlin

The drive from Summerlin to downtown Las Vegas is about 18 minutes throughout the day. However, during periods of low traffic, it might only take 14 minutes. Daily commutes average to about 23 minutes.

Summerlin Schools

The area's largest employer is the Clark County School, with over 330,000 students. For every teacher, there are 22 students on average. It's actually one of the biggest and fastest-developing school districts in the nation.

Move to Summerlin Today!

If you are planning to move to Summerlin, make sure you work with real estate experts who know the area. Contact Valerie Brown at (702) 826-1545 for more information on how we can help you make a smooth transition to your new home in Summerlin.

Posted in Location
Oct. 21, 2021

How Professional Appraisers Determine Your Home's Value

 

 

Once you find the home of your dreams and you've agreed with the seller on a price, it's advantageous to pay for a home appraisal. Getting your home appraised is one way of making sure you're getting a fair market price based on multiple home evaluation factors. Here's a look at how professional appraisers arrive at home values.

Why Do You Need an Appraisal?

It's important to get a home appraised before you purchase it so that you aren't surprised in the future if your valuations don't match the market. Appraisers can tell you about home vulnerabilities the seller might have overlooked. For example, if the home is infested with termites, you'll find out from the appraisal. Water damage can stay hidden for a long time until an inspection reveals it's a worse problem than thought.

When the appraisal reveals items that need repair work, the seller may either lower their asking price or agree to fix the problems before the deal is closed. Another reason it's important to conduct an appraisal prior to buying a home is to ensure it doesn't pose health or safety risks. Making sure the structure is up to code is another essential item on the home buyer's checklist.

What Do Appraisers Check?

You should accompany your appraiser during the home inspection so that you can witness risks identified by the inspector. This comprehensive evaluation can take some time, so relax and be prepared to devote a few days to this valuable process. Make sure the seller understands the home should be cleaned out and free of clutter for the inspection walkthrough.

The appraiser will take notes of the general health of the home, whether or not it meets local codes and what renovations are needed. They will pay close attention to the roof and ceiling to check for water leaks, which can cause long-term, expensive damage. These leaks are sometimes hidden behind wall decorations. Any air or water leaks can lead to energy waste.

The inspector will check all the appliances built-in into the home, such as the heating and air conditioning system, dishwasher, and oven. If you don't test every appliance, you can't determine what does or doesn't work. The inspector will test the security system and make sure it does what the manufacturer claims. Other items on the checklist include doors, windows, faucets, insulation, and light fixtures.

While the appraisal might not cover every square foot of the home, it will cover all the major components. You will at least come away from the experience knowing what extra costs may be added to your purchase unless you negotiate a better deal.

When searching for "real estate loans near me," be aware that the best loans aren't always the ones closest to home. Working with a real estate firm that understands your goals of owning and investing in homes can make quite a difference. Getting a home appraisal before buying is a basic principle you should not ignore. Contact Valerie Brownat  (702) 826-1545 or more information.

Posted in selling
Oct. 14, 2021

How the Way You Use Your Property Can Affect Your Mortgage

 

 

The way you use your property has a direct impact on the type of real estate loans available to you. There three main types of properties associated with home loans are primary residences, second homes, and investment properties. Here's a look at what you should know about the relationship between property use and real estate loans.

Home Mortgages Explained

Most people cannot afford to purchase homes outright with cash, so they find a lender that can set them up with an affordable monthly mortgage payment with interest. The mortgage company considers multiple factors as to whom they approve for loans and how much cash they make available. Some of these factors include:

  • Credit history
  • Loan amount
  • Fixed or adjustable interest rate and additional fees
  • Annual Percentage Rate (APR)
  • Term of the loan
  • Penalties if the loan is not repaid on schedule

In order to qualify for a home loan, you need to earn a certain income level. A person who gets paid an hourly wage may not qualify, whereas someone who earns thousands per month will have a better chance. Credit history is monumental since mortgage companies aren't in the business of making high-risk bets on people who have a history of late or missed payments. They also want to make sure the borrower has a steady income.

Primary Residence

Your primary residence is the home where you live most of the time. It might be what you consider your permanent home and have no plans of putting it on the market anytime soon. If you have a second home where you stay part of the year, your primary home, by contrast, is where you stay most of the year. If at any point you decide to begin renting out your primary home, you must reclassify it as an investment property for tax purposes. Since 2018 homeowners have been able to deduct mortgage interest on loans up to $750,000.

Investing in a Second Home

A second home is a place that you only visit occasionally, such as a summer vacation home. It's typically at least 50 miles from the primary home. You're allowed to rent out your second home for up to 180 days a year. Down payments and mortgage rates for second homes are usually higher than for primary homes.

Nature of Investment Properties

Investment properties may include homes, condominiums, apartment complexes, and other real estate configurations that can earn ongoing revenue or capital gains. All the income you earn from your properties must be reported on your tax returns. Tapping into real estate loans makes investing easier. Contact Valerie Brown at (702) 826-1545 for more information on real estate investing ideas.

Posted in Mortgages
Oct. 1, 2021

Las Vegas Housing Market Trends in 2021: An Overview

 

The real estate market in Las Vegas has been hot since the early 2020s. Single-family home sales continued to rise in the summer of 2021 from the previous year. As a result, Las Vegas has become a target destination for people in the western United States who want something affordable in an exciting entertainment city. Moreover, the area is particularly attractive to residents of Southern California looking to cut their cost of living. Here's a deeper look at the Las Vegas housing market trends in 2021.

Signs of a Hot Real Estate Market

One of the key real estate trends of 2021 has been increasing median sales prices of Las Vegas homes. Prices have reached all-time highs in the area, as the median price of previously owned single-family homes jumped from $395,000 in June to $405,000 in July. That's a 2.5% month-to-month increase and an uptick of 22.7% from the previous year. The strongest indicator of a fast-paced market is that 89% of homes sold in July were on the market for only 30 days or less. In July 2020, by contrast, it was about 60%.

Las Vegas Real Estate Outlook

The growing attraction to Las Vegas is expected to continue as it parallels an increase in population. Nevada Census data shows a 1.46% rise in median income for the period 2020 through 2025. Home demand continues to overshadow supply even as home building expands. Since builders are not keeping up with demand fast enough, the supply shortage is driving up prices in the Las Vegas real estate market.

Rental prices are also rising in Las Vegas, despite high unemployment. The average cost of renting a one-bedroom apartment in the city is about $1,150 per month, which is up 14%from the previous year. In July, Nevada's unemployment rate stood at 7.7 % but was 9.4% in Las Vegas. However, this high rate of unemployment has had no visible impact on the Southern Nevada housing market.

Meanwhile, the luxury home market in Las Vegas has done well. Las Vegas currently ranks in the top 30% of the nation for rising median home prices. Industry analysts say the market is on a hot streak, although sales are expected to slow down next year.

Contact Valerie Brown (702) 826-1545 if you want more information about the Las Vegas housing market. 

Posted in Real Estate