Ho ho ho – Merry New Year!

Las Vegas Real Estate Predictions 2025

We are wrapping up the new year and hope this one was stellar for you! I dusted off Redfin’s article from last year and it was mostly accurate so I cheated a bit and used their current predictions in this newsletter along with my interpretation and opinions. I am only covering the top 5. If you want to get into the weeds, you can go more into their article here.

Home Prices Will Rise 4% Nationwide  

This prediction is a national one and I don’t think it holds true for the Las Vegas market. Prices are beyond the reach of most locals and investors have found the return on cash with the existing inventory is not appetizing. I know dozens of colleagues looking for opportunities and there are none to be found – including myself. There is a small uptick in foreclosures and short sales but nothing to get excited about. Since rents will remain flat or decrease, there is no upside to investing in single family homes in Las Vegas anytime soon

Mortgage Rates Will Remain 7%   

This fits my prediction as well. We printed a zillion dollars during the pandemic and there is no way around this hangover. You can’t just drink gallons of champagne and not expect to have a hangover the next day.    Even if the rates fall a tiny bit, there isn’t enough juice to change the buying dynamic. There won’t be any noticeable difference in prices of homes or inventory.

 

2025 Will Be A Renter’s Market

They had it spot on last year and we expect rents to remain flat or decrease slightly in 2025. There is a lot of rental inventory on the market and our properties are sitting vacant longer. Rent prices will remain flat and possibly decrease a bit.  We have had to consistently drop prices to lure prospective renters. A lot of my colleagues are also experiencing this problem but  surprisingly just holding firm on price. The math doesn’t work when you let a property sit vacant and it’s prone to vandalism. Every case is different so if your property is vacant, pay close attention to your manager’s suggestions.

Wealthy People Will Pay Less Commissions

There is no secret that a bunch of clever attorneys managed to punch the air out of the national association of realtors. The new rules regarding commissions have made advertising properties confusing  and most sellers have not realized that lowering commissions will just cost them money in lost opportunities. There will be agents out there who won’t show properties unless a standard commission is offered.  Sellers may pay less in commission fees but this will cost them time and potential vandalism. If you are considering selling a property, let us take the mystery out of it so you get the most money for your property

The Real Estate Industry Will Consolidate

This really applies to franchises who are unprofitable. There will also be more vertical integration as franchises purchase mortgage and title companies. We see this often in agent to agent remarks where buyers and sellers are coerced into using vendors owned by the brokerage. We also expect a lot of franchises to fade away as most real estate agents are starving to death in the Las Vegas market. The drastically reduced number of transactions don’t support the 14000 running around looking for opportunities. We are not fazed by all this drama as we have very little to no overhead and the property management component of our business keeps us well fed.  We will continue to help our investors make money for a great value.

Rent Control Is Back!!

The Nevada Democrats’ senior caucus has proposed a bill to limit rent hikes to 10% for seniors and people with disabilities. The Nevada Senate and Assembly approved an identical bill during the 2023 session, but Republican Gov. Joe Lombardo vetoed it.

ALSO – The legislation would also require landlords to pay back unused fees prospective tenants are charged to apply for housing. For example, if 10 people applied for an apartment and the landlord rents it out to the first person without conducting a background check on the other nine, those nine would be entitled to the fee charged for the background check. This is a freaking nightmare for property managers to try to track that. We will also get more unqualified applicants as they try to shotgun rentals. AND – The bill would also require landlords to list all charges and fees in lease agreements. Super annoying. 

What can you do? Click on this link, find your representative for your rental address and email your representative on what you think about rent control. Be sure to put “Rent Control” in the subject line and mention your address in the content. Tell your representative why rent control is counterproductive and telling us how to manage properties is none of their business. Please do it today. Governor Lombardo was able to veto this bill in the last session but we may not be so lucky this time. Act today to keep the communists at bay.

1099s Issued by 1/25/25

Please do not blow up our phone and emails January 1st. It takes a minute to generate all those reports and 1099s. We will also explain why your 1099 won’t necessarily match the income statement.