Sales volumes are down, but home prices are holding strong. The U.S. housing market has sent mixed signals in recent months, and Nevada is following that trend. In the Las Vegas metro area, home prices soared during the pandemic boom before pulling back in late 2022, as mortgage rates soared.
Now, as buyers adapt to the new reality of the real estate economy, the Nevada housing market is shifting again. The median price of single-family homes sold in the Las Vegas metro area in October 2023 was $449,000, up 2 percent from October 2022 level, according to the Las Vegas Realtors. (The Las Vegas metro area accounts for nearly three-quarters of the state’s population.) And the metro area’s inventory is down 38% year over year.
While Nevada’s pace of price appreciation has slowed compared to the pandemic boom, supplies are tight, and sellers are still experiencing strong demand for properties. The state’s combination of a robust economy and attractive taxes means that Nevada continues to attract buyers from around the country.
For example, between April 2020 and June 2022, Nevada experienced a population growth of over 73,000 residents, as reported by the U.S. Census Bureau. In contrast, California saw a decline, losing over 500,000 residents during the same timeframe.
Nevada’s economy is still regaining its footing after the pandemic. The state’s unemployment rate of 5.4 percent was the highest in the nation as of October 2023, according to Labor Department data. That unfortunate trend has held since the pandemic when Nevada’s tourism-heavy economy was hit by casino closings for much of 2020.
But just as the housing market has thrown head fakes, so has Nevada’s economy. The Silver State might have the nation’s highest unemployment rate, but it also had the strongest job growth for the 12 months ending in September 2023. Employment expanded by a robust 3.4 percent. (In October 2023, Nevada’s growth was still 3.4 percent, but Idaho’s 3.5 percent growth was higher.)
Despite the recent mixed performance, Nevada’s housing market has been in a long-term boom. From 1991 through the third quarter of 2023, Nevada home values have risen 294%, according to the Federal Housing Finance Administration.
Strong returns have driven demand for Nevada homes, especially among investors. In one promising sign for landlords, homes are unaffordable for many local workers, a reality that creates demand for rental housing. As of the third quarter of 2023, just 15 percent of homes sold were in the price range of a median-income family in Las Vegas, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. In Reno, just 19 percent of homes sold in July, August and September were in reach of median-income buyers.
Sales volumes are down, and the housing market is in transition. That means working with a mortgage partner you can trust is more important than ever. LendSure wants to boost your business in Nevada. We can sign off on approved exceptions quickly and with ease.
To help you serve your clients in Nevada, LendSure offers loan products geared toward borrower demand:
- Non-warrantable condo loans. When Fannie Mae and Freddie Mac unveiled new guidelines in 2022, they roiled the condo lending market. At LendSure, we pride ourselves on flexibility rather than blindly adhering to rigid rules. So if you have a borrower whose condo deal doesn’t qualify under the agencies’ strict rules, we can make the deal happen. LendSure’s commonsense rules allow for approvals of condo units that are denied by the agencies.
- Condotel loans. Las Vegas is a renowned hotspot for condotel investments, and it is now even more accessible to borrowers seeking financing options. With LendSure’s specialized condotel loans, investors can confidently explore opportunities in the thriving Nevada real estate market.
- DSCR loans for investment properties. LendSure’s debt-service coverage ratio (DSCR) program is tailor-made for property investors. LendSure’s commonsense approach means we find ways to say “yes”. For instance, instead of considering only current rental income in our underwriting, LendSure qualifies the property by looking at market rents. In our more flexible approach, LendSure underwrites the investment property based on both current and future rent. For an explanation of our DSCR loans, see this short video. Meanwhile, LendSure has expanded its DSCR program beyond the typical one- to four-units – we make DSCR loans on properties with up to eight units.
- Second homes. Nevada’s casinos, natural areas and ski resorts mean the state is a desirable destination for second home buyers. To help you meet the needs of these important clients, lands offers a full array of loans for second homes and investment properties, including full doc and bank statement loans. Mortgages are available for up to $2 million and up to 80% LTV.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that, behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
