BluefoxToday blog : Economic Conditions for the Las Vegas Valley (includes Henderson & North Las Vegas)

Economic Conditions for the Las Vegas Valley (includes Henderson & North Las Vegas)

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

 

  • Foreclosure/Short Sale Listings (3/15/2011): Total Listings 14443; Short Sales: 7421, 51% of all listings; Bank Owned Listings: 2587, 18% of all listings. Short sale and REO listings consume 69% of total listings
  • New Home Sales (February 2011, units sold): 237 Year Change -26.4% (excl condo conversions, highrises)
  • New Home Sales (February 2011, median price): $193,000 Year Change -7.5% (excl condo conversions, highrises)
  • Existing Home Sales (February 2011, units sold): 3250 Year Change +8.6%
  • Existing Home Sales (February 2011, median price): $115,000 Year Change: -7.3%
  • New Home Permits (February 2011): 236 Year Change -50.2%
  • Rental Rate (MLS Monthly Average Feb 2010): $1501/month 

My analysis:  Distressed listings (foreclosures and short sales) are 69% of total listings. Units of homes sold impressive considering tax credit was alive this time last year.  Credit markets must be watched as underwriting guidelines continue to tighten.  Condos are barely financeable.  Inventory stopped it's slow increase in December and now spring time buyers are gobbling up inventory.  The rental market is softening due to all the investor/first time buyer combination of activity.  This adds more supply and creates less demand.

New Residents/Employment Conditions:

Las Vegas Area New Resident Count

Total Employment in Las Vegas

  • New Residents (February 2011): 4437, Year Change +17.1%
  • Total Employment (February 2011): 793,500 Year Change -0.6%
  • Unemployment Rate (February 2011) 13.7%, Year Change -1.5%

My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve.  New Resident Count will continue to plummet if no new jobs are created.  Economists are hoping that City Center brings tens of thousands of new jobs.  The Las Vegas Valley has lost -133,400 jobs since April 2008.  I am not optimistic that City Center can pull us out of this slump.  (see Tourism/Gaming conditions below!)  City Center is expected to draw in anywhere from 10,000-15,000 new jobs.  Unfortunately around 8500 construction workers from the project will be unemployed so that really boils down to only 2500-7500 new jobs.  Unemployment rate is still painful however the total employed numbers have remained stable for a year.

Tourism/Gaming Conditions:

Las Vegas Area Convention Attendance

  • McCarran Airport Total Passengers (January 2011): 3,165,368 Year Change +5.0%
  • Gaming Revenue (January 2011): $761,353,636, Year Change -0.4%
  • Visitor Volume (January 2011): 3,385,225, Year Change +8.0%
  • Convention Attendance (January 2011): 615,854, Year Change  +36.9% 
  • Hotel/Motel Occupancy (January 2011): 79.0% Year Change +7.9%

My analysis:   This sector (tourism) needs to see some serious price corrections before we see a comeback.  Corporate credit is not coming back any time soon.  It will be hard to get convention attendance back up without corporate credit.  Glad to see regular tourists are making their way here with the imbalance of the other numbers to replace the convention attendee numbers.  Visitor Volume, Gaming Revenue & Convention Attendance are encouraging and hopefully sustainable.

Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation.  Information deemed reliable but not guaranteed.  My analysis is my humble opinion


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Comment balloon 5 commentsRenée Donohue • April 08 2011 12:26PM

Comments

Renee

Wow, you've said a mouthful in this economic report. No one does an analysis of the Lss Vegas real estate market like you do. Great visuals really help clarify the information.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) over 7 years ago

Renee - that is a big number of short sales and REO listings of all the listings in your area.

Posted by Sharon Paxson, Newport Beach Real Estate (Compass) over 7 years ago

Thanks Sharon & Jeff!  I pretty much created the visuals for me.  Some people like to make it sound like we are doing great here - some people make it sound like we are in the toilet.  We seem to be "stabilized" in the toilet now.

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 7 years ago

Renee,

Resale prices going down 7.3% over the last 12 months brings on more bargains for today's buyers. What about those buyers two years ago who thought they got a deal?

Posted by Esko Kiuru over 7 years ago

Esko:  EEK no doubt huh?

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 7 years ago

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