BluefoxToday blog : Las Vegas land prices soften up, except on resort corridor

Las Vegas land prices soften up, except on resort corridor

The way the residential real estate market today is going in Southern Nevada it's no surprise that raw land values here are heading south. Demand for land is way down as the housing sector struggles with a large inventory of new and resale homes. Even if a builder wanted to purchase acreage for a project, getting financing now would be a challenge in this lending environment. The slowing economy doesn't help much either. 

In the second quarter median vacant land price stood at $570,279 per acre which turns out to be $148,232 less than at the same time last year, or a 21% decline, reports Applied Analysis, a local market research firm. The frenzied speculation of a few years ago has come to a stop and actually reversed course. Prices are now somewhere near where they were about three years ago.  

But there is a big difference if resort corridor dirt is included in the picture. The median price leaps now to over $4.08 million an acre which makes for a whopping 135% increase from the same quarter the year before. Some might scratch their heads at that because a few Strip projects have lately experienced difficulties in securing financing and Echelon actually decided to temporarily halt construction on its site where Stardust used hold court. Nevertheless, parcel prices are reaching for new highs and the reason is that there isn't that much land left for development sitting in prime location and zoned for gaming, hotel and condominium use.

The resort development community seems to feel comfortable about the long-range outlook for Las Vegas. They are already focusing on what will it be like ten years from now. The current economic, housing, mortgage and commercial finance struggles will be resolved down the road and they are counting on their current land investments paying off sometime in the future when it still makes business sense.   

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 9 commentsEsko Kiuru • August 15 2008 06:43PM

Comments

Esko

The same thing in Wisconsin now.

Sincerely

Tom Braatz

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) about 10 years ago

Another interesting article Esko!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) about 10 years ago

Esko,

Our land prices are up around the same...last time I checked they were in the 500's but I imagine in some areas they went down slightly. I remember back in 2000 when I could have picked up an acre for about 185K...boy I missed the boat..now we only have scattered areas. Construction loans are tough to get because of all the strict lender guidelines too.

Posted by Neal Bloom, Realtor CRS-Weston FL Real Estate (eXp Realty) about 10 years ago

Tom,

Soft demand keeps them going down.

Posted by Esko Kiuru about 10 years ago

Billy,

It's topsy-turvy market right now.

Posted by Esko Kiuru about 10 years ago

Renee,

This is about what you would expect, except for the resort corridor.

Posted by Esko Kiuru about 10 years ago

Neal,

There were land opportunities here, too, a few years ago.

Posted by Esko Kiuru about 10 years ago
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