Nevada Real Estate >> Las Vegas Real Estate Specialist: Nevada: Las Vegas: Durango Springs

Economic Conditions for the Las Vegas Valley May 2010

Economic Conditions for the Las Vegas Valley April 2010

Housing Conditions:

Las vegas area homes for sale

Las Vegas Area Homes for Sale

Las Vegas Area REO and Short Sale Homes for Sale

 

  • Foreclosure/Short Sale Listings (5/15/2010): Total Listings 9554; Short Sales: 4123, 43% of all listings; Bank Owned Listings: 1779, 19% of all listings. Short sale and REO listings consume 62% of total listings
  • New Home Sales (Arpil 2010, units sold): 397 Year Change +22.2% (excl condo conversions, highrises)
  • New Home Sales (April 2010, median price): $194,921 Year Change -9.6% (excl condo conversions, highrises)
  • Existing Home Sales (April 2010, units sold): 3724 Year Change +2.0%
  • Existing Home Sales (April 2010, median price): $128,000 Year Change: -1.5%
  • New Home Permits (March 2010): 481 Year Change +39%
  • Rental Rate (MLS Monthly Average April 2010): $1413/month 

My analysis:  Distressed listings (foreclosures and short sales) are 61% of total listings.  This figure is dropping nicely HOWEVER REO is emerging as a new life form (investor trustee sale purchase flips.)  Credit markets must be watched as underwriting guidelines continue to tighten.  Condos are barely financeable.  Resale sold units and pendings remain impressive.  New Home Sales & Permits are steadily increasing as inventory in the Las Vegas Valley remains tight. 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 Residents

Las Vegas Area Total Employment

  • New Residents (April 2010): 3715, Year Change -19.2%
  • Total Employment (April 2010): 797,400 Year Change -4.6%
  • Unemployment Rate (April 2010) 14.2%, Year Change +3.7%

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 -132,000 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 painful yet again.  While these numbers are looking VERY bad, I am seeing some changes in the Tourism/Gaming Sector which will help this sector in the long run if it is sustainable!!

Tourism/Gaming Conditions:

Las Vegas Area Convention Attendance

  • McCarran Airport Total Passengers (March 2010): 3,487,552 Year Change -4.0%
  • Gaming Revenue (March 2010): $779,493,979, Year Change -0.9%
  • Visitor Volume (March 2010): 3,544,234, Year Change -0.2%
  • Convention Attendance (March 2010): 470,005, Year Change  +5.2% 
  • Hotel/Motel Occupancy (March 2010): 82.4% Year Change -3.5%

My analysis:   After rising in double digits for one month, Convention attendance is in the black again. 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.  Gaming numbers have increased and it seems like Las Vegas is quite possibly in the starting recovery phase with regular tourists finally making up for what we have lost in the gaming sector.

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 9 commentsRenée Burrows • June 04 2010 10:19AM
Economic Conditions for the Las Vegas Valley May 2010
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Economic Conditions for the Las Vegas Valley April 2010 Housing Conditions: Foreclosure/Short Sale Listings (5/15/2010): Total Listings 9554; Short Sales: 4123, 43% of all listings; Bank Owned… more