Economic Conditions for the Las Vegas Valley July 2009
Housing Conditions:
- Foreclosure/Short Sale Listings (8/15/2009): Total Listings 11568; Short Sales: 4802, 41.5% of all listings; Bank Owned Listings: 2649, 22.9% of all listings. Short sale and REO listings consume 64.4% of total listings
- New Home Sales (June 2009, units sold): 448 Year Change -42.3% (excl condo conversions, highrises)
- New Home Sales (June 2009, median price): $205,490 Year Change -20.7% (excl condo conversions, highrises)
- Existing Home Sales (June 2009, units sold): 4536 Year Change +66.1%
- Existing Home Sales (June 2009, median price): $125,000 Year Change: -42.7%
- New Home Permits (June 2009): 368 Year Change -58.4%
- Rental Rate (MLS Monthly Average July 2009): $1405/month
My analysis: Distressed listings (foreclosures and short sales) are 64.4% of total listings. THIS IS DOWN FOR THE SECOND MONTH IN A ROW! Credit markets must be watched. Resale sold units and pendings remain impressive. Builders cannot compete with bank owned listing prices, thus sales remain lackluster. 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:
- New Residents (June 2009): 4584, Year Change -15.8%
- Total Employment (June 2009): 862,700 Year Change -6.5%
- Unemployment
Rate (June 2009) 12.3%, Year Change +95.2%
My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve. New Resident Count will go down if no new jobs are created. Unemployment rate is painful.
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (June 2009): 3,436,939 Year Change -11.4%
- Gaming Revenue (May 2009): $747,606,792, Year Change -7.7%
- Visitor Volume (May 2009): 3,527,794, Year Change -6.8%
- Convention Attendance (May 2009): 341,846, Year Change -32.9%
- Hotel/Motel Occupancy (May 2009): 84.4% Year Change -5.9%
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. Gaming and convention business is big business and those numbers MUST increase. A decrease of over 30% is extremely painful to this economy and all the overbuilt convention space.
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.
Renee,
I hope we continue to see the numbers fall in S.S. and reo's it would be better for our economy even though they are great for the investor. I love your pie chart graphics, where do you get them or do you have a program that designs them, they are great visual aids?
I also invited people from my office to Active Rain and told them to look at your older blogs on blogging, they read like a manual....I printed them out. Thanks for the great stuff you put out there.
Debbie Aldrich,
Your Salt Lake Friend and Real Estate Source
Hi Renee,
I currently have a listing here is cold, snowy Milwaukee Wisconsin whose owners plan to move to LV when their home sells. Looking at your statistics, seems like they would be able to buy "right" at this time??? They are retirees. Are there many retirees coming to your area?
Debbie: I have an MO post about my graphs right here! Thanks for all your kind words!
Pat: I would love to talk with them when their home sells. Just give me a call. Right now we have buyer interest at an all time high so it is really hard to get a house but we will see after December 1 when the first time buyer tax credit expires where this train is headed!
Thank you for sharing that link, Renee. I, too, love your charts, lots of good stuff for your future clients! Thanks....
NEAT graphics yeah! Bookmarked the post and gonna look at it more closely when my eyes are both open . . . ;)
Candice The One Eyed Commenter (hehe)
You're graphs are off the chart. That is a lot of short sales!
David: You are welcome! I hope my future clients appreciate it!
Candice: HAHAHAHA!
Sal: YES lots of short sales and no movement! I WANT SOME SELLABLE INVENTORY (rant over!)