Nevada Real Estate >> Las Vegas Real Estate Specialist: Economic Conditions for the Las Vegas Valley July 2007

Economic Conditions for the Las Vegas Valley July 2007

Economic Conditions May 2007

Housing Conditions:

  • Foreclosure/Short Sale Listings (7/26/2007): Total Listings (7/26/3007) 26,526; Foreclosures Commenced: 1224, 4.6% of all listings; Short Sales: 1903, 7.1% of all listings; Both Foreclosures Commenced AND Short Sales: 385, 1.5% of all listings.
  • New Home Sales (June 2007, units sold): 1406 Year Change -56.5% (excl condo conversions, highrises)
  • New Home Sales (June 2007, median price): $314,317 Year Change -6.9% (excl condo conversions, highrises)
  • Existing Home Sales (June 2007, units sold): 2422 Year Change -43.3%
  • Existing Home Sales (June 2007, median price): $278,000 Year Change: -4.1%
  • Single Family Residential Permits (June 2007): 1261 Year Change -41.2%
  • Rental Rate (MLS Monthly Average May 2007): $2204/month Year Change +$934/month

My analysis: The rental market has been consistenly rising since November 2006.

New Residents/Employment Conditions:

  • New Residents (June 2007): 6,517, Year Change -4.4%
  • Total Employment (June 2007): 942,000, Year Change +2.1%
  • Unemployment Rate (June 2007) 4.7%, Year Change +9.3%

My analysis: We need more jobs to continue strong growth. Our employment rate is up from a year ago but still fairly low.

Tourism/Gaming Conditions:

  • McCarran Airport Total Passengers (May 2007): 4,170,268 Year Change +6.8%
  • Gaming Revenue (May 2007): $968,441,810, Year Change +.6%
  • Visitor Volume (May 2007): 3,770,156, Year Change +0.6%
  • Convention Attendance (May 2007): 506,165, Year Change +19.1%
  • Hotel/Motel Occupancy (May 2007): 92.1% Year Change -2.2%

My analysis: The gaming/tourism industry is still strong. Convention attendance way up! Visitor volume & gaming revenue are in sync.

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

All the Best,
Renee Burrows
Realtor®

Nevada Realty Solutions - Your Dream, Your Investment, You\'re Home!
8942 Spanish Ridge Avenue
Las Vegas, NV 89148
direct: 702-580-1783
fax: 702-995-8237
Renee@ReneeBurrows.com
http://www.ReneeBurrows.com

 


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

 

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Comment balloon 18 commentsRenée Burrows • July 26 2007 07:09PM

Comments

Hi Renee,

Thanks for the Stats. I like reading the stats also. This gives me a good idea what is going on across the country.

In the Northwest Indiana & Chicagoland Area, things are down also. I work in new construction too and that is looking bleak. Things will turn around though.

I see in Las Vegas area housing is down too but Convention Attendance is up.

I will be out in Las Vegasfor the NAR Convention. Believe it or not, this is my first time is Vegas. There is a bunch of us from my office that are going.

Posted by Chuck Dellorto, "Talk To Chuck" (Coldwell Banker - Licensed in INDIANA & ILLINOIS) about 10 years ago
I'm the same way, I read stats. But I thought Las Vegas was still on the positive side specially with growth. But if new construction is down 50% I guess not.
Posted by Dena Stevens, Putting The Real Into Realtor Since 2004 (Rocky Mountain Realty ) about 10 years ago

nice information..I usually do a scaled down version. Sometimes I have time to add all the bells and whistles. Very detailed information but do you think it will scare the consumers?

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

Yes Renee you guys will always dominate the market out there for 'gaming'. seems like POKER is getting REALLY popular too, and that should certainly help your market.

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Posted by Katrina Madewell, Tampa FL Homes for sale | Tampa Bay - (813) 777-1196 (Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196) about 10 years ago

Chuck, WHOA!  Your first time!  This place is so overhwhelming. thanks for stopping by and commenting!

Dena:  Permits are reflecting the curve.  There is pressure on the rental market also.  People are scared, they are holding off.  New construction experts say 2009.  I can't wait until then!  ARGHHHHHHHHH

Neal:  The customers need to know the truth, I am not into hiding the truth at all.  I am very candid when I take a listing to what reality is in regards to the market and inventory!

Katrina:  I am really happy to see convention stats up.  We really need to diversify our economy.  World class shopping and living are right around the corner.  World class shopping is here and we are lucky to have the world market but the first class living in the form of high rises is just beginning! 

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

Renee,

You can not as for a better breakdown of Statistics than this!  Thank you again!

Posted by Rey Gallegos, FHA, VA, Home Loans Las Vegas, NV (Supreme Lending (NMLS ID #2129)) about 10 years ago
I think that you have a wonderful attitude to read the half full glass...(not really half) and forget about the other empty glass (more than half). Anyway a great attitude.
Posted by Arina Hanciulescu, RealtyPros (RealtyPros) about 10 years ago
I really like this market overview - gives a lot more than the typical sales/listings/etc.
Posted by Christina Ethridge (The North Idaho Dream Team powered by SKE Realty Group) about 10 years ago

Hi Renee...

So aside from all of this "What's up" ?? :)

TLW...ROAR!

Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) about 10 years ago

Renee,

That's a nice summary. Our housing market still has the flu. All the other numbers are rather good. The new resident figure is strong, as it has been for years. That's encouraging.

 

Posted by Esko Kiuru about 10 years ago

The gaming/tourism industry is still strong. Convention attendance way up! Visitor volume & gaming revenue are in sync.

Can you please explain how gaming and tourism industry help the Real Estate Market? I don't see the relation there. Conventions, tourism, gaming, adult entertainment bring to Las Vegas transit population only. Are you saying: "It's the economy stupid?" Well!... Those industry bring up the economy on the general level. But this is not essential factor in turning around the real estate market. 

Las Vegas population is not 100% affected by those industry... There are in majority regular folks with regular jobs and regular business. As the Real Estate is in a spiral down mood all those regular folks (having nothing to do with the gaming/tourism...etc) are still hurting badly in the process.

If your assessment would be true than why Nevada/Las Vegas is listed on National statistics as top foreclosure rates. RealtyTrac: Nevada posted the nation's highest foreclosure rate, with one foreclosure filing for every 40 households during the first half of 2007. The state reported a total of 25,208 foreclosure filings on 14,687 properties, more than double the number of foreclosure filings reported in the previous six-month period and nearly triple the number reported in the first half of 2006.

And Las Vegas has the gaming/tourism going for a growing economy? Is that the answer? Is that enough?

 

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Posted by Arina Hanciulescu, RealtyPros (RealtyPros) about 10 years ago

Arina, The Real Estate market is directly affected by the tourism industry because of jobs.  With tourism as strong as it is, new casinos are being built, new towers are opening, new restaurants, new retail shops, etc.  Those new places need people to operate them in every sector.  They need managers , operational employees, and support staff.  Also, those new places have to be built, more jobs.  Once they are up they have to be stocked, more jobs, maintained, more jobs, networked, more jobs.  My point is that new jobs are created.  When a new job is created there are peripheral jobs that are created because of that job.  If their is a plethora of jobs in a city, people will move there.  Las vegas has had a ow unemployment rate for a long time.  The local media say 6,000 per month move to Las Vegas.  They move here because of the jobs.  Those people need a place to live.  I am not saying that all of the people that move here will buy a house as soon as thy get here, some do, some wait 6 months some wait a year, and some just rent, but it is infusing more population into the valley. 

In addition, the foreclosures have everything to do with the recent rapid growth of our population.  In the last 3 to 6 years there have been more people moving here than a majority of the cities in the country which meant, MORE OPPORTUNITY for the purchase of houses.  Couple that with the sub prime loan emergence during that time, which meant more of those people were in risky loans, and a turn in the Real Estate market and "BAM" you have the highest foreclosure rate in the country.

Posted by Rey Gallegos, FHA, VA, Home Loans Las Vegas, NV (Supreme Lending (NMLS ID #2129)) about 10 years ago

Christina:  Thank you!

TLW:  B-U-S-Y!!!!!!!!!!!

Esko:  We forgot our flu shot in 2004 :wink:

Arina:  You are inspiring another blog post and Rey, splendid response! 

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

I do not contest the fact that Real Estate market is directly affected by the tourism industry because of jobs...But!

So, as you saying the "rapid growing population" factor in Las Vegas is to explain the declining housing market. Most of the coming in new population purchasing homes with the sub prime loan ("more of those people were in risky loans") created the spiral down of the Real Estate market... Right?

  • Coming in new population (migration of work forces) were not solely into real estate risky loans. This was flying all across the borders... The very nature of the business over the past 3-6 years in Las Vegas Real Estate caries that practice. There were local populatin and out of town investors doing just the same.
  • Lots of the investors were buying properties in Las Vegas for the fact that the price tags were relatively small (on the Nationwide scale) on new houses, and the profit on the investment was soo very tempting. 
  • Most of the builders were in rush to push up their inventory looking also for the profit. They created a super fast market hard to say "no" to it. (aggressive adversing, incentives, creative marketing...)  
  • Everybody involved in the Real Estate transactions (from the buyer to the bank institutions) were coughed into making fast money with potential for profit... Let's face it!
  • And by the way what exactly do you mean by "people were in risky loans"... Why the banks and financial institutions would do someting like that? If you are right about it I would submit to you that "What goes around comes around" on all levels. 

So, makes no sense to me to explain that the growing tourism/gaming (and the rest of Las Vegas related industry) generates a new coming in population to be charged with the downfall of the Real Estate Market. Every aspect should be taken in consideration and we should be candid abut all factors involved 

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Posted by Arina Hanciulescu, RealtyPros (RealtyPros) about 10 years ago

Arina, your exact question was "Can you please explain how gaming and tourism industry help the Real Estate Market?"  My position is Gaming/Tourism creates Increased # of Jobs, which increases population, which creates a demand for Housing. 

On a seperate issue, I never said the rapid growing population was "to be charged with the downfall of the Real Estate Market".  My position on that was that because of the Masssive Increase in Population in Las Vegas during the same time that Sub Prime lenders were allowing any and everybody to buy a home there was a larger number of those loans that originated here and in turn are now in Foreclosure!. 

Posted by Rey Gallegos, FHA, VA, Home Loans Las Vegas, NV (Supreme Lending (NMLS ID #2129)) about 10 years ago
  • I just stated in my previous comment: "I do not contest the fact that Real Estate market is directly affected by the tourism industry because of jobs...But!"
  • On the second issue you stated in your previous comment (read above): " the foreclosures have everything to do with the recent rapid growth of our population... Couple that with the sub prime loan emergence during that time, which meant more of those people were in risky loans, and a turn in the Real Estate market and "BAM" you have the highest foreclosure rate in the country." These are your own words.

Correct me if I am wrong.

All I am saying here was that your interpretation was a little simplistic and did not encompass all the factors.

Posted by Arina Hanciulescu, RealtyPros (RealtyPros) about 10 years ago
Arina, I hope you understand that I respect your opinion as a Real Estate professional.  It is a simplistic breakdown, but keep in mind it is a blog comment, it's not an newspaper article, or even a blog post, it is a comment, it should be simplistic.  I don't want to highjack Renee's post anymore than we already have.  I do think that I could expand on the issue of "Why Las Vegas has a Foreclosure problem?"  I will let you know when it is posted so that you can add your comments.
Posted by Rey Gallegos, FHA, VA, Home Loans Las Vegas, NV (Supreme Lending (NMLS ID #2129)) about 10 years ago

Rey you are more than welcome to come back and I won't consider it hijacking.  Please post your foreclosure problem post both here and in any one of my blog posts you feel free.

Arina:  Economics is cause/effect and supply/demand.  I answered your questions here.  I would like to ask  you what you would think our residential resale market would be like *if* we did not have strong leading economic indicators to hold it together.  Property management, Land, Commercial and Business brokerages are booming.  It doesn't mean that we are falling apart because one sector of the real estate market is stagnant ~ mostly due to too much inventory.

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

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