Economic Conditions for the Las Vegas Valley August 2007
Housing Conditions:
- Foreclosure/Short Sale Listings (9/23/2007): Total Listings 27,404; Foreclosures Commenced: 1093, 4% of all listings; Short Sales: 2710, 10% of all listings; Both Foreclosures Commenced AND Short Sales: 504, 1.8% of all listings.
- New Home Sales (August 2007, units sold): 1376 Year Change -49.7% (excl condo conversions, highrises)
- New Home Sales (August 2007, median price): $308,161 Year Change -10.1% (excl condo conversions, highrises)
- Existing Home Sales (August 2007, units sold): 2062 Year Change -43.4%
- Existing Home Sales (August 2007, median price): $275,000 Year Change: -4.8%
- Single Family Residential Building Permits (August 2007): 794 Year Change -49.2%
- Rental Rate (MLS Monthly Average May 2007): $1578/month Year Change +$303/month
My analysis: The rental market has been consistently rising since November 2006. Fire sale prices remain attractive to long term investors. Mortgage meltdown has caused many new construction units fall out of escrow. Much standing inventory available and builders are slashing prices to reduce inventory. Look for foreclosure list prices to follow suit in October/November as banks will try to reduce inventory by year end. Rents may rise dramatically next several months.
New Residents/Employment Conditions:
- New Residents (August 2007): 7615, Year Change -1.2%
- Total Employment (July 2007): 932,500, Year Change +1.9%
- Unemployment Rate (July 2007) 5.1%, Year Change +13.3%
My analysis: The rising unemployment rate concerns me. Availability of jobs will not keep new residents streaming in to town. Could be tied to convention business dropping and lack of home equity money for home improvement services?
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (July 2007): 4,279,655 Year Change +4.7%
- Gaming Revenue (July 2007): $964,724,623, Year Change +13.4%
- Visitor Volume (July 2007): 3,791,218, Year Change +0%
- Convention Attendance (July 2007): 262,560, Year Change -33.1%
- Hotel/Motel Occupancy (July 2007): 92% Year Change +1%
My analysis: Gaming revenue up overall but a taking a look into gaming statistics, local oriented casinos are down in general. Declining Convention attendance should be a concern.
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
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