Nevada Real Estate >> Las Vegas Real Estate Specialist: Economic Conditions for the Las Vegas Valley November 2011 (includes Henderson & North Las Vegas)

Economic Conditions for the Las Vegas Valley November 2011 (includes Henderson & North Las Vegas)

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

 

  • Foreclosure/Short Sale Listings (10/15/2011): Total Listings 12590; Short Sales: 5911, 47% of all listings; Bank Owned Listings: 2725, 22% of all listings. Short sale and REO listings consume 69% of total listings
  • New Home Sales (September 2011, units sold): 396 Year Change +1.3% (excl condo conversions, highrises)
  • New Home Sales (September 2011, median price): $205,281 Year Change +1.5% (excl condo conversions, highrises)
  • Existing Home Sales (September 2011, units sold): 4281 Year Change +20.9%
  • Existing Home Sales (September 2011, median price): $108,100 Year Change: -12.1%
  • New Home Permits (September 2011): 252 Year Change +9.6%
  • Rental Rate (MLS Monthly Average September 2011): $1279/month

My analysis: Distressed listings (foreclosures and short sales) are 69% of total listings. Units of homes sold is impressive. Credit markets must be watched as underwriting guidelines continue to tighten. Condos are barely financeable. Inventory stopped it's slow increase in December and now spring time buyers are gobbling up inventory through the summer and this trend seems to be continuing through fall. The rental market is softening due to all the investor/first time buyer combination of activity. This adds more supply and creates less demand. I do believe the rental prices being pressured downward is also causing the resale prices to be pressured downward.  Las Vegas is an anomoly to the law of supply & demand, we barely have any inventory yet prices are declining!

New Residents/Employment Conditions:

Las Vegas Area New Resident Count

Total Employment in Las Vegas

  • New Residents (September 2011): 5368, Year Change +18.4%
  • Total Employment (September 2011): 742,182 Year Change +1.3%
  • Unemployment Rate (September 2011) 13.6%, Year Change -2.0%

My analysis: This sector is FINALLY seeing stabilization thus improvement. It is VERY encouraging to seem these numbers improve - even if slightly! Unemployment rate is still painful however the total employed numbers have remained close to stable for a year. Slight increase with unemployment rate the last two months.

Tourism/Gaming Conditions:

Las Vegas Area Convention Attendance

  • McCarran Airport Total Passengers (September 2011): 3,553,307 Year Change +8.7%
  • Gaming Revenue (August 2011): $752,242,062, Year Change -6.7%
  • Visitor Volume (August 2011): 3,563,585, Year Change +2.1%
  • Convention Attendance (August 2011): 412,902, Year Change +19.6%
  • Hotel/Motel Occupancy (August 2011): 84.1% Year Change +2.1%

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. Visitor Volume, Gaming Revenue & Convention Attendance are encouraging and hopefully sustainable.

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®
 

 

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Comment balloon 3 commentsRenée Burrows • November 06 2011 12:01PM

Comments

Hi Renee - this is such a thorough report on the statistics in the Las Vegas area. It is amazing that the short sales comprise 47% of all sales.

Posted by Sharon Paxson, Newport Beach Real Estate - Arbor Real Estate (Arbor Real Estate) almost 6 years ago

Thank you for your comment Sharon!

Posted by Renée Burrows, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 6 years ago

Renee,

It seems the gap between median prices of new homes and existing homes is widening. It's almost 100K now. Who is buying new homes when all the good inventory at the resale level is available at a huge discount.

Posted by Esko Kiuru almost 6 years ago

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