Economic Conditions for the Las Vegas Valley October 2007
Housing Conditions:
- Foreclosure/Short Sale Listings (11/27/2007): Total Listings 26,513; Foreclosures Commenced: 1704, 6.4% of all listings; Short Sales: 4105, 15.4% of all listings; Bank Owned Listings: 2065, 7.8% of all listings.
- New Home Sales (October 2007, units sold): 1170 Year Change -45.5% (excl condo conversions, highrises)
- New Home Sales (October 2007, median price): $298,056 Year Change -13.6% (excl condo conversions, highrises)
- Existing Home Sales (October 2007, units sold): 1529 Year Change -47.9%
- Existing Home Sales (October 2007, median price): $259,363 Year Change: -10.6%
- Single Family Residential Building Permits (October 2007):1734 Year Change +99.8%
- Rental Rate (MLS Monthly Average October 2007): $1511/month
My analysis: We are down 271 residential resale listings from last month, 1000 the month before that!!! The rental market has been consistently rising since November 2006. Fire sale prices remain attractive to both long term investors and buyers tired of paying rent. New construction falling prices prompt the single family building permits to jump 99.8% from last year and 195.4% from month prior. REO property seeing price reductions and absorption to compete with new construction.
New Residents/Employment Conditions:
- New Residents (October 2007): 5196, Year Change -19.2%
- Total Employment (October 2007): 940,400, Year Change +1.0%
- Unemployment Rate (October 2007) 5.1%, Year Change +27.5%
My analysis: The rising unemployment rate concerns me. Availability of jobs will not keep new residents streaming in to town. Could be tied to construction jobs lost and lack of home equity money for home improvement services
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (September 2007): 3,867,271 Year Change +1.4%
- Gaming Revenue (September 2007): $879,141,774, Year Change +8.8%
- Visitor Volume (September 2007): 3,646,932, Year Change -0.3%
- Convention Attendance (September 2007): 397,349, Year Change -0.4%
- Hotel/Motel Occupancy (September 2007): 91.3% Year Change +0.8%
My analysis: Gaming revenue strong for September and all other indicators remain consistent. Great outlook!
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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