Economic Conditions for the Las Vegas Valley October 2008
Housing Conditions:
- Foreclosure/Short Sale Listings (12/9/2008): Total Listings 21,550; Short Sales: 6695, 31.1% of all listings; Bank Owned Listings: 7662, 35.6% of all listings. Short sale and REO listings consume 66.6% of total listings
- New Home Sales (October 2008, units sold): 798 Year Change -31.8% (excl condo conversions, highrises)
- New Home Sales (October 2008, median price): $244,086 Year Change -18.1% (excl condo conversions, highrises)
- Existing Home Sales (October 2008, units sold): 3140 Year Change +105.4%
- Existing Home Sales (October 2008, median price): $180,000 Year Change: -30.6%
- New Home Permits (October 2008): 329 Year Change +82.1%
- Rental Rate (MLS Monthly Average October 2008): $1393/month
My analysis: Distressed listings (foreclosures and short sales) are 66.6% of total listings. Distressed listings taking up almost 70% of the market share continues to pique buyer interest in this city. Credit markets must be watched, it's hard to remain optimistic with all the bad news on Wall Street. Resales up units sold 105.4% year over year, this is due to prices falling dramatically year over year. Builders cannot compete with bank owned listing prices, thus sales remain lackluster.
New Residents/Employment Conditions:
- New Residents (October 2008): 5612, Year Change 8%
- Total Employment (September 2008): 924,100 Year Change +0.1%
- Unemployment
Rate (September 2008) 7.4%, Year Change +45.1%
My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve.
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (September 2008): 3,377,238 Year Change -13.2%
- Gaming Revenue (September 2008): $853,511,010, Year Change -2.9%
- Visitor Volume (September 2008): 3,230,992, Year Change -11.4%
- Convention Attendance (September 2008): 357,525, Year Change -10%
- Hotel/Motel Occupancy (September 2008): 84.3% Year Change -7.7%
My analysis: Rising gas costs & flight cuts have hurt our incoming visitor count. Conventions, Visitor Volume, Airport Traffic all down double digits. Gaming revenue staying steady year over year almost looks impressive. October, November and December's numbers need to be watched carefully. Hopefully low gas prices and incredible discounts from hotels and airlines will flip those numbers around. Conventions may remain dismal for a while due to lack of business credit available.
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.
