Economic Conditions for the Las Vegas Valley April 2008
Housing Conditions:
- Foreclosure/Short Sale Listings (6/12/2008): Total Listings 20,675; Short Sales: 5576, 27% of all listings; Bank Owned Listings: 4287, 21% of all listings. Short sale and REO listings consume 47.7% of total listings
- New Home Sales (April 2008, units sold): 749 Year Change -35.5% (excl condo conversions, highrises)
- New Home Sales (April 2008, median price): $255,615 Year Change -18.3% (excl condo conversions, highrises)
- Existing Home Sales (April 2008, units sold): 2247 Year Change -4.5%
- Existing Home Sales (April 2008, median price): $230,000 Year Change: -19.3%
- New Home Permits (April 2008): 711 Year Change -60.6%
- Rental Rate (MLS Monthly Average May 2008): $1483/month
My analysis: Resale listings are down and pendings are up sharply, absorption rate is turning healthy. REO listings are in a seller's market. The Rental Market is turning. Fire sale prices remain attractive to both long term investors and buyers tired of paying rent. Distressed listings (foreclosures and short sales) are 47.7% of total listings.
New Residents/Employment Conditions:
- New Residents (April 2008): 6044, Year Change -2.4%
- Total Employment (April 2008): 926,900, Year Change -0.4%
- Unemployment
Rate (April 2008) 5.5%, Year Change +25%
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. New resident count seems to be stabilizing.
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (March 2008): 4,120,158 Year Change -1.7%
- Gaming Revenue (March 2008): $871,896,196, Year Change -2.0%
- Visitor Volume (March 2008): 3,855,578, Year Change -1.5%
- Convention Attendance (March 2008): 637,755, Year Change -6.6%
- Hotel/Motel Occupancy (March 2008): 92.2% Year Change -1.8%
My analysis: Only slight yearly changes. The economic conditions need to be watched carefully as rising gas prices may affect tourism in the valley
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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Foreclosure/Short Sale Listings (6/12/2008): Total Listings 20,675; Short Sales: 5576, 27% of all listings; Bank Owned Listings: 4287, 21% of all listings. Short sale and REO listings consume 47.7% of total listings
Good Grief!!! That's horrible. Foreclosures are less than 1% of our listings. The problem we have is the continued disconnect between price and qualifying income. But, it's getting better.