Economic Conditions for the Las Vegas Valley May 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (7/3/2008): Total Listings 20,606; Short Sales: 5589, 28% of all listings; Bank Owned Listings: 4633, 22% of all listings. Short sale and REO listings consume 50.5% of total listings
• New Home Sales (May 2008, units sold): 734 Year Change -45.7% (excl condo conversions, highrises)
• New Home Sales (May 2008, median price): $258,888 Year Change -16.5% (excl condo conversions, highrises)
• Existing Home Sales (May 2008, units sold): 2606 Year Change +0.7%
• Existing Home Sales (May 2008, median price): $225,000 Year Change: -19.1%
• New Home Permits (May 2008): 740 Year Change -57.1%
• 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 (May 2008): 4612, Year Change -22.7%
• Total Employment (May 2008): 931,800 Year Change -0.5%
• Unemployment Rate (May 2008) 5.9%, Year Change +40.5%

My analysis: The rising unemployment rate concerns me.  New resident count being down so much is alarming.  Should wait to see if this is a trend.

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (April 2008): 3,777,868 Year Change -5.5%
• Gaming Revenue (April 2008): $849,974,366, Year Change -4.8%
• Visitor Volume (April 2008): 3,668,462, Year Change -1.9%
• Convention Attendance (April 2008): 538,316, Year Change  +3.9%
• Hotel/Motel Occupancy (April 2008): 90% Year Change -4.1%

My analysis: Only slight yearly changes.  The economic conditions need to be watched carefully as rising gas prices and flight cuts 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