Economic Conditions for the Las Vegas Valley June 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (7/25/2008): Total Listings 20,918; Short Sales: 6087, 29% of all listings; Bank Owned Listings: 4928, 23% of all listings. Short sale and REO listings consume 53% of total listings
• New Home Sales (June 2008, units sold): 777 Year Change -44.7% (excl condo conversions, highrises)
• New Home Sales (June 2008, median price): $258,990 Year Change -17.6% (excl condo conversions, highrises)
• Existing Home Sales (June 2008, units sold): 2731 Year Change +12.8%
• Existing Home Sales (June 2008, median price): $218000 Year Change: -22.1%
• New Home Permits (June 2008): 884 Year Change -34.4%
• Rental Rate (MLS Monthly Average June 2008): $1503/month 

My analysis: Resale listings are stable and pendings (which have been rising at a quick pace) are stabilizing, absorption rate is turning healthy.  REO listings are in a seller's market.  The Rental Market is still a landlord's market and August is traditionally the hottest month (literally and figuratively) for rental property.  Fire sale prices remain attractive to both long term investors and buyers tired of paying rent.  Distressed listings (foreclosures and short sales) are 53% of total listings.

New Residents/Employment Conditions:

• New Residents (June 2008): 5445, Year Change -16.4%
• 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 second month in a row so much is alarming.  Should wait to see if this is a trend.  These stats are from the DMV and drivers license counts so  ???

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (May 2008): 3,989,683 Year Change -4.7%
• Gaming Revenue (May 2008): $810,059,378, Year Change -16.4%
• Visitor Volume (May 2008): 3,784,855, Year Change +0.4%
• Convention Attendance (May 2008): 509,482, Year Change  +0.7%
• Hotel/Motel Occupancy (May 2008): 89.7% Year Change -2.6%

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