Economic Conditions for the Las Vegas Valley July 2009

By
Services for Real Estate Pros with Savvy Home Pix B.1000860.LLC

Economic Conditions for the Las Vegas Valley June 2008

 Housing Conditions:

  • Foreclosure/Short Sale Listings (7/16/2009): Total Listings 12014; Short Sales: 5035, 42% of all listings; Bank Owned Listings: 2758, 23% of all listings. Short sale and REO listings consume 65% of total listings
  • New Home Sales (May 2009, units sold): 360 Year Change -51% (excl condo conversions, highrises)
  • New Home Sales (May 2009, median price): $213,990 Year Change -17.3% (excl condo conversions, highrises)
  • Existing Home Sales (May 2009, units sold): 3714 Year Change +42.5%
  • Existing Home Sales (May 2009, median price): $130,000 Year Change: -42.2%
  • New Home Permits (May 2009): 308 Year Change -58.4%
  • Rental Rate (MLS Monthly Average May 2009): $1503/month 

My analysis:  Distressed listings (foreclosures and short sales) are 66% of total listings.  THIS IS DOWN FOR THE SECOND MONTH IN A ROW!  Credit markets must be watched.  Resale sold units and pendings remain impressive.  Builders cannot compete with bank owned listing prices, thus sales remain lackluster. The rental market is softening due to all the investor/first time buyer combination of activity.  This adds more supply and creates less demand.

New Residents/Employment Conditions:

  • New Residents (June 2009): 4584, Year Change -15.8%
  • Total Employment (June 2009): 862,700 Year Change -6.5%
  • Unemployment Rate (June  2009) 12.3%, Year Change +95.2%

My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve.  New Resident Count will go down if no new jobs are created.  Unemployment rate is painful.

Tourism/Gaming Conditions:

  • McCarran Airport Total Passengers (May 2009): 3,532,182 Year Change -11.5%
  • Gaming Revenue (May 2009): $747,606,792, Year Change -7.7%
  • Visitor Volume (May 2009): 3,527,794, Year Change -6.8%
  • Convention Attendance (May 2009): 341,846, Year Change  -32.9%
  • Hotel/Motel Occupancy (May 2009): 84.4% Year Change -5.9%

My analysis:   This sector (tourism) needs to see some serious price corrections before we see a comeback.  Corporate credit is not coming back any time soon.  It will be hard to get convention attendance back up without corporate credit.  Glad to see regular tourists are making their way here with the imbalance of the other numbers to replace the convention attendee numbers.  Gaming and convention business is big business and those numbers MUST increase.  A decrease of over 30% is extremely painful to this economy and all the overbuilt convention space.

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.

Posted by

Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Kimberly Dearth 07/19/2009 07:26 PM
Topic:
Real Estate Market Trends
Location:
Nevada Clark County Henderson Belcourt Estates
Groups:
Las Vegas, NV Area Real Estate Professionals
Las Vegas Investors and Downtown Real Estate
Posts to Localism
Las Vegas Foreclosures - Homes, High-Rises-Condos
Las Vegas Condos
Tags:
las vegas new construction
las vegas short sales
las vegas foreclosures
las vegas nv real estate
las vegas economic conditions

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Ambassador
771,951
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Renee - Great analysis of the data !  If I was a reporter in the area, I would definitely come to you for data and information.  And if I was a buyer or seller as well, it is great to have someone to go to who is an expert in the market !  You are that expert for sure !

Jul 19, 2009 12:44 PM #1
Rainmaker
175,187
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Renee: I like your outlook, are the mortages starting to lag in your market. I heard there is going to a Fannie Mae no money down program coming out.

Richard

Jul 19, 2009 03:44 PM #2
Ambassador
1,510,732
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Christopher & Stephanie:  Thanks so much for the kind words! 

Richard:  Getting a mortgage is definitely a challenge.  Fannie does have their homepath low down program but I have been told that a regular FHA is better by several mortgage brokers.

Jul 20, 2009 12:57 AM #3
Rainer
1,410
John Roanoke
Academy Mortgage - Las Vegas, NV

FHA lending is a great option for a borrower in Las Vegas now as it leaves them the least exposure with the lowest down payment.  The dangerous part about the homepath product is that an appraisal is not required.  We had a borrower that was using the homepath product and he had an appraisal done on his own and it came in at $85K, the contract price was $115K and Fannie Mae would only reduce the purchase price to $100K.  This puts the buyer in a position where he is already “under water” when he completes the transaction.  While DPA no longer exists, there are other options for providing a buyer with low or no down payment.  

 

If all documentation is ready, we have been closing FHA loans within 7 – 10 business days.

 

Thank you,

 

John

Jul 20, 2009 09:46 AM #4
Rainmaker
1,940,599
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Renee

That's good about the resale units being strong, but I can see where new home sales in your area must be a lot of your market and they are not now. One thing is for sure; there is one great real estate that can help anyone. All they need to do is call you.

Jul 20, 2009 10:41 AM #5
Ambassador
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

John:  The plus of homepath is that the offer is looked at more favorably by the seller than FHA.  Right now with the lack of inventory, appraisals are issues.

Tom:  THANKS!

Jul 21, 2009 11:57 AM #6
Rainmaker
925,416
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Renee - It seem like conditions are getting better, I hope you are able to make a few dollars during this correction.

Jul 22, 2009 01:39 PM #7
Rainmaker
409,066
Sal Poliandro - NJ Bergen County Realtor
RE/MAX Properties - Ridgewood, NJ
Short Sale Specialist - CDPE, SRES, SFR, IRES

Hi Renee,

      Excellent post! My prediction is that you will make more than a few dollars during this correction. All my Las Vegas referrals are going to you!

Jul 22, 2009 05:19 PM #8
Ambassador
1,510,732
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Larry:  Now that it is raining buyers and we have no inventory I am really trying to make some $$$!

Sal:  Thanks so much for thinking of me as your Las Vegas connection!  I appreciate that!

Jul 23, 2009 08:43 AM #9
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