Economic Conditions for the Las Vegas Valley June 2010

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

Economic Conditions for the Las Vegas Valley May 2010

Housing Conditions:

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

 

  • Foreclosure/Short Sale Listings (6/15/2010): Total Listings 10548; Short Sales: 4559, 43% of all listings; Bank Owned Listings: 2146, 20% of all listings. Short sale and REO listings consume 63% of total listings
  • New Home Sales (May 2010, units sold): 426 Year Change +18.3% (excl condo conversions, highrises)
  • New Home Sales (May 2010, median price): $186,784 Year Change -12.7% (excl condo conversions, highrises)
  • Existing Home Sales (May 2010, units sold): 3513 Year Change -2.3%
  • Existing Home Sales (May 2010, median price): $125,000 Year Change: -3.8%
  • New Home Permits (May 2010): 395 Year Change +28.2%
  • Rental Rate (MLS Monthly Average June 2010): $1410/month 

My analysis:  Distressed listings (foreclosures and short sales) are 63% of total listings.  This figure is slowly going up after many months of decline HOWEVER REO is emerging as a new life form (investor trustee sale purchase flips.)  Credit markets must be watched as underwriting guidelines continue to tighten.  Condos are barely financeable.  Resale sold units and pendings remain impressive.  New Home Sales & Permits are steadily increasing as inventory in the Las Vegas Valley remains tight. 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:

Las Vegas Area New Resident Count

Total Employment in Las Vegas

  • New Residents (May 2010): 3755, Year Change -12.2%
  • Total Employment (May 2010): 801,300 Year Change -3.7%
  • Unemployment Rate (May 2010) 14.1%, Year Change +2.8%

My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve.  New Resident Count will continue to plummet if no new jobs are created.  Economists are hoping that City Center brings tens of thousands of new jobs.  The Las Vegas Valley has lost -132,000 jobs since April 2008.  I am not optimistic that City Center can pull us out of this slump.  (see Tourism/Gaming conditions below!)  City Center is expected to draw in anywhere from 10,000-15,000 new jobs.  Unfortunately around 8500 construction workers from the project will be unemployed so that really boils down to only 2500-7500 new jobs.  Unemployment rate is painful yet again.  While these numbers are looking VERY bad, I am seeing some changes in the Tourism/Gaming Sector which will help this sector in the long run if it is sustainable!!

Tourism/Gaming Conditions:

Las Vegas Area Convention Attendance

  • McCarran Airport Total Passengers (April 2010): 3,385,504 Year Change -5.0%
  • Gaming Revenue (April 2010): $689,977,541, Year Change -6.1%
  • Visitor Volume (April 2010): 3,496,935, Year Change -0.0%
  • Convention Attendance (April 2010): 426,697, Year Change  +2.9% 
  • Hotel/Motel Occupancy (April 2010): 84.0% Year Change -4.0%

My analysis:   After rising in double digits for one month, Convention attendance is in the black again. 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 numbers are back in the negative but thankfully not in the double digits like they have been in the recent past.

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®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

Your wonderful visual reports are so informative Renee. You obviously know your market very well.

Jul 09, 2010 06:58 AM #1
Rainmaker
422,769
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Renee - Great reports...as always!

Jul 09, 2010 07:11 AM #2
Rainmaker
354,843
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Renee, great information for the Vegas area consumer!

Jul 09, 2010 03:26 PM #3
Rainmaker
325,871
Esko Kiuru
Bethesda, MD

Renee,

New home median price continues down at a good clip and is narrowing the gap with existing home prices. They are becoming more competitive, slowly but surely.

Jul 11, 2010 05:01 AM #4
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Ellie, Nevin, Damon:  THANKS!

Esko:  They are becoming more competitive!  They usually are a better deal as the homeowner generally gets what they want without having to do some rehabs.  No deferred maintenance plus a home warranty :)

Jul 11, 2010 06:10 AM #5
Rainmaker
232,729
Ken Barker Realtor® GRI, E-Pro Certified
Dilbeck Real Estate - Burbank, CA

Renee, i am so happy to see this analysis you have done. What a great job. I have done  some statistics but I am uncomfortable sending out because I am not positive that I have calculated it right.

Just jump in is all I need to do.

You answered one of my questions on outside my area stats. 10000 listings is amazing. Is that a sold sign on every 3 houses? Just kidding. No thought on this comment.

Great job again.

Jul 11, 2010 07:46 AM #6
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Ken:  Good analysis on sold signs!  Many are short sales waiting on approval!

Sep 02, 2010 08:02 AM #7
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