Economic Conditions for the Las Vegas Valley September 2010 (includes Henderson & North Las Vegas)

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

Economic Conditions for the Las Vegas Valley August 2010 (includes Henderson & North Las Vegas)

Housing Conditions:

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

Las Vegas Area Homes for Sale

 

  • Foreclosure/Short Sale Listings (9/15/2010): Total Listings 14087; Short Sales: 6846, 49% of all listings; Bank Owned Listings: 2859, 20% of all listings. Short sale and REO listings consume 69% of total listings
  • New Home Sales (August 2010, units sold): 333 Year Change -15.9% (excl condo conversions, highrises)
  • New Home Sales (August 2010, median price): $201,354 Year Change -2.3% (excl condo conversions, highrises)
  • Existing Home Sales (August 2010, units sold): 3518 Year Change -13.6%
  • Existing Home Sales (August 2010, median price): $122,000 Year Change: 0.0% (no change)
  • New Home Permits (August 2010): 338 Year Change -18.2%
  • Rental Rate (MLS Monthly Average July 2010): $1425/month 

My analysis:  Distressed listings (foreclosures and short sales) are 69% of total listings up 5% from last month.  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 from the tax credit highs.  Inventory IS increasing as pent up demand from first time buyers was exhausted from the tax credit offering that expired June 30, 2010.  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 (August 2010): 5386, Year Change +4.8%
  • Total Employment (August 2010): 790,300,300 Year Change -2.0%
  • Unemployment Rate (August 2010) 14.7%, Year Change +1.7%

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 -136,300 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 (July 2010): 3,518,217 Year Change -1.1%
  • Gaming Revenue (July 2010): $693,390,964, Year Change -5.0%
  • Visitor Volume (July 2010): 3,643,670, Year Change +3.5%
  • Convention Attendance (July 2010): 320,724, Year Change  +28.4% 
  • Hotel/Motel Occupancy (July 2010): 84.0% Year Change -0.2%

My analysis:   Convention Attendance had a nice year over year spike in July.  It remains to be seen if it can sustain as one or two large conventions can throw off these numbers.  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

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

 

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Location:
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The Economics of Real Estate
Nevada/Las Vegas REO, Fourclosure, Short Sale Specialist
City and State
Local Expert
Las Vegas Foreclosures - Homes, High-Rises-Condos
Tags:
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las vegas nv real estate
las vegas economic conditions
las vegas rentals
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Rainmaker
3,924,403
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Renee, you do such s a good job on stats for Vegas.   It does look like you still have a plentiful supply of REO properties, if I am reading this correctly!     Our inventory is way down over last year, of all types of sales.

Oct 03, 2010 06:06 AM #1
Rainmaker
222,557
Scott Baker
www.eHomeReports.com Coldwell Banker West Shell - Liberty Township, OH
Realtor Homes for Sale in Cincinnati, West Chester, Mason, OH Area

Convention Attendance numbers really jumped in July didn't they? I agree with your assessment, the employment numbers need to be reversed to see real gains. I talked to a potential listing this morning that may need your buying services in Vegas. I will let you know.

Thank you for the information.

Oct 03, 2010 06:06 AM #2
Ambassador
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Joan:  So is ours, the first time buyers and investors exhaused our demand!

Scott:  Thank you for thinking of me!  If the convention numbers are sustainable (that's if because this sector is seasonal and volatile), we could be making a come back :)

Oct 03, 2010 06:13 AM #3
Rainmaker
123,076
Kent Dills
Broker, Dills Real Estate - Bellingham, WA
Real Estate 817-495-8028, Bellingham, Washington

Renee, that unemployment rate of near 15% is CRUSHING!  That's going to have to turn around in order for home supply to be effected in any major way! 

Nice report!  Very professional looking!

Oct 03, 2010 06:23 AM #4
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Renee... as always, excellent graphs and such.. and I liked your analysis on each topic.  I think this is where the true value comes into play when given by a real professional who works these areas in the trenches and not from Capital Hill.  Very nice job here...  and I agree with Kent, and that we need to turn around the housing market and to help small businesses... and get jobs back up.  thanks

jeff belonger

Oct 03, 2010 06:28 AM #5
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Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Renee - Your graphs and charts are world class--the are Fortune 500 quality!

Oct 03, 2010 06:34 AM #6
Ambassador
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Kent:  In total agreement about unemployment.  Our sales could be even more brisk if our employment numbers were healthy!

Jeff:  DITTO!

Norma:  haha, thanks!

Oct 03, 2010 06:36 AM #7
Rainmaker
325,771
Esko Kiuru
Bethesda, MD

Renee,

New home permits dropping 18% year-over-year tells the Vegas real estate market's story pretty well.

Oct 11, 2010 03:07 PM #8
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Esko:  Yes it does!

Nov 04, 2010 04:55 AM #9
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