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NEW MORTGAGE LAW HAS BUYERS SCRAMBLING
Housing industry observers expect that prospective buyers will scramble to take advantage of seller-funded down-payment assistance before a federal ban on such programs takes effect on Oct. 1. The federal housing bill signed into law in July sews up a loophole that allows nonprofit organizations to gift mortgage down payments, and industry experts believe markets that have relied heavily on the programs could see new-home sales cut by as much as half. Seller-funded downpayment assistance has served as a surrogate for subprime loans in some ways and has helped builders put first-time and low-income buyers into new homes. [From the August 18 Realtor Magazine Online]
HOPE AHEAD FOR LAS VEGAS HOUSING: Some real estate experts believe the bottom of the local housing market is being established. The inventory of homes for sale receded slightly as reported by the Greater Las Vegas Association of Realtors. Inventory is up 19.1% from a year ago and sales are down 37.4%, but the hard numbers have leveled off over the past few months. "It appears we have reached the bottom everyone is waiting for," says one expert. In 30 to 60 days, sales should be rising. Unfortunately, foreclosures and short sales are still rising. But listings are decreasing and pending sales are rising. These are the positive signs we've been watching for." The Association President said November statistics reflect slower sales and stable inventory that the holiday season traditionally brings. However, he still believes it's a good time to buy a home because of low interest rates, abundant housing choices and a strong local economy. A study recently published by a Las Vegas financial research firm, concluded that Las Vegas will experience a housing supply shortage by late 2009 or 2010. The data further support the assertion that it is a buyers' market. Another housing expert says she expects sales to drop again in December and January, but not as much as would generally be expected for the winter holiday season. "it shouldn't be long before prices stabilize and begin to climb as excess inventory is absorbed. Prices are still dropping while sales are rising. I think we have an ideal buyers' market that won't last much longer." [From the December 12 Las Vegas Review-Journal]
LAS VEGAS IN TOP 10 OF NATION'S BEST BUYER MARKETS:
The real estate business may be facing a softening in sales, but there are parts of the country where it makes sense to buy now. Forbes magazine examined current home sales patterns and sales projects in the country’s 40 largest real estate markets to identify these attractive markets. Based on models that estimated 2008 housing inventory, sales rates, and turnover, the magazine compiled a list of markets that are experiencing price declines, but where buying looks attractive because there is likely to be an increase in sales in the near future. Here are Forbes’ and Moody’s 10 most attractive markets:
Fort Worth, Texas; Kansas City, Mo.; Houston; Cleveland; Denver; Long Island, N.Y.; Washington, D.C.; Orlando, Fla.; Phoenix; and LAS VEGAS.
[From Realtor.com October 9, 2007]
NATIONAL GEOGRAPHIC RATES LAS VEGAS #1 IN OUTDOOR ACTIVITIES
In its September issue National Geographic Adventure rates Las Vegas the nation’s best outdoor activities town in which to live and play. The article’s author, Dan Koeppel, notes that the three-hour perimeter around Las Vegas contains six national parks, including the Grand Canyon, Zion and Bryce Canyon, two national recreation areas and millions of acres of national forest. Other nearby destinations include Utah’s snowy slopes, Yosemite National Park’s forests, and the shores of the Pacific Ocean are a few hour’s drive away. Radiating out from Las Vegas is some of the world’s best mountain biking, rock climbing and canyoneering. Because of Las Vegas’ employment opportunities, many adventure seekers are coming here to live. The city’s Department of Leisure Services is receiving more requests from residents for outdoor activities. In response, the city has increased the number of walking and jogging trails and is exploring a proposal to build mountain bike trails on some of the 680 acres near Floyd Lamb State Park. As one outdoor enthusiast states about the activities available in Las Vegas, “I’m coming here so I can make a living and rock climb at the same time.” [From the August 27 Las Vegas Review-Journal]
HOME SELLERS CONTINUE TO DROP PRICES
The median price of an existing home in Las Vegas fell to its lowest point since May 2005 proving that sellers are lowering their prices to make a sale. August’s median price of $270,000 is 6.5% below the all-time high of $289,900 in June 2006. The trend is likely to continue because the inventory of resale homes on the MLS represents a nearly 16-month supply. [ From the September 21-27 In Business Las Vegas]
LAS VEGAS ONE OF TOP TEN CITIES FOR CREATING, KEEPING JOBS
According to the 2007 Milken Institute study, Las Vegas has climbed into the top 10 U.S. cities for creating and sustaining jobs. The study takes regional and national trends in international competition, energy prices, and the housing market into account in developing the rankings. The report said of Las Vegas, “job growth is still more than double the U.S. average.” [From the September 28-October 4 In Business Las Vegas]
Gift of Land for Teacher Housing: A developer has donated 4 acres in Henderson worth more than $2.6 million as part of a plan to build affordable housing and help recruit teachers to
Clark
County . LandWell Co. donated the land north of West Horizon Ridge and west of the 95 to the Public Education Foundation, who hail the donation as the first of its kind in the country to build workforce housing for public schoolteachers. “This shows that the community cares,” says the president of the Foundation. The land is expected to yield at least 40 condos that could be priced at least 30% below market costs. The Foundation will work with the school district to determine criteria for who will be eligible to purchase the housing. Construction could start by the second half of 2008 and the condos would be completed in 2009. [From the June 29-July 5 In Business
Las Vegas]
Price Drops Needed to Reduce Supply: The price of resale homes fell sharply in May, but an analyst said the price drops are needed to reduce the glut of homes on the market. “It might be strange to call these price decreases good news. However, given the market conditions it might indicate that some folks are finally facing reality and pricing their listings so they will sell. This is needed to bring down the resale inventory.” [From the June 29-July 5 In Business
Las Vegas]
HOME SELLERS CONTINUE TO DROP PRICES LAS VEGAS ONE OF TOP TEN CITIES FOR CREATING, KEEPING JOBS A developer has donated 4 acres in Henderson worth more than $2.6 million as part of a plan to build affordable housing and help recruit teachers to Clark County .LandWell Co. donated the land north of West Horizon Ridge and west of the 95 to the Public Education Foundation, who hail the donation as the first of its kind in the country to build workforce housing for public schoolteachers.“This shows that the community cares,” says the president of the Foundation.The land is expected to yield at least 40 condos that could be priced at least 30% below market costs.The Foundation will work with the school district to determine criteria for who will be eligible to purchase the housing.Construction could start by the second half of 2008 and the condos would be completed in 2009.From the June 29-July 5 In Business Las Vegas] The price of resale homes fell sharply in May, but an analyst said the price drops are needed to reduce the glut of homes on the market.“It might be strange to call these price decreases good news. However, given the market conditions it might indicate that some folks are finally facing reality and pricing their listings so they will sell.This is needed to bring down the resale inventory.”[From the June 29-July 5 In Business Las Vegas] LAS VEGAS ONE OF TOP TEN CITIES FOR CREATING, KEEPING JOBS A developer has donated 4 acres in Henderson worth more than $2.6 million as part of a plan to build affordable housing and help recruit teachers to Clark County .LandWell Co. donated the land north of West Horizon Ridge and west of the 95 to the Public Education Foundation, who hail the donation as the first of its kind in the country to build workforce housing for public schoolteachers.“This shows that the community cares,” says the president of the Foundation.The land is expected to yield at least 40 condos that could be priced at least 30% below market costs.The Foundation will work with the school district to determine criteria for who will be eligible to purchase the housing.Construction could start by the second half of 2008 and the condos would be completed in 2009.From the June 29-July 5 In Business Las Vegas] The price of resale homes fell sharply in May, but an analyst said the price drops are needed to reduce the glut of homes on the market.“It might be strange to call these price decreases good news. However, given the market conditions it might indicate that some folks are finally facing reality and pricing their listings so they will sell.This is needed to bring down the resale inventory.”[From the June 29-July 5 In Business Las Vegas] A developer has donated 4 acres in Henderson worth more than $2.6 million as part of a plan to build affordable housing and help recruit teachers to Clark County .LandWell Co. donated the land north of West Horizon Ridge and west of the 95 to the Public Education Foundation, who hail the donation as the first of its kind in the country to build workforce housing for public schoolteachers.“This shows that the community cares,” says the president of the Foundation.The land is expected to yield at least 40 condos that could be priced at least 30% below market costs.The Foundation will work with the school district to determine criteria for who will be eligible to purchase the housing.Construction could start by the second half of 2008 and the condos would be completed in 2009.From the June 29-July 5 In Business Las Vegas] The price of resale homes fell sharply in May, but an analyst said the price drops are needed to reduce the glut of homes on the market.“It might be strange to call these price decreases good news. However, given the market conditions it might indicate that some folks are finally facing reality and pricing their listings so they will sell.This is needed to bring down the resale inventory.”[From the June 29-July 5 In Business Las Vegas] The price of resale homes fell sharply in May, but an analyst said the price drops are needed to reduce the glut of homes on the market.“It might be strange to call these price decreases good news. However, given the market conditions it might indicate that some folks are finally facing reality and pricing their listings so they will sell.This is needed to bring down the resale inventory.”[From the June 29-July 5 In Business Las Vegas]
Bank-Owned Properties Drive Down Prices: Bank-owned real estate isn’t being discounted, insists Patrick Carey, the executive in charge of foreclosed properties at Wells Fargo & Co.’s real estate division. "The impact on the neighborhood and the community is vital with us," Carey says. "We don't want to flood a community with below-market-priced homes and cause further deterioration." But research suggests that if that’s true, it may be temporary. Owners are likely to discount their asking prices 20 percent or more in communities where foreclosed homes make up 8 percent or more of sales, according to the study by an economist with First American Corp. In 1995, at the depth of the region's last housing downturn, lender-owned homes accounted for 7 percent of all sales — and sold at an average discount of 15 percent, the study found. [From the June 8
Los Angeles Times]
New Frontier Sale Sets Record: In what is being called the most expensive large site transaction on the Strip, a real estate investment group has bought the New Frontier and its 36 Strip acres for more than $1.2 billion, which comes to more than $33 million per acre. The aging hotel-casino will be closed and demolished when the transaction is completed. A replica of
New York ’s landmark Plaza hotel will be built on the site. The deal does not include the seven acres on the backside of the site which hold the Trump International Hotel & Tower. The New Frontier launched the
Las Vegas career of Elvis Presley, who played his first-ever show at the casino on April 23, 1956. [From the May 16 Las Vegas Review-Journal]
More Companies Diversify
Las Vegas Economy: The executive director of the Nevada Development Authority spoke this month about the increasing diversity of the
Las Vegas economy - an important issue in our state that gets over half its revenue from the gaming industry. Already this year the NDA has attracted 34 companies and 2,494 new jobs to
Nevada and spurred 12 corporate expansions, putting the NDA on track to outpace 2006. The average job attracted pays a salary of over $50,000.
Nevada ’s tax-free, business-friendly status is a main attraction, earning the state accolades for being the best place to grow a business. With population up 71%, median income up 66%, and visitor volume up 34% since 1996, the business-friendly climate is paying off. “We have the best balanced economy in the world today,” he stated. [From the May 4-10 In Business
Las Vegas ]
Las Vegas Boom Supports Bright Future for Employment, Commercial Real Estate: New hotels and casinos, high-rise and mixed-use residential projects are leading a
Las Vegas construction boom that will keep growth well above national trends. According to Burnham Real Estate’s 2007 report, more than $30 billion in Las Vegas Strip development over the next three years is generating a surge in construction jobs and will create more job growth over the long term. New retail services, restaurants, casinos, and the 38,800 hotel rooms opening before 2011 will create service jobs. Other financial benefits of living in Las Vegas include no corporate or personal income tax; no unitary, franchise, or inventory tax; no inheritance or estate tax; no gift and chain store tax; and low property tax and worker’s compensation. Office rental rates are expected to remain at current levels over the next two years, while industrial rental rates will continue to increase due to limited supply. With vacancy currently at 5.2%, apartment rents will also continue to rise as the demand created by new population growth outpaces supply.[From the May 2007 Southern
Nevada Commercial Real Estate Guide]
Nevada Ranked First in Foreclosures: Nevada and Las Vegas are gaining a reputation as the foreclosure capital
. Nevada is the number 1 state of cases entering foreclosure and
Las Vegas moved up to number 2 in the country in March for metropolitan area. One reason Nevada and
Las Vegas rank so high in foreclosures is because of the large number of investors who got into trouble with adjustable rate mortgages that resulted in spikes in their monthly payments. [From the April 27-May 3 In Business
Las Vegas]
Foreclosure Scams on the Rise: As the number of foreclosures rise around the country, the number of companies offering help is increasing too. While some companies offer genuine assistance to distressed homeowners, there are also many foreclosure scams on the rise. Experts recommend homeowners screen offers carefully and take the following precautions: 1) Don’t pay upfront fees to any person or organization promising help; 2) Don’t sign anything without having an independent lawyer review it; and 3) Seek out accredited financial counselors using lists such as those kept by the Department of Housing and Urban Development located at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm. [From the April 22
Las Vegas Review-Journal]
Nevada Leading the Way in Alternative Power: According to energy officials,
Nevada will lead the nation in the production of solar power and geothermal power late this year. The 64-megawatt 300 acre solar field at Nevada Solar One is expected to start operating this spring near
Boulder
City , which will produce enough power for 48,000
Southern Nevada homes. Also, the first 10 megawatts of a PowerLight solar power plant is scheduled to be complete by year's end at Nellis Air Force Base. A Nevada Power spokesperson states, “Once both of these solar facilities are completed in 2007,
Nevada will be the number one state in the nation on solar watts per capita.” [From the April 27 Las Vegas Review-Journal and the April 6-12 In Business
Las Vegas ]
Mortgage Market Shake-Up: There has been quite a shake-up in the mortgage industry with several major companies closing nationwide and others adopting stricter guidelines for mortgage loans. The problems for the lenders are that the one-time buyers of risky loans on Wall Street are no longer purchasing them on the secondary market. A Las Vegas mortgage broker president states that the problems arose when people who had low credit scores of below 600 and did not have income verified were getting 100% loans with adjustable rate mortgages. Today people need credit scores of at least 640 to get financing. [From the March 16-22 In Business
Las Vegas]
Appreciation Rates Around the Valley: While home appreciation rates have slowed from the dramatic pace of two years ago, in 2006 median home prices still increased 3.6% valleywide to $285,000, SalesTraq reports. The breakdown of 52 zip codes in the
Las Vegas valley showed 35 areas with positive appreciation, 7 unchanged, and 10 on the negative side. The largest declines were 4% in 89044 and 89085, while gains were as high as 18% in 89030 and 89103. Zip codes with the highest appreciation rates are in the more mature areas of the city with median home prices below the valley’s median. Larry Murphy of SalesTraq stated that the appreciation “flies in the face of local analysts who have been declaring all year long that property values are dropping… the only thing that has dropped is the appreciation rate itself.” [From the March 4
Las Vegas Review-Journal]
New Home Sales to Rebound by end of 2007: The new home market in the
Las Vegas
Valley is poised to recover by the end of 2007, a national housing expert said at the 2007 Southern Nevada Housing Day.
Las Vegas builders moved quickly to correct an oversupply last year by drastically scaling back housing starts, which were down 30% in 2006. By some accounts
Las Vegas now has a one to two-month supply of new homes. “We are starting to see sales improve and signs that the slowdown won’t last much longer. Wall Street doesn’t think it will last much longer.” [From the February 23-March 1 In Business
Las Vegas]
Slam Dunk for LV Retail: The All-Star Game, Chinese New Year, and other events around the valley brought 85,000 tourists to
Las Vegas this weekend and created a windfall for local retailers, restauranteurs, and hoteliers. I have never seen as many people, not only in our store but in our mall,” said one local retailer. “The crowd of traffic was five times what it was at New Year’s.” [From the February 21
Las Vegas Review-Journal]
Help Needed to Staff
Las Vegas Resorts: The current building boom is expected to bring at least four new resorts to the Strip and an estimated 45,000 more hotel rooms to
Las Vegas by 2012, which casino operators believe they will have no trouble filling. Finding enough employees to staff the casinos may not be as easy. Deutsche Bank Securities, in a report to investors, said the
Las Vegas casino industry will need to hire some 113,500 workers for the positions being created by new resorts. Older casinos will be hit by open positions as qualified workers pursue newer and more attractive opportunities. The author of the report adds that the economy nationwide could bring more potential workers to
Nevada . “For instance, high unemployment rates in another region could spur workers to move to
Las Vegas .” [From the February 19
Las Vegas Review-Journal]
A Home of Their Own: Even with home prices falling in recent months, many casino workers continue to struggle to purchase their first home. In response, Station Casinos is sponsoring a first-time homebuyer program for their employees which uses government grant money to assist with the downpayment and other homebuyer costs. This month MGM Mirage also announced a program with real estate developers to build affordably priced housing for casino workers as part of a master-planned development in
Jean, Nevada . [From the February 19
Las Vegas Sun]
Groundbreaking for the Lou Ruvo Brain Institute: Groundbreaking took place this week for the Lou Ruvo Brain Institute, a $70 million building designed by Frank Gehry. The Institute is planned to be the premier brain center in the world for the diagnosis, treatment, and prevention of Alzheimer’s and other related brain diseases. It is being built on a 1.9 acre parcel in the downtown
Union
Park redevelopment project and is scheduled for completion late next year. [From the February 10
Las Vegas Sun]
Price of Land Jumps 78 Percent: The average price for an acre of vacant land in
Las Vegas has jumped 78.4% from a year ago to $1.24 million, according to a local research firm. Applied Analysis cites speculation, increased development densities, and relatively low interest rates as contributors to the price jump. The report states, “That having been said, selected areas reported modest declines while others posted respectable gains. We continue to believe the mix of properties sold will shift as investors and speculators seek out lower-priced properties.” Continued demand in the commercial real estate sector also drove land values. Property that is zoned industrial remains limited and in high demand, while the office market is reporting new construction of nearly 4 million square feet, likely outpacing office demand. [From the February 1 Las Vegas Review-Journal]
Housing Prices May Experience Year of Adjustment in 2007:
Local market analysts agree that 2006 was a year of market adjustment and an oversupply of housing. Although the appreciation rate will probably be back to 2 and 3 percent per year, Dennis Smith of Home Builders Research says that “the net gain for people who have owned their homes for more than two years is still pretty positive.” Keith Schwer, director of UNLV’s Center for Business and Economic Research, predicts that the “market will now burn off the excess supply from the previous three years.” From the January 21
Las Vegas Review-Journal
5% Job Growth Predicted for 2007: The Nevada Department of Employment, Training, and Rehabilitation (DETR) labor economists are predicting good news for job seekers and business owners in 2007. DETR forecasts a 5% job growth for
Nevada in 2007. In 2006, the job market grew 5.3%, adding 60,000 jobs. The DETR director states: “Businesses are adding jobs at a staggering rate, offering many opportunities for job seekers looking to improve their job situation or change careers altogether.” From the January 19-25 In Business
Las Vegas
Nevada is No. 2 for Foreclosures: A tracking firm’s report said that in December Nevada had the second-highest foreclosure rate in the nation behind
Colorado . In
December
Clark
County had 2,163 homes in foreclosure, which amounts to one in every 277 homes. From the January 19
Las Vegas Review-Journal
California Residents find Real Estate Bargains in Las Vegas: Northern Californians’ market may be slower, but residents are still buying a sizable amount of property – in
Las Vegas . 2006 will rank as the third-most active year this decade in terms of how many
properties
Bay Area residents bought outside of
Northern California – only 2004 and 2005 had higher numbers. Just as in 2005, the top place that Bay Area residents put their real estate dollars is
Las Vegas . A spokesperson from the Greater Las Vegas Association of Realtors states, “The climate difference from what they’re used to makes
Las Vegas very appealing. Especially for retirees or people who are into golf; it’s just an ideal place.” From the January 19
San Jose Mercury News
Home Prices Dropping: In order to make a sale, more and more homeowners are cutting prices. The Greater Las Vegas Association of Realtors reports that the median price of homes sold in December was down 2% from December 2005. A vice president of First American Title states, “It means an overheated market is simply adjusting… The consumer who has the power to write the checks is dictating where the market should be… This is definitely a trend for Realtors to say to sellers that ‘you may not get as much money as you thought you would get in today’s market conditions,” he states. “If you want to sell it has to be more competitive.” From the January 12-18 In Business
Las Vegas
The Country's Top 10 Best Office Markets:
Chicago-based commercial real estate company Grubb & Ellis chose the office markets that it expects will perform the strongest in 2007 through 2011 and will prove to be good investment opportunities. Markets were ranked from 0 to 100 and scored against 16 property, economic, and demographic variables. Here are the top 5 office markets:
1.
Washington, D.C. , metro 70.8
2.
Los Angeles County 70.2
3.
Las Vegas 69.6
4. Dallas/Fort Worth 68.8
5. Phoenix/Mesa,
Scottsdale 68.8
Grubb & Ellis predicts in its annual real estate forecast that as long as interest and capitalization rates remain low in 2007, then real estate income will once again eclipse appreciation. Also, the company predicts real estate will return to its historic role as a solid income-producing investment with a small appreciation kicker. [From REALTOR® Magazine Online January 5, 2007]
Recapping the Las Vegas Market in 2006: In 2006 the declining housing market became the top real estate story in
Las Vegas and the rest of the country. In
Las Vegas , new home closings were up double digits in the first three months before dropping sharply from April to October. To woo buyers, home builders introduced incentives that were valued at more than $25,000 in some cases. The benefit of the slowdown was that it’s never been a better time to buy a new home, said a developer, although the incentives could soon disappear because the new home inventory has about a one-month supply. The developer states, “Whether we are truly in a recovery now or testing the bottom, I believe we are going to have a recovery in 2007 and by the middle of 2008, we will be in a strong recovery phase. That will make this downturn a fairly typical one at 24 months.” Among the other headlines: Mid-rise condos of four to 10 stories gained, while condo conversions cooled sharply after a hot start in 2006. From the December 22-28 In Business
Las Vegas
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