Las Vegas Market Condition Report - 1st Quarter 2007
What a roller coaster ride we are all having this first quarter of 2007 concerning Las Vegas Real Estate. Regardless were you live, adjustments are and have or will continue depending on the local and national environment, politics, labor, newspaper spin, financial professionals of all types and mark prognosticators that will affect the Real Estate Market. How we all perceive, understand or value the information that is shared on a daily basis can and will create many different levels of emotion and belief factors that will drive any Real Estate Market. So what is the real truth… IT DEPENDS!!! That’s right folks it all DEPENDS on who and where the information is coming from and what and how you use it. So let’s look at what is happening especially in Las Vegas Home and Henderson Nevada Home market…
According to the Center for Business and Economic Research of Southern Nevada shows growth in Las Vegas has remained flat for 2006 and current indicators that 2007 will continue to remain consistent due to the housing market slowing down. There are no signs yet of a recession and the Center believes that Las Vegas may have reached the half way point so we are not out of the woods. Job market still remains stronger than the rest of the nation and people are still visiting Vegas. Feb of 2007 had a 5.9% gain in visitors over Feb 2006 and new residents gained 2.4% over Feb 2006 at over 6000 new comers? New Build permits are 46.7% lower than Feb 2006 which indicates that new developers are continuing to adjust their inventories. There are still buyer incentives available depending on the location, inventory and builder. KB Home for example, may have turned the corner in Las Vegas and Henderson. Instead of rebates or special loan offers they have slowly reduced sales price and cost on all their options as well. By the way, there is always constant talk about not enough low cost housing however DEPENDING on how you may perceive the truth there exist at least 22 low cost opportunities in Las Vegas and Henderson. The areas/location may or may not be agreeable however you as a buyer or investor do have choices available. As of Feb 2007 there are at least 12 low cost New Single Family Detached-Home Communities being built in Las Vegas, Henderson and Pahrump (45 min’s west of Vegas). Pricing from $198,000 to $ 220,000. Also there are at least 10 low cost New Attached-Home, Town homes and Condominiums. Call Tony Gatto your Las Vegas Real Estate Home Coach & Guide at 800-990-8152. It’s Free so Get Educated!
As far as the Re-sale housing market in Las Vegas and Henderson home markets, reports show approximately a 25% reduction in sale activity from the same time frame in the 1st quarter of 2006. Information recently from the Greater Las Vegas of Realtor’s shared up-dated information that March of 2007 demonstrated a 14% increase in re-sale activity over Feb 2007. The stats are a positive sign however the jury is still out. This re-sale trend needs to show signs of consistency in order to be able to characterize as a true up-swing in the local housing market. As a local realtor/investor in Las Vegas and Henderson it is my opinion that we are seeing more of traditional sales market today. Many of us have been spoiled by the last several booming years so its time to come down to earth and realize what kind of market we have. There are many, many great opportunities with properties in the 250K to 350K range. Bottom-line again it DEPENDS on how you think and use the information. Get Educated!!!
Appreciation values in 2006 for Las Vegas Homes and for Henderson Homes are mixed. According to Sales Traq the breakdown of 52 zip codes in the Las Vegas and Henderson Valley show 35 areas positive from 1 to 13%, seven unchanged, and 10 on the negative side to -4%. This information demonstrates that much of the negative press and professional analysts have been wrong so far about the Las Vegas Valley. Property values have not dropped precipitously. The only thing that has dropped largely has been over all appreciation.
2006 Home Appreciation Rates BY ZIP CODE
2005 Home Appreciation Rates BY ZIP CODE
What will happen in the future will again DEPEND on all factors in the market, national and local economic issues, politics, jobs, mortgage and bank lending adjustments and how we all handle the emotional roller coaster ride we are on.
What also has changed has been an increase in short sales and foreclosures. The sub-prime market has been coming apart. Over 40 sub-prime Mortgage Banks have closed their doors and there will be a continuation falling out in months ahead. Who is to blame?? The finger pointing has already started so it DEPENDS on who you want to believe. Is it the Lending Officer, the Bank, the Fed’s, the Real Estate Agent???? Who??? Well, lets be honest we all have a hand in the makings of today’s housing financial situations. The creative mortgage opportunities afforded many people to take risks. How well everyone understood the risks will DEPEND again on who is telling the story. As far as I am concerned any and all end users need to always Get Educated before you sign any agreement and hopefully that all the professionals in their prospective fields used ultimate care in providing the most accurate information for you to make the right decision That said, it is apparent that many individuals may not have made the best choices. Just in Short sales alone there are a reported 1500 plus homes in Las Vegas and foreclosures are on the rise. For those who are struggling with mortgage issues and would like to discuss potential options please call me for your Free NO Hassle Get Educated phone session at 800-990-8152 or call Callie Kline “Your Money Angel” at 702-326-9440 for your professional and confidential conference. Therefore, don’t wait until the last minute to find out that you may have had other options available to you to use.
Up coming information coming soon on two New Master Planned Developments are from the Focus Group, Henderson’s Inspirada and Providence in the expanding North West of Las Vegas. Up-dates on two of the top five selling locations in the US are here in Las Vegas and further growth on the Harmon Blvd corridor off the Strip has 12 projects underdevelopment or in the planning stage, some very WOW stuff. Stay tuned!! Finally, Fidelity National Title will have a link to assist in providing valued information about title and escrow services here in Las Vegas and Henderson Nevada.
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