www.lasvegasmtg.com Report: This small but very concise report from Renee Burrows providing an in depth market analysis of forces influencing Las Vegas and surronding cites housing market. The report covers Inventory, Residency and Employment outlook, tourist statistics, gaming revenue as well as rental properties saturation points.
- Foreclosure/Short Sale Listings (6/15/2011): Total Listings 13926; Short Sales: 6401, 46% of all listings; Bank Owned Listings: 3365, 24% of all listings. Short sale and REO listings consume 70% of total listings
- New Home Sales (May 2011, units sold): 282 Year Change -33.8% (excl condo conversions, highrises)
- New Home Sales (May 2011, median price): $190,468 Year Change +2.0% (excl condo conversions, highrises)
- Existing Home Sales (May 2011, units sold): 3841 Year Change +9.0%
- Existing Home Sales (May 2011, median price): $111,000 Year Change: -11.2%
- New Home Permits (May 2011): 435 Year Change +10.1%
- Rental Rate (MLS Monthly Average May 2011): $1257/month
My analysis: Distressed listings (foreclosures and short sales) are 70% of total listings. Units of homes sold is impressive. Credit markets must be watched as underwriting guidelines continue to tighten. Condos are barely financeable. Inventory stopped it's slow increase in December and now spring time buyers are gobbling up inventory. The rental market is softening due to all the investor/first time buyer combination of activity. This adds more supply and creates less demand. I do believe the rental prices being pressured downward is also causing the resale prices to be pressured downward.
New Residents/Employment Conditions:
- New Residents (May 2011): 4676, Year Change +24.5%
- Total Employment (May 2011): 805,300 Year Change -0.7%
- Unemployment Rate (May 2011) 12.4%, Year Change -2.5%
My analysis: This sector is FINALLY seeing stabilization thus improvement. It is VERY encouraging to seem these numbers improve - even if slightly! Unemployment rate is still painful however the total employed numbers have remained stable for a year.
- McCarran Airport Total Passengers (April 2011): 3,462,134 Year Change +2.3%
- Gaming Revenue (April 2011): $682,945,076, Year Change -1.0%
- Visitor Volume (April 2011): 3,462,134, Year Change +2.3%
- Convention Attendance (April 2011): 435,934, Year Change +2.2%
- Hotel/Motel Occupancy (April 2011): 87.7% Year Change +3.7%
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. Visitor Volume, Gaming Revenue & Convention Attendance are encouraging and hopefully sustainable.
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