Economic Conditions for the Las Vegas Valley February 2008

Economic Conditions for the Las Vegas Valley December 2007

Housing Conditions:

• Foreclosure/Short Sale Listings (2/23/3008): Total Listings 23269; Foreclosures Commenced: 1820, 7.8% of all listings; Short Sales: 4731, 20.3% of all listings; Bank Owned Listings: 2190, 9.4% of all listings.
• New Home Sales (December 2007, units sold): 1235 Year Change -48.2% (excl condo conversions, highrises)
• New Home Sales (December 2007, median price): $311,924 Year Change -5.5% (excl condo conversions, highrises)
• Existing Home Sales (December 2007, units sold): 1339 Year Change -50%
• Existing Home Sales (December 2007, median price): $250,000 Year Change: -12.3%
• New Home Permits (December 2007): 200 Year Change -89.5%
• Rental Rate (MLS Monthly Average December 2007): $1511/month

My analysis: Resale listings are down and pendings are up sharply. REO listings are in a seller's market. The rental market has been consistently rising since November 2006. Fire sale prices remain attractive to both long term investors and buyers tired of paying rent.

New Residents/Employment Conditions:

• New Residents (January 2008): 5325, Year Change -3.3%
• Total Employment (December 2007): 944,800, Year Change +0.8%
• Unemployment Rate (December 2007) 5.6%, Year Change +33.3%

My analysis: The rising unemployment rate concerns me. Availability of jobs will not keep new residents streaming in to town. Could be tied to construction jobs lost and lack of home equity money for home improvement services

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (December 2007): 3,682,689 Year Change -3.2%
• Gaming Revenue (December 2007): $945,956,315, Year Change +4.1%
• Visitor Volume (December 2007): 3,400,776, Year Change +0.6%
• Convention Attendance (December 2007): 129,664, Year Change -19.9%
• Hotel/Motel Occupancy (December 2007): 83.2% Year Change +2.3%

My analysis: Declining convention attendence should be a concern but all other numbers are consistent and positive.

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

All the Best,
Renee Burrows
Realtor®

Nevada Realty Solutions - Your Dream, Your Investment, You\'re Home!
8942 Spanish Ridge Avenue
Las Vegas, NV 89148
direct: 702-580-1783
fax: 702-995-8237
Renee@ReneeBurrows.com