My thoughts and current news for Las Vegas real estate and the whole real estate confusion:

Stimulating the economy by giving away money probably is not the best long term solution IMO. What really needs to be done to stimulate and build a solid foundation of investing in real estate in the United States. Lowering the capital gains tax for REAL ESTATE INVESTORS draws interest from true investors which would certainly help clean up the FIASCO currently going on.

Invest more money into renewable energy Southern Nevada Goes Solar. The technology is there. Invest in it.

Moody's reports Nevada is in a recession along with four other states that make up 25% of the U.S. Economy. Ironically, Nevada is producing over 80% of the nation's gold production and Gold just hit $1,000 an ounce, an all time record high.

And finally, Real Estate Property Taxes. Cities are scrambling to make up revenue lost from the slow down in real estate sales to pay for pensions, the government and whatever. Coming soon to a city near you.

My opinion, but Las Vegas is going to be a fantastic place to live in the coming years when you consider the fact the Billions of Dollars of private money being invested into Las Vegas.

Paul Francis, ABR,CRS
Coldwell Banker Premier
www.LasVegasRealEstateHome.com
702.592.3058

The Annual Las Vegas Appreciation Map

Aw yes, it's the dreaded time of year when the Las Vegas review journal releases their zip code map showing appreciation or depreciation rates from the following year.

I don't know if anybody ever reads the article that goes along with it but as the creator of the map will even tell you:

"I've said before that there's nothing sacred about the ZIP code appreciation map," Murphy said. "We just do it that way because it's convenient and interesting."

Unfortunately, the media loves creating headlines because headlines sell. Anybody with a background in marketing 101 knows this and due to headlines, this map has been associated with "appreciation" rates for years. Trust me, every year I get the e-mails with the subject "Las Vegas Appreciation" rates from various title companies with the handy map attached to benefit my clients.

I've even seen it used by Las Vegas real estate agents to show that the hottest zip code to buy is in so and so because it had the highest "appreciation rate" according to "the map". And, we even see references across the web that appreciation rates went up last year and you need to invest here. (Real estate investing is a lot more complicated then chasing appreciation rates as speculators have found out.)

And, I get the calls from buyers that really don't understand what the map means or know Las Vegas real estate but want to buy in the zip code with the best numbers. Which tells me that there are far more people out there using the map and various other charts and tools to seek out their next great investment.

In reality, the percentages are based on a comparison of the median price for sold residential properties compared to the year before. In the mix could be condos, luxury homes, luxury condominiums, etc..

And, if you really know Las Vegas real estate, then you know that in any given zip code there could be a new development with plenty of new closings that can have an impact on the entire zip code.

Here is a perfect example and a quote from the Las Vegas Review Journal article:

"Some areas defied the odds. ZIP code 89109, with 178 sales in the second half of the year, showed 46 percent appreciation from $349,515 in 2006 to $510,000 in 2007."

Umm.....There was absolutely nothing defying about it. The 89109 Zip code is home to the new Turnberry Towers Luxury Condominiums East Tower that closed on all of the new condo contracts in the second half of 2007. It's a very simple explanation for the 46% "appreciation rate" as reported by the Review Journal but for whatever reason, there is no mention of that in the article.

As plenty of speculators have learned by now, take appreciation rates or depreciation rates reported in the media as reporting on information that has already happened. As shown on the "appreciation map for Las Vegas", even zip codes within a city can have all kinds of different ranges and within these zip codes, there can be several different factors that can have an impact on what's being reported.

Last quarters reported median sold prices (closings) give you no idea what Today's asking prices are such as Rhodes Ranch Bank owned homes or future developments taking place that enhance an area such as parks, hospitals and unique shopping districts.

Your Las Vegas Real Estate agent should.

Paul Francis, ABR,CRS | Coldwell Banker Premier | Las Vegas Real Estate | 702.592.3058

With the recent completion of the East Tower for Turnberry Towers now completed for over a couple of months and resale units being available for sale on the Las Vegas MLS, it's interesting to see what the end user activity is going to be - not only for Turnberry Towers but multiple other Las Vegas high rise luxury condominiums that have just been completed. All hype aside, the truth lies in actual numbers from resale activity and the Las Vegas luxury condominium market (with the exception of a couple of older towers) is a new market in comparison to established condominium markets such as Chicago and New York.

I can't really comment or compare other cities such as New York since I'm not licensed for these markets. But... I am a licensed Illinois Real Estate Broker and have a pretty good understanding of what fuels the Chicago condominium market. Let's put it this way, there is a little less speculation going on for determining what is a good price for a downtown Chicago condominium in an "established" area and that's due to the history of the resale market. Chicago condominium developers know this... and so do the "experts". The actual "end user" for a Chicago condominium (somebody who is actually going to live there) certainly does not care what the developer's construction costs are, they care more about several other factors such as location, amenities and quality. In other words, you better be able to justify your price for a new luxury condominium tower in Chicago based on facts and not speculation.

Anyways, now that Turnberry Tower East is completed and owners are putting their units on the resale market (the Las Vegas MLS for one), let's see what is currently going on with the Turnberry Towers Luxury Condominium Report.

For further information including availability, feel free to contact me for a list of Turnberry Place East condominiums for sale or you can view some of the properties available for sale at my Turnberry Towers Condominium search.

Paul Francis, ABR,CRS | Coldwell Banker Premier | Las Vegas Real Estate | 702.592.3058

Luxury Las Vegas Real Estate

The latest seven day price reduction report is showing up as 2,971 Las Vegas homes reduced in price for the past seven days. Since I first started glancing at this back in January it's been consistently hovering right under the 2,000 range until I noticed the big number for today.

For Las Vegas real estate sellers, if you have not had a price check or status report for a couple of months, you probably should get one since there has been a consistent reduction in prices this year - especially for the bank owned homes.

There are some positive signs taking place and a quick check on the Las Vegas MLS for areas 101 through 606 for Las Vegas Homes listed as Bank Repos showed a number of 2,230 available for sale today and 928 Las Vegas Bank repos with a Contingent or Pending Status. You can read about more detailed activity at this Las Vegas Bank owned homes report.

Paul Francis, ABR,CRS | Coldwell Banker Premier | Las Vegas Real Estate | 702.592.3058