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Real estate, the new game in town

April 13,2011          

Las Vegas real estate market has gone through many changes, we seen the highest price hike from 2002 to 2006 in the United States, due to the fact of improper lending and lots of speculation. The banks ended up foreclosing on many real estate properties starting in early 2009, so it is a very good idea to buy a property in Las Vegas now because the foreclosures are under-market value. Although it is a long process to purchase some of these foreclosures, it is well worth it.

From experience with many of these foreclosures, if you have the patience and the time to go through the process of buying a foreclosure, it could be a very good investment, you can use it as an income property, to rent out, the average rent in Las Vegas for a three-bedroom house is $1,200 per month. You do have to consider that you do have to pay taxes, insurance, and sewer which is around $200 per month, which leaves you with $1000 profit per month. All prices vary depending on the property.

It is a good idea to buy before 2011, due to 2 factors, the banks estimate that the foreclosure inventory will be very low, that is when the banks will raise the interest rate. Las Vegas is a very attractive place to visit so many people fall in love with the city and they move here. There are many jobs in Las Vegas and that is another reason people move here all the newcomers need a place to live, either a place to rent or a place to buy. So even though Las Vegas has gone through a very high foreclosure ratio, this town is striving on tourism and will bounce back very fast due to the fact that there are many jobs and many people wanting to move to Las Vegas. By our estimation, by the middle of 2011, Las Vegas will be fully recovered from the real estate foreclosure ratio.

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Las Vegas Real Estate Market News

(May 3, 2005) The Las Vegas real estate market is booming! Appreciation in some housing markets is reaching well over 30%! Las Vegas real estate shows no sign of slowing down and continues to be in high demand. More than just neon lights, the Las Vegas valley is a wonderful place to live. Residents enjoy no state income tax, beautiful neighborhoods, low unemployment, great parks and recreation. Las Vegas is known as the entertainment capital of the world for good reason. Some of the world's largest resorts are in Las Vegas, featuring world class entertainment, restaurants and shopping. Currently more than 6,000 people a month move to the Las Vegas valley, which includes the cities of Las Vegas, Henderson, Boulder City, North Las Vegas and the master planned communities of Summerlin in Las Vegas and Green Valley in Henderson.
Realtor Magazine online

Las Vegas Real Estate Market

(April 3, 2005) Las Vegas and the surrounding areas of Summerlin, Henderson, and many new developments maintain a steady rise in pricing and sales. It is not as hot as mid summer last year when supply was less prevalent than demand yet the prices climb steadily.      

Realty Times, Agents remarks                                                                       

Nev.: Condo Conversions Add to Record Sales in Vegas

(January 11, 2005) --   
Up to1,000 of the 30,000 or so new homes sold in Las Vegas in 2004 were apartments converted into condominiums, reports Dennis Smith, president of Home Builders Research.

While this percentage is relatively small, Smith says the condo conversion market is on its way to becoming an integral part of the region's real estate market, which reached an all-time high for new-home sales last year. The conversions have "augmented the current housing market by providing homes for consumers who can't afford anything over $200,000," Smith says.

The median new-home sales price in Las Vegas was $284,755 in November. Smith is predicting that new-home sales, including condo conversions, will reach about 27,000 in 2005. He says it is difficult to project just how many conversions there will be in the next year, but Christopher Bentley of Bentley Group Real Estate Advisors confirms that Las Vegas is a "fantastic market" for condo conversions.

Analysts say the niche is hottest in markets where land constraints are deterring multifamily developers from building anything else.

Source: Las Vegas Review-Journal (01/11/05);

Las Vegas: Luster Casts Light on Other Areas

(December 13, 2004) --   
For the last year, the glitz and glamour of Las Vegas real estate has been the stuff of talk and speculation around the water cooler. It still is, even though the sparkle isn’t as bright this winter.

But the Las Vegas lights may have obscured the glitter of housing in other parts of Nevada—especially in Elko, where there’s still lot of gold “in them tar hills.”

Elko is a remote mountain town of 20,000 people in the far northeastern part of the state—a region that doesn’t typically boast of a muscular housing market. Real estate activity, however, has been remarkably strong right through December.

The inventory of homes for sale is “nearly depleted,” with only a tight three-month supply, says Gregory Martin, a former president of the Elko County Board of REALTORS and a salesperson with Algerio, GMAC Real Estate. Many buyers are making full-price offers—frequently with few or no contingencies—and there are occasional multiple bids.

The demand-inventory imbalance has pushed median prices up to the $145,000 range for a three-bedroom, two-bath home of 1,400 square feet. That’s a nearly 21 percent jump from a year ago.

The town has drawn a lot of Las Vegas and California retirees trading in congestion and big city problems for Elko’s rural lifestyle, says Martin. “There’s clean air and plenty of outdoor recreational activity,” says Martin. “And we don’t have a rush hour; we have a rush five minutes.”

But the driving force in Elko’s boom has come from within, thanks to gold prices running up to their highest levels in 16 years. There are four large gold mines within an hour’s drive of Elko, and mining operators have hired large numbers of workers to extract the precious metal.

Martin says the job growth has made move-ups the hottest part of Elko’s market. Locals are trading in their three-bedroom, 1,400-square-foot homes for 2,200- to 2,500-square-foot homes costing $225,000 to $250,000 in newer subdivisions on the north side of town.

Homebuyers also have been active in the Reno area, where housing appreciation has jumped 28 percent since the beginning of the year, says Marc Sykes, 2004 president of the Reno Sparks Association of REALTORS. The median price of a home in Reno’s Washoe County is $328,000.

Appreciation has slowed modestly in the last two months. Multiple offers, once a regular occurrence in the $500,000 to $600,000 trade-up market, now happen mostly in the $300,000 to $350,000 range, Sykes says.

Until September, the market was akin to a driver in a stock car race, says Sykes, “with the throttle down and going at 180 miles per hour.” Now the market is racing along “at 160 mph, so the engine isn’t quite overheating so badly.”

Many buyers in the Reno area weren’t fast enough. The Estates at Callaghan Ranch, a 285-home subdivision, took more than 300 reservations in two weeks when the new-home community opened earlier this year. Builders soon stopped taking reservations for the homes, which carried entry-level price tags of around $650,000, says Sykes. Then there was the line of buyers several blocks long waiting to spend $300,000 to $350,000 to buy at Curti Ranch.

“We didn’t used to see [waiting lists and lines] here, but the demand in our marketplace is for new or newer houses, and the demand exceeds supply,” says Sykes.

The strong market has sent many Nevada shoppers scurrying to the outskirts of larger towns to find less expensive detached homes or opting for condominiums. That, in turn, has pushed up prices in second-choice locations as well.

One new favorite is Fernley, 30 minutes east of Reno. “Fernley is happening,” Valerie Mapes, Nevada Regional Manager for Prudential Nevada Realty, says of the town 30 minutes east of Reno that’s expected to triple its 25,000 population over the next few years. “It’s becoming a bedroom community for Reno, and it’s still affordable,” says Mapes. “You can buy a nice family home for $250,000, with three bedrooms, two baths, and 1,700 square feet.”

Homes in Carson City, once an affordable town south of Reno, are up to the $400,000 range. “Anything under $300,000 is usually in escrow within a week, and a lot of times the first day,” say Dee Scott, a salesperson with Shadow Mountain Real estate in nearby Dayton. Buyers who don’t make full-price offers frequently “are countered back to full price,” he says.

That scenario has sent would-be buyers to the smaller towns of Dayton, Silver Springs, and Stagecoach, says Scott. Homes in those communities are “reasonably priced right now, he says, with several subdivisions marketing homes for as little as $150,000 to $250,000.

Home prices were considerably higher around Lake Tahoe—particularly in the affluent second-home community of Incline Village—even after the market became “somewhat static” this fall following a heavy summer buying spree. Buyers paid a median $870,000 in October to own a home at Incline Village, according to Kurt Carlstedt, 2004 president of the Incline Village Board of REALTORS and a salesperson with Dickson Realty. That was a 4.5 percent hike from the $832,500 the median home cost one year earlier.

With prices approaching $1 million, Incline Village buyers made condos their property of choice. Condo values surged under the strong demand to a median $442,500 in October—15 percent higher than the $384,500 price tag 12 months earlier.

Still that price didn’t get new owners a retreat on Lake Tahoe’s famously expensive waterfront, where Carlstedt says a teardown home was on the market for $5.9 million. Most buyers found prices more attractive a block or two from the lake, but nonetheless close enough that that both owners and possible renters could have easy access to the water.

In the south end of Nevada in the desert of Las Vegas, the world’s top destination for gambling also has been a top destination for real estate money. Thousands of buyers attracted to a hot investment hand, many of them from Southern California, sent home values soaring 52 percent to a median $284,000 between January and October of this year.

But so many owners simultaneously tried to take their profits off the table and run this fall that it left Las Vegas with a glut of 16,000 homes for sale. “When the market got so crazy, [consumers] started to take a back seat and just look at the market,” says Kellie Rubin, a past president of the Nevada Association of REALTORS and a salesperson with RE/MAX Achievers. Investors were “hoping to sell them in a few months for a quick profit. Now they’re sitting there with all these properties.”

The high inventory has halted the appreciation run and flooded the rental market. It also has hampered the new-home market, which has responded with slashed prices and buyer incentives.

Builders are a “lot more market friendly” and are starting to offer “buyer incentives that they weren’t before,” says Rubin. Some builders are throwing in $5,000 to $15,000 in upgrade options and another $5,000 to $10,000 in closing cost for buyers who use their lenders.

Pulte Homes, one of the region’s biggest builders, in October cut prices from 5 percent to 28 percent at two dozen of its new-home communities. And some builders have raised broker commissions to 5 percent from the usual 3 percent.

Both resale and new-home specialists say the current market isn’t a long-speculated bubble bursting, but a return to the balanced market that existed between buyers and sellers before the frantic market ignited in last year. “The market went from normal to overheated, and it’s trying to get back to normal,” says Dennis Smith, head of Home Builders Research, which monitors the new-home market in Las Vegas.

Still unbridled optimism is the operative rule in Sin City—and it couldn’t be truer for high-rise, luxury condos, the new darling of Las Vegas real estate. The town, which had only two high-rise condos a few years ago, today boasts several developments on The Strip, with thousand more on the drawing board. “I think the high-rise concept is really taking off here in Las Vegas. We didn’t have that before,” Rubin says. “New York had it. Florida had it. And Chicago had it. And now it’s here.”

The high-rise movement began with Park Tower’s 84 units just off The Strip, where condos cost from $1 million to nearly $3 million, and Turnberry Palace, four 40-story towers right on The Strip. The price to enjoy resort-style living at Turnberry Palace ranged $530,000 to $5.9 million. The projects sold out almost immediately, many to well-heeled Southern Californians looking for a Las Vegas pied-a-terre.

In early December, only three units were unsold at Turnberry Palace, says John Riordan vice president of sales and marketing for Turnberry associates. Riordan says the company will start construction in January on Turnberry Towers, two 45-story towers, with more modest prices of $350,000 to $1.1 million.

The Park Palace and Turnberry developments demonstrate there’s a “very strong demand for the high-rise lifestyle,’’ says Riordan. “The success we’ve had absolutely attracted a lot of other” condo developers.

In November, MGM Mirage revealed plans to construct a mega-resort on the strip with 1,650 luxury condos. Real estate magnate Donald Trump also plans to build a high-rise condo project in Las Vegas.

Still, Las Vegas is a town of big dreams and not every proposed condo may break ground. “It remains to be seen how real most of these projects will ultimately be,” says Riordan.

By Corrie M. Anders for REALTOR® Magazine Online

Las Vegas: Builders Buy 1,940 Federal Acres

(June 17, 2004) --   The federal government sold 1,940 acres of land in Nevada's Las Vegas Valley, one of the fastest-growing residential construction markets in the country. The buyer was a consortium of homebuilders bidding at an auction, held on June 2.

The $557 million sale is the largest by the U.S. Bureau of Land Management since the 1998 passage of the Southern Nevada Public Land Management Act.

The consortium that won the bid is comprised of the Las Vegas area's No. 1 home builder, KB Home, along with master planner Focus Property Group as well as builders Toll Bros., Woodside Group, Pardee Homes, Beazer Homes USA, Kimball Hill Homes, and Meritage Corp.

A spokesman for KB Home says the company plans to begin delivering homes on its 940 acres in Henderson sometime in 2006.

Source: Los Angeles Times (06/16/04)


 


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