Real estate, the new game in town
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
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.
Real Estate Market
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
Conversions Add to Record Sales in
(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.
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.
Las Vegas Review-Journal (01/11/05);
Las Vegas: Luster Casts Light on Other
(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
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
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.”
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
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
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
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.
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.
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
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.
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.
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
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.
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
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
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
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
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
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.
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
Builders Buy 1,940 Federal Acres
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)