Las Vegas, NV Market Conditions Update – The Goad Team at Century 21 Infinity

The Goad Team's Blog

Las Vegas Market Update - 9/12/2007

September 12th, 2007 6:29 PM

Las Vegas, just like most of the United States, is currently experiencing a "Buyer's Market". The remarkable thing about our market is how many "investors" were all over the place when we were experiencing a "Seller's Market". The fact is that investing in real estate is much like the stock market. Buy low, sell high. This should be the time when we are flooded with investors...Nevada is now the #1 state for properties in some state of foreclosure...there are over 28,000 homes on the market with approximately 2,000 selling per month, making for a 14 months supply of inventory supposing another home does not come up on the market. Sounds pretty grim for the Las Vegas right now doesn't it?
Well Let us look at the flip side of the coin...

According to the Las Vegas Convention and Visitors Authority, the hotel & casinos slated for construction will create an additional 40,000 hotel rooms by 2010 - with the largest amount of those rooms slated for completion by 2009. Historically between 1-2 hotel/casino jobs are created per hotel room. However, due to the more service oriented and luxury projects coming to Las Vegas, many experts are stating that figure will probably double creating 2-4 jobs per hotel room. Also, for every 1 new job created in the hotel and gaming industry, that in turn creates an additional 3 non-hotel & gaming jobs on average. Using historical data (and assuming that the experts are incorrect in regards to the new more service oriented properties exceeding historical records)That translates out to 40,000 to 80,000 new jobs created by the hotel & gaming industry alone...plus additional 120,000 to 240,000 non-hotel & gaming jobs. All total this means somewhere between 180,000 and 320,000 new jobs will be created in Las Vegas by 2010... and more jobs mean more housing demands.

Although we are in a "Buyer's Market" many of the new home builders have not slowed down on new construction at all. Why is that? Again, more jobs equals the need for more homes, so many builders feel they want to be prepared for the "turn around" in the market.

What does all this mean? It's a GREAT time to buy a home in Las Vegas, there are lots of great deals out there. However, if you're looking to sell a home in Las Vegas, now is not such a great time. If you need to sell be prepared to possibly pay higher commissions, and offer buyer's incentives to purchase your property instead of the neighbors down the street, etc, etc.

Posted by John Goad, Jr. GRI, e-Pro on September 12th, 2007 6:29 PMPost a Comment (1)