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Las Vegas Real Estate - sponsored by Robin Camacho
Robin Camacho's Assessment of the Las Vegas Real Estate Market
Are you looking for Las Vegas' hottest areas for residential properties? Do you prefer a single-home dwelling, an over-the-top high-rise condo, an exciting new mixed-use development? Whatever your interest, this is the space to come to keep informed on buying a primary residence or a vacation home, or investing in Las Vegas real estate.
What do you need to get the most out of the Las Vegas market? What's even more important than the sacred "Three L's" of real estate? It's now the "Three I's": with current and correct information, information, information, you can profit from location, location, location. Let LasVegasAdvisor.com be your trusted source for information on real estate trends, mortgage rates and products, and the top values in the current market.
Let's start with a primer on Las Vegas real estate today.
It's a Buyer's Market
Las Vegas finds itself in the unenviable position of being one of the top areas in the nation for home foreclosures. This is bad for homeowners and investors who bought in at the top of the market, but it could be good for you.
Declining prices and disappearing mortgage products have resulted in a buyer's market, but one that, strangely, is lacking buyers! Today, you can buy a home for 20%-30% less than you would have paid for that same property two years ago, or even a year ago. The question is, do you wait another year or two for prices to fall further? Or do you take advantage of the current market where you can now save 20 to 30 cents on the dollar?
I'm finding that homebuyers and investors are anticipating a further drop in prices. However, despite the dire predictions of the gloom-and-doom crowd, prices have fallen, on average, only about 4% in the past year. With foreclosures and desperation sales available at 20%-30% below market value, is it wise to wait for another 4% or so drop in prices? Or is it better, as I believe, to lock in a strong equity position now, rather than getting locked out later when prices begin to climb again?
If you're thinking about investing in property in Las Vegas, remember that real estate - like politics - is local. While the Las Vegas media tout examples and statistics that indicate a decline in home values, many established neighborhoods in Las Vegas are faring very well in this market. If you invest in the stock market, you're probably familiar with the concept of big movement across a relatively small spectrum. Without factoring in the current low in home sales, the figures look worse than they actually are. With the Las Vegas economy vibrant and growing, our area remains a great investment opportunity.
Development
A quick drive down the Las Vegas Strip reveals why many locals are joking that the crane has replaced the mountain bluebird as Nevada's state bird. Nearly $25 billion worth of major construction projects is due for completion in the next three years. And though many of the projects include casinos, just standing at the corner of the Strip and Flamingo Avenue and observing a few of the largest construction projects in the world will straighten out the misperception that investing in Las Vegas property today is a gamble.
Here is a list of projects currently under construction:
| Under Construction (values in billions) | |
| Project CityCenter | $7 |
| Echelon Place | $4 |
| Cosmopolitan | $2 |
| Palazzo | $1.6 |
| Encore at Wynn | $1.5 |
| Fontainebleau | $1.5 |
| South Coast | $0.6 |
| Convention Center | $0.7 |
| World Market Center | $2 |
| Town Square | $0.7 |
| Airport Expansions | $2 |
| School Construction | $3.5 |
| Power Infrastructure | $5 |
Demographics
Unemployment in Las Vegas is low and an expanding skilled labor force, Nevada's favorable tax structure, and its pro-business environment have helped make Las Vegas the fastest growing metro area in the nation for nearly a quarter-century. More than 50,000 new residents make Las Vegas their home each year; that's a net gain of more than 4,000 people each month. By 2010, this area will be home to more than 2 million people.
People "discover" Las Vegas when they come here to play. Many stay, or return or plan to return later, for the warm climate, the many resort activities, the outdoor recreation, the economic prosperity, and a way of life that doesn't exist anywhere else on Earth. There's no doubt about it: People are moving here now and they'll continue to move here for years to come.
Many experts are predicting that Las Vegas will experience a housing shortage beginning next year.. Tens of thousands of new jobs will be created just in projects already moving forward, to say nothing of those that have received approval and are in the planning stages. All these new jobs will attract an influx of new residents, who are expected to quickly absorb the excess housing inventory. That's great news for sellers. But you need to be a buyer now to be a seller then.
With real estate prices in the temporary doldrums, you're not gambling by buying now. You are gambling if you wait much longer.
