Michelle Sterling’s Blog

The Brookings Institution just released a report on American business competitiveness entitled  “Clusters and Competitiveness: A New Federal Role for Stimulating Regional Economies”. Brookings ranked Las Vegas, Nevada #7 on a list of the nation’s 100 largest metropolitan areas in terms of high concentrations of industries that interconnect to compete more effectively on a global scale. This is exactly what the Brookings authors meant by “clusters”. In the case of Las Vegas specifically, this means gambling, entertainment, shopping and dining industries that are able to compete for tourist dollars world-wide. There can be no question that Las Vegas is doing a highly effective job of competing in this arena.

As a corollary, the Brookings Report also verified that employees in cluster enhanced businesses tend to earn more money than their noncluster counterparts. For example; bartenders, wait staff and maids (just to name a few) that work in world-class Las Vegas resorts are generally earning higher wages than their equivalent in other cities. In fact, from 2001 to 2006, personal income in Las Vegas rose 58 percent, according to the U.S. Commerce Department, more than in Sacramento, (33 percent), Phoenix (42 percent) or Denver (23 percent).

The Michelle Sterling Team is constantly telling the economic story of Las Vegas, Nevada. The foundation of the residential real estate market in Las Vegas is built on a solid economic base that provides a steady supply of jobs. Todays temporary market oversupply notwithstanding, Las Vegas homes have a bright long-term future as a solid investment that provides an outstanding quality of life.

The price inflation bubble that distorted residential real estate nationwide in 2005 and 2006 has been completely erased in Las Vegas, Nevada. Prices for Las Vegas homes are back to 2003/2004 levels as past speculative excess continues to be purged from the marketplace. It’s no secret that we are at the top of the national foreclosure list. The Michelle Sterling Team welcomes this development as positive and healthy for the long-term future of our great city. When hard working people with good paying jobs can’t afford the median price of a home due to rampant speculation and grossly incompetent lending practices, it’s a serious problem. Thankfully, it’s a problem that is being corrected at a very rapid rate, which speaks to the underlying strength and resiliency of our economic system. Are real people experiencing real pain in their lives as a result of this major pricing readjustment? Yes, of course. But there is no way to make the case that a slow and gradual unwinding of a speculative spiral is a good thing. Japan tried that very thing all through the 1990’s with devastating results.

Please take a minute to read this very informative editorial in today’s Las Vegas Review Journal newspaper. The author makes the case that I’ve made myself so many times in this blog…that Las Vegas real estate has tremendous upward potential and today’s heavily discounted housing prices are a tremendous bargain…and a tremendous opportunity!

PLEASE CLICK THIS LINK TO READ THE ARTICLE

Forbes.com recently put together two surveys that potential purchasers of Las Vegas homes might find interesting. The first survey recognized Las Vegas as one of the very best cities in America for what they referred to as “empty nesters”. The second survey dovetails nicely into the first by ranking Las Vegas, Nevada in the #2 spot on the Forbes.com list of “Best Cities for Jobs”. We’re very proud to be recognized in both categories!

What exactly is an empty nester? Forbes.com is making reference to baby boomer parents who move when their last child leaves the family home. Why would empty nesters find Las Vegas to be such an attractive residential destination? The boomers are looking for a vibrant social and recreational environment that also provides a strong economic base. Not necessarily ready for retirement, the boomers are looking for solid employment opportunities that they can combine with satisfying quality of life issues. How attractive is Las Vegas real estate in meeting this criteria?  Between 1990 and 2005 the population of 55 to 64 year-olds increased by 156% in Southern Nevada. People are voting for us with their moving trucks!

Forbes.com also recognizes Las Vegas as having a job-creation economy that is “fundamentally sound” with excellent prospects for bouncing back from the current housing-induced slowdown. Migration to our irresistible city is still running at an impressive rate and construction cranes dominate the skyline above the Las Vegas Strip as never before. Job prospects continue to be highly-attractive and our median income (at $53,000) is well above the national average for major cities (which stands at $48,000).

Please keep in mind that Southern Nevada is home to four outstanding Sun City Las Vegas “active adult” communities. In addition, Summerlin real estate in Siena provides an enclave of golf inspired luxury living as well. The Michelle Sterling Team is at your service as you explore your options once your nest is empty!

RCLCO of Bethesda, Maryland, an independent real estate advisory firm, has just compiled their annual list of the best selling master-planned communities nationwide for 2007. It should come as no surprise that Las Vegas is home to three entries on the Top 10 list. Our influx of new residents continues unabated. Promising job prospects combine with a solid economic base to provide a bright future for people looking to advance their lives. In addition, Forbes magazine just identified Las Vegas as the number one destination for “empty nesters” looking to enjoy life with a broad range of recreational choices. Let’s take a look at the three communities that made the list!

Mountain’s Edge real estate took the #1 spot on the nationwide RCLCO Top 10 list. Located in the southwestern section of the Las Vegas Valley (right next door to Southern Highlands real estate), Mountain’s Edge scored 1,740 net new Las Vegas home sales in 2007, nearly double the sales of the survey’s #2 ranked master-plan (in Phoenix). At complete build-out, Mountain’s Edge will be comprised of 14,500 residential units, four elementary schools, two middle schools and a high school. Shopping and dining venues are developing throughout the community at a rapid rate. The centerpiece of the community is Exploration Park, an 80-acre western themed recreational facility with activities for everyone to enjoy.

Providence real estate took the #5 spot on the Top 10 list. Located in the northwest section of the Las Vegas Valley, Providence makes its debut on the annual list with 726 net home sales in 2007. Last year marked Providence’s first full year of sales as the community officially opened in the summer of 2006. At complete build-out, Providence will provide approximately 7,500 Las Vegas homes in various sizes and styles. The community plan calls for two parks and 10 miles of trail systems, as well as two elementary schools and one middle school. 

Summerlin real estate occupies the #8 spot for 2007 on the RCLCO Top 10 sales list. The Summerlin master-plan spent almost a decade at the very top of the national rankings (in the 1990’s) and one tour of the community is all it takes to see why. Summerlin is set against the stunning backdrop of Red Rock Canyon National Conservation Area and is well known for outstanding outdoor recreation opportunities. Home to nine outstanding golf courses and over 150 miles of scenic trails for walking, jogging and biking, Summerlin is nationally known as one of the most beautiful and functional residential communities ever designed.

The Michelle Sterling Las Vegas Real Estate Team is at your service should you have any questions about these nationally recognized communities. We’re ready for your call at 888-349-2595.

Los Angeles Times reporter Peter Hong posted an article in the April 8th edition that poses important questions about the market for Las Vegas luxury real estate. With extensive growth in both volume and opulence in this segment of the market in recent years, you may be surprised at what it takes to be a cutting-edge luxury home in Las Vegas! Michelle was joined by fellow team member and luxury specialist Michael Antos in assisting with the research for this article.

“Just as casinos on the Strip compete fiercely to be the prime destination — and seldom hold that distinction for more than a couple of years — houses and entire neighborhoods are quickly eclipsed by flashier newcomers.”

Click here to read the entire article

One of the unfortunate side effects of the foreclosure wave in Las Vegas is the damage done to pets when people are forced to leave their homes. Animal shelters in Las Vegas are simply overwhelmed by the deluge of “foreclosure pets” that need a new home. The Las Vegas Review Journal recently ran a story highlighting the plight of these innocent victims and profiled a real estate agent with the heart and dedication to make a difference. We are so proud that Linda Pelaez is a member of the Michelle Sterling Las Vegas Real Estate Team. Take a moment to read this important article by RJ reporter Sonya Padgett…and you’ll understand why.

“Prudential Americana real estate agent Linda Pelaez has a reputation as a problem solver. When other agents go into a foreclosed home and find an abandoned pet, they call her because she knows what to do.”

Click here to read the entire article

Residential real estate in Las Vegas continues to be a very strong Buyer’s market. At present, there are 3,521 single family homes for sale in the Greater Las Vegas Valley under $200,000. What level of opportunity does this present for you? Take a look for yourself !

Centennial Hills Home - Built in 2004, 1545 sq ft, 2 beds, 2.5 baths, 2 car garage, granite counters, tile flooring

Sold for $242,800 in August of 2004……Bank Owned and Listed for $163,900 !!

Summerlin Real Estate - Built in 1999, 1134 sq ft, 3 beds, 2 baths, 2 car garage

Sold for $285,000 in May of 2006……Now Listed for $200,000 !!

Southeast (St Rose & Eastern) - Built in 2005, 1619 sq ft, 3 beds, 2 baths, granite counters

Sold for $300,000 in July of 2005……Bank Owned and Listed for $199,900 !!

Southwest (Blue Diamond & Jones) - Built in 2004, 1723 sq ft, 3 beds, 2 baths, 2 car garage, granite counters, lots of upgrades

Sold for $318,500 in March of 2006……Bank Owned and Listed for $199,000 !!

Madeira Canyon Real Estate - Built in 2006, 3800 sq ft, 6 beds, 4 baths, 3 car garage, pool & spa, granite counters, cherry cabinets, upgrades galore

Sold for $532,430 in March of 2006……Bank Owned and Listed for $389,500 !!

Sun City Aliante Home - Built in 2004, 1570 sq ft, 2 beds, 2 baths, den, 2 car garage

Sold for $380,000 in September of 2005……Bank Owned and Listed for $184,900 !!

What……Exactly……Are You Waiting For ?? 

The Michelle Sterling Team is 110% prepared to provide extensive research and aggressive negotiations that will ensure your full participation in this phenomenal Las Vegas real estate opportunity !

Some very smart purchases are being made in the Las Vegas real estate market because savvy people know that the best time to make your move is when the news is really bad and everyone is scared and confused. Case in point; the market for single family Las Vegas homes between 150 and 250k is on fire! Don’t be so surprised. Aggressively priced properties in this price bracket are receiving anywhere from two to ten offers on a consistent basis. Savvy buyers are thinking rationally and taking action. It’s just that simple.

The truth is, it’s time to get serious about taking advantage of the opportunity to own real estate in Las Vegas. At any given phase in your life, you can always scare yourself into not doing something for a multitude of reasons, and this situation is no different. But before you accept that attitude as economically prudent, take a minute to read this recent article by Dan Kadlec from Time Magazine. The piece makes some very valid points that you might want to consider going forward.

http://www.time.com/time/magazine/article/0,9171,1713483,00.html

By the way, FHA loan limits have just been raised to $400,000 in Clark County as part of the new economic stimulus plan. Are we killing you with all the good news? Give us a call at 888-349-2595 and we’ll dish out more!

I find it elucidating that major financial players world-wide continue to bet their investment dollars on the future of Las Vegas, Nevada. In the 21st century global economy, financial assets flow like water across entire continents, always looking for the highest rate of return. Why is it that mountains of global investment dollars end up electronically transferred to a patch of desert in the Southwestern U.S.? The answer is very clear; Las Vegas is a truly global city with some of the strongest economic potential on the face of the earth. It’s just that simple. What does this mean for residential real estate in Las Vegas as we move forward from current conditions? Let’s return to that question in just a few minutes…

Just this past week, the new owners of the Sahara Hotel received approval from Clark County Commissioners to renovate and expand the property extensively. Los Angeles-based SBE Entertainment Group and private equity firm Stockbridge Real Estate Funds of San Francisco plan to build a new 520-foot hotel tower (with 1,000 rooms) in addition to renovating both existing high-rise hotel towers. Upon completion, the new Sahara will provide 2,506 ultra-modern rooms and some of the hippest restaurants, lounges and clubs on the Strip. Expected date of completion? Mid to late 2011.

The Goldman Sachs Whitehall Street Real Estate Fund recently announced the purchase of The Stratosphere Hotel and Casino (plus additional properties) for $1.3 billion. The deal also includes 17 acres that surround the Stratosphere, which provide the obvious opportunity to enlarge the facility. With the next wave of Strip development occurring at the north end, the attraction of the purchase is clear.

Zabeel, an investment house controlled by Dubai Holdings (a Dubai government conglomerate) has just sealed a deal to purchase a 50% stake in Las Vegas-based Light Group, an operator of upscale restaurants, nightclubs and the new ultra-exclusive Harmon Hotel at Project CityCenter. Believe me, Zabeel could have spent their money anywhere in the world. They didn’t bring it to Vegas for no reason.

Australian casino company Crown Ltd. has just spent $414 million for minority stakes in Harrah’s Entertainment Inc. and Station Casinos Inc., diversifying its investments in the Las Vegas economy yet further. Crown also holds a 19.6% equity stake in the $2.9 billion Fontainebleau Las Vegas project, which is scheduled to open on the north Strip in 2010. Just in case you’re not sufficiently impressed, Crown Ltd. also paid $1.8 billion for Cannery Casino Resorts (a company that caters almost entirely to Las Vegas residents) last December.

These are just a few of the most recent examples of global investment dollars flowing into the Las Vegas economy. Now, back to our original question…what does all this mean to the market for Las Vegas homes? Quite simply, houses in the hottest city in the world are suddenly (very) attractively priced due to an unsustainable buying frenzy (fueled by absurd lending practices) that threw the supply/demand balance completely out of whack…for now.

Ask yourself this question; if Las Vegas is a solid long-term investment for SBE, Goldman Sachs, Zabeel and Crown Ltd., might it be a good place for me to stake a claim as well?

**The foreclosure problems in Las Vegas stem from the unaffordable terms of the mortgages themselves, rather than from local economic conditions** CNN Money.com

The current state of the Las Vegas real estate market represents a tremendous opportunity for savvy buyers that understand fundamental value based on local economic strength. The Michelle Sterling Team is aggressively negotiating outstanding deals on behalf of clients every day.

Want a piece of the action? Give us a call at 888-349-2595.

Inc. Magazine recently named Las Vegas, Nevada the Number One Large City for Doing Business in 2007. This is the second year in a row that Inc. has ranked Las Vegas #1 for the “Top 20 Large Cities for Doing Business”. What did Inc. have to say about the continued dominance of the next major American metropolis? “Past boomtowns like Las Vegas are still…booming”. We couldn’t have said it better ourselves!

The fundamental basis of the Inc. ranking process is the strength of competing local economies. How robust is the growth that’s occurring? What does the employment data say about present conditions and future prospects? How broad-based is the economic activity and where is it heading? What do the mid-term (5 year) and long range (10 year) data patterns suggest about the future business potential of a given metropolitan area?

By all relevant measures, Las Vegas comes out on top as the best major city in America for business success. The Michelle Sterling Las Vegas Real Estate Team works with clients on a continuous basis that are seeking to establish a new business (or relocate an existing one) in Southern Nevada. Our extensive experience is an important asset to your economic future as you stake your claim in the Nation’s Capital of Economic Opportunity!