The Michelle Sterling Team has just updated our Internet presentation of the Las Vegas real estate market for our Spanish speaking clients. We have updated both our search tools and our textual information to better reflect current market circumstances. In addition, we have added a very informative video that explains the purchase process step-by-step. Please consider referring this new resource to anyone you know in the Latin community that may be interested in Las Vegas homes.

Bienes Raices en Las Vegas

The demand for Las Vegas real estate at current prices is hard to overstate. Desirable Las Vegas foreclosures are attracting 10-20 offers on a regular basis. Las Vegas homes (on a median-price basis) have dropped all the way back to 2002 levels. Are we coming to the end of the housing crisis in Southern Nevada? Have the majority of foreclosure properties in the Las Vegas market been absorbed by the recent deluge of buyers already? Certainly not. This painful unwinding of the greatest speculative real estate spiral in modern history is still a few years away from being fully accounted for and rectified. However, this is still the southwestern United States, and the baby boom generation is just now surging towards retirement in the greatest numbers this country has ever seen. Sustainable demand over the long-term for residential real estate in Las Vegas, Nevada (at prices that reflect economic reality) is something we believe in. Take a look at this recent headline from Reuters…

 NEW YORK, July 7 (Reuters) - Sales of residential homes in Las Vegas, one of the hardest hit regions in the three-year U.S. housing slump, soared to a record high in June, according to published reports.

Sales of single-family homes and condominiums jumped nearly 87 percent to 4,702 in June from a year earlier, the Greater Las Vegas Association of Realtors said on its Web site.

There was a very interesting article in the May 4th edition of the New York Times entitled Where Home Prices Crashed, Signs of a Rebound. The main focus of the piece was Sacramento, California, but the Las Vegas real estate market also received prominent mention. Writing for The Times, reporter David Streitfeld observed… “Indications of progress are visible in other hard-hit areas, including Las Vegas, parts of Florida and southeastern California. Sales in Las Vegas in March, for example, rose 35 percent from last year.”

Readers of this blog know that I believe in the long-term potential of Las Vegas, Nevada as a truly unique metropolis and the long-term value of Las Vegas homes as a solid investment for the long run. Apparently I am not alone in this estimation of the situation. First-time buyers and real estate investors are absorbing our bank-owned inventory at an astounding rate. As of this writing, there are just over 16,000 homes for sale in Las Vegas and an additional 11,000+ properties in pending or contingent status. As you can plainly see, buyer activity is extremely strong. The critical components that make for a bottoming-out in our residential market are well on their way to forming. The Michelle Sterling Las Vegas Real Estate Team is ready to assist those individuals who believe that the time to watch and wait has passed, and the time to seize a historic pricing opportunity has arrived.

Click Here to Read Part I of this Blog Series

It’s not easy to be a new home builder in Las Vegas these days. Las Vegas foreclosures are all the rage with aggressive buyers and it’s difficult for new construction to steal the spotlight and get some attention of it’s own. The only way to compete in our market at this phase in the cycle is price per square foot. New home builders are responding to this challenge by pushing prices down in a wide variety of communities to less than $100 a square foot, in some cases significantly less. D.R. Horton, no doubt feeling the pressure to move product, dropped their prices on new Las Vegas homes by about 50% in January of this year and immediately saw a significant increase in sales. KB Home is offering a selection of new homes in the northwest section of the Las Vegas Valley at close to $80 per square foot.

In addition to promoting the benefits of a 10-year new home warranty, builders are also enticing potential customers with special financing rates, payment protection plans and assistance with closing costs. In addition, many Las Vegas new home builders seem to be focusing intently on first-time buyers that currently rent, and are being especially vocal about the benefits of the $8,000 tax credit. It’s definitely going to be an uphill climb for the new home market in Las Vegas and anything that even begins to look like recovery is still a significant distance away. The recent lifting of foreclosure moratoriums, which is about to significantly increase REO inventory again, won’t help the new home case either. What does it all add up to? Downward pricing pressures across-the-board that continue to benefit buyers of Las Vegas homes.

The level buyer activity that has developed in the Las Vegas foreclosure market over the last five months has been nothing short of astounding. First-time buyers are enjoying prices that have dropped all the way back to 2001 levels. Affordability has returned to the our residential market beyond anything anyone would have imagined even one year ago. Investors (with little faith in stock and bond markets) have zeroed-in on positive-cash-flow opportunities that present themselves for condos, townhomes and single-family homes all across Southern Nevada. How crazy are things beginning to get? I was reading the other day that foreign nationals from the Pacific Rim were being flown-in and transported in large groups by limousine and shuttle bus for what is being presented as a ”Las Vegas Foreclosure Tour”. I’m honestly not surprised by this. When prices drop by 55-60 per cent (in less than two years) in what is still one of the most dynamic and sought-after cities in the world, buyers sit up and take notice, apparently in droves.

The current unemployment rate in Las Vegas, Nevada is the highest it has been in a very long time. At 6.2% we’re actually higher than the national average at the moment, as opposed to being consistently lower, which is normally the case. This temporary condition is already in the process of righting itself and the ramifications for the Las Vegas real estate market are clear. Let’s look at some examples of what can be expected in the near-term future as relates to employment opportunities across Southern Nevada.

First and foremost is the addition to Wynn Las Vegas, aptly named Encore. Hiring has recently begun for 5,300 prized positions at the new Encore resort on the Las Vegas Strip. Encore features 2,034 rooms and is due to open by the end of the year. 

The $675 million Aliante Station, which is scheduled to open Nov. 11, began taking applications for its nearly 1,200 jobs July 6th.

The $1 billion M Resort will begin taking applications in September to fill the nearly 2,000 jobs at the hotel-casino scheduled to open next spring.

The $2.9 billion Fontainebleau is scheduled to begin hiring early next year for the nearly 6,000 workers need for when the property opens in late 2009.

Boyd Gaming Corp. expects to hire 10,000 workers for its $4.8 billion Echelon project, and MGM Mirage expects to begin accepting applications for 12,000 workers for its $9.2 billion CityCenter development early next year.

Las Vegas is a city that just won’t quit and won’t stop growing. This is hardly the first time in its history that Las Vegas has faced challenging economic circumstances in the short run. On every previous occasion, Las Vegas emerged stronger and more successful than ever. This time will be no different. Today’s prices for Las Vegas homes present an outstanding opportunity for buyers with long-term vision.

Military.com recently listed Austin, Mission Viejo and Las Vegas as great places to buy a home in 2008. As usual, it was our local economic profile combined with continued strong population growth. The Las Vegas Strip continues to be the most impressive economic engine ever created. The current oversupply of Las Vegas real estate is being steadily absorbed by a city that refuses to quit. Retirees continue to flock to Southern Nevada as do people looking for a reasonable cost of living, good job prospects and low taxes. We talk to clients every week that are coming to fill new jobs at Project CityCenter and Echelon, just to name two. Las Vegas homes are a sound long-term investment in a city with a sound economic future.

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.

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.