Las Vegas Nevada Real Estate Blog

The Las Vegas real estate market, with its share of foreclosures, is a prime market for real estate auctions.  And there are definitely some great “deals” for buyers!  Buyers need to be aware of the potential problems with purchasing homes at auction, and should always have their own Buyers’ Broker representing them.  I am involved in the homes being offered by Real Estate Disposition Corporation, and we have several upcoming real estate auctions scheduled for the Las Vegas area.  So, if you want to know how to buy at auction, call me and I can give you the current list of auction properties and auction dates.  I can also give you my report on the Pro’s and Con’s of Buying Real Estate At Auction.  Call  me today at 1-888-876-8383 or email terrilvp@cox.net.

The Las Vegas real estate market has had its challenges during the past year, but we do see the light at the end of the tunnel!  During my most recent real estate auction on March 23rd, more than 200 foreclosed homes were sold to the highest bidders……some real deals were purchases.  And, as importantly, the standing inventory of foreclosed resale homes was reduced by that same number.  We anticipate another “surge” of foreclosures during the next quarter, after which most of us expect the market to begin its correction.  Activity has greatly increased, and I have seen many more buyers looking and buying homes in this “buyers’ market.”  The luxury condominium market has declined, as several projects have cancelled due to increased construction costs and financing constraints.  New home sales have increased, while developers are offering some great incentives to buyers.  It appears that the worst if almost over, the overall forecast for the Las Vegas economy is positive, given the number of new hotel rooms and commercial construction adding jobs.  I see a great second half of 2008!

North Las Vegas Airport was developed to keep smaller, private jets from clogging runways at McCarran International Airport, one of the nation’s busiest airports.  Managed by Clark County Dept of Aviation, North Las Vegas Airport was a conduit for more than 230,000 takeoffs and landings in 2006, making it the second busiest airport in the state.  Among the amenities offered at North Las Vegas Airport is the 15,600 square-foot terminal, pilot lounge and weather station, discount jet fuel and great location with easy access to I-215 and US 95.  In addition to transient flyers, North Las Vegas Airport has 685 airplanes based in 259 hangars, 66 of which were built through public private partnerships in the past two years.  Tenants or developers typically build the hangars, leasing the land from the county for $.90 per square foot per annum.  The Aviation Dept also shares from 1-5% of the revenue of the 25 commercial operations, which include rental car companies, aircraft maintenance shops and flight instruction schools.  Las Vegas Metro Police and Bureau of Land Management both operate onsite flight support facilities.  Metro is planning to add a 38,000s square-foot facility at the airport within the next 2 years.  The airport employs 29 county workers and is responsible for more than 1,700 private sector jobs in Clark County.

Buyers often ask about the difference between a Foreclosure and a Short Sale.  A short sale implies a late payment status;  the lender(s) accept a price that is less than the outstanding loan(s) and the shortage is forgiven.  A foreclosure is a situation in which the lender has actually taken the property from the owner; the deficiency is not forgiven and, in some cases, the owner is still responsible for repayment of that shortage.  In a foreclosure, the lien is not satisfied.  Although a short sale does have an impact on an owner’s credit rating, it is, in most cases, preferable to a foreclosure.  Short sales require the sale of the property with the permission of the lender(s).  An advisor, acting on behalf of the lender, will review the individual circumstances and negotiate the final sales price.  Circumstances that are considered include job loss, transfer, divorce, medical problems and other unusual situations.  Each case is evaluated on its own merit, with no guarantee that the lender(s) will accept the sales price that an owner has set.  In both short sales and foreclosures, the negotiation and closing process generally takes longer than a traditional purchase.  Buyers considering these types of purchases are best served by dealing with a real estate professional.  Call Las Vegas Properties at 1-888-876-8383 with specific questions about short sales and foreclosures in the Las Vegas area.

By mid 2007, the Las Vegas industrial market reported vacancies below historical averages.  There is limited supply for strong demand for industrial property, causing an increase in lease rates and investment return.  Across the valley, the average rent for industrial space is $.77 per square foot.  During the past few years, land valuations increased up to 50% in some areas, while land previously entitled for industrial uses were converted to more intense uses.  Other sites were developed with freestanding buildings for sale, allowing many investors to purchase industrial properties as part of their 1031 exchanges.  The industrial market totaled more than 93 million square feet of inventory at the close of the second quarter.  Anticipated product to be on line later this year totaled almost 900,000 square feet.  Market demand created a low vacancy rate of approximately 4.4%.  The major markets for industrial growth are North Las Vegas, the airport submarket and within the southwest corridor of the Las Vegas valley.  The most significant change in the Las Vegas industrial market is that nearly two-thirds of all space is greater than 50,000 square feet.  The industrial market is divided into several classifications:  Incubator – 500/1,500 sf with minimal office and 1 roll-up door; Flex space – 1,500/3,500 s.f. with 40$ or more office build-out, 1 roll-up door; Midbay – 5,000/15,000 s.f. divibility, 10-15% office build-out, dock high and grade level loading; Distribution – more than 15,000 s.f. divisibility with 3-5% office build-out, multiple docks and grade level loading; Freestanding – single or dual user.  There are some great opportunities for investors to buy industrial properties at reduced prices in this “buyers’ market.”  For a list of available properties, and for current market values, contact Las Vegas Properties today at www.lasvegasproperties.com

The ongoing mortgage freeze will continue to affect real estate activity in most cities throughout the country, and Las Vegas is no exception.  The private secondary market disruptions were the issue several weeks ago and those problems have had impact on conforming loans.  Mortgage originators are unable to sell “Alt-A” mortgages, which allows for those companies to replenish the cash needed to fund new loans.  With large mortgage companies such as Countrywide Financial freezing mortgages, and other lenders really tightening underwriting requirements, buyers are finding loans to be more expensive and challenging to get.  Down payment requirements are the most significant change realized by most buyers, as there are no longer the 80/10/10 or 8/20 loans available.  Fortunately, with Las Vegas home prices being relatively low, most buyers are still able to secure a loan with a 5-20% down payment.  Las Vegas has realized the effects of the mortgage problems, we have noticed an increase in real estate activity in recent weeks.  Las Vegas is still one of the more affordable real estate markets in the country.  And we DO have mortgage programs available for most buyers.  For mortgage rates and program details, call us at 1-888-876-8383 today!  Don’t miss out on this unusual “Buyers’ Market.”

Multi-family vacancy rates increased this year, partially due to an increased number of single family homes available for rent.  This was caused by a decline in the housing market, fueled by the mortgage problems and substantial inventory of homes for sale.  Many investors bought single family homes in 2000-2003, before the “boom” of accelerated appreciation.  There is an over-supply of homes and condos for rent, which has affected apartment vacancies.  Rental rates have increased, however, to an average rate of $.93 per square foot.  Considering the large commercial projects, resorts, population and employment growth forecasted for the next 5 years, demand for rental properties will exceed supply.  So, this market has a great potential.  The supply shortage, due to fewer apartments being built, will result in strong growth in multi-family market.

Several large apartment buildings have been sold during the past year, resulting in higher rents after renovations have been completed.  All indicators point to a growth in occupancy and rental rates in this market segment.  Call Las Vegas Properties for more details at 1-888-876-8383!

The Las Vegas economy is growing strong!  Las Vegas welcomed more than 33 million visitors in 2007, while average daily room rates increased by 12%.  McCarran International Airport processed a record number of 40.2 million passengers.  The Nevada Gaming Control Board reported statewide gaming revenue for Clark County as a 4% increase.  More than 68,000 new residents moved to Clark County in 2007.  The Retail, Commercial and Industrial Real Estate segments have increased throughout 2007, with more than 7 million square feet of new retail space currently under construction.  The Las Vegas Strip has seen the addition of new resorts, casinos and luxury high-rise condominiums, with several new properties set to open in 2008.  And Clark County welcomed its 2 millionth resident this year!  The Real Estate market is recovering from the recent “slump” with an increase last month in new home sales, new home building permits and an increase in existing home sales. Downtown Las Vegas is experiencing re-growth and renovation, with the development of “Districts” that will completely change downtown Las Vegas.  The vision of involved developers includes the 61 acre Union Park’s The World Market Center, Lou Ruvo Alzheimer’s Institute and Performing Arts Center.  The Entertainment District includes Fitzgeralds, Golden Nugget, Lady Luck and The Plaza casinos.  The Downtown Connector MAX Line is the Las Vegas Monorail’s expansion from Las Vegas Strip to Downtown Las Vegas.

CITY CENTER LAS VEGAS is the newest and largest luxury mixed-use

development to be announced in Las Vegas. MGM MIRAGE is developing

this $7 billion mixed-use luxury missed-use community on the famous

Las Vegas Strip, between the Bellagio and Monte Carlo resorts.

Public sales for condos begin in January, 2007. This property will

feature a 4,000 hotel/casino, two 400-room non-gaming boutique

hotels, including the Mandarin Oriental Las Vegas, 500,000 square

feet of retail, dining and entertainment venues, all surrounding

approximately 2,700 luxury condominium residences. Occupancy is

anticipated for 2009. According to MGM MIRAGE Chairman and CEO Terry

Lanni, “the residential opportunities at CityCenter are diverse, all

catering to the individual, international tastes of buyers who want

the comforts of home, and then some, in the heart of the most

exciting destination in the world.”

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