Economic Conditions for the Las Vegas Valley April 2008

Economic Conditions for the Las Vegas Valley March 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (4/29/2008): Total Listings 21,669; Short Sales: 5270, 24% of all listings; Bank Owned Listings: 3859, 17% of all listings.
• New Home Sales (March 2008, units sold): 869 Year Change -29.3% (excl condo conversions, highrises)
• New Home Sales (March 2008, median price): $259,940 Year Change -18.1% (excl condo conversions, highrises)
• Existing Home Sales (March 2008, units sold): 1899 Year Change -30.7%
• Existing Home Sales (March 2008, median price): $230,000 Year Change: -19.3%
• New Home Permits (March 2008): 391 Year Change -79.9%
• Rental Rate (MLS Monthly Average March 2008): $1342/month 

My analysis: Resale listings are down and pendings are up sharply, absorption rate is turning healthy.  REO listings are in a seller's market.  The Rental Market is turning.  Fire sale prices remain attractive to both long term investors and buyers tired of paying rent.  Distressed listings (foreclosures and short sales) are 42% of total listings.

New Residents/Employment Conditions:

• New Residents (March 2008): 5,378, Year Change -19.4%
• Total Employment (March 2008): 925,500, Year Change -0.3%
• Unemployment Rate (March 2008) 5.6%, Year Change +30.2%

My analysis: The rising unemployment rate concerns me.  Availability of jobs will not keep new residents streaming in to town.  Could be tied to construction jobs lost and lack of home equity money for home improvement services

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (March 2008): 4,120,158 Year Change -1.7%
• Gaming Revenue (February 2008): $865,968,262, Year Change -4.0%
• Visitor Volume (February 2008): 3,495,465, Year Change+2.6%
• Convention Attendance (February 2008): 893,982, Year Change  +15.8%
• Hotel/Motel Occupancy (February2008): 89.4% Year Change -1.0%

My analysis: YAY for rising convention attendance!  All other indicators are fairly stable.  Gaming revenue down 4% should be a slight concern!

Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation