Saturday, February 16, 2008

Builders Predicting Another Major Las Vegas Boom!

Despite the decline in the Las Vegas homes market over the past two years, even major builders who have been the hardest hit are predicting that the bottom has been hit and another mini boom coming!

Fueling that boom will be the literally tens of thousands of jobs provided in the new mega resorts Fountainbleau, MGM City Center and Echelon as well as the millions of baby boomers set to retire over the next 15 years who are looking for a warm tax free climate. Many have given up on Florida where insurance is prohibitive and Texas where the humidity can be unbearable. Las Vegas' dry climate, $0 state income tax and reasonable cost of living is proving attractive to boomers on a fixed income.

Focus Group, one of the Valley's major land developers, has been intimately involved in acquisition and planning for the successful master planned communities at Inspirada, Mountain's Edge and Kyle Canyon. Focus was very aggressive in its Las Vegas land purchases and is now being forced to look at different avenues for restructuring that debt. Fortunately, Focus has a strong reputation and is in the process of negotiations that should prove fruitful.

Focus actually already had $150 million in sales in escrow for multifamily property, but the buyer was uable to obtain financing which killed the deal. "It all happened after the first of the year," Ritter said. "We would have been fine. We have talked to one of those companies, and it still wants to do the deal, but it can't find the money to build apartments. In 2009 and 2010 there is going to be a huge shortage of multifamily products and also homes, because if you look at the residential market, no one is starting new subdivisions this year. When it starts turning around, we have low interest rates and pent-up demand and much less product in the marketplace. It is going to get very strong here very quickly."

Personally, right now I am looking to buy as much rental property as I can while prices are still at a three year low, and I am advising all my clients to do the same.

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