When will the market come back in Las Vegas?

This is a question we are asked all the time! I always reply that my crystal ball is broken, but recently I have been noticing that though sales are still slower than they were in 2004 and 2005, the hectic "golden" years of real estate, they seem to be remaining steady. And the buyers, though still a bit gun shy, are showing signs of returning to the marketplace, impatient to get into home ownership again finally. My personal prediction is that next spring, we will see the Las Vegas homes market totally return to "normal" because of pent up demand plus the influx of both retirees and younger people looking for jobs in all those upcoming casinos.

Guess I am not the only one who thinks so. Forbes recently released its list of top 10 picks of where to buy real estate now based on what it perceives as future trends (see article below), and Las Vegas was on it! So for those weary Las Vegas home sellers, hang in there, better times are coming! And for buyers, better get on the ship now before it leaves the dock and you have to swim for it!

Daily Real Estate News October 9, 2007

The real estate business may be facing a softening in sales, but there are parts of the country where it makes sense to buy now. Forbes magazine examined current home sales patterns and sales projects in the country’s 40 largest real estate markets to identify these attractive markets. Based on models that estimated 2008 housing inventory, sales rates, and turnover, the magazine compiled a list of markets that are experiencing price declines, but where buying looks attractive because there is likely to be an increase in sales in the near future. Here are Forbes’ and Moody’s 10 most attractive cities along with the median homes sales price and their price change from 2006.

1. Fort Worth, Texas: $156,500, 1.7 percent
2. Kansas City, Mo.: $157,700, -0.7 percent
3. Houston: $154,900, 1.4 percent
4. Cleveland: $128,700, -7.1 percent
5. Denver: $255,200, none
6. Long Island, N.Y.: $482,300, 1.7 percent
7. Washington, D.C.: $445,300, 0.3 percent
8. Orlando, Fla.: $265,100, -2.4 percent
9. Phoenix: $264,800, -2.7 percent
10. Las Vegas: $307,900, -3.6 percent

Source: Forbes, Matt Woolsey (10/08/07)

Ruling limits liability on ADA lawsuits

A decision by the 9th U.S. Circuit Court of Appeals on a North Las Vegas case is expected to save developers of apartment buildings from the prospect of serious legal headaches.
A three-member panel of the Appeals Court ruled that builders of Las Vegas multi-family housing cannot be held liable indefinitely for faulty design or construction under the Fair Housing Act. The 2-to-1 ruling supported a reading of the act that says the statute of limitations on such claims begins when the structure is occupied — not when the fault is discovered.

The case began in 2004 when a disabled "tester" from the Disabled Rights Action Committee (DRAG) visited a complex called Craig Ranch Villas looking for violations of the Fair Housing Act. He and DRAG sued the developers and owners under the faulty design and construction clause of the Fair Housing Act.

"Basically, had they won, the liability of the original owners, developers and contractors would be limitless," said Josh Reisman, a Ballard Spahr lawyer who defended the case. "And it was construed very broadly so that everyone involved with the building, throughout its history, could be involved."

There is currently a statute of limitations holding developers and builders responsible for Fair Housing Act violations for two years from when the structure is occupied. The 9th Circuit's ruling is a relief for valley builders, architects and contractors who could have been held liable for faults on any property built after the Fair Housing Act went into effect in 1991. Often apartment complexes change hands multiple times between when they are designed and when they are occupied, leaving previous owners liable but with no control over possible fixes.

Las Vegas already suffers from a lack of affordable housing and builders of multi- family units generally serve that section of the market. Las Vegas homes for sale currently average $286k and many families have been priced out of the market. Had the 9th US Court of Appeals decided in favor of DRAG, there would have been no incentive for developers to build more multi-family units, knowing they could be sued indefinitely.

Slump in Dollar Lures Foreign Investors to Las Vegas

High prices in international housing markets, combined with the weakening US dollar and the current slump in US housing values, have foreign investors taking another look at Las Vegas real estate investments.

Foreign currencies, which have posted significant gains against the US dollar in recent weeks, have international investors eyeing the depressed US housing market looking for bargains investments and affordable second homes. Canadian currency got a boost after a report showed the economy expanded for the third straight month in July. It climbed above $1 on September 20th for the first time since November 1976, and Canadians are flocking across the border.

Gold also broke through to a fresh 28-year high as the dollar hit a new record low against the euro. For the first time since it began trading, the euro now buys one dollar and 40 cents, having started out at almost the same value. In addition, the Pound Sterling hit a one-month high against the softer dollar, peaking as high as $2.0331 in trading.

With the high price of foreign real estate, investors are bargain shopping in the United States to take advantage of the favorable rate of exchange while it lasts. One of the most popular housing areas being scrutinized is the Las Vegas real estate market. Though previously touted as the one of the markets most likely to crash after high appreciation rates, the decline in Las Vegas prices seems to be stabilizing due to the continued steady growth of 6,000 new residents each month and an expanding labor shortage as more of the multi purpose mega projects like the MGM City Center come online. As the labor shortage problem worsens over the next twelve months and as another year of baby boomers hits retirement age, a spike in prices is expected to roll out towards the end of 2008.

But currently prices are still at a three year low with the number of foreclosures to choose from providing a bonanza for those with cash. Las Vegas new homes builders are offering incredible incentives as well in order to move standing inventory so they can go on to new projects. And they are offering foreign nationals favorable financing with 30% down at American lending institutions despite the recent credit crunch. Foreign residents can even obtain financing with 10% down, good credit and local employment.

One of the most popular investments for the international buyer seems to be the mixed use high rise projects going up along the Las Vegas Strip and in downtown Las Vegas. In addition to the luxurious high rises in the MGM City Center and the Cosmopolitan, mid rise urban lifestyle developments like Sullivan Square and Manhattan West are also gaining in popularity. Prices range from the high $200s to over $5 million for some of the penthouse properties, with a wide range in between for preconstruction. And there are some real steals to be had in the burgeoning resale market in developments like Panorama and the MGM Residences where buyers intended to flip quickly rather than hold long term.

To receive assistance negotiating the best deals on Las Vegas Homes or Las Vegas Condos, contact a professional Realtor.