Las Vegas Real Estate - Media Slow to Report Good News

It has long been my contention that the national media created both the real estate boom of 2004 and 2005, and then the real estate bust in 2006 and 2007. But unfortunately, bad news sells better than good news, and so the busts tend to last longer. Buyers are timidly trying to come back into the market, yet every new article about the sad shape of the economy makes them wonder if the time is right. Locally, the big question is: When is the Las Vegas housing market going to turn around? Sales of existing homes have picked up this spring, dropping housing inventory to a thirteen month supply, and in April the market had its first year over year increase in more than two years. The number of single family Las Vegas homes for sale rose for the fifth consecutive month to 2,206 in May, a 29.2 percent increase from a year ago. Applied Analysis, a Las Vegas-based financial consultancy, listed less than 22,000 homes in the resale inventory as of June 2, the lowest total since February 2007.

The number of contingent and pending sales has been escalating since the beginning of the year. About 45 percent of contingent sales have been identified as "short sales," or sales in which the lender will agree to accept less than the mortgage balance owed against the property as well as Las Vegas foreclosures. But local Las Vegas real estate agents are reporting multiple offers on homes under $225,000, reminiscent of 2004 when buyers were lucky to have two or three homes to choose from. Jackie Goodman, an agent on our team with Prudential Americana, started out with 21 homes from the MLS system last week to preview for her client, and 18 already had offers in on them waiting for final seller approval! Jackie had to start all over again to find enough good properties to show her client who was discouraged that her favorites had already sold.

And we are getting this type activity despite the “experts” who declare Las Vegas will see a 30% decline in the next few months. Are prices down? Yes, of course they are. But with the strong job growth and ever increasing population coupled with a steadily diminishing supply, my own personal prediction is that we will start to see actual appreciation in early 2009.

And fortunately the Fed is cooperating by keeping interest rates down near all time lows, even though credit restrictions are limiting the Las Vegas mortgages programs buyers have to choose from. Right now FHA is the most popular choice as purchasers that are buying a primary residence can still do a version of 100% financing through the Nehemiah program where the seller contributes 6% for down payment and closing costs.

So if you are wondering if now is the time to buy Las Vegas homes, well, they don’t ring a bell when the market hits bottom, but all the signs are there. And if you are trying to sell your home, hang in there, baby, better times are ahead as the market comes around to being more balanced!

Age Restricted High Rise Condos Coming to Las Vegas?

Las Vegas is a retirement haven for the up and coming baby boomers. Clark County already boasts four large Las Vegas Sun City communities as well as a plethora of smaller age restricted neighborhoods. Prospective residents are looking for three things: no state income tax, warm weather and a sustainable cost of living. Florida, Texas and Nevada are the most popular states with no state income tax that retirees are considering.

Because of hurricane damage over the past few years Florida's insurance rates have gone through the roof and a monthly insurance payment can equal or be higher than the monthly mortgage payments. In Texas annual state property taxes are almost three times that of Nevada, though the average sales price for homes is a bit less expensive. That leaves the Las Vegas real estate market as the clear cut winner to date.

One of the reason the existing Sun City developments have been so popular is the amenity rich activities being offered: resort style pool and spa areas, business centers, workout facililties, restaurants, wellness centers, golf courses and social clubs. But population demographics are rapidly shifting, and now across the country many Sun City homeowners are ready to forego that single family retirement home in favor of a low maintenance lock-and-go condominium with nearby/on site medical facilities.

As of yet, there are no age restricted high rise condos in the country's most popular retirement area, Las Vegas, though there is one mid rise in the popular Sun City Anthem development in Henderson. So where are the adult age restricted Las Vegas high rise condos?

One progressive Las Vegas developer has been listening to pent up demand, and is currently working on plans for a multiple tower project that would incorporate the city's first adult high rise condo towers. This upscale community would be located in the center of town within easy commute to the Las Vegas Strip and adjacent to a major hospital. Plans call for almost every unit to have a fabulous Strip view and all would come standard with every luxury upgrade imaginable, including granite, flat screen TVs and state of the art communications equipment. In addition to the usual amenities like fitness centers and spas, this multi use development would also include on site dry cleaners, restaurants, postal services, boutique grocery shopping, coffee shop, cleaning services, plus a few new tend setting twists that should prove extremely popular. Innovative building design should keep costs considerably below existing high rise projects so that the majority of current Sun City occupants from across the country would find them affordable.

Flloor plans, exact pricing and more details on this adult high rise project will not be available until sometime in early 2009 with estimated construction to be completed on the first towers in 2010. If you would like to be placed on our priority list to receive further information as it becomes available, please register online at: Las Vegas Adult High Rise Condos Or call us at 702-985-7654. The Tonnesen Team of Prudential Americana Group Realtors is proud to announce that the developer has chosen Prudential Americana to market the sales of this unique property. Stay tuned to this blog for more info!

Las Vegas Golf Courses - More Frugal with Water than Homeowners

Since Las Vegas is now a golf destination, I thought it was appropriate to post this letter to the editor of the Review Journal. The owners of Las Vegas homes have been complaining about the recent rate increases on water. For our Las Vegas golf course communities, this rate increase is even more expensive, raising HOA dues and golf membership dues.

To the editor:

After reading Jason Wagner's Friday letter to the editor, which criticized the Review-Journal's April 20 feature on the best 18 golf holes in Las Vegas for highlighting water waste by golf courses, I feel it is important to present the facts regarding water usage and Southern Nevada's golf courses.

First and foremost, the golf industry adds almost $1 billion each year to the Nevada economy.

Golf is an integral part of any resort destination throughout this country or abroad.

Golf courses use less than 8 percent of the valley's water, and that number is shrinking due to technological advances as well as superintendents' vigilant water management. Golf courses have removed 500 acres of turf, or the equivalent of five full-size courses, in the past few years, utilizing the Southern Nevada Water Authority's Water Smart programs. Golf courses are simply the most efficient water users in any water use category. We utilize the most advanced computerized control systems in combination with on-site weather stations to adjust our water usage 365 days a year. Water is golf courses' No. 1 cost of doing business, and therefore it is imperative that we manage our water efficiently.

Golf courses spend considerable staffing resources to manage this precious and expensive liquid. An average golf course will have two to four employees whose full-time job is to manage water. The rate increase recently passed by the Las Vegas Valley Water District, which will mean an increase to an average homeowner of a few dollars a month, can mean an additional $200,000 annually or more to a golf course's bottom line. With most other business costs skyrocketing as well, we cannot pass these increases onto our customers.

Golf courses are not green because they waste water. We fertilize correctly, we airify turf correctly, we chose the correct type of turf grass, we water correctly, and we have highly trained staff to identify and fix irrigation problem areas immediately. We apply wetting agents correctly. These are expensive chemicals that help the water to penetrate our poor desert soil, or help it hold on to moisture longer.

Golf course superintendents have worked closely with the Southern Nevada Water Authority to develop water budgets for golf courses to follow to reduce water usage during this period of drought, and have significantly reduced water use along with homeowners.

The golf course industry in Las Vegas is a critical part of our tourism machine, and we must not cause irreparable harm to a huge part of our already shaky economy without looking at the facts.
P.J. McGuire
LAS VEGAS
THE WRITER IS PRESIDENT OF THE SOUTHERN NEVADA GOLF COURSE SUPERINTENDENTS ASSOCIATION

To find out about how to purchase Las Vegas foreclosures in one of our beautiful golf course communities