The Las Vegas Housing Market - Blackjack or Bust?

Las Vegas Home Sales

Per the Greater Las Vegas Association of Realtors, home sales in the sin city area increased by 30% in March. Sources indicate a large number of sales were to investors who are buying two to three homes at a time. One investor, Arthur Wong, indicated that the current buyers are looking to hold long-term, unlike the speculators who inflated the market in the first place. February, 2009 home sales in Las Vegas were 80% higher than in 2008. Some landlords are even researching foreclosure rolls to find potential renters to ensure their new investments will produce cash flow, per Camden Property Trust.

Ominous Signs Despite Increased Investor Interest

Despite the increase in sales, prices are declining. The Association of Realtors announced that the median price in March, 2008 was $149,000, down 39% from the year before. The Nevada state legislature recently introduced a measure known as AB I39 which would improve accessibility to low income housing. A similar measure was defeated in 2007 as too costly, but the current measure would be funded from an affordable housing trust fund and not general revenues. In addition to the perceived need for government stimulus or cash advance loans to the housing market, personal bankruptcy filings in Nevada went from 10,632 in 2007 to 18,211 in 2008. This indicates fewer individuals will be able to qualify for home loans. T he mixed use CityCenter Las Vegas complex, a $9.1 billion project including both condominium and retail space, is now in jeopardy as Dubai World filed suit against its principal partner in the development, MGM Mirage, last month. MGM recently obtained a $70 million reprieve from creditors which may ease financial strains on the project. However, if completed, the condominium units would add supply to the strained residential market. The potential for further cheap condominium supply weighing on the market is indicated by the sale offering for the mortgage on Vantage Lofts. George Smith Partners recently indicated it is willing to sell the Note at a discount as the developer is in bankruptcy. ... click here to read the rest of the article titled "The Las Vegas Housing Market - Blackjack or Bust?"