News & Views of Las Vegas

Las Vegas Housing Update

The Las Vegas Review Journal has published its monthly Market Report for the Las Vegas area.  It was reported that Clark County increased its population by about 5,500 residents in June, which is an increase of 18% from the previous month.  The number of people relocating to Clark County has declined 16% from 2007, but Las Vegas relocation is growing again.  With Las Vegas real estate prices still falling, this is a great time for homebuyers who are relocating to Las Vegas, North Las Vegas and Henderson!

According to the Center for Business and Economic Research, the number of existing home sales increased to 2,731, which is almost 5% higher than the previous month; new home sales totaled 777 for the month, which was also an increase.  The number of existing homes reflects the large inventory of foreclosure properties in Las Vegas; it is great to see some of that inventory being absorbed, which will help stabalize the real estate market in Las Vegas.  We do not anticipate the end of the foreclosure crisis until late 2009, or early 2010, at which time prices on resale homes will definitely begin to increase.

Business, Gaming and Tourism

The Nevada Dept of Employment, Training and Rehabilitation reported that the unemployment rate for Las Vegas increased to 4.8%, which is still lower than many other large cities.  Natually, the construction industry’s loss of jobs in the real estate market decline has contributed to the unemployment numbers. The Center for Business and Economic Research Clark County Business Activity Index increased by .71% last quarter.  This index consists of indicators of the overall state of business in Clark County.  This index includes gross gaming revenue, nonfarm employment and taxable sales.  Gross gaming revenue declined due to the drop in tourism over the past quarter. 

The Review Journal “FUN FACT” -  The Consumer Confidence Index increased from the previous month.  The Expectations Index, which measures shoppers’ outlook over the next sx months increased by 2% last month.  This is a great indication of the overall economy in Las Vegas; it is still true that “when the going gets tough, the tough go shopping!.”  We are all optomistic as to the Las Vegas economy.  We expect the real estate market to continue to improve, construction to resume on large mega resort properties and luxury condominiums…and for the Las Vegas economy to thrive!  For any further details from this or any other economic report for the Las Vegas area, call Las Vegas Properties at 1-888-876-8383 or email terrilvp@cox.net. Read the rest of this entry

CITY CENTER ANNOUNCES RESORT CASINO

CityCenter has announced the name of its unique resort casino, scheduled to open in late 2009. ARIA, the resort casino, will form the core of CityCenter, the exciting vertical city that is under construction on the Las Vegas strip, between Bellagio and Monte Carlo resorts. City Center will also feature The Harmon Hotel Spa & Residences; Vdara Condo Hotel; Veer Towers, a residential high-rise; The Crystals, which is a 500,000 square foot retail and entertainment district. CityCenter if a joint venture between MGM Mirage and Dubai World.

AIRA RESORT CASINO

Aria, according to MGM executives, will introduce “a new generation of resort experiences” to the Las Vegas market. ARIA will include two curvilinear glass towers, revealing clean use of natural elements, lush foliage, wood and stone. Open spaces include A three-story lobby and casino, which will fill with natural light. Unique art and interior design will fill the guest rooms and public space.

ARIA will host a collection of lounges, bars and nightclubs; a luxurious spa offering a complete menu of skincare, massage and hydrotherapy treatments, three spa suites designed to accommodate couples’ treatments and small parties. The spa’s balcony will overlook the resort’s beautiful pool.

The contemporary architecture will offer 4,004 guest rooms, including 568 suites. Guest room corridors will open to areas of enclosed glass, providing beautiful views of the Las Vegas mountains and city. The entertainment certerpiece of ARIA will create a production celebrating the musical legacy of Elvis Presely, which is a perfect choice for Las Vegas.

MGM CityCenter is scheduled to open late 2009, and is sure to be the most exciting mixed-use, luxury high-rise condominium development to become part of the Las Vegas lifestyle. There are still condos available for sale; if you would like prices, floor plans and availability, contact Las Vegas Homes and Condos at 1-888-876-8383 or email terrilvp@cox.net. (Scenes and improvements are not within the project, are proposed, artist’s renderings only and NEED NOT BE BUILT. Plans, architectural renderings, specifications, pricing and locations are subject to change without notice. © Project CC, LLC. Unauthorized use of the images, artist renderings, plans or other depictions of CityCenter is strictly prohibited.)

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Las Vegas Summers

When people think of the Las Vegas climate, they think “dry” and “desert.”  We love our weather, with the sun shining about 340 days of the year!  For those of us who moved to Las Vegas from the midwest or northeast, we are thrilled not to face the snow and cold!  Our summers, though, are hot.. we in Las Vegas call it a “dry heat!”  And summers in the desert also bring the “Monsoon” season, when we see rain storms from Mexico during July and August.

Do I Need Flood Insurance?

Many of my clients ask if Flood Insurance is necessary in Las Vegas and Nevada.  While it might not be necessary (meaning that the Las Vegas mortgage company does not require this insurance) it is still a very good idea.  I, personally, am not an advocate of buying unnecessary insurance of any type.  But, having lived in Las Vegas for 19 years and having lived in Tucson, Arizona for 10 years, I always suggest to my clients that Flood Insurance offers great piece of mind.  Las Vegas has added excellent flood control structures and drainage systems during the past 15 years, but those are no guarantee again water damage in a heavy rain.

Homeowners insurance policies have many exclusions; most homeowners never take the time, and cannot understand the insurance jargon to understand what the exclusions mean.  I have found that an insurance company can deny a water claim for any number of reasons and call it “flood damage.”  If your insurance company does deny a claim, it would take too much time, effort and probably a good attorney, to win the argument.  In the meantime, it is up to the homeowner to coordinate and pay for repairs, construction and temporary living accommodations.  So, it is better to be “safe than sorry.”

The National Flood Insurance Program advises that, although you might not live in a “flood plain,” you face the possibility of flood damage during heavy seasonal rains.  Flooding can be caused by rains, drainage systems and failed flood control structures.  The term “100 -year flood” does not mean that there is only a major flood every 100 years. Read the rest of this entry

We are all really excited to see the ongoing development of the MGM City Center on the Las Vegas Strip.  This unique luxury condominium/resort development is scheduled to open fall 2009.  City Center offers an exclusive collection of residences, including a 4,000-room resort, casino, 1,850-seat showroom theatre, spa, fitness center, salon and four pools.  The Crystals is CityCenter’s beautiful retail center, showcasing top brands and high-end couture.   Residents and guests will enjoy a choice of 18 restaurants, 6 bars and cocktail lounges, a nightclub and the CityCenter automated transit system connecting to Bellagio and Monte Carlo. 

MGM City Center offers VDARA - an upscale condo hotel with internaional flair located on the Las Vegas Strip.  This 57-story condo hotel features a unique crescent shape and patterned glass, creating a unique and beautiful design.  VDARA will offer 1,543 residences, open floor plans with unparalled views of the mountains and city.  These condos are fully furnished, delivered to condo buyers as a “turn key” home.  VDARA offers studios, deluxe studios, one and two bedroom residences, studio, one and two bedroom penthouses.  VDARA offers a great lifstyle for a primary or vacation residence.  Floor palns range from 500 to 1,750 squre feet and connecting units are also available.  Amenities include a beautiful pool deck, lobby lounge, destination restaurant, branded salon and full-service wellness spa.  Conference suites are available for executive groups and events for 10 - 250 guests.  Residents and guests will also enjoy the gourmet coffee bar, grocery, fully-equipped fitness center, in-suite dining, banquet and catering services.

To learn about availability and pricing, call Las Vegas Properties.  We will send you a complete brochure and price list of available condos.  Call 1-888-876-8383 or email terrilvp@cox.net.

Scenes and improvements are not within the project, are proposed, artist’s renderings only and NEED NOT BE BUILT.  Plans, architectural renderings, specifications, pricing and locations are subject to change without notice.  ©2006 Project CC, LLC.  Unauthorized use of the images, artist renderings, plans or other depictions of CityCenter is strictly prohibited.

Las Vegas’ McCarran International Airport is the 5th busiest airport in the country.  Since the Las Vegas population has more than doubled over the past 10 years, the North Las Vegas Airport has become a popular choice of private pilots, scenic airlines and tourist airplanes and helicoptors.    Originally, the North Las Vegas Airport was developed to keep smaller, private jets from clogging runways at McCarran International Airport, one of the nation’s busiest airports.  Managed by Clark County Dept of Aviation, North Las Vegas Airport was a conduit for more than 230,000 takeoffs and landings in 2006, making it the second busiest airport in the state. 

Among the amenities offered at North Las Vegas Airport is the 15,600 square-foot terminal, pilot lounge and weather station, discount jet fuel and great location with easy access to I-215 and US 95.  In addition to transient flyers, North Las Vegas Airport has 685 airplanes based in 259 hangars, 66 of which were built through public private partnerships in the past two years.  Tenants or developers typically build the hangars, leasing the land from the county for $.90 per square foot per annum.  The Aviation Dept also shares from 1-5% of the revenue of the 25 commercial operations, which include rental car companies, aircraft maintenance shops and flight instruction schools.  Las Vegas Metro Police and Bureau of Land Management both operate onsite flight support facilities.  Metro is planning to add a 38,000s square-foot facility at the airport within the next 2 years.  The airport employs 30 county workers and is responsible for more than 1,700 private sector jobs in Clark County.  The growth of this airport is another facet of the growth and popularity of the City of North Las Vegas, one of the fastest growing cities in the country during the past 3 years. 

With new Master Planned Communities such as Aliante and the future Park Highlands, as well as the new Aliante Station Resort Casino, the city of North Las Vegas has become a great choice for new residents to buy homes in the more suburban area of Las Vegas.  North Las Vegas is a great place to live!  For a list of communities and city resources, contact Las Vegas Properties at 1-888-876-8383 or email terrilvp@cox.net.

Watching the US Open made me think about how many wonderful golf course and country club communities in Las Vegas. Golfers can buy beautiful homes in these Las Vegas communities for reasonable prices, as compared to other cities in the southwest. Among the country club developments in Greater Las Vegas are TPC Summerlin, Spanish Trail, Canyon Gate, Anthem Country Club, Southern Highlands Golf Club, Red Rock Country Club and Dragonridge Country Club.

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Real estate investors need to be aware of tenant laws in their states.  For example, in Nevada, most foreclosures are by a “summary proceeding” - meaning that termination of tenancy by foreclosure occurs when the landlord is unable to pay his mortgage, or a third party forecloses on a lien or judgement.  According to NVAR General Counsel, Sue Saunders, Nevada Revised Statutes provides a process for evicting tenants when the property ahs been sold or title has been transfered.  And many tenants and real estate brokers are finding that the landlords are not following the basic laws.  Tenants are entitled to a 3 day written notice to quit; this means that they must vacate the property, and many do not understand how the foreclosure process affects them.  There are some exceptions based on when the lease was initiated and when the loan was made on the property.  If you are a tenant, or if you are a real estate agent representing a tenant, the tenant is well advised to seek legal cousel to detemine what rights and remedies they have.  There have been many cases of tenants being given just hours notice to vacate a property, and often unable to get security deposit refunds.  This has been a big problem in cities like Las Vegas, where foreclosures have been widespread.  But property owners who are not facing foreclosure have benefited by being able to place tenants into their properties without concern.  Hiring a professional management company is the best way for an investor to secure tenants and the best way for prospective tenants to find and negotiate a lease on a home.

Las Vegas is hearing some good news about its residential real estate market!  Sales of existing homes have increased, with April showing the first year-over-year increase in more than 2 years.  According to In Business Magazine, there is a six-week supply of new homes.  That is a great improvement, caused by builders offering some great incentives and huge price reductions in their new developments.  Traffic has definitely picked up in the past several weeks, and more potential buyers are now trying to purchase homes, given the new affordability of both new and resale homes.  Most analysts agree that we are “near” or at the “bottom” of the cycle, and expect the market to stabalize late in 2008 or early in 2009.  There is till the effect of so many foreclosures and short sales in this market, but many of those properties are being absorbed, which has a positive effect on the market.  The new jobs being created by companies like MGM City Center, Boyd Group/Echelon and other construction projects will create a stronger housing market next year.   Real estate professionals and experts have varying opinions, but the overall outlook is much more positive than it was at the start of 2008.  So, this is a great time to buy, with interest rates low and prices in Las Vegas at their lowest since 2000.  We can send you a list of new home inventory, including special promotions and incentives, as well as all of the resale properties currently available.  If you’d like to be updated daily as to inventory, pricing and special financing, contact Las Vegas Properties at 1-888-876-8383 or email terrilvp@cox.net.

With the recent decline in the real estate market in Las Vegas, lenders have tightened their underwriting standards and have made qualifying for a mortgage challenging to many home buyers.  For the first time in several years, FHA and VA loans are the most popular in the Las Vegas area.  Buyers are choosing fixed rate loans, as compared to adjustable rate loans, as they see the effects that the adjustments have had on their future payments.  Buyers in Las Vegas are finding it more difficult to obtain financing, but there are some really great loan programs available.  FANNIE MAE has set new guidlines, including a “tier” system used to determine interest rates.  For example, the first “tier” of home buyers with FICO scores of 720 receive a lower interest rate than buyers with lower scores.  This, in addition to other new underwriting standards, are a result of lenders becoming more cautious in areas like Las Vegas, where the appreciation was so great in 2004 and 2005.  Since this is the best “Buyers’ Market” Las Vegas has seen in more than 20 years, prospective buyers should be encouraged by several new mortgage programs available.  Las Vegas Properties can help to direct you to several lenders with programs to fit your needs.  Some of the loan programs include those offered by The Nevada Housing Division, City of Henderson, Clark County School District and City of North Las Vegas.  The City of Las Vegas also offers special mortgage programs.  We can provide details of each of these programs.  Call us at 1-888-876-8383 or email terrilvp@cox.net  and we’ll send you the specifications on each program.  This is the greatest “Buyers’ Market” Las Vegas has seen, so don’t miss this opportunity to buy your home or investment property at reduced prices!

The Cosmopolitan, an upscale high-rise Las Vegas Strip condominium development under construction adjacent to MGM City Center, is facing questions about its future owner.  Construction is continuing, with the general contractor, Perini Building Co. stating that the project will be completed on time.  But the question of who will actually complete this project remains unanswered.  Several hotel and development companies are reportedly negotiating with Deutsche Bank, who provided construction financing, to acquire The Cosmopolitan.  One of the companies, Hyatt Hotels, had previously contracted to be the Cosmopolitan’s hotel operator.  Starwood Hotels and Related Cos. have also been considering involvement in the project.  Located adjacent to the new MGM City Center, this is a great development and sales have been strong since they began 2 years ago.  According to MGM sources, MGM is not considering purchasing this project, as the company would not be able to integrate the Cosmopolitan into the Leadership in Energy and Environmental Design (LEED) certification that MGM City Center is obtaining.  But, those of us who have been in the Las Vegas real estate industry for man years, have no doubt that this property will be completed and will be successful.  We’ll continue to post updates as they are provided.