Las Vegas Real Estate Market Update
With so much media exposure about the decline in the local market, and the effect that sub-prime loans and foreclosures have had on our real estate market, many sellers and buyers are confused about the future of real estate in southern Nevada. Here is the Position Paper written by our Greater Las Vegas Association of Realtors; I hope you will find this information interesting and optomistic!
Why it’s Time to Buy
Position Paper
July 2007
About the GLVAR
GLVAR was founded in 1947 and provides its more than 17,000 local members with education, training
and political representation. The local representative of the National Association of REALTORS®,
GLVAR is the largest professional organization in Southern Nevada. Each GLVAR member receives the
highest level of professional training and must abide by a strict code of ethics. For more information, visit
www.lasvegasrealtor.com.
The Greater Las Vegas Association of REALTORS® (GLVAR) offers the following position paper on
why its members believe it is an ideal time to buy a home in Southern Nevada.
• Mortgage interest rates remain at historically low levels, effectively lowering the cost of buying a
home. It is not clear when interest rates will begin to rise. However, economists and other
experts generally agree that rates are unlikely to fall significantly in the near future.
• Southern Nevada’s economy remains stronger than most metropolitan areas, with steady job and
population growth. According to Las Vegas Perspective, Clark County added more than 96,000
new residents in 2006. This bodes well for the long-term strength of the local housing market.
The Las Vegas valley continues to be a leader in job creation and has one of the lowest
unemployment rates in the nation. Over the next three years nearly 20,000 hotel rooms will be
added to our city, representing approximately 41 billion dollars worth of new construction. Of
course, these economic factors fuel demand for housing and offer more opportunities for
newcomers and existing residents to own their own home. For every hotel room added, the Las
Vegas Convention and Visitors Authority estimates 1.8-1.9 new employees will be needed.
• Recent increases in foreclosures present opportunities for buyers as well. When lenders are
forced to foreclose on a property, they typically are motivated to sell that property as quickly as
possible to recoup their investment. This presents bargains for buyers.
• The unprecedented housing boom of a few years ago may never be duplicated, but Southern
Nevada still offers attractive real estate investment opportunities. Examples include high-profile
residential properties being built as part of MGM MIRAGE’s CityCenter and similar billiondollar
developments on and near the Las Vegas Strip.
• The history of the local housing market suggests long-term growth. More than most markets, the
history of steady housing and real estate appreciation in Southern Nevada suggests the value of
property will rise as long as the nation’s boomtown continues to grow. All markets are cyclical.
But with privately owned land being scarce in the rapidly growing Las Vegas area, history and
the laws of supply and demand suggest that prices will appreciate in the coming years.
• Americans have never been more informed about the housing market than they are today.
However, one byproduct of the well-publicized national real estate boom is the temptation to
view real estate as a short-term investment, similar to the stock market. This perception has had
unhealthy impacts on the housing market. The GLVAR believes buying a home is a long-term
investment and should be thought of that way.
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Posted: September 1st, 2007 under Las Vegas Broker.
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