Real Estate Investing In Las Vegas

The Las Vegas real estate market is currently one of the hottest real estate investment markets in the nation and is currently experiencing unprecedented growth. Resale homes are moving at a record high, and new construction eats up an estimated 4 acres daily.

Many factors contribute to this real estate phenom-enon.

The Las Vegas Valley area with no personal or corporate state taxes entices businesses to relocate to the area bringing more employment and higher wages. California businesses in particular, have been noted recently to take advantage of the tax savings and cross the state border into Nevada.

Additionally, Las Vegas is transitioning from the “Gambling” capital of the United States to the “Entertainment” capital. Hotel and Casino operators have in recent years placed more emphasis on both adult and family entertainment. This strategy has proven successful in bringing in more visitors and increasing tourism revenues substantially.

As the economy grows, the city flourishes and the unemployment rates remain one of the lowest in the nation and property values continue to escalate.

Houses that sold as recently as November of 2003 for $190,000 are now going in excess of $300,000 in some areas. Although this may seem to be quite a jump, Las Vegas real estate is still a good value compared to comparable metropolitan areas around the nation.

Each month, the National Association of Realtors track the number of existing homes sold. The average sales price increased 7.3% Nationally over the last twelve months. Las Vegas Valley property has increased 20-60% in many areas in the same time period.

While SalesTraq™ reports six new developments opening this month, they also reported ten developments that have sold out. Builders are selling out Phase Three prior to finishing construction on Phase One.

Some of the larger Developers have initiated a “lockout” on Real Estate Investors by now requiring various restrictions on residency. Investors were able to buy a home for example in Phase Three months before it was completed and turn around and “flip” their investment for a substantial return once it was ready for occupancy. Developers opted to slow pre-sales down and adjust pricing as the market allowed thus retaining more profits for themselves.

Investors are still welcomed by many of the smaller developers and have helped to increase the property value in the existing or resale homes market.

Last month alone, (May 2004) there was a “SALES” activity reported of 5,796 Single Family Residences, 481Townhomes, 661 Condominiums, in Clark County alone.

An estimated 6,000 plus new families per month move to the Las Vegas Valley.

With the population growth and the influx of real estate investors from all over the country, we are in a “Sellers” market and are experiencing a buying frenzy.

It is not at all uncommon to list a property in the morning and have multiple offers that afternoon. Houses often sell well above listing prices in a bidding war.

As a thirteen year veteran in the real estate industry I personally feel the outlook near term is good. With anticipated interest rate hikes, potential home owners are making their move now.

While many analysts predict continued growth through 2008, I expect the current buying frenzy to last at least through the up coming election.

-Rhonda McMillan