Shifting Sands in Las Vegas

It seems as if almost every aspect of our national economy (and society) is shifting these days under the weight of a deep and lasting recession. In Las Vegas it is no different and the changes are apparent everywhere you look. A couple of recent events caught our eye because they seem to be emblematic of the fundamental changes experienced by this most unique of all cities. At CityCenter for instance, the master-plan originally called for a couple of billion dollars worth of Las Vegas luxury homes to be sold in the form of high-rise condominiums. This was a very important aspect of the overall financial viability of the development as originally penciled out by MGM Resorts and Dubai World. After only managing to sell a small fraction of the total available units over the past two years, the plan has now shifted to renting with long-term leases of one or two years. This new rental opportunity makes great sense for professionals working on the Strip or corporations looking to secure a business residence right next door to Bellagio, but it's certainly not what the owners of CityCenter originally had in mind. The sands have shifted dramatically in the Las Vegas real estate market and a new approach had to be taken in order to salvage the situation (at least in part). Another recent piece of news that was particularly revealing has to do with the continuing financial struggles experienced by the Cosmopolitan Resort. The property is losing money overall (so surprise there) but the irony of this story is that revenue from the rooms and the restaurants is actually quite strong while revenue from the gaming operations is seriously lagging. Even though this is Las Vegas and people are supposed to come here primarily to gamble, at the Cosmopolitan they love the rooms, the dining and the lounges, but they aren't playing the tables and machines. Who ever heard of that before?

Downtown Las Vegas is Happening

It's amazing how the tables have turned. For over a decade the Las Vegas Strip from Mandalay Bay to the Stratosphere Tower got almost all of the attention as well as the vast majority of investment dollars. Now the action has shifted dramatically as companies and developers rediscover the value of the downtown district. The new 5-block City Hall project (expected to generate 13,000 jobs and millions in tax revenue) is but one of a number of examples signaling the return of downtown Las Vegas. The old city hall complex will be completely renovated by Resort Gaming Group and leased to online powerhouse Zappos as their new corporate campus. The $485 million Smith Center for the Performing Arts is also well under way and the Lou Ruvo Brain Institute is already open and functioning as a leading research center. All of this and more will be part of 61-acre Symphony Park, another spectacular example of the tremendous potential of the downtown area. What is being created here is very much on par with the gas lamp district in San Diego, a true urban renaissance that creates a dynamic that draws visitors, residents and businesses alike. The Las Vegas real estate market is participating in this process as well. The Ogden is already 50% leased and Newport Lofts is now completely sold out. Downtown also has the coolest grocery store in the valley. Resnicks can be found at ground level in the SoHo Lofts building. This "bodega style" urban grocery fits right in with the vibe that makes downtown Las Vegas our next up and coming star attraction!

Two Great Events coming to the Summerlin Community

We spend more time showing Summerlin real estate to our buyer clients than anything else we do. If you live in Summerlin or even if you have spent leisurely time there, you would certainly understand why this is the case. The purchase of a Summerlin home is your gateway to a community rich in culture and full of recreational activities. Here are just two upcoming examples. On Saturday, April 30th the 10th annual Tour de Summerlin will cycle it's way out of the Vistas Community Park. Riders will enjoy the scenic beauty of Red Rock National Conservation Area and choose between routes of varying lengths. This non-competitive event is very popular and pre-registration is strongly encouraged. On Saturday, May 7th it's the 6th annual Summerlin Kids Mix and Ice Cream Festival at the Summerlin Centre Community Park. Thanks to the generosity of Sam's Club this festival features all you can eat ice cream for just five dollars. In addition there will be plenty of games and activities to keep the kids busy and burn up all that sugar!

Las Vegas Real Estate Sales Activity

Momentum continues to build in 2011 as Las Vegas homes continue to be purchased aggressively and in large numbers. March clocked-in as a stellar month with sales of existing homes rising to the highest level in 17 months (5,114 closings). What is going on? It comes down to a simple choice; you can either believe all the doom and gloom about the Las Vegas economy and the Las Vegas real estate market or you can capitalize on a truly outstanding investment opportunity with significant long-term upside potential. Clearly, a good number of people are choosing the latter and doing it with gusto. How much gusto? Believe it or not, 40 to 50% of all residential transactions in Greater Las Vegas are executed on a cash basis. That's right, roughly half of all homes purchased (for over a year now) were straight cash deals. You can't get a stronger vote of confidence than that!

Las Vegas Real Estate Continues to Attract Investors

The Las Vegas real estate market may be ground zero for the nationwide foreclosure disaster, but it is also the prime target for aggressive residential real estate investors from all across the country and all over the world. Despite current economic conditions, large amounts of investment dollars seeking long-term value are flowing like a river into the market for Las Vegas foreclosures. Why would this be so? Clearly the expectation is that as the U.S. economy recovers, Las Vegas will regain it's footing and continue to move forward as a uniquely successful city that draws people (as both visitors and residents) like the magnet it has always been.

Is the foreclosure banking scandal involving all those "robo-signer" issues slowing things down or significantly impacting the transactional process for Las Vegas homes? The answer is absolutely not. The paperwork issues that have landed the banks in so much hot water center around the 23 "judicial foreclosure" states where those paperwork procedures apply. Nevada is one of 27 non-judicial foreclosure states and this latest bank-based firestorm does not really apply to us at all. What then is the driving force that does apply and accounts for the tremendous level of cash-based investor buyer activity? Simply put, at these prices real estate investors can positive-cash-flow foreclosure homes in Las Vegas right from day one. This highly attractive financial incentive is central to understanding why our market is so active.

The Mortgage Interest Deduction Brouhaha

Wow, the president's deficit commission sure knows how to start a public debate with a bang! The proposal to limit the mortgage interest tax deduction received a level of attention commensurate with it's status as one of the costliest deductions in the U.S. tax code. At the heart of the emotionally charged reaction is the notion of home ownership as a cornerstone of the American economic dream. This is a matter of bedrock faith between the U.S. government and the American middle-class family that animates a large portion of U.S. GDP due to the fact that home ownership is so inextricably linked with consumer spending, which constitutes 65% of national gross domestic product. Various leadership organizations in the mortgage and real estate industries immediately predicted catastrophic consequences for the U.S. housing market (and broader economy) if such a proposal ever became law, and they are probably right about this. The foundation that supports consumer spending in all of its forms, from dinner and a movie to the purchase of a new car or home, is consumer confidence. Getting a solid grip on something as ephemeral as confidence in an economy like this is like trying to nail jello to a wall. Viewed from that context, taking a buzz saw to a housing-based tax deduction that most Americans view as a "sacred right" during a housing induced recession of tremendous magnitude ... is probably not the best way to right the ship.

In the Las Vegas real estate market for example, a lack of confidence in our short term economic prospects has lead many to shy away from making a housing purchase even though prices are very enticing. On the other hand, serious real estate investors with positive cash flow goals are being very aggressive about the purchase of Las Vegas foreclosures and seem undeterred by current economic circumstances. This makes clear the complicated relationship between confidence and perspective, which is a function of positional point of view. On balance however, we would have to say that any assault on the mortgage interest deduction would be a serious negative for residential real estate here locally in Las Vegas and more broadly on a national scale as well.

Las Vegas Regains Itself One Step at a Time

For the Michelle Sterling Las Vegas Real Estate Team a big part of our job has been to offer a more balanced and rational longer-term perspective on the highly volatile shorter term events that have impacted our city over the past few years. You may well have read quite a bit in the press of late indicating that Las Vegas, Nevada is down and out for the count. While it is true that we have had our share of economic troubles (along with the rest of the country) the news is not all doom and gloom. Did our local economy take an especially hard hit due to gaming industry dependence on consumer confidence and discretionary spending? Yes, of course. Have Las Vegas foreclosures chalked-up the highest rates in the country? Yes, they have. Does this represent the whole story across all of Southern Nevada? No, it does not. Sophisticated investors (with mature time horizons) from all over the world have been very aggressive about adding Las Vegas homes to their portfolios at current prices despite current conditions. We find that to be both encouraging and instructive for the future.

The Las Vegas Strip is the primary economic engine for our community and therefore the best place to look for clues about what lies ahead. The Las Vegas Convention and Visitors Authority generates a monthly report on visitor numbers and has just released the data for September. Modest yet still encouraging signs continue to point to a moderate recovery for business in the Las Vegas gaming industry. We have just completed seven straight months where visitor volume increased as compared to our 2009 numbers. While it must be acknowledged that the U.S. economy still faces serious challenges and consumer attitudes continue to be steeped in caution, we are seeing modest improvement in gaming-related activity. Although the gains are far from dramatic, this does not make them irrelevant either. Thus far in 2010, 28.1 million people have traveled to Las Vegas, which is 2.4% more than the same period for 2009 ... and more is always better than less.

Mountains Edge Real Estate: Active Participant in the Local Community!

Mountains Edge real estate has been one of the new residential sensations in the Las Vegas valley over the past year. As the community develops, it's becoming more active in hosting and sponsoring various events. Mountains Edge recently teamed up with the Las Vegas Chapter of the Boy Scouts to present the Scouts Character Counts race, a 5K run which helped raise $20,000 for the Las Vegas Boy Scouts. Several Las Vegas home builders at Mountain's Edge also participated and the race drew almost 500 participants. Without question, the event was a success. In fact, the event, now in its fourth year, will be held permanently at Mountain's Edge. The master-planned community of Mountains Edge real estate features more than 500 acres of trails and open space, including six parks. Four elementary schools, two middle schools and a high school are also planned, as are shopping centers and numerous restaurants. MS Las Vegas Real Estate has already spent considerable time previewing Mountains Edge homes and we would be happy to introduce you to this exciting new community. Give us a call at 888-349-2595
www.mslasvegasrealestate.com

North Las Vegas Real Estate at Ardiente

There is a great new choice in North Las Vegas for people who would like a Las Vegas home for retirement purposes. The new community is called Ardiente, and features eight floor plans that range from 1,235 to 2,352 square feet. Prices for this brand new North Las Vegas real estate development start at $284,000. Ardiente will be comprised of 788 North Las Vegas homes and will feature a 13,000 square foot clubhouse with a two-story high fireplace! Residents will enjoy the convenience and security of a guard-gated community that provides easy access to everything Las Vegas has to offer. MS Las Vegas Real Estate would be happy to introduce you to this new age-qualified community of beautiful Las Vegas homes. Give us a call at 888-349-2595.
www.mslasvegasrealestate.com

Summerlin Luxury Real Estate: C2 Lofts

Summerlin luxury real estate takes a distinctive new direction with the introduction of C2 Lofts. The completed development will be comprised of two five-story buildings at the southwest corner of the Las Vegas Beltway and Charleston Boulevard. Buyers have eight floor plans to choose from, ranging in size from 1,400 to 2,800 square feet. Expect a truly urban feel from this unique Summerlin real estate. C2 interiors are seriously cool, with exposed ductwork, expansive windows and ceilings that run from 10 to 12 feet in the single-story units and 20 feet in two-story units. You're definetly not in Kansas anymore. Interior appointments include the usual top-shelf stuff, stainless steel, granite, upgraded fixtures, you know the deal. Prices start from the $600,000s. Both buildings will feature a roof garden, nice for residents to socialize and enjoy fabulous mountain and city views. How's it going? Eighty-five percent of these luxury Summerlin homes have already sold in the first building, but building two is still full of potential. Don't wait long! MS Las Vegas Real Estate can help you put it all together. Call us at 888-349-2595.
www.mslasvegasrealestate.com