Spring Has Sprung!

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Spring is in the air and as temperatures rise, all segments of the Las Vegas real estate market continue to heat up!

While numbers have held relatively steady over the last six months, supply is dwindling, further driving up prices in the residential market. Properties priced correctly in Summerlin, Southwest, and Henderson are garnering multiple offers.  North Las Vegas properties are selling much faster as well, as a result of the buzz regarding Faraday and other companies moving into Apex. Good luck finding any properties under 200K in good areas!

Having a Mayor that is committed to the recovery and success of the City is also assisting with the strong market.

If you are on the fence about purchasing, now is the time to make a move as interest rates are still well below historic averages and we are still a year or so away from the top of the market.

Single Family Rental market

Currently, there is a 3 week supply of single family rentals on the market, today. This lack of supply is not only driving up rent prices and but also decreasing overall vacancy. We expect these rental rates to peak relatively soon as affordability declines. It will be interesting to see what happens when 6,000 multifamily apartment units hit the market in the southwest part of town. New apartment rents per sq ft are up to $1.60 to $2.00 psf, which is much higher psf than single family dwellings.

Residential Sales

There is a 2.77 months supply on all single family homes in Clark County. Homes under 300K have a 1.74 months supply. A normal market is 6 months. The median price excluding new homes for single family is 209K. At the top of the market it was 319K.

Where Are We Now and Where Are We Headed?

Currently, we are still 20% below the top of the market on homes under the FHA limit of 287K. Homes priced over 300K should remain flat, depending on location. These forecasts, however, are dependent on the global market and interest rates.

We are still in expansion mode, until supply rises along with vacancies. While we believe we are a year or so out from the top of the market, there are many factors that could change the current landscape. 2016 is an election year and I don’t anticipate too much of an impact this year but if the new administration raises capital gains taxes, it could have a negative impact on real estate. Interest rate hikes and the global economy are the only other factors that could negatively affect the market.

Commercial Real Estate

Land prices continue to slightly increase as demand grows for residential, multifamily, industrial, and retail. Office zoned land is the only segment that is lagging behind as we are still absorbing existing space and not seeing much new development. The last BLM auction in April netted the highest sales volume in years, with 846 acres sold for a little over 95MM.

Multifamily continues to strive with several notable deals trading in the first quarter; most notable was the Camden portfolio for 630MM for 4,918 units. This was one of the largest transactions for apartments in the history of Las Vegas. Lyric Apartments also traded for 65MM which was $173,803 per unit.

In the first quarter, the industrial market absorbed over 916,804 sq ft of space, while vacancy rates dropped to 6% from 6.5%, last year. In prime areas, industrial land prices have soared to over 500k per acre and several projects are currently under construction.

Similar trends were seen in both the office and retail markets.  During the first quarter of 2016, the office segment absorbed 169,000 sq ft  and vacancy rates dropped to 18.4% from 19% in late 2015.  Retail absorbed 406,173 sq ft, with Q1 2016 vacancy at 8.2%, down from 8.7% in Q4 2015.

For more specific analysis or for a free Brokers Price Opinion on your property, please contact Antone Brazill at 702.434.0091 or visit Brazill Team Real Estate.

Thank you for your business and have a great summer!
Antone Brazill

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Leaving Las Vegas: Camden Property Trust Sells Entire Nevada Portfolio to Oaktree/Bascom JV

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Camden Property Trust has done what few gamblers are able to, the REIT has officially left Las Vegas with a lot of money!

The company began its first quarter earnings conference call with Faith Hill singing Lets Go to Las Vegas and ended it with Sheryl Crow singing Leaving Las Vegas. The musical bookends signalled to investors that the company has officially exited the Las Vegas marketplace.

“The 18 years covered by those two song titles represent our tenure in Las Vegas which came to a close this week. It’s been a great ride,” said Richard J. Campo, Camden chairman and CEO.

The day before the earnings call, Camden completed sale of its Las Vegas portfolio as part of the REIT’s capital-recycling initiatives. The portfolio included 15 communities with 4,918 apartment homes, a retail center, and 19.6 acres of undeveloped land.

The buyer is a partnership between The Bascom Group and Oaktree Capital Management, a joint venture that has recently been teaming up on apartment purchases. The joint venture paid $630 million for the 4,918 apartment unit portfolio, roughly $125,000/unit.

CamdenLogo_calogo1321The communities in Camden’s Las Vegas portfolio were built in the 1990s. The properties reported a combined average occupancy of 95% in the first quarter with average rents of $874/unit.

Camden decided to cash out its Las Vegas assets after remaking the balance of its portfolio, Campo explained. The Las Vegas apartments are roughly twice as old and had monthly revenue of roughly $500 per home less than the balance of its portfolio.

“We have consistently sold older, non-core properties and replaced them with more current and competitive properties,” Campo said. “This effort has increased our revenue per apartment from a $1,042 per month to $1,566 per month.”

“We’re not calling a top to the multifamily market with our sales,” Campo was quick to add. “We’re simply taking advantage of the market opportunity to improve the quality of our properties, reinvest in development on a significant cash-flow positive basis, pay down debt, and return capital to shareholders.”

Camden currently has no other single market portfolio of apartments averaging the rents/home that Las Vegas was getting. Its next lowest market would be Raleigh/Durham where it owns eight communities with 3,054 units averaging $1,002/unit rents.

For more information on the sale, see CoStar Comp #3578091.

Camden’s Las Vegas Portfolio Sold 
Complex — No. of Units — Rent/home
Camden Palisades — 624 — $773
Camden Del Mar — 560 — $1,032
Camden Bel Air — 528 — $790
Camden Tiara — 400 — $965
Camden Commons — 376 — $851
Camden Vintage — 368 — $776
Camden Breeze — 320 — $820
Camden Fairways — 320 — $957
Camden Pines — 315 — $913
Camden Pointe — 252 — $801
Camden Summit — 234 — $1,192
Camden Canyon — 200 — $965
Camden Hills — 184 — $555
Camden Cove — 124 — $781
Camden Legends — 113 — $876

SOURCES:
Camden Property Trust
http://www.costar.com/News/Article/Leaving-Las-Vegas-Camden-Property-Trust-Sells-Entire-Nevada-Portfolio-to-Oaktree-Bascom-JV/181797

Las Vegas Real Estate Rebound Continues as Most Southern Nevada Land Sold in Single BLM Auction Since Height of the Local Market

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The Las Vegas real estate market continues to show signs of improvement as the Federal Bureau of Land Management recently sold its largest amount of land in a single auction.  In the auction, which was held inside the Clark County Government Center, the agency auctioned off 818.7 of 856.2 acres it put on the market.  This was the largest sale since Southern Nevada’s boom era.

The 34 parcels sold for a total of $94.5 million, or 10.7 percent more than the $85.4 million total starting price tag on all 39 available lots.

Auction winners included names that have become familiar since the competitive oral auctions resumed in January 2014.  Homebuilder, American West Development, bought 37.5 acres for $7.6 million and another big, local homebuilder, Lewis Investment Co. of Nevada, picked up 77.3 acres for $23 million.  The Roohani family, which owns development companies and has been amassing a land portfolio partly through the auctions, also bought several parcels.

The biggest parcel sold was a 247.6-acre plot at Hollywood Boulevard and Cheyenne Avenue. The land was listed for $1.85 million and sold at that amount.

This site has been on the auction block several times in recent years but hasn’t had much luck getting out of the development gate. A limited liability corporation called Sao Tome bought the land at auction in May, but records with the Clark County Assessor’s office show the entity never closed on the purchase. Secretary of State records don’t list the company’s officers.

The land’s development barriers include a gravel pit, mineral rights that belong to a third party, and a location inside Nellis Air Force Base’s live-ordnance loading area.

Vision Commercial One, which lists former Focus Property Group and current Colliers International Senior Vice President, Vince Schettler, as its manager, bought the land.

Vision Commercial One also bought two other parcels: a 2.5-acre piece at Johnson Street and Gary Avenue, for $525,000, and a 140-acre site at Larson Lane and La Cienega Street, for $12 million.

The auction was the biggest since the November 2005 sale of more than 2,900 acres across the Las Vegas Valley.

Sale proceeds go to the state’s education fund, the Southern Nevada Water Authority, public parks, and the purchase of environmentally sensitive land. Past auctions have funded the $25 million renovation of Lorenzi Park, as well as the visitors’ center at Red Rock Canyon National Conservation Area, outdoor features at the Las Vegas Springs Preserve, and amenities at Lake Mead.

For more information about the Las Vegas real estate market, or to discuss investment opportunities, please contact Brazill Team Real Estate.

Source: http://www.reviewjournal.com/business/economic-development/most-southern-nevada-land-sold-single-blm-auction-boom

Las Vegas Real Estate Market Snapshot, January 2016

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Happy New Year! Thank you for making 2015 another record year for Brazill Team Real Estate!  We appreciate you and your business.

We are optimistic that 2016 is going to be another stellar year! Based on the transactional volume the last few months and what is currently in the pipeline, we believe this will be another strong year for our market.  While real estate generally tends to slowdown in the months January and February, this does not appear to be the case this year.  In fact, the current market is reminiscent of 2005 and 2006 as construction is booming, unemployment is down, and the economic indicators for Las Vegas are up. Hopefully we do not soon forget what happened in 2008 and can take a responsible approach on lending and spending.

In the final quarter of 2015, numbers in the residential real estate market remained relatively flat, with the exception of average days on market which now is at 113 days, a slight increase from the 90 days reported last quarter. The median list price is $270k (flat) and average asking price per sq. ft. is $127, a slight increase.  While it is a sellers’ market, we believe pricing is a little optimistic, as thirty five percent (35%) of the sellers have had to reduce their price to get offers.

The median sales price of existing homes is $220k, a 6% increase over last year.  As such, the difference between the list price and sales price is $50k. The median sales price for new Las Vegas homes is $316k, a 40% difference than resale value, the highest difference in the nation. Based on these numbers, we anticipate either resale prices will increase or new home prices will decrease, as the normal spread is 15%.

Overall, the residential market is continuing to improve, a trend that will likely continue through 2016. The commercial market, however, remains in recovery in all segments -with apartments leading the way.

For more information about the current state of the Las Vegas real estate market, or to discuss buying or selling your real estate, please contact Stacy or Antone Brazill via phone, 702-278-3886, or visit The Brazill Team online at www.thebrazillteam.com.

This Las Vegas Real Estate Market Report was compiled by Stacy and Antone Brazill, The Brazill Team.  This report was developed using data from various industry reports as well as the Brazill’s vast knowledge of the local marketplace.  Stacy and Antone Brazill have worked in the Las Vegas real estate market for decades and their agency is deeply experienced in all facets of traditional and investment real estate including Multi-family, Land, Office, Retail, Industrial, Residential and Development. 

For questions regarding this report, or to obtain additional information about current Las Vegas real estate opportunities, please contact The Brazill Team at 702-278-3886 or visit their website, www.thebrazillteam.com.

Zillow: The (In)Accuracy of Zestimates® & Why You Still Need a Real Estate Professional

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We admit it; one of the greatest evolutions in real estate over the last decade is the power of the Internet!  In fact, according to some, more than 90 percent of homebuyers begin their real estate search on the Internet.  We applaud this evolution, we would even go so far as to admit it’s great!, as it empowers buyers to do their own property research and searches.  However, we advise prospective buyers and sellers to beware!

While real estate websites such as Zillow offer an array of helpful information, they also offer data, information, and estimates (or “Zestimates®”), that are highly inaccurate and often outdated.  For example, Zillow’s “Zestimates®,” use an “automated valuation model” — AVM for short — that purportedly present a great estimate of the current market value of millions of homes.  It’s innovative technology, which amasses an enormous amount of information from publicly available sources and then scrubbs the data using sophisticated algorithms, to predict value. And while all of that is presented in an easy-to-use user interface, even Zillow cautions users to beware.

According to Zillow, “The Zestimate® home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide. It is a starting point in determining a home’s value and is not an official appraisal. The Zestimate® is automatically computed three times per week based on millions of public and user-submitted data points.”

Inaccurate-Zestimates-300x225Bottom line:  The predicted values found online are wildly inaccurate and inconsistent.

As real estate agents, we know that one of our most difficult tasks is pricing a home. That holds true whether we are representing a seller or a buyer. Market pressures change from week to week, not to mention from neighborhood to neighborhood. The motivation of the parties is always a factor, as is the condition of a home and those around it. No algorithm, however sophisticated, can quantify the value of a kitchen that was remodeled just before a home was put on the market or a yard that is poorly maintained. It simply isn’t possible for any AVM to predict the value of a home with a level of accuracy sufficient to make a housing decision.  Accurate estimates require the work of experienced, qualified real estate professionals.

Even Zillow knows this is true, and they say as much on their website.  That’s why their Zestimates® feature the option to, “Get a Professional Estimate” and offer links to the contact information of local, professional real estate agents.

They even include this statement regarding their “Zestimates®” of value: “The Zestimate® is not an appraisal and you won’t be able to use it in place of an appraisal, though you can certainly share it with real estate professionals. It is a computer-generated estimate of the worth of a house today, given the available data. Zillow does not offer the Zestimate® as the basis of any specific real-estate related financial transaction. Our data sources may be incomplete or incorrect; also, we have not physically inspected a specific home. Remember, the Zestimate® is a starting point and does not consider all the market intricacies that can determine the actual price a house will sell for.”

While we agree Zillow is a helpful tool, research shows that, on average, “Zestimates®” are within 5 percent of the actual value of a home, only 50% of the time.   If we as real estate agents got within 5 percent of the value of a home that infrequently, we’d be out of business!

So if you want to base their valuation of a home purchase or sale on what they find on the Internet, we suggest they take out a coin and flip it. Heads — that value is within 5 percent  (high or low) or what the home is actually worth. Tails — that value could be 10 percent, 20 percent or more off target.  Better yet, why not contact us to obtain an accurate estimate!

Las Vegas Real Estate Market Report, September 2015

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As we officially enter the final month of Q3, 2015, the Las Vegas real estate market continues to show signs of improvement!

Indicators across all four major segments, including single family residences, investment and rental properties, commercial real estate, and industrial, reflect the continued growth and rebound of our local market.

Residential Real Estate

The residential real estate market is not only strong but also continuing to improve, as prices have increased 9 to 11%, year-over-year, depending on location and price point.   Over 50% of listed homes are going into contract within 30 days.  This data suggests that if the property is priced correctly, sellers can anticipate offers within an average of 60 days.

Currently, there are 7,595 single family residences (SFR) available, not under contract.  The Las Vegas residential market is also averaging 2,440 sales per month, indicating the market is currently at or below a 90 day supply.

Absorption rates, however, vary within each price band. For example, properties priced at each of the following maintain a current supply of:

  • Under $300k – 2 month supply
  • $301-$500k- 5 month supply
  • $501k- $800k -9 month supply
  • $800k-$1MM- 10 month supply
  • $1MM & Over – 15 month supply

While the price band absorption is subject to location, it offers a strong indication as to the importance of pricing.

Though supply is relatively strong in the high end Luxe market ($1MM & Over), this price band appears to be improving.  As of September 1, 2015, Luxe market inventory was 355 available homes (priced above $1MM), while only 270 homes sold in the last 12 months.

The high end market is very sensitive to location with new construction in the Ridges and Macdonald Highlands commanding higher price per sq ft than other mature areas such as Tournament hills and Red Rock Country Club. The Ridges commanded the highest sale in years at 11MM last month.

Across all price bands, the median price of Las Vegas homes is $275k, which is still 15% lower than 2006, supporting continued gradual increased appreciation.

Notice of Defaults have also increased.  We anticipate this resulting in more trustee sales, which may affect the average cost of homes sold.  Additionally, Heloc’s and adjustable rate mortgages from 2005 and 2006 are still adjusting and, unfortunately, home equity has not rebounded enough to cover refinancing.  The Brazill Team is diligently monitoring this situation, to Las Vegas homeowners.

Investment and Rental Real Estate

Similar to the residential real estate marketing, the Las Vegas rental real estate market continues to show signs of improvement.

Currently, there are currently 2,853 rentals on the market in the Las Vegas Valley.  On average, 2,661 residences are rented each month, leaving an inventory of less than a 2 month supply of homes (1.07).

The time on market varies, according to price range.  As of September 1, 2015, calculations were as follows, based on monthly rent:

  • Up to $1000/mo – Less than .75 month supply
  • $1100-$1200/mo – 1.02 month supply
  • $1201-$1300/mo – .9 month supply
  • $1301-$1400/mo – 1.09 month supply
  • $1401- $1500/mo – 1.16 month supply

The market has also seen an increase in monthly rental rates.

Commercial Real Estate

Land prices throughout the Valley are still climbing!  Though single family dirt remains relatively flat, averaging $375k to $400k per acre in Class A locations, multi-family land is still heavily in demand, with prices ranging from $460k to $600k per acre.  Additionally, hard zoned, multi-family has been picked clean in the last 3 years and site selection has been a challenge.

Retail land is trading, when there are AAA credit leases in place, and single tenant development is increasing in good locations.   Industrial land is also trading, with tenant driven development.

Office Development – Medical office development on the rise.

Office Market – The office market is still struggling with oversupply and a 18.5% vacancy. New construction near hospitals, in all areas of the valley, is allowing the medical office segment to pick up.

Multi-family – The multi-family segment is still on fire with demand increasing.  As the Millennials market is opting to rent, rather than buy, as they want all of the amenities with less maintenance, builders are conceding.  Merchant builders are also cashing in as prices on Class A properties are closing near $200k per door.

Cap rates are compressing to low 5’s and in some cases sub 5. There are thousands of units slated to come online in 2016 so we will be watching vacancy next year to see if we are approaching hyper supply.

Retail – The retail segment is bouncing back!  The vacancy down to 9.7% and the asking rental rate has increased to 1.28 PSF NNN. The ICSC conference was finally packed this year with a lot of optimistic retailers signing several leases.

Industrial Real Estate

As with the other major segments of the Las Vegas real estate market, industrial real estate is also showing signs of improvement.  Overall, industrial vacancy is down to 6.6%, year-over-year.  Warehouse distribution is driving the increased demand, and pushing average rental rates to $0.57 PSF NNN.

 Conclusion

The Las Vegas real estate market is at the top end of recovery, phasing into expansion in most segments, except office. Multi-family is phasing from expansion to hyper supply with all of the new projects in the pipeline.

For more information about the current state of the Las Vegas real estate market, or to discuss buying or selling your real estate, please contact Stacy or Antone Brazill via phone, 702-278-3886, or visit The Brazill Team online at www.thebrazillteam.com.

This Las Vegas Real Estate Market Report was compiled by Stacy and Antone Brazill, The Brazill Team.  This report was developed using data from various industry reports as well as the Brazill’s vast knowledge of the local marketplace.  Stacy and Antone Brazill have worked in the Las Vegas real estate market for decades and their agency is deeply experienced in all facets of traditional and investment real estate including Multi-family, Land, Office, Retail, Industrial, Residential and Development. 

For questions regarding this report, or to obtain additional information about current Las Vegas real estate opportunities, please contact The Brazill Team at 702-278-3886 or visit their website, www.thebrazillteam.com.

After Years of Delays and Defaults, Southwest Valley Development Rises

swv

Over the last decade, when Las Vegas’ construction industry was white hot, few areas experienced as rapid growth as the southwest valley.

Bolstered by new freeway access and a strong economy, investors flipped land for profit and built subdivisions, strip malls, office buildings, and hospitals, with even more plans for an area that years earlier was largely open desert.   Business then plunged with the recession, all but stalling future growth.

Today, as the economy improves, few places are seeing as much improvement as the southwest valley. Developers are building or planning to construct apartment complexes, industrial properties, big-box retail, and single-family homes around the 215 Beltway between Interstate 15 and Flamingo Road.

Despite the current growth, huge tracts of raw land remain throughout the southwest and much of this land will likely go undeveloped for quite some time.  Additionally, many fear that some investors are piling in too quickly and overbuilding again.

The overall resurgence highlights the steady comeback of a once-battered industry that, for many people, offers visual evidence that Southern Nevada’s sluggish economy is on the mend.

In June 2006, near the height of the real estate bubble, 112,000 people in the Las Vegas area worked in construction. That number plunged 69 percent to 34,800 workers in early 2012, according to the Associated General Contractors of America.  Today, 48,500 people work in construction locally, up 39 percent from the depths of the recession.

“We know the worst is past us, and that gives people confidence,” said Scott Gragson, a land broker and investor.

Projects underway or on the drawing board in the southwest include:

  • IKEA’s 351,000-square-foot furniture superstore, which broke ground April 9 and is slated to open in summer 2016
  • Panattoni Development Co. partner Doug Roberts’ two-building warehouse project, Jones Corporate Park, which is scheduled to break ground this month
  • Australian slot-machine maker Ainsworth Game Technology’s 300,000-square-foot Americas headquarters, poised to open by mid-2016
  • The Molasky Group of Companies’ two-story, 110,000-square-foot industrial building at the UNLV Harry Reid Research and Technology Park, which the company plans to lease to prescription-drug manager Catamaran Corp
  • At least a dozen apartment complexes and thousands of single-family homes.
Developers are drawn to the southwest valley for several reasons:  there is plenty of land, it’s a quick drive to the Strip and to McCarran International Airport, and it’s roughly equidistant from Summerlin and Green Valley, two of the valley’s most popular residential areas.

Rent in several sectors — apartment, office, industrial and retail — typically is higher and vacancy rates are lower in the southwest than in other parts of the valley with lots of land, including the northwest and North Las Vegas.

Moreover, Clark County commissioners in May 2013 voted unanimously to open roughly 3,600 acres, mostly in the southwest, to potential residential and other development. Airplanes, thanks to advanced technology, aren’t as loud as they used to be, so the county agreed to shrink McCarran’s noise contour.

IKEA executives had been eyeing the Las Vegas market for almost 10 years, waiting for the population to pass 2 million, and were “very much focused” on sites along the Beltway with good visibility and access, spokesman Joseph Roth said.

The popular Swedish retailer needed a large site for its megastore. Land ownership in the southwest is fractured heavily, so assembling a big tract can be a headache. The spot IKEA wanted, 26 acres at the southwest corner of South Durango Drive and West Sunset Road, was owned by one investor, and the chain paid a hefty price for it: $21.3 million.

The sale, by M.J. Dean Construction founder Michael Dean, closed in December. IKEA paid $819,328 per acre. Valleywide last year, land investors paid an average $276,422 per acre, according to brokerage firm Colliers International. Roth said the company paid “a fair price” for the property.

Meanwhile, Ainsworth CEO Danny Gladstone decided a few years ago he wanted to build the company’s Americas headquarters near the southeast corner of South Jones Boulevard and West Sunset Road, said Mike Dreitzer, the company’s president of North American operations.

Site work is underway. When finished, the property will have warehouse and manufacturing space, as well as offices for sales, marketing and finance personnel. It’s close to customers and the airport, and just 2 miles east of rival International Game Technology’s campus.

“We think it really is the new center of the gaming equipment manufacturers’ corridor,” Dreitzer said.

For large projects, though, the biggest source of development in the southwest is apartments.

Investors have been buying rental properties throughout Southern Nevada at a fast pace in recent years. The valley’s economic collapse created a big pool of potential renters by wreaking havoc on residents’ finances. Foreclosures, bankruptcies and short sales swept through the region, making it impossible for many people to obtain a mortgage, let alone afford a down payment.

Apartment construction lagged investment sales, but now it’s picking up speed. After opening just 367 units valleywide in 2013, developers completed about 1,700 units last year. As of December, they were projected to open roughly 5,750 units this year and almost 2,000 more in 2016, according to brokerage firm CBRE Group. Among current or planned projects, roughly 50 percent of the new units are in the southwest valley.

But developers may be getting ahead of themselves. They are building faster than demand calls for, RCG Economics principal John Restrepo said.

“It’s a great location, (but) that’s a little too much at one time,” CBRE broker Spencer Ballif added.

Nevada West Partners is the biggest developer in the southwest, with five projects totaling 1,600 units planned or underway. Partner Martin Egbert, whose group has developed apartments in the valley since the late 1980s, said he isn’t concerned investors might be overbuilding and possibly pushing down rental rates. Properties his group opened in recent years — often higher-end residences with lots of amenities — are almost fully occupied and command big prices, he said.

Homeownership rates nationally are at record lows, he said, partly because more people who can afford to buy are choosing to rent instead.

“They’ve seen the swings in real estate prices … and they like the flexibility afforded by being a renter,” Egbert said.

The southwest’s fast-paced growth started around the early 2000s when the Beltway expanded, offering freeway driving instead of dusty back roads. Investors flipped land and built properties, but work ground to a halt when the recession toppled the valley, leaving the southwest a checkerboard of open desert, finished projects and abandoned construction sites.

“Nobody was doing anything,” CBRE broker Greg Tassi said.

Projects got stuck on the drawing board, too, including Station Casinos’ Durango Station resort on Durango Drive just south of the Beltway.

In September 2008, less than two weeks before investment firm Lehman Brothers collapsed, helping to trigger the U.S. financial crisis, Station spokeswoman Lori Nelson said the resort tentatively was scheduled to open in 2011. “The plans are done, they are ready to go, and it will really be contingent on timing based on the economic conditions,” she said at the time.

Today, the land is undeveloped, and a Station sign there advertises plans for a 120,000-square-foot casino with 1,000-room hotel. The sign also warns “No Dumping — No Trespassing.”

Nelson said this month the company has no development timeline for the site.

At the peak of the bubble, land in the southwest valley frequently sold for $1 million an acre. Today, listing prices are a fraction of that but rising, typically ranging from about $300,000 an acre to $700,000 per acre, Gragson said.

One line of business that boomed with the Beltway was home construction. The southwest has been the top submarket in the valley ranked by homes sold for about 10 years, Home Builders Research President Dennis Smith said.

Builders sold 2,016 homes there last year, a third of all new-home sales in Southern Nevada, he said. The second-best market, the northwest, had 1,520 sales.

Perhaps the biggest project in the southwest before the freeway expansion was developer Jim Rhodes’ sprawling Rhodes Ranch community on South Durango Drive at West Windmill Lane.

“It was considered to be out in the middle of nowhere,” Smith said. “But the Beltway changed that.”

Source: http://vegasinc.com/business/real-estate/2015/apr/13/developments-southwest-valley-rise-after-years-del/

Investors Purchase Nearly 360 Acres at BLM Auction, 240 Acres Unsold

BLM_Land_Sale

Last week, Southern Nevada investors purchased nearly 360 acres of low-priced government land at an auction conducted by the U.S. Bureau of Land Management, held at North Las Vegas City Hall.  Despite the  auction’s competitive pricing, 240 acres of land remained unsold.

According to the U.S. Bureau of Land Management, 357.6 acres sold for $19.2 million, or about $53,700 per acre, as part of a 597.6-acre offering.  The portfolio was offered at no less than $29.7 million total, or $49,700 per acre, with parcels ranging from 1.25 to 247.6 acres.

The land was scattered around the valley, including north of Blue Diamond Road in southwest Las Vegas and east of the Lake Mead Parkway-Boulder Highway intersection in Henderson.

BLM auctions such as this one are a source of raw land for Las Vegas homebuilders, whose business is picking up steam this year after falling hard in 2014.  Many of the buyers at the sell-off included builders KB Home, American West and D.R. Horton.

It’s unclear why a large portion of the portfolio didn’t sell.

BLM spokeswoman Kirsten Cannon said the agency did not hear any reasons for the unsold parcels, as every parcel up for sale is nominated by investors who want to buy it or by municipal officials who want it developed.

“There’s always a level of interest,” she said.  And the prices were far below market average.

In the first quarter this year, investors bought 899 acres valleywide for $170.6 million, or $189,766 per acre, according to data from brokerage firm Colliers International.

One buyer today, identified by the BLM as Sao Tome LLC, bought the 247.6-acre parcel for $1.85 million, or just $7,472 per acre. It could not immediately be learned who is behind the company.

Overall, builders sold 1,378 new homes in Southern Nevada in the three months ended March 31, up 8 percent from the same period last year, according to Las Vegas-based Home Builders Research.

The median sales price of March’s closings was $312,204, up 9 percent year-over-year. Builders also pulled 1,849 new-home permits in the first quarter, up 34 percent from the same time last year.

Dennis Smith, president of Home Builders Research, said last month the housing industry “is improving from its ‘OK’ performance” most of last year, when sales volume plunged 18 percent from 2013, prices were volatile and construction plans tapered off.

The uptick in sales this year is “not a huge change,” given Las Vegas’ usual volatility, but it’s “still a positive, upward movement,” Smith said.

Source: http://vegasinc.com/business/2015/may/05/investors-buy-almost-360-acres-blm-auction/

Report on Nevada’s Housing Market: Southern Trends

Nevada’s housing market remains in the spotlight of real estate news, with the Southern Nevada market showing some of the strongest levels of consistent growth.

According to a recent report, co‐presented by the Lied Institute for Real Estate Studies at the University of Nevada, Las Vegas and the State of Nevada Department of Business & Industry, all three regions in Nevada saw decreases in both new and existing home sales.

Based on January, 2015 statistics, existing home sales in Nevada decreased by nearly 10 percent and were the lowest they had been since 2008. New home sales decreased by nearly 5 percent, but are still up 3 percent year over year.  The share of homes sold under distress in Nevada increased by 2 percentage points. However, this large increase was a result of the decreased number of home sales, not an increase in REO or short sales. The total number of REO sales remained unchanged in January and short sales saw a 24 percent decrease throughout the month.  Additionally, average new home prices in Nevada continue to increase as Southern Nevada continues to see consistent growth in average new home prices.  At $336,607, average new home prices in Nevada are the highest have been since June 2008.

Here is some additional information about the Southern Nevada housing market:

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Nevada’s Housing Market | January 2015 | Southern Trends

 

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Las Vegas Valley Home Values

The Las Vegas housing market continues to show signs of improvement.  According to a recent report issued by SalesTraq, the median price of homes sold throughout the Las Vegas valley increased in every zip code, year-over-year, 2013-2014.

The following map shows the percentage increase by zip code.  The percentage reflect the change in median price of homes sold during 2014 compared to 2013.

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