[WestieJeff]

I think it really depends on the market segment you're looking at. Most of the good homes I see in the market segment we are looking at (custom homes on larger lots) are under contract within 2 weeks with multiple offers. I can give you countless number of examples. This price range is 300-500k though and realistically was never affected by a 8k tax credit. I do see demand slowing down, but I also see supply slowing down as well. Many many houses have already changed hands at lower prices over the last two years. Prices have been and continue to be extremely volatile though. I see comparable houses sold 100k apart.

We'll see what happens next year. Loan rates are headed up which will affect affordability.

Originally Posted by 007 license to sell

Anyone purchasing a property now or as of late must plan on keeping it for years and enjoying it and not plan on flipping it soon. I have noticed allot more flippers offer higher commissions to entice realtors to bring their clients to them.

[WestieJeff]

The article glossed over that. I was just saying those aren't trivial costs and could easily eat 1/3'rd or more of your supposed $1,000/mo income from your rental.

Additionally, I don't think many properties you can purchase at $100,000 are renting for $1,000/mo, more like $800.

Originally Posted by MadManofBethesda

Huh?

The article specifically mentioned most of those items in the very same sentence that it talked about the income:

"For example, interest gained on a $100,000 savings account is about $875 a year. If someone bought a home for $100,000 and rented it out for $1,000 a month, they'd get $12,000 a year, minus maintenance expenses, insurance and property taxes."

[eventusstultorummagister]

Okay, I'll play devil's advocate...
Don't rental properties require renters to be profitable?
Don't landlords require renters to have a job and good credit?
If a renter has aforementioned job/credit is it not cheaper for them to buy?

It's all pump n' dump and somebody's gonna get left chairless when the music stops. My guess is that it will be the little guy who invariable always gets the hose job.

[007 license to sell]

This article gives a snap shot of just how many home owners in Las Vegas are under water. This is very troubling it only means it's going to take longer to get out of this mess.

economy:
Report: 80 percent of Las Vegas homeowners underwater

[Swigchow]

Maybe Las Vegas is no longer a ghost town.

http://www.cnbc.com/id/40220424

[jasper12]

My parents bought their home in Vegas 20 years ago. They are not underwater, but what is interesting, is that homes in their nieghborhood were selling for $750,000 about 8 or 9 years ago. They thought about selling, but just decided not to bother. Now, the home down the street, is selling for about $190,000. They bought their home for $95,000 20 years ago. So, still good deal if they could selll, but I feel bad for the people who bought the same homes for $750,000. Crazy. Vegas real estate has been a roller coaster.

[olecapt]

Originally Posted by jasper12

My parents bought their home in Vegas 20 years ago. They are not underwater, but what is interesting, is that homes in their nieghborhood were selling for $750,000 about 8 or 9 years ago. They thought about selling, but just decided not to bother. Now, the home down the street, is selling for about $190,000. They bought their home for $95,000 20 years ago. So, still good deal if they could selll, but I feel bad for the people who bought the same homes for $750,000. Crazy. Vegas real estate has been a roller coaster.

They live in a very unusual neighborhood. Virtually nothing went up past 2.5X its 2000 price. CS shows the average went up a factor of 2. CS says they should now be selling for about the 2000 price. From GLVAR data prices rose about 30% between 1990 and 2000. So your parents are ahead of the game 50K or so.

[olecapt]

November numbers will be out in a couple of days. Volume looks around 2700+. That is up from October and only a little less than September.

The pricing appears to be about $135K median and 168.9K average. That would be up from October and very close to September.

It continues bouncing along the bottom. Average since June of 2009 to date is just about the same as the average of the second quarter of 2009 wnen the bottom was hit.

REOs remain down a bit and are 43% of the SFR sales.

[SportyandMisty]

UNLV just issued their update on 11/30. See Directory to southern Nevada economy resources pages in CBER@UNLV site (http://cber.unlv.edu/snecon.html - broken link)



Here are a few quotes from their recent study:

"Following two months of growth, the Southern Nevada Index of Leading Economic
Indicators dropped by 0.68 percent in November. After seasonal adjustment and
weighting, all ten of the component series, except passenger counts, pulled the index into
negative territory. This decline suggests that the Southern Nevada economy has yet to
turn the corner to positive, sustainable growth."

http://cber.unlv.edu/snindex.gif (broken link)

and

"The Clark County Business-Activity Index collapses three primary economic measures into one indicator. These include gross gaming revenue, taxable sales, and employment. After seasonal adjustment, the index declined by 1.93 percent from August and 2.14 percent below September last year. Overall, the Business Activity Index continues on a flat trajectory as the local economy works its way through the recession."

http://cber.unlv.edu/baindex.gif (broken link)

and:
"The September Clark County Tourism Index dropped slightly below last year's index value of 138.34 to 137.28 on a seasonally adjusted basis. This 0.76 percent yearly decline was the result of modest declines in both passenger counts (-2.01 percent) and room occupancy (-1.32 percent); gaming revenue was up by 1.5 percent. When compared to August, the September Index fell by 4.07 percent. These recent declines were driven by passenger counts (-6.42 percent) and gaming revenue (-2.53 percent), while occupancy rates were essentially flat (0.12 percent). Even with the recent decline, the Tourism Index suggests modest growth in this important economic sector."

http://cber.unlv.edu/tourismindex.gif (broken link)





and:

"The Clark County Construction Index continued to drop in September and the five-month moving average now stands at 52.28. As an aggregate measure reflecting construction employment and permitting activity, the Index is now one fourth of its January 2006 peak value of 210.95 and on par with activity seen in the mid-1980’s. We expect little improvement in the index until the excess supply of existing real estate is absorbed."

http://cber.unlv.edu/constructionindex.gif (broken link)

*******
In case any one is interested:



Above are the CBER Clark County Economic Indices, including the November release of the Southern Nevada Index of Leading Economic Indicators -- a forecast of economic activity for March 2011.

These indices and information on their development are posted on our Web site at: Directory to southern Nevada economy resources pages in CBER@UNLV site (http://cber.unlv.edu/snecon.html - broken link).

AS A REMINDER

The Center for Business and Economic Research (CBER) of the College of Business at the University of Nevada, Las Vegas is pleased to announce its upcoming annual Southern Nevada Economic Outlook Conference, which will be held at the M Resort Spa & Casino on Wednesday, December 15, 2010, from 8:00 a.m. to 11:45 a.m. The registration fee until December 8, 2010, is $80.00 for one person and $75.00 each for two or more people from the same organization. After December 8, 2010, the fee is $90.00.

Featured speakers will include CBER director, Dr. Stephen Brown, Dr. John Duca of the Federal Reserve Bank of Dallas, and Dr. Constant Tra, associate director of CBER. Prior to joining CBER, Dr. Brown was nonresident fellow and co-director of the Center for Energy Economics and Policy at Resources for the Future. From 1981 through 2008, Dr. Brown pursued economic research and analysis at the Federal Reserve Bank of Dallas.

Some of the topics that Drs. Brown, Duca and Tra will address include tourism and gaming, employment, housing, financial markets and the environment. Dr. Brown will also present CBER’s economic forecast for Southern Nevada and the nation. Attendees will receive a copy of the outlook.

Registration information will be sent at a later date. If you are interested in attending, contact Peggy Jackman at: Peggy.Jackman@unlv.edu (e-mail address), (702) 895-3191 (telephone number), or (702) 895-3606 (fax number).
****

[jfkIII]

Those are not pretty pictures.