Las Vegas Real Estate
September 11th, 2007
Is it time to buy a home in Las Vegas? Due to excessive speculation by builders and investors we have a lot of supply on the market. This is a buyers market and it may be that way for another one to two years. One can rarely predict the bottom of any market correction whether it be in home prices or the stock market. People tend to panic and look too much at the present when trying to make decisions.One thing that I noticed when I came to Las Vegas was how the Las Vegas Valley is filling up. I started to think of Seattle, where I was born and raised. The geography of Seattle is quite different; however, each city displays a unique restriction in the growth of new housing. In Seattle, most of the expansion has gone to the east of Seattle since Elliott Bay and the Puget Sound are barriers.
In Las Vegas, the valley of growth is surrounded on most sides by mountains, and there is a finite amount of land available in the valley for building. One might suggest that the builders may be able to move outside the valley. Most of the land is owned by the Bureau of Land Management and they would need to make a decision about releasing more land for development. Expanding the boundaries for development is a hotly contested issue with conservationists.
Why has the demand for real estate been so great over the last five years? Las Vegas which means “The Meadows” is a lot more than The Strip. Las Vegas is surrounded by beautiful mountain ranges and canyons. You will find that many diverse communities have sprung up from the desert in many unique ways. The Desert Shores and the Lake Las Vegas communities were built around man-made lakes and few people in the country would ever envision seeing such a sight in Las Vegas. There are many master planned communities in Las Vegas and you will find parks, trail systems, community centers, golf courses, and wonderfully landscaped thoroughfares.
Las Vegas was just voted the number one Adventure Town in America in the September edition of National Geographic. The reason for this is because of all the opportunities to participate in all kinds of outdoor activities within a short distance of Vegas: hiking, boating, mountain biking, skiing, rock climbing, to name a few. Vegas is not just for gambling anymore. A secret has been revealed that we locals have known about for a long time: Vegas is a good home base for outdoor adventure beyond the city limits.
When one looks at growth in the Las Vegas Valley there are many issues to consider. You have to look at the available water resources, increased energy costs, declines in quality of life as perceived by potential residents, and the physical limitations of Las Vegas Valley. At the present rate of growth, predictions indicate that land currently available for development in Las Vegas Valley will be built-out in the next 7 years.
What does this all mean? Okay, we have had over-building and this will continue to depress home prices until the supply is reduced. However, one must keep in mind the limitations that are imposed on this area. There is a real concern about water resources and there are those who will fight development beyond the Valley. If the demand for real estate in the Valley starts to perk up in a year or two, home prices will move higher in the future. You cannot dismiss the law of supply and demand.
