What is going on in the Las Vegas real estate market you ask?

Las Vegas Lifestyle

Las Vegas Lifestyle

I get this question quite frequently and most people who ask are very surprised at the answer.  Las Vegas is experiencing tremendous sales activity and in the month of June an all-time sales record was exceeded.  The number of resale homes available to be purchased is around a three months supply at the current consumption rate.  Clients of mine who travel to Las Vegas from out-of-town are amazed at the quality of life here and the low prices of homes.  The local Las Vegas Review Journal recently reported that Nevada is in the top ten states in the Nation for the best Economic Outlook.  Right now in Las Vegas we have more resale homes under contract then are available to purchase and it costs less to own a home than it costs to rent!  These are both indicators that the current housing market is undervalued because when you consider the tax benefits and appreciation potential of owning a home it should cost more than renting.  You also must insure a home in Las Vegas for more than the current prices because it will cost more to rebuild if damaged! 

I think that our low tax structure will most assuredly be a driver of our economic growth as is our warm climate since 7918 people in the US turn 60 every day(according to the US Census Bureau) !  When the Baby Boomers retire they will be looking for warmer climates and environs that have low tax structures which Nevada and especially Las Vegas have.  This is not a political blog but with the Bush tax cuts expiring next year and the current Administration’s expansion of government higher taxes is a certainty!  Those in the highest tax brackets in the higher tax states like New York, New Jersey and California may be facing tax bills in excess of 50% including property, income and business taxes.  Nevada is one of the states with the lowest tax burden and we just FELL a notch and are now number four in the Nation for lowest business tax environment!  And as proof of this more high net worth individuals are moving to Nevada and relocating their businesses here in growing numbers. 

Major Institutions are also investing in the Las Vegas community:   the prestigious  Brookings Institute just announced a joint initiative with UNLV to improve the quality of life in the US Southwest with an emphasis on Las Vegas,  and the World-Renowned Cleveland Clinic, partner in the Lou Ruvo Center for Brain Health  in  Symphony Park in Downtown Las Vegas is starting a feasibility study on head-quartering a Clinic location within Symphony Park. 

Las Vegas is a great place to live and will make a great place to relocate, purchase your second or vacation or investment property!  Please leave me any questions or comments in the space below and make sure to visit Vegasdreamsellers.com!

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Is Water a reason not to buy real estate in Las Vegas? (part 2)

Hoover Dam, Lake Mead and the Colorado RiverHow does the Las Vegas Valley and Clark County continue to grow if we are running out of water from our main source the Colorado River?  I am very impressed with Mrs. Mulroy and the Southern Nevada Water Authorityand the manifold methods in which they have searched for solutions to this problem!  First and most obvious way to find new supplies of water is through conservation.  I know most people do not think that this is possible but the SNWA started conservation campaigns that offered to pay property owners $1-$3  dollars per square foot of grass they removed and converted to drought tolerant or low water use shrubs and trees.  Mrs. Mulroy estimated that enough grass was removed in the Las Vegas Valley to almost encircle the globe!  Through this very successful program and conservation awareness in general Las Vegas is now using the same amount of water than it did in 1995! 

In addition to conservaton, the Authorityhas won battles to include the water from the Virgin River flowing into Lake Mead to the acre feet per year that can be taken from the River.  In addition to this new source of water the Authority has entered into water banking agreements with California and Arizona which will allow the states to bank their unused or uncommitted water in the other’s share adding to their allowed amount.  Both of these strategies effectively add to the allotment of Colorado River water that Southern Nevada can draw from. 

The last strategy and the most controversial is the SNWA’s plan to build a pipeline from Northern Nevada to Southern Nevada to tap the unused portion of aquifers in rural White Pine and Lincoln counties.  The ranchers in these valleys are envoking the memories of Los Angeles Water and Power’s stealing of the water from the now dried up Owens River and Owens Lake.  However, the Nevada State hydrologisthas granted the majority of the Authority’s requests for this “unused” water and when this supply is available it will ensure Southern Nevada’s growth for decades to come!  So don’t let water be an issue when considering a purchase of real estate in the Las Vegas area as Pat Mulroy says “We won’t run out of water, it will just cost more!” I hope you enjoyed this piece please leave me a comment and visit my website Vegasdreamsellers.com

Is Water a reason not to Buy Real Estate in Las Vegas? (part 1)

Pat Mulroy, General Manager of the Southern Nevada Water Authority

Is water really a reason not to buy real estate in Las Vegas?!  I hear this all the time from people who do not live in the Valley.  It is a valid question especially considering all the media attention given to global warming and the changing climate.  To start the discussion its important to know that when the Colorado River Compact was signed in the 1922 no one realized that lowly Las Vegas would grow to the extent that it has and our city was only allocated 4% or 300,000 acre feet of water per year of the total lower basin allocation.  In comparison, Arizona was granted 37.30% or 2.8 million acre feet and California was granted 58.7% or 4.4 million acre feet per year that can be drawn from the lower Colorado. 

So we start with a deficit!  In 1922 the population of Clark County was less and 5,000 people and now in 2008 we have more than 2 million and the allocation is still the same!  By the way, an acre foot of water is equal to an acre of land covered by water one foot deep or 325,851 gallons or what is considered the annual usage by a family of four for a year.  Family’s in the Southwest use only .25AF/year.  Since the compact is not changeable Mrs. Mulroy needed alternatives to ensure that Southern Nevada had enough water now and into the future assuming that we will have another million people residing in Las Vegas by 2030.

Part two next time…   In the mean time ask questions or comments!  Please visit my website as well!

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