Las Vegas Real Estate: Review 2004 / Outlook 2005
2004 was a truly historic year for the Las Vegas Real Estate market. The early signs in 2005 point to another solid year as well.
(PRWEB) February 14, 2005 -- 2004 was a truly historic year for the Las Vegas real estate market. The early signs in 2005 point to another solid year as well. The very first thing to be said however, is that 2005 will be nothing like 2004 in terms of appreciation rates. It's entirely possible that there will never be another year like 2004 again in the history of Las Vegas real estate. MS Las Vegas Real Estate www.mslasvegasrealestate.com would like to suggest that this is not a bad thing. Unsustainable rates of growth and appreciation are inherently de-stabilizing in the long run. A return to a more moderate pace is both healthy and helpful to the market for real estate in Las Vegas.
Let's begin by reviewing 2004. The U.S. economy had a spectacular year, expanding at the fastest rate in five years. Growth was spurred by strong consumer spending as well as solid corporate investment. 2004 GDP was pegged by the Commerce Department at 4.4%, up from 3% in 2003. Capital spending by U.S. businesses shot up by 10.3%, close to levels attained in the booming late 1990's. Inflation news in 2004 was encouraging as well. The index for personal consumption rose a relatively benign 2.2% after rising 1.9% in 2003.
Home Builders Research reported a record 29,248 new-home sales for Las Vegas in 2004. This was an increase of 4,018 new-home purchases compared to 2003, which is a 16% surge. The median price of a new Las Vegas home rose to $290,287 which represents a 38.5% gain compared to 2003. Existing Las Vegas home sales also jumped significantly. The 2004 total was 64,168 which is a 29% increase over the 2003 figure. The median price of a re-sale home in Las Vegas stands at $250,000 (a 39% increase from 2003) as we start the new year. Real estate in Las Vegas had a truly historical year in 2004. MS Las Vegas Real Estate www.mslasvegasrealestate.com would like to caution that gains of this magnitude in such a short period of time are unlikely to be repeated again.
Perhaps the most stunning statistic of 2004 had to do with condos and the dramatic effect of the high rise sector on the overall market for Las Vegas real estate. The Greater Las Vegas Association of Realtors logged 4,398 condominium closings in 2004. The GLVAR reported 582 condo closings in 2003. The number of condominium closings is projected to triple in the Las Vegas real estate market over the next two years. This is nothing short of phenomenal. We are witnessing the urbanization of the next major U.S. city on a truly historic scale. www.mslasvegasrealestate.com/condo.html
Enough about 2004, how do things look for 2005? The truth is, it's impossible to know for sure. All we can do is look at the indicators and take an educated guess. Let's begin with the single most important factor, the economy. The Consumer Confidence Index rose in January for the second straight month. The important thing about this data is that it strongly suggests the economy will continue to grow at a steady pace through the first half of 2005. This is good news for the economy, good news for the labor market and good news for the housing market. And all of this is good news for Las Vegas and the market for real estate in Las Vegas. When people feel good about their lives from an economic standpoint, they like to go places and do things that reflect those positive feelings. The number one place in America to express how you feel about your wallet or purse is Las Vegas. Don't doubt it for a second. A strong and growing U.S. economy translates directly into increased tourist revenue for the Las Vegas Strip. This translates directly into more prosperity for employees of the Gaming industry. And that translates directly into the market for residential real estate in Las Vegas.
Congressionally chartered mortgage finance facilitator Freddie Mac released their 2005 housing outlook last month. Freddie Mac in-house economists predicted that the outlook for the U.S. housing market will remain strong in 2005. Freddie Mac expects housing starts across the country to retreat by just "one to two percent points" from the record pace of 2004, while mortgage rates will "continue to be affordable" at around 6%. Freddie Mac also predicts that home sales in 2005 will "likely remain strong" due to robust economic growth and a strong labor market.
MS Las Vegas Real Estate www.mslasvegasrealestate.com is especially encouraged by the strength of the economy in southern Nevada. Additionally, the baby boomer generation is in their prime earning cycle and already shopping for retirement and second-home property. Las Vegas, Nevada continues to be among the most sought after of residential destinations for the wealthiest group of Americans in the history of the United States. 2005 looks to be another solid year for real estate in Las Vegas.
MS Las Vegas Real Estate
Michelle Sterling
Liberty Realty
7674 West Lake Mead
Suite 150
Las Vegas, NV 89128
Office: 888-349-2595
Direct: 702-349-3009
Website: http://www.mslasvegasrealestate.com/
Email: e-mail protected from spam bots
Please see our previous reports on the Las Vegas Real Estate market:
Las Vegas Real Estate: The California Connection
http://www.emediawire.com/releases/2005/1/emw197963.htm
Las Vegas High Rise Condos: Up, Up and Away
http://www.emediawire.com/releases/2005/1/emw194830.htm
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