Monday, November 24, 2003
Copyright © Las Vegas Review-Journal

LV home appreciation hits 14 percent

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Home prices in Summerlin, the master-planned community on the western rim of the Las Vegas Valley, appreciated by 21 percent in the third quarter compared with the same period a year ago.

The median price of a Summerlin home is now $230,000, up $40,000 from last year, said Larry Murphy, president of SalesTraq.

The citywide median price is $168,000, a 14 percent increase from $148,000 in third quarter 2002.

Broken into submarkets, Henderson had the valley's highest appreciation rate at 16 percent ($206,000 in 3Q 2003 vs. $178,000 in 3Q 2002).

The north ($150,000 vs. $131,000), south ($168,150 vs. $146,000) and southwest ($195,075 vs. $169,000) housing submarkets appreciated at 15 percent.

The northwest ($175,000 vs. $155,000) was at 13 percent and the east ($130,000 vs. $122,000) at 7 percent.

"Clients always ask me about appreciation rates, though even if they don't, I always make sure and emphasize the increasing rates as a means to explain to them the sense of urgency they should have in looking for a home," said Shawn Cunningham, a Realtor with Re/Max Advantage in Las Vegas.

Waiting six months or a year to buy a home, especially in hot areas like Silverado Ranch, will cost them thousands of dollars, he said.

For example, the Seasons cluster-home tract by Richmond American in Silverado Ranch had a 1,350-square-foot model that was selling for $150,990 in January and now goes for $202,990.

"That always causes the jaw to drop with these out-of-town investors and relocaters," Cunningham said.

Many of his clients, both owner-occupants and investors, will only consider areas that have the greatest appreciation potential.

The right home improvement project also can dramatically increase the resale value of a home. A study by Hanley-Wood published in Remodeling Magazine showed the top five projects, measured in terms of one-year return on investment, as minor kitchen remodeling (88 percent), a second-story addition (83 percent), bathroom remodeling (81 percent), a bathroom addition (81 percent) and a family room addition (75 percent).

APARTMENT SALE: Christopher Bentley, senior associate for Marcus & Millichap in Las Vegas, brokered the $18.8 million sale of the 316-unit Mayan Plaza apartments in the high-end west side of town.

Marcus & Millichap marketed the property on behalf of the seller, a Texas-based investment partnership. The brokerage found a buyer, Southern California-based Greenlawn Property Exchange, within one month of the listing.

The sales price breaks down to $71 a square foot, or $59,335 a unit. One- and two-bedroom units range in size from 700 to 1,032 square feet with monthly rental rates of $680 to $838. Occupancy is currently 90 percent.

JUSTICE FACILITY: Clark & Sullivan Constructors recently began building the $23 million North Las Vegas Justice Facility at Civic Center Drive and Las Vegas Boulevard.

The two-story, 96,000-square-foot building will house the Municipal Court and Detention Center operations. It will take about 14 months to complete.

It's the largest capital improvement project in the history of North Las Vegas, said Ron Vollmond, director of project development for Clark & Sullivan. Project manager is Richard Applegarth and construction superintendent is Jack Applebee.