Monday, June 14, 2004
Copyright © Las Vegas Review-Journal

Existing-home prices up 23 percent, expert says

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Existing-home prices in Las Vegas Valley appreciated by 23 percent in the first quarter, compared with the same period a year ago, a local research expert reported.

The median price of resale homes for the first three months rose to $195,000, up from $158,900 last year, SalesTraq President Larry Murphy said.

The highest appreciation came in the southwest valley, where median prices went from $175,000 to $239,000, a 37 percent increase, and Henderson, where prices climbed from $181,750 to $245,000, up 35 percent.

The east side of Las Vegas, where the average home is 18 years old, appreciated at 10 percent, from $125,000 to $138,000, a healthy clip in most parts of the nation.

For just the master-planned Summerlin community, Murphy found a 40 percent increase in resale prices, from $200,000 to $280,000 over the 12-month span.

At an average of 21 days from the time a home is listed to the time it sells, Las Vegas is officially the nation's fastest-selling resale market, Murphy said. The next-closest is Hawaii, which claims 29 days.

Most analysts cite low interest rates and Las Vegas' population growth, much of it due to a rosy employment picture, as driving housing demand here.

Murphy believes there are four additional dynamics at work:

• 1. Las Vegas is playing catch-up in the real estate market after being undervalued for 15 years;

• 2. Las Vegas real estate is still a value, especially compared with California;

• 3. Builders here are among the best in the nation, with houses built a decade ago still commanding superior prices;

• 4. Las Vegas is a changing consumer marketplace where young singles have incredible disposable income.

DIGGING IN: EJM Development has broken ground on the first phase of The Arroyo North, part of a 450-acre master-planned business park in southwestern Las Vegas.

The first phase consists of three buildings totaling 310,000 square feet of industrial space, divisible to units of 4,000 feet. Each building has upgraded exterior components such as second-floor windows and architectural features.

The largest building has a state-of-the-art ESFR fire sprinkler system, 30-foot ceilings, 61-foot concrete truck apron, 9-by-10-foot dock-high loading doors and 12-by-14-foot grade-level loading doors.

RETAIL FINANCING: L.J. Melody & Co., the real estate banking arm of CB Richard Ellis, arranged $14 million in financing for the acquisition of Charleston Plaza, a 229,000-square-foot retail strip center built in 1989.

RBS Greenwich Capital provided full leverage financing on behalf of SAFCO Capital, despite shadow anchor Albertsons not being part of the collateral.

Major tenants of the center include Sav-on Drugstore, Factory 2-U, Rodeo Discount Mall, Pizza Hut and Payless Shoes.building with a consistent commitment to quality."