Current market can accentuate the positives

Q: I read with interest your column on condos. We, too, have a condo on the market and have priced it under the median amount you stated. One of my peeves is the glut of conversions.

I feel it should be required they be listed as "conversions." They were not built originally with the same specs and are therefore a "horse of a different color."

The negative articles in all the newspapers are not helping the market here. People are still moving here and should be encouraged, not scared, to buy now. Prices have adjusted very well since the boom and there are many good opportunities to buy an affordable home.

Let's hear some positives in the press, please. Thanks. --Carole M., Las Vegas

A: Let's look at some of the factors that make it an opportune time to buy now.

Mortgage interest rates remain at historical low levels, effectively lowering the cost of buying a home. It is not clear when interest rates will begin to rise.

However, economists and other experts generally agree that rates are unlikely to fall significantly in the near future.

Southern Nevada's economy remains stronger than most metropolitan areas, with steady job and population growth. According to Las Vegas Perspective, Clark County added more than 96,000 new residents in 2006. This bodes well for the long-term strength of the local housing market.

Over the next three years, nearly 20,000 hotel rooms will be added to our city, representing about $41 billion worth of new construction. Of course, these economic factors fuel demand for housing and offer more opportunities for newcomers and existing residents to own their own home.

For every hotel room added, the Las Vegas Convention and Visitors Authority estimates 1.8 to 1.9 new employees will be needed.

Recent increases in foreclosures present opportunities for buyers as well. When lenders are forced to foreclose on a property, they typically are motivated to sell that property as quickly as possible to recoup their investment. This presents bargains for buyers.

The unprecedented housing boom of a few years ago may never be duplicated, but Southern Nevada still offers attractive real estate investment opportunities. Besides the multitude of single-family home options, we also have high-profile residential properties forming as part of MGM Mirage's CityCenter and similar billion-dollar developments on and near the Las Vegas Strip.

The history of the local housing market suggests long-term growth.

More than most markets, the history of steady housing and real estate appreciation in Southern Nevada suggests the value of property will rise as long as the nation's boomtown continues to grow.

All markets are cyclical. But with privately owned land being scarce in the rapidly growing Las Vegas area, history and the laws of supply and demand suggest that prices will appreciate in years to come.

Americans have never been more informed about the housing market than they are today. However, one by-product of the well-publicized national real estate boom is the temptation to view real estate as a short-term investment, similar to the stock market.

This perception has had unhealthy impacts on the housing market. We at the Greater Las Vegas Association of Realtors believe buying a home is a long-term investment and should be thought of that way.

Realtors are required to disclose condo conversions within our Multiple Listing Service database.

Devin Reiss is the president of GLVAR, which has more than 17,000 members, and has worked in the real estate market for more than a decade. To ask Reiss a question, e-mail him at ask@glvar.org. All questions are subject to editing.