All in Las Vegas Market

The Hidden Housing Crisis

Most believe it’s clear sailing for housing.  Jurow’s view its anything but rosy for housing.  He believes the housing rebound is a mirage orchestrated by lenders and mortgage servicers keeping foreclosed homes and subprime loans in serious default off the market.  In other words, there are millions of homes just waiting to hit the market. Sometime.

Housing Affordability Down, Inventory Up

For those believing this is the pause that refreshes, James Stack thinks otherwise. “Housing could be heading for its worst year since the last housing crash," Stack, 67, said told Bloomberg in a phone interview. “Expect home sales to continue on a downward trend in the next 12-plus months. And there’s a significant downside risk to housing prices if a recession takes hold.”

Irrational Apartment Exuberance

Those “high rents” I referred to are now commonplace around the Las Vegas valley.  I toured a project recently, located far from the strip, but with all the bells-and-whistles the Lotus has, and the owner told me he is earning $1.80/sf a month.  He told me his project wasn’t for sale. We’ll see.

Housing Top is In

The interest rate which most influences mortgages is the 10 yr treasury which has increased nearly 200 basis points since it’s bottom in the summer of 2016. The latest 30-year mortgage rate per is now at 5.05% a huge jump from the 3.6% two years ago.

Vegas's Greatest Week?

It used to be that the only stick men that mattered were at the city’s craps tables pushing dice and barking “new shooter coming out.”  A hockey puck was what Don Rickles called the dim witted. Now the town is cuckoo for hockey as the Golden Knights skate against Washington D.C.’s Capitals for the Stanley Cup.  

Sideways Skyscraper Curse

What those of us in Vegas are wondering (h.t. Jeff Barr); wouldn’t the skyscraper curse apply to large scale public works projects? The improvements are horizontal instead of vertical, but what happens at the end of massive highway infrastructure projects like the ones continuing in Las Vegas.