Just released a couple of days ago, a NAHB/Metlife study on baby boomers and the 55+ housing market. Interestingly, the study finds that while a lot of boomers are staying in place, often near family and freinds, the share of individuals desiring a community to fit their needs is increasing from 2.2% in 2001 to 3% in 2007 (data reporting is lagged).

Using census data, researchers also found that age restricted home size increased from an average of 1,800 sq.ft to 2,300 sq.ft, although their was no indication that this is what active adults wanted. We have observed this square footage increase in several market segments ourselves. We believe the trend in multi-family will return to smaller square footages and this is highly possible in detached housing as well.

So what causes 55+ folks to move? Often it is for family reasons, but the characteristics of the community, the design of the home and the quality are chief considerations reported in the study. Some builders have done a good job of determining what their buyers want, either through surveys, meetings, absorption or the amount of referred transactions they've done. Currently, mobility has been effected by the current financial landscape and very little new construction is present. This gives builders a breather so that efforts can be concentrated in the next cycle of what to build. Housing stock is durable so mistakes in design have lasting effects. The era of just building anything is over so the new thoughtful designs that will come from the research side should be a positive.

Check out this valuable article from the National Association of Homebuilders on the tax benefits of homeownership.  With affordability in the Las Vegas market increasing daily, more and more first time buyers will continue to pursue ownership.  For real estate professionals and potential home buyers, the following offers some great advice and additional resources (click on the links).

Home builders can use new research from NAHB economists as a source of information for their prospective customers on the tax benefits of homeownership.

“Purchasing a home is typically the largest purchase and among the most important financial decisions a family makes,” said Robert Dietz, NAHB’s director of tax issues. “There are numerous factors that influence the home buying decision, and among the most important are the tax benefits that help offset some of the cost of homeownership.”

A March 27 article by Dietz — “The Tax Benefits of Homeownership” — examines how the tax benefits reduce the cost of homeownership for individual home owners and buyers for certain mortgage amounts and income levels.

Those benefits include deductions for mortgage interest and real estate taxes, the capital gain exclusion for the sale of a principal residence and the newly enacted $8,000 first-time home buyer tax credit.

For example, a new home-buying married couple with an annual $80,000 income and initial mortgage of $250,000 can save more than $11,000 in the first five years of homeownership from their mortgage interest and real estate tax deductions.

Assuming the couple resides in the home for 12 years, which is the average period of ownership, these tax savings grow to more than $25,000 for the period they have owned the home. Combined with the capital gains exclusion, the estimated total savings associated with homeownership exceed $52,000 over that span of time.

The research findings have been summarized in an “Opportunity Knocks for Home Buyers” brochure that can be a useful selling tool for builders and marketing professionals in the real estate industry.

Click here for further information on the NAHB Web site on the tax advantages of homeownership.

Consumers can find comprehensive information on the $8,000 first-time home buyer tax credit — available for qualified purchases this year before Dec. 1 — at www.federalhousingtaxcredit.com.

The M Resort, Spa and Casino opened this weekend. I have been in Las Vegas long enough not to try to go opening night due to the heavy traffic and people filling the casino arm to arm. I did make it out there last night however and found it pretty impressive. While considered to be a "locals" casino, this $1 Billion property fits in well with the upper echelon of Las Vegas casinos. While it may be a little stressful for the casino management to open during these economic times, it is great to see a new project pulsing with activity.

While the hotel is small by Las Vegas standards at 390 rooms and the gaming floor is nowhere near as large many other hotels, the property should serve its area residents well, as well as traffic from California. At one time the property was expected to hire about 2,000 people. While this is not a huge percentage of the labor force, and some of the employees are probably backfill from other properties, it is a positive for 2009. Several more properties are expected to come online this year as the chart below depicts (give or take a 1,000 due to delivery schedules moving around). This does mean significant hiring and while it may be meaker than some earlier estimates, it should help the employment picture. This does not mean a huge demand cycle for housing until there is a degree of stable growth in employment (it will help limit excess supply of homes). Further, credit restrictions will probably limit migration flows to some degree. Nevertheless, there is not a lot going on in terms of large scale projects around the country, but there is here, and like the M Resort, its going to be very cool.

Source: Las Vegas Convention and Visitors Authority.

Coldwell Banker Premier Realty has recently published the 2008 Las Vegas Valley Real Estate Report. This report is useful for investors, home buyers or sellers, developers or anyone curious about the Las Vegas Valley residential market.

The report details:

• Existing Home Sales
• Days on Market
• New Home Sales
• Pricing
• Foreclosures
• Short Sales
• Vacancy Rates
• Owning Vs. Renting
• Luxury Home Sales
• Luxury Home Features

The report also discusses taking your money further in the residential market as well as some notable sales. The report utilizes crisp graphics and photos within a thoughtful narrative. If you would like this emailed to you, just register and we would be happy send this to you. Enjoy!

The real estate market in the Southwest U.S has frequently been in the news. We are a real estate sales, marketing, investment and consulting firm with a lot of experience in the Northwest, Southwest and particularly Las Vegas. We have found that there is a lot of interest in the Las Vegas housing market as well the regional economy so we have established this blog to discuss and elaborate on market conditions, current real estate topics and generally to feed the hunger for reliable, current information related to real estate.