Las Vegas promises long term gains

Mountains could be the saving of the Las Vegas property market which has undergone one of the biggest slumps in the US.

Property analysts are saying that although foreclosures line the streets and luxury high rise condos on the Strip are incomplete or sitting vacant, demand will return. As the city is surrounded by mountains and remaining land has already been bought by builders there will eventually be a time when the Strip is full.

Some developments are stalled but construction continues for many businesses and condos. Analysts believe that when current construction projects are complete there will be thousands of new jobs and that in itself will create demand for property.

'We've gone from an extreme lack of supply to a severe glut,' said Sean Brown of the National Association of Residential Real Estate Investment Advisors.

'Taking a conservative approach, we've got 20,000 rooms being delivered, which represents 100,000 jobs,' said Scott Meservey, Las Vegas real estate agent and NARREIA advisor. 'Our current job market is sitting at 900,000 positions to service a valley of two million people, so you're talking about a 12% increase in the job market.'

Tim Kuptz, owner of a Las Vegas RE/MAX real estate brokerage, reported that a client has acquired more than 100 homes in Las Vegas. 'His strategy is simple. Whenever he thinks there are a good number of construction cranes in the skyline, he buys more homes. Today there are 42 cranes on the Strip alone. He is buying again,' said Kuptz

'I do think that in the next 18 months to two years we're going to see a very nice turnaround in this market because of the increased demand,' added Brown.

What matters most is buying in the right place. Brown predicts that when The Strip is full although building will continue out of the valley those areas will not be as popular and therefore appreciate less.

'The Valley is the most promising for rental property investors. While home prices are less expensive in outlying areas, the valley is where home prices are likely to appreciate most in the future as it is surrounded by mountains,' he said. 'There is a finite amount of land in Las Vegas Valley and all that land has been purchased by builders. Once that stuff is built out then we have to spill out toward Moapa but you'll no longer be in the inner ring.'

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