Las Vegas Business Press :: News : Home foreclosures skyrocket in second quarter

Home foreclosures skyrocket in second quarter

BY TONY ILLIA

Southern Nevada's housing market has seen better days. A total of 3,147 new foreclosures were reported in the second quarter, 792 percent more than a year ago, reports Applied Analysis and Urban Environmental Research. And the dramatic slide doesn't look like it will slow anytime soon, with another 4,535 foreclosures actively under way in the second quarter -- 820 percent more than in 2006.

Unincorporated Clark County -- the area where much of the new area development is happening -- led in foreclosures, followed by Las Vegas and North Las Vegas, respectively. As foreclosures occur they inevitably add to the valley's swelling home inventory. There was a record 24,087 units on the market at the end of July, reports the Greater Las Vegas Association of Realtors. It marks an 18.8 percent increase from 12 months ago.

"This is more proof of what we've been telling prospective home buyers for months," said Devin Reiss, 2007 GLVAR president. "Now may be the optimal time to buy a home."

COURTESY/OLSEN & ASSOCIATES
Great Harvest Bread Co. is opening a new 2,084-square-foot store inside Nigro Development's Siena Town Center at Tropicana Avenue and Hualapai Way.

COURTESY/PULTE HOMES
Southern Nevada's housing inventory swelled to a record 24,087 units last month. However, the number of available homes will likely grow even larger in the future with 3,147 new foreclosures under way in the second quarter.

Yet there were only 1,318 homes sold in July or 34 percent less than last year. Median sale prices dipped to $295,000 last month, which is nearly 5 percent less than in 2006. There was also a record 6,269 units worth of condo/townhomes available in July, too. It marks a 28 percent increase from last year, yet sales are still sluggish with only 303 units sold last month for a 40 percent year-to-year drop. Median sale prices softened only slightly to $195,000, or 3.2 percent less than in 2006.

"The latest figures suggest supply levels will continue to escalate before reporting any signals of improving conditions," said Brian Gordon, principal of Applied Analysis, a Las Vegas-based economic research firm. "We remain concerned about the duration of the current cycle as foreclosures reside at elevated levels."

PROJECTS

Great Harvest Bread Co. is opening a new 2,084-square-foot store inside Nigro Development's Siena Town Center at Tropicana Avenue and Hualapai Way. The $15 million, 13-acre retail center is anchored by a 65,000-square-foot Smith's Food and Drug.

Core Construction is performing a $1.4 million medical office tenant improvement for Las Vegas Radiology at Smoke Ranch Road and Fire Mesa Street. Designed by Vedelago Petsch, the 6,064-square-foot project will finish in November.

Crisci Builders completed a 22,404-square-foot office tenant improvement for Wyndham Vacation Resorts inside the Beltway Business Park at 6795 Edmond St. Designed by JMA, the $1.2 million project finished last month.

Crisci also finished a 9,598-square-foot office project for Bullivant Houser Bailey at the Hughes Center at 3883 Howard Hughes Pkwy., Ste. 550. Designed by Pollack Architecture, the $950,000 project was completed in June.

MILLION DOLLAR DEALS

Artisan Real Estate Ventures bought a 440-unit apartment complex at 2150 N. Tenaya Way for $52 million, or $118,181 per unit, Great American Capital. CB Richard Ellis' Spence Ballif and Jeff Swinger represented the seller.

AZZ Properties, LLC bought the 9-year-old, 16,754-square-foot Dino Plaza Professional Suites at 3365 E. Flamingo Rd. for $3.8 million, or $226.81 per square foot, from Dino Plaza, LLC. The Bentley Group's Mark Musser represented the buyer.

Ron Bures bought a 2-year-old, 11,520-square-foot office complex at 8978 W. Nevso Dr. for $2.2 million, or $194.88 per square foot, from TSE Holdings, LLC. The Bentley Group's Mark Musser represented the seller.

Checker Auto signed a 15-year, $2 million lease for 6,000 square feet of retail space at the southeast corner of Sahara Avenue and Sloan Lane. Grubb & Ellis' Kent Preston represented the tenant, and Wall Street Realty's Allen Hamika represented the lessor, Hamika-East Inc. The reported average rent equals $1.93 per square foot.

Selectbuild Nevada LLC signed a four-year, $1.5 million lease for 31,500 square feet of industrial space at 2930 Marco St. in North Las Vegas. IPG Commercial's Dean Willmore and Joe Samples represented the lessor, Clifford Alert Properties LLC. The reported average rent equals 98 cents per square foot.

Mosaic Investments bought 6,953 square feet of industrial space at 6643 Schuster St. for $1.4 million, or $195 per square foot, from Brigite Land Management. Sweetland Industrial Realty's Paul Sweetland represented both the buyer and seller.

Cascade Promotion Corp. signed a five-year, $1.2 million lease for 27,981 square feet of industrial space in the Arrowhead Commerce Center at 3650 E. Post Rd., Ste. I-J. Grubb & Ellis's Baron Hyde represented the tenant, and Colliers International's Spencer Pinter represented the lessor, Arrowhead 15 Property, LLC. The reported average rent equals 71 cents per square foot.

DB Trust bought 6,270 square feet of industrial space at 4325 W. Patrick Lane, Ste. 105, for $1.145 million, or $183 per square foot, from Promontory Partners. Sweetland Industrial Realty's Paul Sweetland represented the buyer.

tonyillia@aol.com

303-5699

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