Metrostudy Report - (Las Vegas, NV– March 1, 2011) Overall, the Las Vegas market continues to show signs of improvement in 1Q2011, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Supply and production issues no longer plague the Las Vegas market. Production has bottomed and prices are beginning to stabilize. There were 829 starts and 975 closings in 1Q2011. Annual closings for SFD housing will stabilize in 2011 but with new inventory depleted, starts will begin to increase.

In 1Q2011, Attached Housing makes up 76% of all housing inventory in the Las Vegas market. 78% of the attached inventory is Finished Vacant.

Lot inventory levels will begin to erode at a more aggressive pace towards the end of 2011. As we reach the end of 1Q11, there are currently 16,049 SFD lots and 9,100 lots under development. At lower prices, the overall supply of SFD lots is declining and development opportunities for delivery in 2011 must be considered today.

Planning for the future is the name of the game for 2011, as securing lots become the priority. “2011 will likely be as challenging for us as the market has grasped the idea of having “bottoming out”, said Greg Gross, director of Metrostudy’s Las Vegas Region. “The new normal will be steady absorptions, difficult lending standards and increased construction costs.
However, a thorough understanding of competitive framework, buyer segmentation and conducting crucial strategic planning will be vital for success and in some cases, survival.”

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

Contact:
greg gross
925.826.3801
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