Page 18 - 2016 Las Vegas Residential Real Estate Report

REFLECTION
ON 2016
It was an intriguing year and while characterized by a lot of global political and economic uncertainty, our local market was steady, posting meaningful and non-alarming price increases and sales.
The city continued to adapt to the stressors imposed during the recession, nally surpassing the pre-recession employment levels, albeit with slowly growing wages. We also welcomed the opening of the T-Mobile Arena and the rst professional sports team, the Golden Knights. Las Vegas is growing again. Not only in terms of population, but in quality businesses, athletics, education and entertainment.
WE ALSO WELCOMED THE OPENING OF THE T-MOBILE ARENA AND THE FIRST PROFESSIONAL SPORTS TEAM, THE GOLDEN KNIGHTS
For those that live and commute in Las Vegas each day, the growth is clear and major infrastructure projects in the Northwest and the extremely traveled I-15 are well underway, ensuring that the growth
we all perceive daily doesn’t become a permanent bottleneck. Another sign of the maturity the valley is experiencing is the city planning for the future decades out.
Although we are excited about business activity in Las Vegas, we should all be cognizant that while the region is making progress towards greater economic diversi cation, most of the growth
we are seeing is an expanding pie, rather than a shifting composite of industries. As such, the region could continue to be sensitive to shocks in the macroeconomy, from potential sources such as energy or drastic dollar appreciation that in uences foreign spending in Las Vegas. Although there
are few things that we can point to that cause us trepidation, we know that we are now a global city and we can be in uenced by both positive and negative economic shocks. Additionally, monetary policy is in unprecedented territory, with central
banks playing a much more active role in both their respective economies and on the international stage. Low interest rates have had mixed in uence, bene ting homeowners while savers have suffered and perhaps, in part, due to low interest rates, an equity bull market has hit landmark highs and this is viewed as a risk by some. Additionally, concerns of both consumer and sovereign indebtedness linger. Another risk, which could hit close to home, is that a sharp increase in mortgage interest rates could temporarily stall sales rates both nationally and locally. This is likely to be transitory, since functioning housing markets have existed against much higher rates than today. However, we highlight this as a near-term risk.
While we bear in mind these items as potential risks, we believe that long-term, Las Vegas continues to have possibilities as bright as its city lights. Nevada is likely to remain a draw for business from California and elsewhere and as recent history proves, entertainment, gaming and trade shows remain a massive draw for visitors.
It was our pleasure to represent nearly 3,000 families and retirees seeking homes in 2016. Our listing and buyer representation activity brought us into contact with a cross-section of sellers and buyers, from empty nesters to corporate and military moves, and from rst-time buyers
to seasoned second-home purchasers. Long integrated in the community, Coldwell Banker Premier Realty looks forward to serving many more clients in 2017.