Outsiders continue to predict woes for Las Vegas housing

By Buck Wargo

Monday, Jan. 17, 2011 | 3 a.m.

Predictions about the ongoing decline of the local housing market keep coming from outside the state.

This time a California-based research firm projects Las Vegas home values will slide 6.4 percent in 2011.

The report from Clear Capital ranks Las Vegas No. 38 in the nation in home price appreciation with that projected decline. The firm reported local home prices fell 3 percent in 2010.

Las Vegas did better than Phoenix where prices are expected to fall 9.4 percent in 2011 after falling 8 percent in 2010.

Home prices are projected to fall 1.2 percent in Los Angeles and 2.2 percent in the Inland Empire in California.

Nationally, home prices fell 4.1 percent in 2010 and are expected to decline 3.7 percent in 2011.

Washington, D.C., will fare the best in 2011 with a 6.5 percent price increase, the firm reported. Houston is expected to be second with a 3.6 percent increase.

The prediction always rankles local housing analysts, who never expected the 60 percent drop the marketplace lived through.

Local analysts expect home prices to remain fairly steady in 2011 with a potential for a slight dip.

EHB acquires parcel

EHB Cos., developer of One Queensridge Place and Tivoli Village, has bought the 60 acres formerly known as the Great Mall of Las Vegas.

EHB bought the property for $6.3 million from OREO Corp., a subsidiary of KeyBank.

Triple Five Nevada planned to build a $750 million shopping center in northwest Las Vegas that would have condominiums and office space, but it defaulted on its loan.

EHB hasn’t announced plans for the site near Las Vegas Beltway and U.S. 95, but President Frank Pankratz said it is envisioned to be a mixed-use development. No timetable has been set for the project that will be market driven, he said.

It was a great opportunity given its freeway frontage and part of a major hub adjacent to Centennial Hills that includes schools, parks, medical and commercial developments, Pankratz said.

EHB is a development partner with IDB Group of Israel in the condominium project One Queensridge Place and the mixed-use Tivoli Village next to Summerlin. Tivoli Village will open in March. IDB isn’t a partner in the Great Mall site.

Last fall, EHB announced it had acquired 23 acres on the south side of Boca Park, a retail development, in an $11.75 million transaction with City National Bank. No timetable has been announced for the project that will be an extension of Tivoli Village.

Curt Allsop of Grubb & Ellis served as the broker representing OREO Corp.

Economic outlook

Although the nation’s jobless rate in December fell to its lowest point in 19 months, UNLV economists said they aren’t expecting a pickup in job growth in the first half of 2011 in Southern Nevada.

The Center for Business and Economic Research released its Southern Nevada Index of Leading Economic Indicators that showed the December indicator rose 0.48 percent to 123.02 after declining 0.68 percent in November. For two years, the index has fluctuated on a monthly basis, said Bob Potts, assistant director.

“For almost two years this up-and-down pattern has existed indicating that we can expect little change in future job growth through the first half of 2011,” Potts said.

Nevada’s jobless rate was 14.3 percent in November. The nation’s jobless rate for December announced Jan. 7 fell to 9.4 percent.

The December index, which measures October data, grew because of increases in visitor and convention attendance. That was offset by a drop in gross gaming revenue of 3.59 percent.

In other news

• Colliers International Las Vegas has added a new brokerage team that specializes in multifamily investment sales. The firm said it’s doing so in response to an increase of multifamily investors in Southern Nevada. The new division will be led by Vice Presidents Gary Banner and Garry Cuff.

• The Siegel Group Nevada announced it has acquired 3790 Paradise Road, an office building that will serve as its new corporate headquarters, for $3.3 million. The Siegel Group operated extended-stay hotels, apartments, hotels, casinos and other real estate.

• Tivoli Village at Queensridge announced its opening day is March 24 for the 29-acre mixed-use development in northwest Las Vegas, adjacent to Summerlin. Opening of the development’s first phase that includes office and retail will be Charming Charlie fashion boutique, Tivoli Irish Pub, Petra Greek Restaurant, Roc Republic of Couture, Obika Optical & Sunglasses, Kidville, BRIO Tuscan Grille, Vasari, Candy Elephant, Stash, Ratskeller, Pesci’s Pizza, lifestyle boutique CORSA and Ritual Salon & Spa.

• Better Homes and Garden Real Estate/Desert Properties is merging with I Realty of Henderson, which has 30 employees. Desert Properties has 140 agents and brokers. The merger will create the eighth largest real estate agency in the valley, they announced. Last year, Desert Properties moved its brokerage from RE/MAX International to Better Homes and Gardens Real Estate.