Sin City Living » 2008 » November

If my neighborhood is any kind of indication about the state of the Las Vegas real estate market then prices may have hit bottom. At least for inventory already on the market.

For the last year and a half I have enjoyed having zero occupants on either side of me with both bank-owned houses sitting empty. Real estate agents stopped coming by the properties and I have been tending to the neglected landscaping to preserve the image of our area.

But as of this week, both homes, along with another a few houses down the block have sold. The new owners have been nice enough so far and they seem really happy with the deals they got (about 40% less than what I paid in May 2007). As much as it hurts to see my equity disappear I am glad that these homes finally sold and that actual owners will be living in them. This has to be a good sign for the local market. Have prices hit bottom? Clearly these buyers thought so.

The LVRJ is reporting that the Las Vegas Sands Corporation, parent company of the Venetian, Palazzo and the Sands Expo and Convention Center is “in jeopardy of missing certain financial covenant requirements and needs to raise more capital.” This could result in the company defaulting on some of its loans and possibly being forced into bankruptcy.

The company’s stock price has dropped more than 90% this year and Sheldon Adelson, the Chairman and Chief Executive Officer has lost over $16.6 billion of his net worth. Ouch!

One of my neighbors works as a dealer at the Venetian and he confirms that things are really slow in the casino and that many of his co-workers are fearful of layoffs.