Fundamental Values Price/Rent Ratio Posted: March 01, 2010 at 11:34 AM by John McClellandWe've discussed trends in median prices and Case-Shiller as well as IHS Global Insight's view that Las Vegas is the most undervalued large metro area but fundamentally, where are Las Vegas home prices? While fundamental values are unobservable, we can use proxy indicators such as the price-to-rent ratio. One can think of this like a price/dividend ratio in stocks.As the exhibit below demonstrates, the recent price/rent ratio is far below the baseline, which we've established based on the 2001-2002 ... read more |
S&P/Case-Shiller Update Each Price Tier Registers an Increase Posted: February 23, 2010 at 12:11 PM by John McClellandThe S&P/Case-Shiller home price index came out this morning. Unfortunately it is so popular that the site crashes and I have just obtained the data. We do observe seasonality in prices in Las Vegas so I like to use the seasonally adjusted indices. Interestingly, the most current observation, December 2009, registered a month-to-month increase in all price tiers. A positive change has occurred for both November and December. Was this a purely organic increase? Probably not. The tax credit has been a... read more |
Some notes on Valuation National Rankings and Trends Posted: February 17, 2010 at 9:56 AM by John McClellandModern locomotives are diesel-electric hybrids where a diesel drive motor powers a generator that in turn powers electric motors at the drive wheels. Regional economies are dynamic motors that power the locomotive...the United States. While each wheel, the regional economy has its own motor, there is a drive mechanism at the top, chiefly monetary policy and with respect to Las Vegas's regional economy, national employment can be thought of as a drive engine. In Las Vegas we really seek a broa... read more |
Bond Market and Inflation Anticipating Inflation? Posted: February 16, 2010 at 9:20 AM by John McClellandSeeking Alpha has a good article today regarding bond market expectations of inflation. The author notes that 4.7% yields seem massive in today's low interest rate environment but 30 year bonds are still selling poorly. The weak investor appetite for these bonds implies that market participants are expecting inflation since 4.7% yield in a deflationary market would be supurb. If this author is correct about inflation expectations, what does that mean for real estate? My take is at these l... read more |
LV City Councilman to speak at CBPR Councilman Steve Ross Posted: February 11, 2010 at 1:59 PM by Steve Hoopes STEVE ROSS TO SPEAK AT COLDWELL BANKER PREMIER REALTY Steve RossLV City CouncilWard 6The Centennial Hills office of Coldwell Banker Premier Realty welcomes Las Vegas City Councilman Steve Ross to it's weekly business meeting on Thursday February 18, 2010 at 8:30AM.Councilman Ross represents Ward 6 on the LV City Council. Ward 6 is the fastest growing area of Las Vegas and encompasses the far northwest and Centennial Hills. This area has doubled in poplulation in the last 6 years.... read more |
