Current 2011 by Gene Northup

INFORMATIVE

SYNERGY

ACCURATE

Sotheby’s INTERNATIONAL REALTY

CURRENT Las Vegas Market Update

TIMELY

A Look Back

L a s Ve g a s , 2 0 1 1

As we look back on 2011, we find ourselves starting to see the real estate market stabilize and a glimpse of a recovery as more and more people took advantage of the downward pressure in pricing.

We also saw improvements in short sales, including those in the higher market segments, many of which are now being completed within 90 days. This is promising for those looking to sell but have been reluctant due to market conditions and untenable lender conditions to this point.

I hope you enjoy this annual market report in an effort to provide a comprehensive analysis of the Las Vegas market with a more detailed look at some of our most prestigious communities. It is my intent to provide this information for educational purposes, not to be considered a fair market value assessment of any single property. If I can be of any further assistance, please let me know.

Gene Northup 702.497.0300 gene@callgene.com www.CallGene.com

Market Over $500,000

For Buyers While there was not as much activity in this segment, those that did participate were able to get some excellent value opportunities. We saw the beginning of a trend for those looking to move up into that next level of home.

For Investors

Types of transactions sold over $500,000

A select group of long-term investors have started looking at this segment in earnest as it has much better value opportunities than at the lower levels due to less competition.

sold over $500,000 5%

24%

44%

For Sellers We did see some improvements in the timing and success of “short sales� at the higher levels. As to be expected, there continued to be a market for those unique and distinctive properties which held their value more so than other properties in the higher segments. However, with less activity at the upper levels, downward pressure on pricing overall

59%

17%

50%

Short Sale

Cash

Bank Owned

Conventional

Traditional

FHA

Market Under $500,000 For Buyers With over 93% of total transactions occurring under $300K, this segment was very active this past year. Despite having a considerable amount of those relocating found great opportunities. Many of the bank-owned properties had a 30-day provision reserved for owner-occupied buyers which provided

Types of transactions sold under $500,000

sold under $500,000

For Investors With a very robust rental market coupled with record

2% 5%

4%

investor activity in this segment of the market. While

21% 45%

50%

51%

properties, this strategy seems to be waning due to the amount of competition. As the gap between

For Sellers

22%

Sellers continued to face challenges with almost half

Cash

Cash

Conventional

Conventional

Other

FHA

VA Other

who were not “underwater� and were priced to market, found that they had an advantage over the competition and sold more quickly. Price competition from bank-owned properties continued to make it challenging for sellers.

Number of Single Family Homes Sold in 2011 15,000

12,000

9,000

6,000

93% of All Sales in Southern Nevada

51 $4 00 ,0

01 $4

00 ,0 51 $3

00 ,0 01 $3

00 ,0 51 $2

00 ,0 01 $2

00 ,0 51 $1

-$

-$

0 00 0, 35 -$

0 00 0, 30 -$

0 00 0, 25 -$

0 00 0, 20 -$

0 00 0, 15 00 ,0 0 10

-$ -$

00 ,0 01 $1

0 00 0, $5

0 00 1, $5

er nd U

0 00 0, 40

up d an 00 00 ,0 ,0 00 01 ,0 ,0 5 $5 -$ 0 00 00 ,0 0, 01 00 ,0 4, $4 -$ 00 00 ,0 ,0 00 01 ,0 ,0 $3 $3 0 00 00 ,0 0, 01 00 ,0 2, $2 -$ 00 00 ,0 ,0 00 01 ,0 ,0 $1 $1 00 00 ,0 ,0 00 00 $5 $5 0 00 ,0 00 0, 45

$4M - $5M $2M - $3M $500 - $1M 401-450 301-350

201-250

101-150

Under $50k 0

5 5 11 22 117 543 188 333 538 758 1,488 2,825 2,328 10,608 11,976 6,313 3,000

40,000

$400,000

35,000

$350,000

30,000

$300,000

25,000

$250,000

20,000

$200,000

15,000

$150,000

10,000

$100,000

5,000

$50,000

0

$0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Average Sales Price

2011

Number Sold

Average Sales Price

Number of Single Family Residences Sold

Single Family Homes Historical Data

Henderson

SEVEN HILLS

Filler

WHILE THE NUMBER OF TRANSACTIONS IN SEVEN HILLS DECREASED SLIGHTLY, THE MEDIAN SALES PRICE INCREASED WHILE THE NUMBER OF SHORT SALES DECREASED. THIS GIVES US THE INDICATION THAT SEVEN HILLS IS STABLIZING AS A WHOLE. WHILE THERE MAY STILL BE POCKETS OF TROUBLE, OVERALL, IT MAY BE TIME TO TAKE ANOTHER LOOK.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

33

$980,194

$855,000

24%

30%

24

$971,681

$870,400

29%

25%

(9)

($8,513)

$15,400

5%

(5%)

ROMA HILLS

THIS ENCLAVE OF CUSTOM ESTATES LOCATED IN THE FOOTHILLS ABOVE GREEN VALLEY RANCH SAW A DECREASE IN TRANSACTIONS BUT AN INCREASE IN AVERAGE SALES PRICE. BANK OWNED AND SHORT SALE TRANSACTIONS DECREASED, WHICH MAY BE AN INDICATOR OF A STABALIZING NEIGHBORHOOD.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

17

$814,353

$781,000

47%

41%

8

$880,875

$759,500

25%

38%

(9)

$66,522

($21,500)

(22%)

(4%)

MACDONALD HIGHLANDS

THIS

DISTINCTIVE CUSTOM HOME COMMUNITY NESTLED IN THE

BLACK MOUNTAINS

LAS VEGAS VALLEY, AND IS HOME TO SOME OF THE MOST NOTABLE CUSTOM HOMES BORDERING THE DRAGONRIDGE GOLF COURSE. OVERLOOKS THE ENTIRE

Market Update

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

34

$954,468

$667,500

32%

32%

39

$707,962

$638,000

18%

41%

5

($246,506)

($29,500)

(14%)

9%

2010 2011 ∆

FOUNTAINS WITH

TREE LINED STREETS, THIS CUSTOM HOME DEVELOPMENT IS UNIQUE WITH A FEEL

MUCH DIFFERENT FROM THAT OF THE TRADITIONAL

LAS VEGAS

STYLE HOMES.

WHILE

THERE WAS SLIGHTLY LESS ACTIVITY IN THIS DEVELOPMENT, PRICING WAS AFFECTED BY A FEW BANK-OWNED PROPERTIES THAT BROUGHT THE AVERAGE SALES PRICE DOWN.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

7

$771,429

$740,000

0%

43%

6

$578,083

$540,000

67%

33%

(1)

($193,346)

($200,000)

67%

(10%)

ANTHEM COUNTRY CLUB

THIS EXCLUSIVE GUARD GATED GOLF NEIGHBORHOOD FEATURES UPPER END PRODUCTION, CUSTOM AND SEMI-CUSTOM HOMES. ANTHEM OFFERS A CHAMPIONSHIP GOLF COURSE, STADIUM QUALITY TENNIS COURTS, CLUBHOUSE, LUSH RESORT STYLE POOLS, STATE OF THE ART FITNESS CENTER.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

119

$666,980

$555,000

24%

30%

112

$588,376

$482,450

19%

27%

(7)

($78,604)

($72,550)

(6%)

(3%)

LAKE LAS VEGAS

LAKE LAS VEGAS HAS SUFFERED SOME DIFFICULT PRESS AND HARDER TIMES, BUT THINGS ARE LOOKING UP. WITH TWO BUILDERS ACTIVELY BUILDING THREE COMMUNITES AND BOTH THE NUMBER OF BANK OWNED AND SHORT SALES DECREASED FROM LAST YEAR, IT IS TIME TO DISPELL THE RUMORS AND TAKE A HARD LOOK AT LAKE LAS VEGAS FOR YOUR HOME.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

73

$426,618

$355,000

41%

27%

68

$466,121

$330,000

24%

4%

(5)

$39,503

($25,000)

(18%)

(23%)

12% April had the highest number of sales in 2011 over $500,000. January had the least amount of sales with only 6%.

89135 was the zip code with the most activity. Over 19% of all sales over $500,000 were within 89135. 89121 had the least amount of sales with .16%

89135

SothebysRealty.com had over 4 million unique visitors in 2011, 38% of which were from outside the United States.

- John R. Talbot 12/20/11 Makena on Maui’s South shore, this estate white surf and year round sunsets. This estate sold for $27,000,000.00 in July by Island Sotheby’s International Realty.

40 There were 40 homes over $2,000,000 sold in Southen Nevada in 2011, 9 of which were over $4,000,000.

In addition to our market knowledge, Synergy Sotheby’s International Realty has the worldwide reach of the brands than 40 countries and territories.

With nine out of ten buyers beginning their real estate search

LIKE NO OTHER

online* the plan to sell your home must utilize proper Internet exposure. Our approach includes websites far beyond sothebysrealty.com in an effort to target buyers on the web. Specifically, we employ ListHub to power the distribution of listings our network represents to all of the leading websites where consumers search for real estate. ListHub also provides comprehensive marketing reports that detail the traffic generated for your home on each of these websites, including sothebysrealty.com.

Las Vegas

THE RIDGES

LOCATED

AT THE FOOTHILLS OF THE

SPRING MOUNTAINS, THIS

HIGHLY SOUGHT-AFTER

GUARD GATED COMMUNITY CONTINUED TO SEE A SIGNIFICANT NUMBER OF TRANSACTIONS

2011 AS PRICING DECLINED SLIGHTLY GIVING WAY TO OPPORTUNITY FOR THOSE LOOKING TO MAKE A MOVE UP. OVER THE COURSE OF

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

20

$2,804,825

$2,400,000

5%

20%

24

$2,376,295

$1,935,288

8%

21%

4

($428,530)

($464,712)

3%

1%

TOURNAMENT HILLS

THIS LUXURY CUSTOM HOME DEVELOPMENT BORDERS THE TPC SUMMERLIN GOLF COURSE, HOME TO THE ANNUAL JUSTIN TIMBERLAKE SHRINERS HOSPITALS FOR CHILDREN PGA TOUR EVENT AND IS ONE OF THE MOST PRESTIGIOUS NEIGHBORHOODS IN LAS VEGAS. THERE WAS LESS SALES THIS YEAR, THAN LAST, BUT THERE WERE SOME NOTEWORTHY SALES.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

5

$1,876,200

$1,740,000

40%

0%

3

$2,630,000

$1,690,000

33%

0%

(2)

$753,800

($50,000)

(7%)

0%

MOUNTAIN TRAILS

THIS CUSTOM HOME DEVELOPMENT HAD A VERY LARGE INCREASE IN SALES VOLUME FROM 2010, DUE IN PART TO SOME LOWER PRICED OPPORTUNITIES THAT CAME UP THROUGHOUT THE YEAR.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

1

$1,600,000

$1,600,000

0%

0%

9

$1,153,889

$1,100,000

22%

33%

8

($446,111)

($500,000)

22%

33%

CANYON FAIRWAYS

THE CUSTOM HOMES OF THIS COMMUNITY SERVE AS A BOUNDARY FOR THE TPC LAS VEGAS GOLF COURSE AND ARE KNOWN TO HAVE EXPANSIVE VIEWS OF THE LAS VEGAS VALLEY. WITH ONLY A SLIGHT REDUCTION IN SALES PRICE VALUES OVER 2010, THIS COMMUNITY DID SEE SOME ADDITIONAL ACTIVITY.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

7 9

$1,297,459 $1,290,556

$1,297,208 $1,100,000

0% 0%

14% 0%

2

($6,903)

($197,208)

0%

(14%)

EAGLE HILLS

THIS

GUARD GATED COMMUNITY, SET IN THE HEART OF

CONSIDERABLE INCREASE IN SALES VOLUME OVER

2010

SUMMERLIN,

SHOWED A

WHILE MAINTAINING ITS AVERAGE

AND MEDIAN SALES PRICE.

2010 2011 ∆

Market Update

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

4

$916,125

$868,750

0%

0%

8

$947,000

$858,000

13%

38%

4

$30,875

($10,750)

13%

38%

BELLACERE THIS

GUARD-GATED COMMUNITY OF LUXURY HOMES FEATURES SOME OF THE MOST

EXTRAORDINARY VIEWS OF THE

LAS VEGAS STRIP. THIS INTIMATE COMMUNITY IS NESTLED PGA

WITHIN THE SUMMERLIN MASTER PLAN AND IS LOCATED JUST OUTSIDE OF THE PUBLIC

TOUR

COURSE.

SUCCUMBING

TO SOME DOWNWARD PRICING PRESSURES THERE WERE

SIGNIFICANTLY MORE SALES THIS YEAR THAN LAST YEAR AS INDIVIDUALS TOOK ADVANTAGE OF THESE GREAT VALUES.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

4

$2,768,500

$2,900,000

0%

0%

8

$1,149,363

$867,500

25%

0%

4

($1,619,137)

($2,032,500)

25%

0%

WILLOW CREEK

THIS ENCLAVE OF LUXURY HOMES EXPERIENCED A SLIGHT INCREASE IN AVERAGE SALES PRICE, RESULTING FROM TWO KEY SALES EARLIER IN THE YEAR AND CAME CLOSE TO MAINTAINING THEIR YEAR ON YEAR MEDIAN SALE PRICE.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

9 8

$789,989 $984,000

$850,000 $812,500

22% 13%

22% 38%

(1)

$194,011

($37,500)

(10%)

15%

THE PALISADES

Filler

THIS GUARD GATED DEVELOPMENT WITHIN THE SUMMERLIN MASTER PLANNED COMMUNITY SAW A SIGNIFICANT INCREASE IN ACTIVITY OVER THE YEAR, DUE IN PART TO A FEW EXCEPTIONAL PRICING OPPORTUNITIES THAT TOOK PLACE IN THE SPRING AND FALL WHICH BROUGHT THE AVERAGE AND MEDIAN SALES PRICE DOWN.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

6

$809,167

$834,250

0%

17%

12 6

$718,292 ($90,875)

$736,450 ($97,800)

42% 42%

8% (8%)

THE VINEYARDS

Filler

THIS PRIVATE GUARD GATED COMMUNITY WITHIN SUMMERLIN REMAINED RELATIVELY STABLE IN TERMS OF SALES ACTIVITY DESPITE HAVING A MINOR OVERALL PRICING DECREASE.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

11

$672,455

$710,000

27%

27%

10

$620,293

$645,500

0%

10%

(1)

($52,162)

($64,500)

(27%)

(17%)

RED ROCK COUNTRY CLUB SET AGAINST THE BEAUTIFUL BACKDROP OF RED ROCK CANYON, THIS PREMIER COUNTRY CLUB RESIDENTIAL DEVELOPMENT IS HOME TO TWO GOLF COURSES AND CONTINUES TO BE IN HIGH DEMAND WITH LUXURY BUYERS. THIS YEAR SHOWED A SIMILAR LEVEL OF SALES VOLUME FROM 2010 WHILE EXPERIENCING A DECLINE IN BOTH AVERAGE AND MEDIAN SALES PRICE EARLY IN THE YEAR.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

91

$809,825

$700,000

19%

34%

86

$784,893

$622,500

19%

26%

(5)

($24,932)

($77,500)

0%

(8%)

COUNTRY CLUB HILLS

Filler

BORDERING THE PRIVATE TOURNAMENT PLAYERS CLUB (TPC) SUMMERLIN GOLF COURSE, THIS PRIVATE COMMUNITY ALSO SHOWED AN INCREASE IN SALES VOLUME WITH ONLY A SLIGHT DECLINE IN AVERAGE AND MEDIAN HOME PRICES OVER THE YEAR.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

6

$650,667

$637,500

0%

17%

10

$619,200

$613,500

10%

40%

4

($31,467)

($24,000)

10%

23%

QUEENSRIDGE THIS

MASTER PLANNED COMMUNITY IS HOME TO THE CHALLENGING

COURSE AND PROVIDES A VARIETY OF LANDSCAPES THROUGHOUT.

BADLANDS

GOLF

THE LUXURY SEGMENT

OF THIS COMMUNITY SAW AN INCREASE IN SALES ACTIVITY AS WELL AS AN INCREASE IN THE AVERAGE AND MEDIAN HOME SALES PRICING, DUE PRIMARILY TO SOME SIGNIFICANT SALES IN THE FALL.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

32

$586,337

$520,500

25%

28%

41

$884,066

$568,000

22%

24%

9

$297,729

$47,500

(3%)

(4%)

SOUTHERN HIGHLANDS THIS

MASTER PLANNED COMMUNITY ANCHORS THE SOUTHERN PORTION OF THE VALLEY

AND WITH ITS WORLD-CLASS GOLF COURSE SERVE AS ONE OF THE MOST DISTINCTIVE DEVELOPMENTS IN

LAS VEGAS. THE

LUXURY SEGMENTS WITHIN THE COMMUNITY SAW A

DECREASE IN ACTIVITY OVER THE YEAR BUT SAW AN OVERALL IMPROVEMENT IN AVERAGE AND MEDIAN SALES PRICING.

Market Update

2010 2011 ∆

# of Transactions

Average Sales Price

Median Sales Price

% REO

% Short Sales

50

$1,051,586

$850,000

24%

24%

35

$1,256,509

$1,075,000

26%

17%

(15)

$204,923

$225,000

2%

(7%)

It took me seventeen years to get three thousand hits in baseball. I did it in one afternoon on the golf course.

- Hank Aaron

Perspectives L a s Ve g a s , 2 0 1 2

WHILE

Market Over $500,000

Market Under $500,000

For Buyers

For Buyers

A NUMBER OF “TREASURES” WERE PICKED UP IN

2011, THERE

ARE

LIKELY TO BE SOME MORE OPPORTUNITIES FOR THE DISCERNING BUYER IN SALE AND BANK OWNED PROPERTIES WILL CONTINUE TO BE

WHILE THE OVERALL INVENTORY HAS BEEN REDUCED AND THE NUMBER

A PART OF THE LANDSCAPE, BUT THEY ARE NO LONGER AS CHALLENGING

OF BANK OWNED PROPERTIES COMING TO MARKET HAS SLOWED

2012. SHORT

TO CLOSE AS IN THE PAST.

THIS

PROVIDES MORE OPTIONS FOR THOSE

WILLING TO GIVE CONSIDERATION TO THESE PROPERTIES IN WHICH MOST HAVE SHUNNED OR DISREGARDED DUE TO THE CHALLENGES IN CLOSING.

THIS

NEW YEAR SHOULD CONTINUE TO OFFER OPPORTUNITIES FOR THOSE

CONSIDERABLY, THE NUMBER OF OPPORTUNITIES HAS BEEN REDUCED AS WELL.

THIS IS NOT TO SAY THAT THERE ARE NOT OPPORTUNITIES TO BE HAD, BUT RATHER IT TAKES MORE TIME AND EFFORT TO GET THE GREAT DEALS.

TAKING ADVANTAGE OF MARKET CONDITIONS AND PERHAPS ADVANCING THEIR SCHEDULE IN MOVING UP TO THE NEXT LEVEL OF LUXURY.

For Investors

For Investors THERE HAVE BEEN A NUMBER OF SUCCESSFUL “FLIPPERS” WHO HAVE ENTERED

INVESTORS

HAVE BEEN VERY ACTIVE OVER THE PAST THREE YEARS AND

THE LUXURY SEGMENT OF THE MARKET AND FOUND RETURNS WITH

WILL CONTINUE TO BE A LARGE PART OF THE MARKET.

DISCOUNTED MATERIALS AND LABOR AT THEIR DISPOSAL.

ARE NOT AS EASILY FOUND AS THEY ONCE WERE WITH THE REDUCTION

IS LIKELY TO CONTINUE IN

THIS OPPORTUNITY

2012, BUT THE GREATEST OPPORTUNITIES WILL BE

HAD BY THOSE REAL ESTATE INVESTORS LOOKING TO BUY AND HOLD WHILE RECEIVING RENTAL INCOME ALL THE WHILE.

OF AVAILABLE INVENTORY.

THE

RETURNS

WHILE THERE IS STILL AN ACTIVE “FLIPPERS”

MARKET, IT HAS DIMINISHED SOMEWHAT AND REPLACED BY INVESTORS ESTABLISHING OR EXPANDING THEIR RENTAL REAL ESTATE PORTFOLIO.

For Sellers

For Sellers THERE IS ALWAYS A MARKET FOR HIGH-QUALITY AND VERY DISTINCTIVE PROPERTIES, AND THAT CONTINUES TO HOLD TRUE FOR OUR MARKET. HOWEVER, THE HIGHER END OF THE SEGMENT HAS BEEN HAMPERED

AS

BY DOWNWARD PRICE PRESSURE AS THE NUMBER OF BUYERS HAS

PRICING OBJECTIVES.

DECREASED SIGNIFICANTLY.

BUYERS ARE LOOKING

PROPERTIES COME TO MARKET AND AS MORE SHORT SALES ARE BEING

AT THE VALUE OPPORTUNITIES AND THOSE PRICED TO MARKET ARE

SUCCESSFULLY SOLD IN SHORTER AMOUNTS OF TIME, COMPETITION

SELLING, ALTHOUGH WITH LONGER TIMEFRAMES THAN WE HAVE SEEN

WITH THE TRADITIONAL SALES MAY BECOME EVEN GREATER.

IN THE RECENT PAST.

PRESENTLY, MOST

WE CONTINUE TO SEE PRICING BOUNCE ALONG THE TROUGH OF

OUR MARKET, IT IS CRITICAL FOR SELLERS TO BE REALISTIC IN THEIR

WE

WILL CONTINUE TO SEE BANK-OWNED

THE WORTH OF A HOME can be found in details that truly define uniqueness - as simple as a centuries

LIKE NO OTHER

old fireplace that retains the historic prominance of a time past, or as grand as a rooftop promenade atop a landscape of city lights. So, to us, It’s not about the size of the property, the number of bedrooms, or even the price, but more about the distinct character that makes a home noteworthy of being called exceptional.

This is our world.

Because the worth of a home

Gene Northup c 702.497.0300 Gene@CallGene.com www.CallGene.com

Ž,™ and SM are licensed trademarks to Sotheby’s

And Operated By NRT Incorporated.

If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.

This report is intended to provide insight into the Las Vegas Residential resale market based on historical data. The data used in this report was obtained from multiple sources information contained herein is deemed to be accurate, but not guaranteed. This report focuses solely on Single Family Condominium-Conversions, Townhomes or Manufactured Housing unless otherwise noted.

The information contained in this report is based on the MLS areas of 101-606 representing the greater Las Vegas, Nevada metropolitan area which includes Henderson, Nevada. Boulder City, Lee Canyon and Mt. Charleston are