Las Vegas land prices drop as housing market struggles

November 15 2008 - The housing market correction continues, but the land market correction is kicking into high gear.

This marks the third consecutive quarter that land prices have fallen since the peak of $939,400 an acre in 2007’s fourth quarter, according to Applied Analysis Principal Brian Gordon.

The 422 acres of non-Strip property sold in the third quarter easily surpassed the 156 acres sold in the second quarter. The price per acre was $459,798, which was more than $110,000 an acre lower than in the second quarter.

A year ago, 411 acres sold for a price per acre of $677,295.

The land sales along the Strip dried up in the third quarter with only one transaction, 4.93 acres between McCarran International Airport and Bali Hai Golf Club. The lot on the east side of Las Vegas Boulevard sold for $30.1 million or $6.1 million an acre, Gordon said.

Real Estate - Las Vegas land prices drop as housing market struggles
by Brian Wargo