In the hot days of Las Vegas real estate, new home builders would raise prices on their new houses by 10 thousand dollars every other week and the buyer’s line would only get longer. When Beazer homes announced the grand opening for their community on Cliff Shadows in Northwest Las Vegas, lines of new home buyers formed 4 days prior to the grand opening and whoever won the lottery to purchase a new house would come out of the sales trailer, beaming like a lottery winner. Pulte, another Las Vegas new home builder raised the home price for one of their Summerlin communities by 25%-30%, or $200,000 overnight and still kept selling homes. Home buyers weren’t choosy at that time and would buy anything they could get their hands on.
Talk about irrational exuberance, these people were not buying a home, what they were really doing is more like buying Wall Street stock options, with all the risk and rewards involved in such transactions, except that they thought they were financing their purchase at historically low interest rates and with a much longer term than a stock trader can obtain.
What I am trying to say is that the reason for purchasing so many homes and condos in the Las Vegas area was that these buyers were blinded to all other factors in a home or condo transaction, except seeing an upward trend in Las Vegas home and condo pricing and hoped to make a quick buck by flipping a Las Vegas property and making a quick profit.
Well, it did not work out the way these buyers were hoping, and the foreclosure problem reared its ugly head and real estate pricings in Las Vegas, with the exception of a few areas, started a downward spiral trend.
My visit to Loft 5: I was lucky enough to be guided on the tour of model lofts by the marketing director for Loft 5. She shared my frustration with the Las Vegas condo market trends I will do the next blog post about the downward pricing pressure that foreclosed condos have been putting on the new condo builders pricing as the builders have to compete with other units in their buildings that have been foreclosed or are listed as short sales.