How are $700,000-1 million dollar Las Vegas high rise condominiums and luxury homes selling?

October 30th, 2008 · No Comments

I have discussed the market conditions report for Luxury homes and high rise condominiums in the previous blog post

How are million dollar plus Las Vegas luxury homes and high rise condominiums selling?

I want to back track a bit and discuss homes or Las Vegas condos or houses that are priced over one million dollars. The number of for sale listings is 1180 and only 40 have sold in the last 60 days. This is about 4 sales per 100 listings. How do you think these homes and condos were priced? I bet you that every single one was a bargain. Additionally, we can see a possible 20% increase in the number of luxury condominiums and homes closed in the next 60 days as the number of pending sales is 50. The other interesting point is that the highest percentage of the homes and condos that have sold in the 60 days that this data was taken has been in the 2.5-5 million dollar range, which is 9% of the total listed in this price range. This makes for a 22 month supply of unsold homes. The other notable fact is that the percentage of short sales and foreclosures remains relatively low if measured against homes or condos that are priced less than $500,000.

Las Vegas high-rise condos and luxury homes priced at $750,000-1 million dollars market report

Asking Price	Number Of listings	Short sale	Foreclosed, Bank owned, REO	60 day close	Expired in the last 60 days	Pending Sale	Percent selling in the last 60 days	REO or Sort Sale, sold
$1,000,000	112	3	0	3	55	7	2.6%	2
$950,000	91	5	8	6	13	2	6.5%	3
$900,000	107	11	6	6	62	7	6.5%	1
$850,000	128	10	2	9	55	7	7%	3
$800,000	161	8	11	10	66	12	6.2%	6
$750,000	169	14	2	13	109	8	7.6%	3
$700,000	230	17	6	11	119	20	5%	6
TOTAL	998	68	35	58	472	63		24

The lowest percentage of closings versus number of listings belongs to luxury homes or condos that are priced at 1 to 2.5 million dollars. This is due to the low number of foreclosures and short sales in that price range. They have not been beat up yet.

Check out the physiological effect. The percentage of sales for these Las Vegas homes and luxury condos for sale goes up to 6.5% or a 250% increase in sold listings versus the number of for sale listings. The ratio of short sales and REO (bank owned) listings to total listings for the price range of $750,000-1 million dollars is relatively low and is about 8%, but over 40% of the sold properties have been short sales and foreclosures. Welcome to Las Vegas real estate where short sales and foreclosures rule.

Now you can see why I repeatedly mention that if you want to sell your luxury Las Vegas homes or high rise condominiums you have to beat short sale and foreclosure pricing and that is very hard in this market, but can be done if the seller is willing to take a bitter pill and sell his/her home or condo at today’s Las Vegas real estate market prices.

If Las Vegas high rise condo builders don’t go bankrupt and flood the market with multimillion dollar condos or sell them at fire sale prices, I don’t see a whole lot of foreclosures in the million dollar plus residential market. But will the prices come down further in the luxury home and condo sector in Las Vegas? The above data is screaming, YES.

By the way Las Vegas Realtor Association (GLVAR) and Nevada Realtor Association (NVAR) of which I am a dues paying member is e-mailing flyers to all Las Vegas Realtors about “Realtor friendly politicians” and asking Realtors to vote for them.

I am hoping that these geniuses define “Realtor Friendly” for me as I am “too stupid” to figure out how Las Vegas Realtors have been helped by policies of politicians like Mr. Porter who happens to be my congressman. If the large number of foreclosures in Las Vegas and a crushed commercial real estate market is helping Realtors and real estate agents, please tell that to a significant number of ex-Realtors and ex-brokers who have had to find a new job or joined the un-employed ranks, or thousands of other Las Vegans who are leaving our great town because they lost their job and can’t find another one.

Karen, Parviz and I took advantage of early voting and voted Monday, it was quick and easy. I urge all to vote.