Big improvements in Las Vegas high-rise condo market in the first 5 months of 2018
After 3 years of little improvements in Las Vegas high-rise condo market which resulted in 3% median price gain from 2014 to 2017, it has come to life. And in the first 5 months of 2018, the median price of Las Vegas high-rise condos has appreciated by 8.5% while the median price per square foot has appreciated by 5.8%.
While unit sales are trailing last year’s numbers, the median price of the units is well underway to double-digit price gains and the median price per square foot of units have risen appreciably as well. We explain why and predict what will happen for the rest of the year.
Las Vegas high-rise condo market is coming to life in a big way and the median price of Las Vegas high-rise condos at $369,000 has appreciated by 8.5% so far in 2018. The median price per square foot of condominiums has gained 5.8% as well.
You may ask why is this significant? Well, the 8.5% median price gain of the units in the first 5 months of 2018 is 280% more than the same from 2014 to 2017.
In our last market report in January, we stated that “the median price of Las Vegas high-rise condos in 2017 is $340,000. As you can see the median price of units sold has been $330,000 for 2014, however it dropped in 2015 to $319,000. In 2016 it fell by $44,000 to $275,000 before “meowing” back to $340,000. This market doesn’t roar.”
Well, Las Vegas high-rise condo market obviously took an offense in our statement and started to roar.
Median Price of Las Vegas high-rise condos 2014 to May-2018
Shrinking Las Vegas high-rise condo listings and increasing sales numbers
|Total number of listings||Foreclosures||Short sales||Median asking list price|
|Las Vegas high-rise condo listings||342||0||3||$450,000|
We currently have 342 active listing in the MLS, of these only 3 are short sales and none are foreclosures, we have come a long way since the great recession. Please pay attention to the median asking list price which is at $450,000, we will come back to that later.
Just like other sectors, we have witnessed a severe reduction in the number of active listings in the MLS.
As you can see, the number of listings had been hovering around 650 until the fall of 2016 and then it kept dropping steadily to about 420 in the Spring of 2018 and is now down to 342 listings. This is a 47% reduction in the number of active listings in the MLS.
The best way to show the effect of reduced supply and increasing demand is months of active listing inventory. As you see in this graph up to April of 2016 the months of listing inventory hovered around 12 to 14 months. Then it dropped to 9 months for the following year before dropping to 6 months which is considered normal.
However, unit sales have kept increasing and reached a post-recession record of 864 units in 2017, but we highly doubt that it will reach that in 2018.
The laws of supply and demand rule supreme and increasing demand coupled with lower supply have resulted in the significant price gains for this sector. But another contributing factor is eye-popping price gains for other types of the residential real estate which has made high-rise units more competitive with other sectors.
As we stated, the median price of high-rise condos in Las Vegas had appreciated by 3% from 2014 to 2017. By comparison, in the same time frame, the median price of Las Vegas homes has appreciated by 28.6%, regular condos appreciated by 38.6% and townhomes by 37.2%.
Big difference between asking list and sold prices
This graph shows the difference between the median asking list and sales prices. The difference between the two has been hovering around $40,000 until 2018 when it fell to $30,000. But these are the condominiums that have been sold. The median asking list price for existing listings is $450,000. The difference between the median sales prices and asking list prices is $81,000.
The main reason for this significant difference is incorrect pricing by the listing agent which results in listings that expire after 6 months or more without any action and the poor dispirited seller is left looking for answers.
From 2014-2016 about 65% of listings expired, however, this number decreased with the improving market conditions and in 2018 about 1 in 3 listings fail to sell.
One of the most important duties of a Realtor is to put a correct price on a listing. While it is OK to shoot for the moon to see if a buyer would pay it, pricing should be corrected within 3 weeks so the unit would sell in about 45 days. Condominiums that are listed for more than 2 months will not fetch the best price, period.
What makes this report unique is that we only discuss true condo towers here and have eliminated mid-rise luxury condominium projects, please find the tower names in the right-hand column in Las Vegas high-rise condos for sale page.
Appreciating median prices only show the market direction for all 21 high-rise towers in Las Vegas. As we have shown in the Las Vegas high-rise condos appreciation rates since recovery, price gains are not distributed evenly among all towers or for that matter in all price ranges.
Given the current conditions, we shall see further price hikes and improving market conditions. If you want to buy a unit, now is a good time to do so. Please contact us about the units and price ranges that you are interested in and we will be happy to help you.
If you want to buy or invest in high-rise condominiums, please call us at 702-478-7800. You can find our contact info and web page with the embedded video and video transcript in the video description.
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On behalf of the Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.