A very good understanding of Las Vegas high-rise condo market is essential to calculate offer or asking list price
If you are planning to buy or sell a unit, don’t you think that having a good knowledge of the Las Vegas high-rise condo market is essential to making the right offer or setting the correct asking price? Don’t you think that your Realtor should know the difference between a buyer’s and seller’s market.
However, if you Google Las Vegas high-rise condo market, you will quickly find that we are the only Realtors who take the time to do the research and publish formal market reports based on the median price of sold units.
This lack of knowledge is reflected in many units languishing on the market for a long time due to incorrect pricing, and selling for tens or hundreds of thousands of dollars less than the asking list price with a lowball offer.
Even though Las Vegas high rise condos for sale have appreciated significantly since the real estate recovery of 2011, condominium prices have not appreciated every year and appreciation rates have not been uniform among condominium towers. Please visit our Las Vegas high-rise condo market updates page for the latest reports.
|Median Price of Las Vegas high-rise condos||$330,000||$319,000||$275,000||$340,000||$369,000|
In 2014 the median price of Las Vegas high rise condos was $330,000, by 2016 it fell by 16.7% to $275,000 before appreciating by $10,000 in 2017 to $340,000. Yet prices really took off in 2018 and in the first 5 months of 2018 it appreciated by 8.5% or $29,000.
Given that offers or setting a sales price on a unit depend on the market activity, a good Realtor would make these decisions based on the current market value, which is used to adjust pricing for comparable units.
In order to show how this works, let’s show a highly oversimplified example.
An example of how price gains or losses affect offer or asking list price
In 2016 the median price of high-rise condos depreciated by 13.8%. If a buyer was to buy a unit in June 2016 and there was a comparable that sold in January, the Realtor should have deducted about 6.9% from the selling price due to the depreciating market.
By June 2018 the median price of units appreciated by 8.5%. If a buyer was to buy a condo in June 2018 and there was a comparable that sold in January, the Realtor should add 8.5% to the selling price to account for appreciating market.
How much have individual towers appreciated since the real estate market recovery
The reason that we wrote the above oversimplified example is that our high-rise condo market reports discuss the market for all 21 condo towers. The fact is that appreciation or depreciation is not uniform among all towers.
In Las Vegas high-rise condo appreciation rate since real estate recovery which we will update shortly, we have tracked the median price per square foot of units for each tower since 2011 which is when the market bottomed out.
Given the variety of condominiums, the best measure for bang for the buck is the price per square foot which we have used in our research. The difference in appreciation rates of the highest appreciating tower and the lowest appreciating towers which happen to be condo-hotels is more than 60% since 2011.
So, it is essential to look at the individual market appreciation or depreciation rates in order to do the same calculations to adjust comparable unit’s prices. Again, we are the only Realtors who have done the research and publish a summary for the public.
If you want to sell or buy Las Vegas high-rise condos, we would love to have to have your business, just click the contact link.