About Las Vegas high-rise condo market updates
If you search for Las Vegas high-rise condo market, you will quickly find that we are the only Realtors who are providing formal Las Vegas real estate market reports based on relevant statistics.
News organizations, as well as most Realtors, get their market updates from the Greater Las Vegas Association of Realtors, but they don’t publish one for this sector. This is the reason that we do our own research and publish the results. Please click on pictures to go to the video page.
Las Vegas high-rise condo market April 2021, escalating prices
Video Transcript with all embedded charts and graphs
Las Vegas high-rise condo market is a snapshot in time and can change direction in a short period. Read More
We had spent a great deal of time researching the market last October. And the first draft of the market report was full of doom and gloom. A total knee replacement surgery happened, and we got very busy with Las Vegas real estate investors until a couple of weeks ago. Then we took a second look and were very surprised by the impressive market recovery. All of the previous work bit the dust. The Las Vegas high-rise condo market is different from the housing market. While Covid-19 resulted in the greatest listing famine we have ever seen, which has led to double-digit price gains for homes and condos, the opposite happened to verticals. While we had predicted a stellar year for verticals in 2020, Covid-19 put the brakes on it. However, 2021 should make up for lost time, and then some, so that high-rise prices could go up appreciably.
In the eight months before the COVID-19 lockdown, condominium sales averaged 54.5 listings per month. In April 2020, it fell to 16 per month, and the average sales fell by 20 units in the following eight months. However, sales rocketed up to 77 per month in December of 2020, and by the end of March 2021, reached 99. Condominium sales have surpassed the first three months of 2020 before Covid-19 hit by 48% and 2019 by 60%. Given the sharp reduction in the active listing inventory, this bodes very well for pricing in 2021. If you are planning to buy, do it now.
Price per square foot and the median price of Las Vegas high-rise condos
The median price of high-rise condos in March 2021 is $390,000.
But, given the significant fluctuations in the monthly median price, which is due to the small sample size, it is best to measure the yearly median price. The median price of Las Vegas high-rise condos so far in 2021 stands at $382,500, which is a little higher than 2020 but lower than 2019.
However, the median price is not the best measure of whether condominium prices have gained or have gone down. A better criteria is the price per square foot of all units sold in a period. The price per square foot of units stands at $383 so far in 2021, which is slightly higher than last year but less than 2018 and 2019.
Please keep in mind that we are discussing all towers. Some like Signature at MGM Grand, Trump Tower, and other condo hotels have been hit hard by COVID-19, thus lowering the price per square foot for all towers. Residential towers like Sky Las Vegas or Veer Towers were not affected by COVID-19 as much as condo hotels. We discuss whether or not unit prices have gained or lost on each tower's page, which you can find in the right-hand side column.
The price per square foot of residential towers has not been affected much by COVID-19 and are rising since 2019.
However, condo-hotels didn't do well due to the lockdown. The price per square foot of units dropped by 14.5% in 2020 and hasn't risen yet. However, when our fair city is fully back, pricing for these units will recover. Some units at Signature at MGM Grand were selling at a $30,000-$40,000 discount from 2019. That was the reason that, for the first time, we recommended buying condo hotels, but time is running out.
Average days to sell Las Vegas high-rise condos
It keeps taking longer to sell Las Vegas high-rise condos, and nowadays, it takes about three months to sell a unit. However, we expect this number to fall in 2021. We will discuss the reasons next.
Original asking list price versus sales price
The average original asking list price versus the sales price has fluctuated between $122,000 in 2019 and $190,000 for 2021. It means that, on average, listing agents are pricing their listings far higher than the eventual sales price. And this is more prevalent for expensive units.
Importance of correct initial asking list price
Las Vegas high-rise condo market and how to correctly set the asking list price is a mystery to the vast number of Realtors. Even those who claim to be experts in this sector. We are the only Realtors here who research and publish a formal market report.
While our Realtor association publishes a market report every month, it doesn't include the verticals. Many Realtors think that since the home and condos had appreciated by double digits in 2020, so have high-rise condos. This error leads to an unrealistic initial asking list price.
One of your Realtor's crucial jobs is putting the correct price on your unit to get the maximum number of qualified buyers to view the listing. You never know who would make the highest offer. An unrealistic initial price results in the listing lingering on the market for a long time with no offers. The longer a listing on the market, the lower the chance of getting a reasonable offer, let alone a full price offer. Your Realtor must be familiar with the Las Vegas high-rise condo market conditions and knowledgeable enough to put a correct asking list price on the unit to get viewings that lead to offers from the get-go.
While we can attribute some of this price difference to the unsold high-priced listing, some are due to unrealistic initial asking list prices that kill any chance of getting qualified buyers into the door.
How asking list price can doom a high-rise listing page has provided a real-time example of this.
We have seen some overpriced listings sell with a horrendous lowball offer after months on the market with no action on them. Some could have sold for thousands of dollars more if the unit had the correct initial asking list price.
Las Vegas high-rise condo market for the rest of 2021
2018 witnessed significant price gains for all towers, and similarities abound with 2021, so we expect substantial price appreciations this year as well.
If you enjoyed Las Vegas high-rise condo market in April 2021, please like it and subscribe to our channel.
If you want to buy, sell or rent Las Vegas high-rise condos, please call us at 800-762-4917. 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 Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.
Las Vegas high-rise condo market forecast for 2020
Like other sectors, prices went up significantly in 217-2018, but price gains stopped in 2019. However, some projects appreciated far more than others, which we will discuss in the upcoming blog post, the best appreciating Las Vegas high-rise condo towers since 2017.
Additionally, we will show why median price totally fails to show market direction in this sector.
Why do we spend so much time and emphasis on Las Vegas high-rise condo market updates?
Because in order to make correct offers on a unit or a correct asking list price one needs to know the market conditions, and it has changed significantly from last year. So let’s see what has changed.
The Las Vegas high-rise condo market has witnessed significant appreciation in 2017 and 2018. However, price gains came to a halt is 2019. We will not only discuss the reasons why, we will tell you where the price gains went. Some towers appreciated far more than others which we will discuss in the best appreciating Las Vegas high rise condo towers since 2017 . And lastly we will make a prediction for the first few months of 2020.
Higher listings inventory and lower sales numbers in 2019
Just like the other sectors, this market has slowed down in 2019. The listing inventory has risen sharply, while sales numbers have been down. We will discuss how it affects the market.
|Active listings||Foreclosures||Short Sales||Average units sold per month in 2019||Median price, October 2019|
|Las Vegas high-rise condos||548||3||4||47||$388,000|
As of October 2019 we have 548 Las Vegas high-rise condo for sale listings of which 3 are foreclosures and another 4 short sales. These have negligible effect on the market, so we will not discuss them.
An average of 47 units have been sold per month in 2019. The median price of Las Vegas high-rise condos is $388,000.
The listing inventory has shot up since 2019. As of October 6, 2019 we have 548 active listings which is 30% higher than the same time last year.
At the same time, average unit sales have fallen from about 71 condominiums in 2018 to an average of 47 units per month in 2019, this is a 34% reduction from 2018.
The months of listing inventory is calculated by dividing the active listing inventory by the monthly unit sales. From March 2017 to November 2018 it had been hovering around 5.5 months which resulted in significant price gains. However, it jumped to 11 months in January 2019 and has been fluctuating between 9 and 14 months ever since.
Why the median price of high-rise condos is misleading
The median price of units has been rising since 2016 and this graph shows about $30,000 appreciation so far in 2019. But all it says is, buyers are buying a bit more expensive units. However, it does not show whether or not condo prices have gone up or down, and in this case it is totally misleading.
We will let you in on a secret. The price per square foot ratio is a far better measure of the market than the median sales price, as price per square foot ratio is the lowest common denominator for all units in a tower.
As you can see lower months of listing inventory has contributed to $43 gain in price per square foot, or 13.2% increase in 2017 and 2018, however price gains came to a stop in 2019.
Now if all towers sold the same mix of units year after year, changes in price per square foot ratio would be an exact match for unit prices. But then again, they don’t. But it is still the best measure which closely approximates whether unit prices have gone up or down.
If you Google Las Vegas high-rise condo market, you will see articles about the raising unit sales numbers and appreciating prices. Both are wrong, however those who are talking about raising prices, erroneously back up their claim with the raising median prices.
For example, the median price of condos by primary year at Waldorf Astoria (formerly Mandarin Oriental) shows a $738,750 drop in 2018 from 2017.
While the median price of Waldorf Astoria shows a big drop, unit prices were going at an unbelievably high rate.
|Waldorf Astoria, Las Vegas unit number||Sale Date||Price||Resale Date||Price||Percentage appreciation, period|
|4502||6/22/2017||$2,000,000||12/7/2018||$3,600,000||80% in 17 months|
|4002||8/10/2017||$2,340,000||Active listing||$3,785,000||61%, to be sold|
|4601||1/5/2017||$1,825,000||12/27/2017||$2,550,000||39.7% in 12 months|
|4707||1/4/2018||$2,900,000||1/10/2019||$3,990,000||37.6%, in 12 months|
|4102||2/28/2018||$2,700,000||10/5/2018||$3,600,000||33.3% in 7 months|
|3710||2/26/2018||$850,000||8/16/2019||$1,100,000||29.4% in 17 months|
|3211||2/26/2018||$850,000||5/3/2019||$1,100,000||24% in 14 months|
|3609||2/28/2018||$2,100,000||8/20/2018||$2,500,000||19% in 6 months|
Unit 4502 was purchased for $2,000,000 in June, 2017 and sold for $3,600,000 in December 2018. Or unit 4601 which was purchased for $1,825,000 in January 2017 and sold for $2,550,000 in December of the same year.
The price per square foot for the Waldorf Astoria shows a 34% appreciation rate for the units from January 2017 which is backed up with the CMA (comparative market analysis). The median price is indeed misleading.
Price gains or losses are not distributed evenly among all towers. Some have appreciated far more than others. We discuss individual tower price gains in the best appreciating Las Vegas high rise condo towers since 2017.
As we show, Waldorf Astoria was the best appreciating tower from 2017 with an amazing 34% price per square foot appreciation.
Las Vegas high-rise condo market forecast
One thing for certain, until the months of listing inventory drops sharply, don’t look for price gains. However, it doesn’t mean that unit prices will decrease significantly in the short term either, as we have entered the slow season. While 11-14 months of listing inventory would have a greatly adverse effect on let’s say home prices, it is not the same for high-rise condos. Given the low number of units available in Las Vegas, this effect is far less than other sectors. We have just so many luxury units here.
We shall see in the next few months, but we highly doubt if unit prices appreciate when we enter the high-season next year either.
Please see our Las Vegas high-rise condo market updates for the most recent posts.
If you like to buy or sell high-rise condos please call us at 702-478-7800 to start the process.