About Overview of Las Vegas condo market
Las Vegas condo market should be divided into at least two parts, regular condos, and high-rise condominiums because they don’t have much in common. Actually, the first is in a strong seller’s market while the other is in a buyer’s market.
News organizations, as well as many Realtors, get their data from the Realtor Association which unfortunately mixes the two while calculating the median sales price of condominiums which lead to erroneous results. We separate the two in our Las Vegas real estate market reports and publish a separate report for each which is far more accurate than theirs.
The table below shows the median prices of Las Vegas condominiums since the recovery of 2012, excluding high-rise condominiums, along with the number of units sold and median sales appreciation from the previous year.
|Year||Number of Greater Las Vegas condos sold||Median price||Appreciation|
Incredible price gains in recent months
The median price appreciation rate for condos was close to single family homes in 2013 and 2014. However, it stalled before roaring back in 2016 at about twice the median price gains for single-family houses.
The reason is that the inventory of regular condos for sale in Las Vegas that are not under contract has been very low for the past couple of years and has gotten worse over time. But demand has not decreased. This has led to increasing prices and multiple offer situations on units that are priced correctly. On May 15th, 2017 we had only 9 condo listings in the MLS that weren’t under contract in the City of North Las Vegas with a population of 230,000 and 62 units in the City Of Henderson.
Condominiums are returning 1% to 2% higher cash flow than single family homes which is surprising due to the higher HOA fees for condos. Given the high price of houses and better return on investment, real estate investors are concentrating on condominiums and townhouses. So if a unit is priced correctly and is in a more desirable location, multiple offers above list follow.
However, this doesn’t apply to the high-rise condominiums, which is in a buyer’s market and the prices have been at best flat for the past couple of years.