This is video transcript of Las Vegas high rise condos market 2016
Overview of Las Vegas high rise condo market 2016
In this video we will discuss:
1: Median sales prices and appreciation rates for all high rise condo towers in Las Vegas from 2012, which is when the market bottomed out, to 2015 in order to show you that price gains are not uniform at all.
2: The numbers of Las Vegas high rise condo towers that are listed in the Las Vegas MLS include short sales and foreclosures. All Las Vegas residential high rise condos and condo-hotel towers are included.
3: Sales statistics for all units sold in 2015, including foreclosures and short sales.
4: Provide an overview of Las Vegas high rise condo market in 2016.
In order to preserve data integrity, we are only using Las Vegas high rise condos that have been sold through the Greater Las Vegas MLS in our Las Vegas high rise condo market report. So when we talk about price gain or appreciation, it means median sales price gain for units that have been sold through the Las Vegas MLS only. We did not include builder’s private sales or bulk sales data in our report.
The median price appreciation rate for Las Vegas high rise condo towers since 2012, which is when the market recovery started, varies greatly. The sales price gain from 2012 to 2015 for Soho Lofts stands at 62% while the same for Trump International Hotel stands at zero. We will show you the median sales prices for all Las Vegas high rise condo towers from 2012 to 2015, later.
Let’s discuss available units that are not under contract
As of January 2016, there are 635 for Las Vegas high rise condos for sale listings in the Las Vegas MLS high rise category that are not under contract. Some of these listings are true high rise towers and some mid-rise luxury condos that are 4 to 11 stories high.
In order to use historical Las Vegas MLS median prices, for now, we will honor this and include mid-rise condos in our report, so when we use high-rise, mid-rise projects are included.
Total number of Units Median asking list price Median price per square foot
As we mentioned currently there are 635 high rise and mid-rise condo for sale listings in the Las Vegas MLS that are not under contract. After 2012 high-rise builders started listing their new units in the Las Vegas MLS and even though many units are listed in the MLS, not all are. The same goes for sold units, but the missing units should only affect sales numbers but not have a pronounced effect on the median prices below. We do not include units that were sold in bulk transactions, for example, Sky Las Vegas sold 64 units in September 2015 for 18.1 million dollars or about $190 per square foot.
Let’s talk about effect of foreclosures and short sales on Las Vegas high rise condo market
Only 9 out of 635 high rise condos listings are foreclosures or bank-owned units. It is amazing to see how much the high rise foreclosure numbers have shrunk in only 3 years. Another 11 listings are short sales. Only 3% of all listings are distressed units and their effect on the Las Vegas high rise condo market is negligible. As it comes to median asking or sales prices of distressed high rise condos, the sample size is way too small to draw any accurate conclusions. Especially since foreclosures bring higher prices than short sales.
704 high rise and mid-rise luxury condos sold in 2015 for the median sales price of $280,000. Only 38 or 5.9% were short sales and another 33 or 5.6% were foreclosures or bank-owned high rise condos.
The median days on the market for the units that sold in the past year is 43 days which means these listings are selling relatively quickly. The small gap between the median prices of listings that are not under contract and those which have been sold means that these units do not get full price offers, especially in higher price ranges.
Let’s discuss price appreciation for Las Vegas high rise condominiums since the market bottomed out.
In the Great Recession sale prices for luxury high-rise condominiums around the Las Vegas Boulevard or the Strip dropped drastically to 35% to 50% percent of the original building cost. However recovery started at 2012 and prices are up sharply since, but are still far below replacement cost and will go up as demand increases.
In the last video, interactive Las Vegas high-rise and luxury mid-rise condo map, we talked about the inclusion of properties that are 11 stories or below in the Greater Las Vegas MLS high rise category which we follow and that is the way they calculate median prices.
This table shows the appreciation rate for what the Las Vegas MLS calls Las Vegas high rise condos since 2012.
We thought that it is more instructive to show price appreciation rates for all Las Vegas high rise towers from 2011.
However, it must be stated that real appreciation rates for specific condos are done through doing a comprehensive market analysis for that condo. Some of the median sales prices are based on just a few sales and thus not very reliable. Park Towers is a good example. Or in some cases, we just did not have enough data.
It is easy to see that just like Greater Las Vegas homes and condos the appreciation rate was greatest in 2012 and 2013 and tapered off in 2014 and 2015.
Soho Lofts, One Queensridge, Newport Lofts and Regency Towers surpassed 50% sales price appreciation since 2012. However, condo hotels did not perform as well as residential high rise condos and the four lowest rate of appreciation belongs to condo hotels.
Among these Palms Place and Platinum did better than MGM Grand Signature condos. Trump Tower’s median price appreciation gain from 2012 is zero.
Some properties in lower price ranges have appreciated more than others like Newport Lofts or Soho Lofts and Regency Towers. Sky Las Vegas and especially Allure Condo have been hurt by the demolition of casinos and other properties on North Las Vegas Boulevard and especially the Sahara Casino which recently reopened as SLS Las Vegas. However, construction has returned to the North Strip which should benefit them.
As we have shown appreciation rates are not uniform for all Las Vegas high rise condos for sale, so it is not wise to make a blanket statement about how Las Vegas high rise condos will appreciate in 2016.
Those condo towers that have done well since the recovery will continue to do so, especially those that kept appreciating in 2015, and are obviously a better choice to invest in than the others.
We will be happy to discuss any high rise tower in much greater detail with you upon request.
If you want to buy, sell or invest in Las Vegas, Henderson or North Las Vegas high rise or luxury mid-rise condominiums please call us at 800-762-4917 or e-mail us. You can find our contact info below the video.
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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.
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