We have seen the Las Vegas, NV high rise real estate market have a phenomenal (and scary) jump in inventory in the last several months. For several reasons:
- Too many speculators in that market. They want to close n flip. They are not interested in holding, renting or living in them. Each time a building closes, we see an increase of inventory.
- Mortgage market madness has reduced the amount of loan products available to jumbo, second, vacation or investor type property owners. The ones who have very little money down and marginal credit, that is. So the buyer pool for both resales and new went kaput. Loud and hard too.
Here are the high rise stats:
Rentals:
- 325 Listed 4/3/2008
- 13 Under Contract 4/3/2008
- 55 Leased 2/22-3/22/2008
- 5.9 Months Inventory
Resales:
- 788 Listed 4/3/2008
- 79 Under Contract 4/3/2008
- 18 Closed 2/22-3/22/2008
- 43.7 Months Inventory (=3.6 years)
Resale and rental inventory is down significantly. More towers are opening which means more inventory will be on the market soon. This is definitely a sub market that bears a watchful eye.
There has been a noticed rise in foreclosures & bank owned listings at Manhattan South. List prices for those are about 50-65% of what the original owners paid for them! Manhattan South is located on Las Vegas Blvd South across the street from South Point Hotel & Casino but off strip and is a mid rise community. We are also seeing a noticeable rise in foreclosures in Soho as adjustable loans adjust. Soho is located in the Arts district between the strip and downtown.
Bonnie: Thanks. I think this market will be good in the future when we see some absorption. They keep building so my crystal ball is cloudy but it could be upwards to a decade.
Elizabeth: Thanks for stopping by! Most aspects of our market is in stabilize mode!