Las Vegas & Henderson Homes – New Construction & Resale are in HIGH Demand
Las Vegas High Rise Condos Suffer Downward Price Pressure in Summer 2020
What’s Hot & What’s Not in Las Vegas real estate as of August 2020.
New Homes and Resale Homes are in strong demand as we begin August 2020. Certain zip codes have plateaued in price, but favor the seller with a slight advantage, while other zip codes in Las Vegas & Henderson are very strong Seller’s markets. We use the Altos research reports that are supplied by Lawyer’s Title Company to keep an eye on each market segment so we have our finger on the pulse of the trends. This data is important as a tool in our Buyer Representation.
The segment of the market that is bucking the strong Seller’s market trend, is the high rise condos that are on and near the strip. Hotel Condos such as MGM Signature, Palms Place, and the beautiful golden glass Trump Las Vegas Hotel & Tower are seeing record breaking low price sales for the past several years.
For example: 2 studio condos sold in Trump Tower in July 2020. One was a 32nd floor east facing ( Wynn) fully furnished and appointed unit in 510 sq. ft. that was listed for $239k and sold for $ 228k on 07/06. The other was a south strip picture postcard view unit condo – the premium side – that was listed at $229k and sold for $ 190k at the end of the month on 7/30. This was a 23rd floor unit.
The same sort of drastic price declines are happening at Palms Place. There were 3 sales – all studios – with the lowest priced sale being at the end of the month on 7/22 at $ 183k. Inventory wise – the area currently ( as of 8/8/20) 34 studio units for sale at Palms Place. That equates to a year of inventory in the studio units – the story with the corner 1 bedroom units is worse.
Residential high rise condo sales are sluggish. The Martin had 2 closings in July of the 1111 sq. ft 2 bedroom units at $415k and $436k. There are currently 16 resales available at $385k for a 12th floor one bedroom unit is 1035 sq. ft. to several stunning penthouses asking $ 2.6 to over $ 4 million on the top 44th floor.
SKY Las Vegas – a luxury high rise condo located right on the Strip – has zero sales in July. There are currently 21 resales on the market. Sky was the subject of a construction defect lawsuit years ago, and they are just now redoing the pool area and there is a lot of construction going on – so sales velocity here is pitiful.
Now let’s consider the ultra modern and luxurious Veer Towers Center Strip atop the hotel. There are presently 33 units available for sale with 4 having closed escrow in July – One for $ 1.16 million dollars that is a 2 bedroom in 1362 sq. ft, another, a studio for $ 270k, and 2 one bedroom condos in the low $400k range. Again, this inventory is an 11 months or so supply.
Basically, along with the rest of the country, demand for urban core living has waned, with buyers fleeing to suburban serene areas. More people have waned to work remotely, and larger living less dense living spaces are on the tops of their lists.
Our Team monitors the high rise inventory every day. Listings are building – sales velocity is slowing. This has to result in downward price pressure.
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