Now that the high-rise condominium sector is sort of officially pronounced also soft, this then more or less covers the entire residential real estate spectrum in Las Vegas that has gone mellow, from the single-family house to the condo-hotel. It looked for a while that the luxury end of the condominium offering might avoid any major upheaval, but the hurt seems to be now reaching there, too.
Consider these recent combined stats from GLVAR, Greater Las Vegas Association of Realtors and SalesTraq, a local market research store. The high-rise segment had around 820 units listed for sale during the first week in May while there were only about 20 condos closed in a 30-day period between March and April. Obviously the supply is far ahead of the existing demand. At that pace it'll take a few years to clear the inventory, which points to a market right now just limping along.
Many buyers who contracted to purchase a condominium here two-three years ago, at a time when the sector was turning red hot and everyone and his nephew wanted to get in on it, are now failing to show up for closings. They rather lose the deposits than take possession of units that might be losing value. If they chose to close and then place the condominium at once on the market doesn't appeal to them either, since the resale scene is so flooded with inventory. Parting with the deposit is sometimes the least painful option.
The encouraging aspect of this all is that the high-rise condo market is now ripe for the bargain hunter. Prices have already retreated nicely and the savvy negotiator can possibly shave off some more from it. Moreover, sellers are likely to be in the mood to also offer incentives in a variety of shapes and sizes just to unload a property. This, of course, applies mostly to the owner-occupant and second-home buyer at this point, as the mortgage trade today is very cautious whenever an investor comes calling.