| Monday, December 06, 2004 |
| Las Vegas Real Estate Investments |
Is the Boom Over or Just Getting Started?
By Diann Tonnesen Century 21 MoneyWorld
Real estate investors flocked to Las Vegas during
the first six months of 2004 and drove prices up an
unprecedented 35% in some parts of the Valley
according to top Century 21 agent Diann Tonnesen.
And she predicts that the beginning of 2005 will see
more of the same.
A scarcity of vacant land for developers to build on
and a continuing influx of over 6,000 new residents a
month quickly turned the Las Vegas real estate market
into a battlefield last spring. Buyers found themselves
in multiple offer situations as they competed against
up to ten other hopefuls for a dwindling supply of homes.
Much of this money was being shifted out of the California
market where rental income had hit a ceiling due to the
high prices, and savvy investors were liquidating their
properties in order to take advantage of the better cash
returns Las Vegas and Henderson real estate investments
could offer. Most new home builders quickly placed a
moratorium on investor purchases to prevent future
competition from buyers who "flipped" their new home
purchases and cashed in on quick profits. A drought
in the Colorado Rockies also caused a water shortage,
limiting development of new golf courses and subsequently
golf course homes in Las Vegas which also drove up prices.
It is estimated that more Las Vegas homes sold for over
list price in just a few months last spring than in the
previous five years combined. In July the Bureau of Land
Management auctioned off 1940 acres of unimproved land
in Henderson for a record shattering $287,000 per acre
to Focus Property Group. In order to make its winning
bid Focus joined forces with seven home builders who
will develop the parcel as a master planned community.
The home builders included KB Home, Toll Brothers,
Woodside Homes, Kimball Hill Homes, Pardee Homes,
Meritage Homes and Beazer Homes.
In late July and August, however, the dramatic upward
surge rapidly ceased as new homes (purchased by investors
who were under contract before the moratorium was
implemented) finished construction and went back on the
market. In addition, local residents who had already
toyed with the idea of moving out of state decided to
cash in on the bonanza profits as well. Through the end
of October the supply of Las Vegas homes for sale
increased steadily, investor purchases settled back to
a normal pace and prices even decreased slightly as the
market stabilized.
But the big international real estate investors are
already zeroing in on the newest "hot buy" in the
valley - luxury Las Vegas high rise condos and condotels.
Downtown Las Vegas is becoming urbanized and major
developers from all over the world have over 80 new
preconstruction condo projects on the books. Many sites
have already sold out and have not yet broken ground.
"Las Vegas has barely scratched the surface of the
luxury condo market," said Bruce Langson, a Las Vegas
native and developer of Las Vegas Central. He said
there's a 20,000-unit deficit of Las Vegas condos at
this time. Even famous actors like Leonardo DiCaprio
are purchasing units for their own private residences
as they become available.
Springtime also promises to be interesting on the
Las Vegas new homes front again. The vacant land
crunch is still in effect for the new home builders
and as of the end of November the supply of new homes
is once more diminishing as the investor owned properties
are finally selling off. Focus Property Group will not
be able to begin sales on its latest project until 2006.
Plus the baby boomers are coming into their own, and
Las Vegas is their number one retirement destination.
So look for another burst of excitement in a few months
as the dynamic Las Vegas real estate market takes
another leap in pricing.
also see our previous article
Preconstruction Real Estate Investments - Buy Now, Pay Later
For more information on Las Vegas real estate investment
opportunites please contact:
Diann Tonnesen
Century 21 Las Vegas
702-596-7821
http://www.greatlasvegashomes.com
http://www.greathendersonhomes.com
http://www.greatlasvegascondos.com
http://www.lasvegasgolfhomes.info
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posted by Myrtle Beach Web Design @ 10:12 PM  
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| 1 Comments: |
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I have no problem with Pre-Construction offerings and in fact it was a major concentration we focused on for our investors several years ago. But... too many "investors" are doing it now leaving me to wonder if there really is a resale market for it nowadays. The Las Vegas Real Estate "investors" have switched over from new homes to the slew of offerings of pre-construction offerings for luxury high rise condos mainly because the New Home builders cut off investors.
It seems to be in the news everyday here in Las Vegas how "hot" these sales are. Unfortunately, 99.9% of the people who contact us to purchase a Luxury High Rise Condo in Las Vegas have one thing on their mind. To Sell it for a Profit when it is done! Nothing wrong with that, but if everybody is purchasing them for that reason, what is going to happen when these projects are done and they are all up for sale on the resale market?
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I have no problem with Pre-Construction offerings and in fact it was a major concentration we focused on for our investors several years ago. But... too many "investors" are doing it now leaving me to wonder if there really is a resale market for it nowadays. The Las Vegas Real Estate "investors" have switched over from new homes to the slew of offerings of pre-construction offerings for luxury high rise condos mainly because the New Home builders cut off investors.
It seems to be in the news everyday here in Las Vegas how "hot" these sales are. Unfortunately, 99.9% of the people who contact us to purchase a Luxury High Rise Condo in Las Vegas have one thing on their mind. To Sell it for a Profit when it is done! Nothing wrong with that, but if everybody is purchasing them for that reason, what is going to happen when these projects are done and they are all up for sale on the resale market?