Real estate is a localized market. This is true in Las Vegas where the Strip has its own local trend and that trend is hot as Bill Cody, a REALTOR in Vegas, shared with me here on Hey, Don!
Q: How long have you been selling real estate in Las Vegas?
A: A little over 2.5 years. I also sell with my brother, Christopher Rauschnot. He is a REALTOR, too.
Q: Do you have a specific niche in selling real estate (high end, mid-range, condos, etc)?
A: We concentrate on Las Vegas luxury homes, over $1 million, and condos on the Las Vegas Strip, including, MGM Grand Signature, Trump Towers, Sky, and Allure. Because of our growing popularity with our blog, we have been connecting with more developers to sell their properties via their own websites with Search Engine Optimization and Search Engine Marketing. More entities are using the net to help sell their real estate.
Q: What key trends do you see?
A: Luxury homes are a hot market in Las Vegas. People who have the 50% increase of home equity from several years ago are upgrading their homes. There are many younger home owners, 20 - 30, who have a lot of income, from the entertainment or liquor industry, who are living a great life.
With over $40 billion being invested on the Las Vegas Strip, in addition to Downtown, the pricing can only go higher.There have been many investors and speculators in the single family home market. Many who didn't have the cash that got into the market a year or two ago will drop out by this incredible mortgage shakeup.
Then, when the real investors are remaining, rentals will be a big market segment. We have a lot of hotel workers, construction workers and teachers who need a huge amount of homes in the rental pool.The valley is becoming more congested. The traffic is making some of the workers live closer to the Strip in condos, which Vegas only saw it's first Strip high rise close a couple of months ago. The first tower at the MGM Grand - The Signature - closed about a year ago, they are located about a block and a half off of the Strip without a Strip address.
Q: The housing bubble has been in the news during the past year. Is it starting to "burst" in Vegas?
A: The Las Vegas Strip real estate is a completely different beast. Since we get over 40 million visitors a year, over 7,500 new residents per month, "Las Vegas" is a top 10 brand, Las Vegas as a destination, there isn't a bubble. Trump Towers is selling at over $1,200 per square foot. There are several penthouses at the MGM Mirage Project City Center Mandarin Oriental that will sell for approximately $12 million. Per square rates here are still below Hong Kong, New York and other metropolitan areas.
Gavin Maloof just purchased a $10 million home in Las Vegas. One broker sold over $25 million in 1 month with three homes. People talk about the bubble in Las Vegas, mostly from outside of the state, and don't see the fantastic opportunities and increased price of a luxury home.
Q: Are condos becoming increasingly popular?
A: Yes! Condos allow homeowners to lock and leave. This is a 2nd home and resort destination lending its way to this type of living. Many mid-rise condos and condo conversions are being used as rentals, too. Home prices have risen too quickly for many living here and home owners have chosen condos as an alternative.There's about $30 billion in condos that are currently being constructed on the Strip with more being introduced every month.
Q: Are there specific market segments doing better than others?
A: Condos on the Strip,Luxury Homes over $1 millionCondo conversions due to their affordibility.
Q: How is the foreclosure rate in the area?
A: Foreclosures in Nevada and the other three states, Arizona, Florida and California are heavily influenced by speculators who are walking away from properties now that home prices have started to fall in areas of those states.
Nevada showed the highest increase in the nation in new residential foreclosures during the first quarter, the Mortgage Bankers Association reported.
The percentage of loans on which foreclosure was started during the first quarter jumped 0.19 of a percentage point to 0.76 percent in Nevada. The number of mortgage loans in foreclosure on March 31 climbed 0.32 of a percentage point to 1.16 percent in Nevada.
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