The condominium market in Las Vegas has been effectively split into two distinctive parts or property types, high-end, luxury condominium properties or vertical properties, and the low-end or standard condominium property type. Most of the Las Vegas Strip or near-Strip high-rise buildings have condo price offerings that start above $ 450,000 and many condominiums there start above $ 600,000. Condominiums that fall within this price range are beyond the purchasing power of most Las Vegas residents.
The average price paid, as reported by the Greater Las Vegas Association of Realtors (GLVAR), for a Las Vegas condominium in June of 2008 was about $ 222,000. This price is in keeping with the median family income of Clark County residents in 2007 of about $ 53,000. Thus, all but an elite few families living in the Las Vegas area can afford a luxury high-rise condominium.
Market demand for high-end luxury condominium properties or vertical properties is not tied to Clark County employment figures, or the demand of Clark County residents. The vertical condominium market derives its demand from outside the area. The sales team at Trump Tower or Sky Las Vegas would likely confirm to you the fact that local residents are important, but that they are not the driving force in the market for their product.
While real estate brokers are often fast to note that the high-end / luxury real property markets are unaffected by economic downturns, because the rich simply make their decisions without regard for employment trends or other economic factors, the truism has not been realized during the recession of 2008. Even the high-end luxury condominium market has been shaken by tight credit requirements.
In recognition of the two different condominium property types, the Greater Las Vegas Association of Realtors (GLVAR) has recently announced a new Vertical Market Type that will display and report separately on high rise buildings with four or more stories. Tracking the two distinct condominium property types will become easier for agents and appraisers when the new category of sales no longer get "mixed" with standard low-rise condo sales.
The average price paid, as reported by the Greater Las Vegas Association of Realtors (GLVAR), for a Las Vegas condominium in June of 2008 was about $ 222,000. This price is in keeping with the median family income of Clark County residents in 2007 of about $ 53,000. Thus, all but an elite few families living in the Las Vegas area can afford a luxury high-rise condominium.
Market demand for high-end luxury condominium properties or vertical properties is not tied to Clark County employment figures, or the demand of Clark County residents. The vertical condominium market derives its demand from outside the area. The sales team at Trump Tower or Sky Las Vegas would likely confirm to you the fact that local residents are important, but that they are not the driving force in the market for their product.
While real estate brokers are often fast to note that the high-end / luxury real property markets are unaffected by economic downturns, because the rich simply make their decisions without regard for employment trends or other economic factors, the truism has not been realized during the recession of 2008. Even the high-end luxury condominium market has been shaken by tight credit requirements.
In recognition of the two different condominium property types, the Greater Las Vegas Association of Realtors (GLVAR) has recently announced a new Vertical Market Type that will display and report separately on high rise buildings with four or more stories. Tracking the two distinct condominium property types will become easier for agents and appraisers when the new category of sales no longer get "mixed" with standard low-rise condo sales.