On one hand, from Panorama Towers luxury condos to MGM Signature furnished hotel condos, it seems April is beginning to shower some luxury Las Vegas condo and hotel condo resale choices in the $300,000’s. Conversely, the upper end of the luxury Las Vegas condo market continues to do well in luxury high rises on the Strip like Sky Las Vegas.
Luxury Realty Group’s global marketing services with listings in multiple languages recently attracted a buyer brokerage’s global client for the Sky Las Vegas three story penthouse listed at $5.4 million in just 86 days. At that price point, it is more typical to experience a listing to sale time period of 12 to 18 months. That sale has now closed and recorded at $4.75 million and indicates the upper end of the luxury condo market is still performing well. Additionally, it further validates the global marketing reach of Luxury Realty Group.
Welcome to the crazy world in 2008 of Las Vegas luxury condos. With buyers calling us from all over the world, the good news is Las Vegas continues to be an international destination for primary, secondary and vacation luxury condo ownership. With the weak US dollar, some foreign buyers are experiencing discounts for luxury real estate upwards to 50%. Those foreign buyers tell us they see their currency leverage as a further hedge to falling condo prices in the US. Given how unpredictable 2008 continues to be with regard to luxury real estate in Las Vegas, such a currency hedge perspective makes total sense.
In our conversation with some private bankers last week, it is also clear that super jumbo loans are now difficult to obtain for high end real estate purchases. On the lower end of the scale, interest rates continue to stay high even for the best borrowers of the bank. Such highly tightened mortgage money availability, tight credit markets and high rates will most likely continue to help push luxury condo prices lower but how much lower no one really knows.
The big question on our minds is whether Las Vegas luxury real estate is going through an over correction situation. We won’t know the real answer until end of 2009 when MGM MIRAGE CityCenter goes live with its luxury condos. At that time, the delta for luxury condo prices is going to be something to watch closely. Will existing luxury condos along the Strip resort corridor have a rising tide effect or will higher priced condos going live in 2010 see price weakness? A pricing storm is indeed forming and it may be something like we’ve never seen in the past in Las Vegas.
For current pricing in your favorite Las Vegas luxury condo contact Bruce Hiatt today at (702) 456-7080 x201 or Simon Chen (702) 456-7080 x202.
Copyright 2008, Luxury Realty Group LLC. All Rights Reserved.
