The Sky Also Has a Limit!
It does great things for my commission, but will the upward spiral of home prices in Las Vegas never halt? People gasped when a large apartment in Turnberry Place changed hands at only a touch below $9 million not so long ago, but it pales in to the shade as a Queensridge unit has touched almost $15 million in an incredible subsequent transaction! It is not as though these are exceptional sales for Las Vegas: I have read that 41 units crossed the $3 million mark in 2005, whereas even $1 million was considered unusual in this metropolis once!
I can still find some good value projects in the $1 million neighborhood, but this does not include work on interiors to give a home that individual and custom touch. My customers tend to expect marble, fine grain wood, as well as touches of luxury in baths and bars. Indeed, they are entirely justified in expecting deluxe residences for their money, because glamour is so intertwined with the entire Las Vegas brand. However, this does mean that the premium for a home in or around the Strip keeps moving upwards, and the extras that are inevitable after you move in, can put even the most endowed bank accounts under some strain!
Fortunately, appreciation continues to be a competitive advantage in Las Vegas, and I routinely come across cases of people making killings with small investments in projects under development. I do use this argument myself to persuade potential customers sitting on the fence of a decision, but worry sometimes that this crazy upward movement of land prices and construction costs must have some limits, even in Las Vegas! While no other US destination may match the convenience, prestige and scenery of neighborhoods in this area, there could be a segment of potential residents who gradually get squeezed out. Already, I sometimes feel out of place as I go about my daily work in some of the most elegant areas and projects of my home base!
Though construction costs have jumped up by a third in the recent past, upgrades in the building code have also kept pace making sure that those who can afford durable and safe quality standards can have them. Similarly, though land costs have soared to over $500 million an acre, the air quality and general ambience keep getting better. I can take you to projects where you feel far from the desert, and even as though you are in the Mediterranean on the other side of the Atlantic!
I must say that I have not seen any signs of demand dampening in response to rapid rise in rates. Sales of homes in the $1 million range continue to be more than what the average realtor can handle. Units in Summerlin, Anthem and similar localities can be difficult to find at even such generous rates, and most of them last for very short periods in our multiple listing service before getting snapped up by eager newcomers to the Las Vegas community.
Perhaps, on reflection, my pessimism as I started writing this piece was misplaced. The attractions of living and investing in this glorious part of Nevada may be so difficult to resist, that Las Vegas homes for $1 million will become the stuff of history books!
I can still find some good value projects in the $1 million neighborhood, but this does not include work on interiors to give a home that individual and custom touch. My customers tend to expect marble, fine grain wood, as well as touches of luxury in baths and bars. Indeed, they are entirely justified in expecting deluxe residences for their money, because glamour is so intertwined with the entire Las Vegas brand. However, this does mean that the premium for a home in or around the Strip keeps moving upwards, and the extras that are inevitable after you move in, can put even the most endowed bank accounts under some strain!
Fortunately, appreciation continues to be a competitive advantage in Las Vegas, and I routinely come across cases of people making killings with small investments in projects under development. I do use this argument myself to persuade potential customers sitting on the fence of a decision, but worry sometimes that this crazy upward movement of land prices and construction costs must have some limits, even in Las Vegas! While no other US destination may match the convenience, prestige and scenery of neighborhoods in this area, there could be a segment of potential residents who gradually get squeezed out. Already, I sometimes feel out of place as I go about my daily work in some of the most elegant areas and projects of my home base!
Though construction costs have jumped up by a third in the recent past, upgrades in the building code have also kept pace making sure that those who can afford durable and safe quality standards can have them. Similarly, though land costs have soared to over $500 million an acre, the air quality and general ambience keep getting better. I can take you to projects where you feel far from the desert, and even as though you are in the Mediterranean on the other side of the Atlantic!
I must say that I have not seen any signs of demand dampening in response to rapid rise in rates. Sales of homes in the $1 million range continue to be more than what the average realtor can handle. Units in Summerlin, Anthem and similar localities can be difficult to find at even such generous rates, and most of them last for very short periods in our multiple listing service before getting snapped up by eager newcomers to the Las Vegas community.
Perhaps, on reflection, my pessimism as I started writing this piece was misplaced. The attractions of living and investing in this glorious part of Nevada may be so difficult to resist, that Las Vegas homes for $1 million will become the stuff of history books!
posted by realestatevegas | 11:18 PM
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