If you follow the national news, you’ve no doubt heard the loud debates and expert analysis of the very troubled real estate market. In fact, one would be hard pressed to find any positive news. The naysayer’s predict even more troubled times with a recovery not coming until sometime in 2009. However, as with everything, there is always an opposing view point and these experts are saying in fact the market is not as bad as is being reported and depending on what part of the country you’re in and if your personal economics are in order, today’s market is robust and healthy.
Whichever side you fall, one thing is certain, just as the city of Las Vegas has defied most national trends, so too does the Las Vegas luxury homes market. Many of Nevada’s luxury real estate agents report a lot of interest in the million-dollar plus segment. The agents working in this segment say the Las Vegas luxury home market is attractive to a lot of smart money. These people are not typically affected by high gasoline, energy and food costs or by the pressures on the credit market. Whether it’s real because they need to sell fast or because they are succumbing to the persistent beat of the bad news drum, many sellers are discounting the asking price and in some cases, by 100’s of thousands. These are exactly the deals the smart money is chasing. They most often have a lot of cash and they need to do something with it. They are doing deals and because of discounting, are betting on the fact these homes are undervalued and in 2-3 years will be
able to sell for a hefty profit.
Recently, Las Vegas hit a record 24,672 homes for sale which represents about an 18 month supply. The Nevada luxury real estate segment represents only about 4.5% of the total. Even though there are still around 8,000 new residents moving to Las Vegas every month, most of the homes for sale are in the price range that isn’t selling so quickly. It will take the city planners to stop issuing building permits and probably, continued incentives at the builder level to help bring the supply down to the normal level of six months. In the mean time however, the Las Vegas luxury real estate market is not as bad as is being reported and depending on what part of the country you’re in and if you personal economics are in order, today’s market is robust and healthy.…