Las Vegas Condo Buyers Lose Big On The Strip

Posted by: Chris Palmeri on September 06, 2009

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I’ve written before about the sorry state of the condo/hotel market in Las Vegas. Bill Lerner of Union Gaming just came out with a report with some more analysis. He says sales have slowed to just a trickle—four per month. Prices in buildings such as the Trump International Hotel are down about 18% but that’s only because the developer still owns them and isn’t willing to take a huge hit.

Re-sale prices, in projects like MGM’s three Signature towers are down 70%. Local Realtor Rob Jenson tells me many of the units are priced well under $200,000. Some of these sold for $600,000 and up. Condos on the Strip in general are down about 50%.

All this is bad news for CityCenter, the $9 billion hotel and casino complex that is supposed to open in December. Lerner figures it will have to cut prices about 50% from what it is asking now. MGM has already sold about half of the 2,400 condo it plans to sell for the project. But acccording to the Las Vegas Sun, condo buyers—who have paid an average of $1 million per unit—are now asking for price reductions and threatening law suits.

They have even started a condo buyer blog to share info and commiserate with each other.

Reader Comments

tahir dada

September 7, 2009 04:14 AM

hi
plz give details on property for sale

thanks
tahir dada

tahir dada

September 7, 2009 04:14 AM

hi
plz give details on property for sale

thanks
tahir dada

Fool

September 7, 2009 10:43 PM

Call me a fool - but who would want to live in Vegas at ANY price? What a god forsaken dessert wasteland.

paul hardy

September 8, 2009 02:06 AM

And when the market was escalating wildly would the seller's have been able to raise prices on the buyer's? Most likely these buyer's got mortgages with no income documentation necessary. Looks like another round of foreclosures coming.

Cain

September 8, 2009 02:33 AM

How can they ask for reduction? You agreed on the price, you stick to it... if you really don't wanna pay, default, and squelch out but don't try and act like the other side was the bad guy, no one held a gun to their heads

Ballbuster

September 8, 2009 05:13 AM

During the heat of the real estate mania, BW's Palermi and Gopal have often used exaggerated words such as "scooping up" and "snapping up" when writing about the purchase of real estate so as to emphasize and distort the false bargains. For years, these two propagandists for the real estate industry have extolled the idea that every real estate purchase is a ticket to riches. In light of the mounting and catastrophic loses in condo values in Las Vegas/Nevada, Miami/Florida, SanDiego/California, and elsewhere, Palmeri is now doing his sneaky CYA disguised in the form of a news report instead of a written confession itemizing the error of his ways. BW readers should not allow Palmeri to present himself as a neutral advocate of real estate. As it is written in many good books, Palmeri liken to those who do not repent and atone for their past sins shall be punished.

WaterSourceWaterBank

September 8, 2009 07:57 AM

For 6 years, Las Vegas via the Southern Nevada Water Authority has been offered a complete confidential disclosure for FREE of a new non-tributary fresh water Source that can yield a million acre feet each year and be stored/accumulated in Lake Mead to keep it reasonably FULL and insure the continued generation of 2000 megawatts of renewable energy. This Triple of the water supply for Vegas could create huge water entertainment parks and everything else that needs ample water. WATER is JOBS. Water in the bank (Lake Mead which holds 28.5 million acre feet) could do the same for Southern California. Hope this helps ... waterrdw@yahoo.com Retired Water Rights Analyst "Laughter of fools is always the reward of anyone who comes up with a new idea".

pmurph364

September 8, 2009 08:08 AM

Prices will normalize to historic values.Some sold a the high point, they were the winners of that game. The rest? Well what happens when you stay at the tale too long?

reviewer

September 8, 2009 12:30 PM

What a bunch of cry babies:(

aji

September 8, 2009 04:59 PM

what

aji

September 8, 2009 05:02 PM

The only way out of this to for everyone to sue everyone else, buyer vs sellers, seller vs sellers, buyers vs buyers. That way evryone's life can be turned to a night mare.

aji

September 8, 2009 05:06 PM

@Reviewer, You are the cry baby. Prove me worn.

@Fool. You rightly named yourselves. Good for you.

@Tahir Dada. Keep your dada attitude to yourselves. No one wants to give you the details.

Lowball

September 9, 2009 10:31 PM

Walk in with 25 cents on the dollar, cash. Say take it or leave it. Watch what happens.

Thank you for your interest. This blog is no longer active.

 

About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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