Skip to content
Real Estate News & Current Events

User Stats

4
Posts
0
Votes
Glenn Plantone
  • Involved In Real Estate
  • Las Vegas, NV
0
Votes |
4
Posts

High Rise Condos Continue to Drop in Price...Maybe Time to Buy for Some?

Glenn Plantone
  • Involved In Real Estate
  • Las Vegas, NV
Posted Apr 28 2009, 07:42

I recently attended the public auction held to sell 20 units in the three MGM Signature towers located just off the Las Vegas strip. The auction was held on April 21st and was attended by about 125 people. All units were sold.

The auction saw new record low sales prices for both one bedroom and studio units in the MGM Signature complex. The top one bedroom sold for $255K and the low sold for $185K. The previous low comp for a one bedroom unit was $274K. So this sale brought the comp down quite a bit from $274K to $185K. The top studio unit sold for $200K and the low sold for $142K. The previous low comp was $174K. So again the comp came down from $174K to a new low of $142K.

It will take approximately one month for these units to officially close and for the new lower comps to register in the MLS. There are still 24 REO/bank owned units available within the Signature towers. Once the new comps register, there will be another great buying opportunity for anyone still interested. I will then be advising my investors to put in some cash offers for lower than the new low comp prices and test the waters.

This MGM auction, and others that are coming up shortly at different locations, are proving that high rise prices in Las Vegas are finally coming down to levels where they are extremely affordable as a second/vacation home option. In some cases they could even work as an investment...but there are definitely stronger cash flow plays elsewhere in the valley...so an investor in high rises would have to have an ulterior motive as well (ie: holding for appreciation, second home, vacation split, etc.)

I wonder how much lower they will go?

Loading replies...