Many consumers have invested their minimum 10 percent to pay on condo developments that will never be built. Now many of them are suing the companies that are not completing the projects for profits they believe they would have made.

Developers have canceled at least five condos projects in Las Vegas the last year. One of those was the Aqua Blue which was to contain a Michael Jordan health club.

Another that is sending alarms across the condo world is the Las Vegas Icon. Brian Gordon, a principal at Applied Analysis says that dozens of other buildings which have already sold units may never break ground.

Gordon says that there are nearly 100 condo projects in the works in the greater Las Vegas area, representing more than 50,000 units. Gordon predicts that fewer than half of them will be built in the next five years.

This leads up to the pitfalls for condo buyers. In Las Vegas construction prices have skyrocketed. Many have reported at least a 30 percent increase in the cost of labor and materials in the last year alone.

This is very bad news for developers who presell apartments and condos, because they may find construction costs wiping out profits even before they break ground.

The Icon cancellation comes as a big surprise, in part because its developer is a partnership of two giants.

The Related Group of Florida, which is considered by some to be the nation’s leading condo developer and Related Companies, which is headed by Stephen M. Ross. Ross is the developer of the Time Warner Center in Manhattan, while Jorge Perez heads Related Group.

Icon was planning to release its two 48 story towers in 2007 and 2008. Local experts say that Related made mistakes when the company relied to heavily on its own reputation in marketing the building.

Related released a report that attributed canceling the project to rising construction costs.

However, David Ezra, owner of Ezra International Realty, says that is a rookie mistake, not an excuse and that it will not work for Related.

Ezra says it is a bit of a sore spot for him because he sold some 60 units in the building.

Representatives for Related could not be reached to offer explanations, but one thing is for sure, Icon Las Vegas will not bask in the glory of Las Vegas.

The high rise Madison Tower I at Sullivan Square is offering 159 units for reservations with floor plans measure from 600 to 1,800 square feet ranging in price from the mid $400,000s to $1.5 million.

For more information on these fine Sullivan Square residences contact Cassie Catania of Realty ONE Group Direct at (702) 612-7679.

The gated mid-rise residential development is now under construction and currently selling homes offering 11 floor plans measuring 1,064 to 4,164 square feet.
The 372 residences will occupy six mid-rise buildings in this North West development, each with three stories and a penthouse level.

Contemporary cabinetry, granite kitchen and bath countertops, built-in trash compactors, granite shower surrounds, stainless steel appliances, decorative raised-panel doors and alarm pre-wiring are just a few of the standard features of this mid-rise.

Prices on these units start from the high $300,000s and go to over $1 million.

If you are interested in one of these residences at Echelon contact Cassie Catania of Realty ONE Group Direct at (702) 612-7679.

At last count there were over 80 new Las Vegas high rise preconstruction condo projects in the planning stages for the downtown Las Vegas strip. Most of these condo projects will feature fabulous amenities like state of the art conference centers, workout facilities and spas.

The targeted marketing area is the first time home buyers who are struggling to find affordable home ownership and are seeking a lower cost alternative to single family homes with new luxury condos.

The 2006 market offers stark comparisons. The market for Las Vegas condos, homes and rentals feels distinctly different thanks to skyrocketing inventory. SalesTraq showed that there were almost 3,000 resold homes listed in Vegas in April of 2004. That number jumped 250 percent in ’05 and looked to cash in on big appreciation increases.

In April of 2006 there was another inventory raise, this time of 63 percent. That puts the number of available new homes at over 17,000. The numbers are staggering and analysts are saying that consumers are not going through are tough period, they are just seeing the market level itself out.

This area is set to be the home of the casino and more than 1 million square feet of commercial retail and office space. The city originally adopted the development agreement with Focus limiting the housing to the 300 acre section with authorization to build only 3,000 Las Vegas condos. That number will double under the new revisions.

Many buyers have been interest in flipping their condos for quick profits. However the last year has shown that the market can be a dangerous place to play. Intense competition for the city’s limited supply of contractors sent construction costs skyrocketing 30% last year and many luxury tower projects that were started did not see their completion dates.

Las Vegas condo buyers have seen the market fluctuate and people who were buying condos to flip them for a profit are worried. As well they should be. The market has moved to a buyer’s market and this is not good for those who were riding the wave of outrageous prices for homes and condos the past couple of years.

Stay tuned to see which way the Las Vegas real estate market goes next. The way things have been going, it could be a long year for Las Vegas real estate investors and developers.