Las Vegas Condo News
As the market for high-end condos levels off, more and more people who have invested time, planning and money into their future retirement condos are starting to feel the pain of incomplete condo developments closing down shop.
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.
2 Comments to Las Vegas Condo News
Comments
Condo prices appear to be stable in many parts of the country and some see this to be a sign that the same will happen in Las Vegas. I’m not sure, I’ll just have to wait and see with this one.
Vegas seemed to be one of the volatile areas as far as real estate goes. Hopefully things straighten out there soon because I’ll be in the market for a condo in the near future.
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