Las Vegas Condo Foreclosures
Since condominium prices in Las Vegas began to fall in 2008, more and more Las Vegas condos fell into foreclosure. As home prices continued to fall, more and more condos were re-possessed and sold off by the banks at depressed prices, which further pushed prices down. Luxury condominiums in Las Vegas which were previously sold for $8,000,000 were now worth $1,500,000. Anyone that bought a Condominium in Las Vegas between 2005-2007 with a mortgage was better off letting their condo get foreclosed on than paying it off – as borrowers owed more on their mortgage than the value of their condominium. Someone who bought a $1 million dollar condominium in Allure Las Vegas or Panoromo Towers North for example with a mortgage back in 2007 with 20% down would owe around $700,000 in 2010. The condominium unit itself is only worth $230,000. The fact that so many condo owners owed more on their condominiums than they were worth led to more and more condo foreclosures in Las Vegas.
Foreclosure on Luxury high rise condominiums in Las Vegas were a big problem after the 2008-2010 real estate bust, as so many individuals and investors were speculating on condos in Las Vegas. Since the demand for Luxury condos in Las Vegas was huge, new projects like Trump Towers Las Vegas, Sky Las Vegas, Mandarin Oriental, Veer Towers and Signature MGM Condos were all completed within a few years of their announcement. In fact, the Trump Las Vegas building itself was completed in a short 3 years. With so many investors pouring money into Las Vegas Condos, the market grew incredibly fast. To demonstrate the craziness of all this, every single one of the 1,282 condo units in Trump Las Vegas were sold out in less than 5 days of being put on the market. Unfortunately, after the recession hit, condo prices plunged. As mentioned earlier, million dollar condos were being sold for $220,000. This led to more and more foreclosures. The market only recently began bottoming in late 2010, as prices finally began to stabilize. Luxury condominiums were some of most likely properties in Las Vegas to be in foreclosure, as prices fell so fast and so hard. Regular single-family homes that were being sold for $300,000 fell to $100,000, but that’s not nearly as bad as going from $1 million to $220,000.
Condo Foreclosures in Las Vegas are still happening, but to a much smaller degree. Now seems to be a pretty good opportunity to invest in Las Vegas condos, as condominiums can be purchased for a fraction of their peak prices. In fact, many luxury condos that were foreclosed on are selling for less than their original constructions costs – which makes the Las Vegas condo market a buyers market. Condos on the Las Vegas Strip are especially attractive – units in Sky Las Vegas and Veer Towers are being bought up with multiple bidders on each listing. Sale prices often sell at above list price because of the increasing demand.
Since the market dropped in 2009, things have been getting better. Notices of foreclosure are down and home prices are creeping back up. As of 2015, single family home prices have doubled from their 2010 bottoms while high rise condos have appreciated 25% or so. There’s a lot more room for appreciation in condos now than single family homes.