Las Vegas Condominium Analysis - 2nd Quarter 2009
General Overview of the 2nd Quarter 2009 Multiple Listing Service Condominium data:
The MLS information presented here removes all high-rise units from the mix but includes, predominately, stacked-flat units as well as mid-rise units (e.g. Manhattan Condos).
There were 1,521 condo sales through the MLS for the 2nd quarter – a 58% increase over the 1st quarter and a 25% increase from May to June. There was also a small uptick in median sales price and a nearly 5% increase in the median price per square foot of those units that closed during the month of June.
This could be seasonal but we’ll take any positive news we can find. As the number of available bank-owned single family homes have been snatched up by investors we imagine that the investor crowd might be turning to condominiums where a 2-bedroom, 2-bath unit can be had for around $55,000 to $60,000 depending upon the age of the unit and it’s proximity to employment.
Although rental rates will start to noticeably decline beginning in the 4th quarter, at those sales prices it will take quite a reduction in rents from current levels to eliminate any positive cash flow from these units.
We think the properties that are closest to the Strip, McCarran and other employment centers will fare the best since renters as well as owner occupant purchasers in this market have traditionally looked to be within 5 miles and preferably 3 miles of their work location.
Average – Median Sales Price 2009
Jan-2009 | $82,553 | $70,000 | 290 | Median < |
Feb-2009 | $79,180 | $69,900 | 295 | -1.4% |
Mar-2009 | $71,629 | $61,450 | 376 | -12.1% |
Apr-2009 | $64,518 | $60,000 | 453 | -2.4% |
May-2009 | $66,678 | $60,000 | 475 | 0.0% |
Jun-2009 | $69,072 | $61,000 | 593 | 1.7% |
Average - Median Price per square foot:
Jan-2009 | $78.31 | $70.73 | Median < |
Feb-2009 | $72.60 | $70.56 | -0.2% |
Mar-2009 | $67.94 | $63.29 | -10.3% |
Apr-2009 | $63.60 | $58.59 | -7.4% |
May-2009 | $63.11 | $57.87 | -1.2% |
Jun-2009 | $65.02 | $60.61 | 4.7% |
Of the 1,521 total transactions for the quarter: One hundred fifteen were ‘normal’(7.6%), 117 were short sales (7.7%) and 1,406 were REO properties (92.4%). Of the 4,041 active condominium listings (including Contingent and Pending sales) 48% are short sale listings and 28% are REO listings.
For non-REO condos: Average Sales Price for the 2nd quarter was $85,333 and an average of $75.48 per square foot while the median sales price was $75,000 and a median value ratio of $70.85. Prices ranged from $21,000 to $340,000 with sizes ranging from 496 square feet to 2,021 square feet.
Normal properties were on the market for an average of 95ays with the median at 59.
Nearly 38% included a garage and only 5.3% of the units were occupied by either a tenant or owner.
For REO condos: Average Sales Price of $63,663 and an average of $61.48 per square foot while the median sales price was $58,000 and a median value ratio of $57.87. Prices ranged from $15,000 to $325,000 with sizes ranging from 448 square feet to 2,469 square feet.
Days on the market (before contract) ranged from 1 to 699 days with the median at average at 71 and the median at 44 days.
Not surprisingly, none of the REO properties was occupied while only 15.6% of the non-REO properties were occupied. Twenty-on percent included a garage.
Terms of Sale: The most surprising item to me in this analysis was the percentage of cash transactions. Not so surprising was that just over 80% of the REO were cash purchases but 70% of the non-REO transactions were all cash.
This analysis with additional graphs & Zip code chart can be downloaded by using the link below.
Conclusions and interpretations are solely those of Residential Resources, Inc.
For further information on this or Northern Nevada (Reno/Sparks and Fernley/Fallon) or for a quote on custom analysis please contact:
Frank Nason, President
FrankNason@ResidentialResources.com
702-597-2855 Office or Toll-free 866-597-2855
5520 South Fort Apache Road
Las Vegas, Nevada 89148