Nov. 24, 2011
WHY, AND WHERE ARE THE BUYERS COMING FROM?
At a median price of just over $50,000, investors are snapping up Condos right and left all around the Las Vegas valley.
Condo buyers are usually empty-nesters, retirees or young people looking to live close to work or school --a 3 mile radius. Some are second home buyers who plan to retire within the next 5 years, many coming from the snowbelt regions back east -- Ohio, Pennsylvania and New York.
Residential Resources of Las Vegas said that "Condos generate a cash flow of ten percent, even after HOA fees and management costs, reporting 476 Condo sales in October, about an average monthly total."
Numbers exclude high-rise condos.
The median price fell 8.7 percent from a year ago to $50,213. "There are deals everywhere -- hard to believe condos could get any lower."
More than half of October's Condo closings were real estate or bank owned, while 24.4 percent were normal sales and 23.3 percent were short sales for less than the mortgage owed.
The median price for normal sales rose to $51.70 per square foot, short sales to $52.03. Cash transactions account for 90 percent of sales, with 8 per cent of sales receiving institutional financing.
While the median value of single family homes continued to trend downward in October, Condo closings increased in all 3 categories for the first time since the tracking began for transactions by sales type.