Normal Growth in 2005
Real estate in Las Vegas some normalcy return with the growth of 6.8 percent. The sales grew at a record levels. Median prices in December were at $309,990 which $19,703 above the figure for December 2004. Condo conversions took center stage and helped in keeping the prices at reasonable levels. Totally a whopping 7700 condos were converted last year.
Sales of new homes exceeded last year sales by 9,000 units and stood at 38,517 which i 30.7 percent higher than last year. It's been good year even if the conversions are removed from the equation according to the local real estate agents.
Las Vegas has some areas of concern the rising inventory of homes of sale increased to 10,000 and remained at that level for whole of last year. In January 2004 this number stood at less than 3000 homes. Prices are expected to fall or hold steady and there won't be any runaway growth like what was witnessed in 2004 or early 2005.
Only Few Will Survive:
Developers of the ICON project finally pulled the plug on the project. It is officially dead.
Many experienced developers have found it tough in the high-rise market as they understimated the cost of building in Las Vegas. Related the developer behind ICON is one such. Developer of Time Warner Center in New York and severla thousand luxury condos in Florida they could make the ICON work in Las Vegas though they are going ahead with $3.5 billion Las Ramblas project on Harmon Avenue.
Reasons being given are the decrease in the market for high-rise condo sales, several lawsuits, rising construction costs, shortgage of workers. After settling the several lawsuits Related found that project was no longer financially viable without seriously imapcting the integrity of the project so they let it go. They explored several options to make the project work but it simply did not work out in the end.
Doubts are now being expressed about whether the Las Ramblas project will go ahead. Experts say only a few will survive in the tough Las Vegas real estate market. Allure, Turnberry Towers, Panorama, Sky Las Vegas are the few that will get built. Reason is their strong financial backing and understanding of the Las Vegas market. Metropolis is other success story. It is already built and completely sold.
