Las Vegas Single-Family Homes, Foreclosure for Sale Condos

by on cities

The number of investors who purchased new and previously owned single-family detached houses in Las Vegas increased in June, based on data gathered by housing analysts.

In June, investors comprised 37.5 percent of all buyers of new and previously owned houses in Las Vegas, the highest percentage since February 2006 when the percentage of investors who participated in the market was 37.6 percent and the biggest percentage of investor-bought homes since June 2004 when investor-acquired homes represented 39.4 percent of all new home and pre-owned sales.

Housing analysts in Las Vegas related that most of the investors in June came from Southern California and were not flippers. They were long-term investors who planned to rent out the properties they purchased.

Investors said the rental market in Las Vegas is growing because of the rising number of families who lost their houses to foreclosure and are now looking for rental properties to lease.

Analysts have observed that homeowners are leaving their homes they are paying monthly for around $2,000 and moving to rental properties they will pay monthly for only $1,200.

Most of the investors were looking for single-family houses priced lower than $121,000 and built not earlier than 2003. They said if home prices increase by around $30,000, they will look for other markets as the increased prices would not make rental investments viable.

In the first 6 months of this year, the median price for single-family homes dropped by 34 percent compared to the first 6 months of last year.

Meanwhile, prices for mid-rise condo units fell by 49 percent and prices for high-rise condos dropped by 50 percent. Prices for townhouses and other types of condos declined by 51 percent.

The steepest price declines in Las Vegas occurred in apartment conversions. An example is the Meridian apartment complex which was converted into condo units from 2005 to 2007. When the condo units were first sold, the average unit price was $539,000. In June, the average unit price was a stunning low of $87,611.

With the steep decline in prices, more and more condo units at the Meridian have been becoming foreclosure for sale. As of June, 201 of the 680 condo units were already in foreclosure, and more are expected as many underwater occupants are walking away.

Investors are picking single-family homes over cheaper condo units because potential buyers and renters prefer unattached properties with backyards and picket fences.