Turnberry spawned Vegas luxury condo market

Roughly ten years ago Turnberry Associates jetted into town and bought some land in the north end of the Strip, on Paradise by the Las Vegas Convention Center. It had already carved itself a stellar reputation as a luxury condominium developer over in Miami, so valley observers knew what they were up to. The locals were quick to point out, though, that they had chosen a poor location for their project.

Despite the friendly advice the firm built the Turnberry Place on the parcel, an enclave of four 38-story towers with a total of 720 units. As word spread, it soon turned into a favorite among the luxury condo-affording crowd back in Florida and elsewhere in the country, even abroad. Consequently, they had no trouble selling the units. With that it became the undisputed catalyst for the present boom in luxury condo development around the valley.

Since then the company has erected the Residences at MGM Grand in a joint venture with MGM Mirage. It is now finishing up Turnberry Towers by the Las Vegas Hilton that consists of two 45-story buildings. And it has under construction the Fontainebleau Resort at a cost of $2.9 billion, a project that also includes about 1,000 condos, in addition to the normal mix of services and features common to Vegas entertainment palaces.

Some experts here are lukewarm about the near-term viability of the luxury condominium explosion, citing that the units simply are over-priced. Turnberry's top executive disputes that. Southern Nevada's economy is relatively stable, the city has plenty of international appeal as a destination resort and when the local population matures, it'll seek more vertical housing, he adds.

Housing price declines in the forecast

According to the latest forecast by Moody's Economy.com, the nation's home price picture is going to be rather smudgy in the coming years. The study it conducted analyzed the high and low ends of real estate values in the target markets, a total of 379 of the largest ones. Only the median prices in the single-family category were used.

The survey came up with an above 10% drop in 86 of the cities, which is bad enough, and a slide between 1 and 10% in 290 other markets. That's just about all of the areas the study covered. When they averaged out the decline, it came to 7.7%, a worrisome uptick from 6.6% they just published in June. To read the entire article, please click here.

Housing woes pinch new home size

Home builders have lately been on a steady course of constructing ever larger houses and condos for the consumer who was looking for a bigger place to live in, whether he really needed it or not. That was the trend for years. It, in fact, accelerated during the early years of the millennium when mortgages were inexpensive and easy to get. Life was good.

A responsible attitude toward the marketplace and how it truly functions were largely forgotten by many and it gradually germinated heavy overbuilding and increasing foreclosure rates and all that has brought us to today's stagnant residential real estate environment. Please click on the link in this paragraph to continue.

Nevada foreclosures still climbing

Everybody and his uncle continues talking about the soft real estate market we have here in Nevada today. Whether they are losing their pants in there or not, they are still comparing notes. And why not? I would, too.

So, let's go right into the latest stats on it, which by the way are rather glum. Or maybe not. It actually depends on what side of the fence you are on.

So, here it is. Nevada had one foreclosure filing per every 165 households in August, which is the tops in the nation. Ouch. And our number is more than three times higher than the national average. To clarify, these stats consist of default notices, auction sale notices and bank repos, a bunch of different things and this information is provided by RealtyTrac. Regardless, it's still pretty bad.

Anyway, for the homeowner who is struggling today with his payments, perhaps the lower mortgage rates that we have seen in the last couple of weeks could be the way out. A basic refinance might be all he needs.

On the other side of the fence stands the buyer. For him this is one of the better times ever to find a bargain here. They certainly don't call this a buyer's market for nothing. There are thousands of vacant homes out there that can be purchased at great prices and with low mortgage rates.

Should you buy a retirement home now?

That is a question crossing many minds today. A host of people from their 40s all the way to the 60s are spending quality time on the subject, weighing possible locations, finance options and the exact timing of the purchase, which are among the more important points. It's a strategic decision, so it does deserve careful study. Today's real estate market, though, tends to favor the notion that now might be a good time to act, especially if you are planning to buy a vacation-type property.

One good reason to move on it soon is the current price softness. When the housing market bottoms out is impossible to predict, but when the turnaround comes, prices will most likely rise steadily again over the next 10 to 20 years. Please, click on the link in this paragraph to continue.

Photo by drmatt

Are real estate prices going up or down?

You would think that with the market as soft as it is in many sections of the nation prices would be heading south. And they are. At least that's what you keep reading in the media. And then two separate home price reports are released in the same week and all of a sudden the story gets real blurry.

Here is why. First Standard & Poor's Case-Shiller national home price index comes out telling us that values dropped 3.2% in the second quarter of 2007 from the same time a year ago. That goes along with common belief. The news immediately hiked the angst factor on Wall Street, confirming the fears of some experts that the housing sector was in more trouble than previously thought. To read the entire article, please click on the link in this paragraph.

Vegas housing market on the mend?

Southern Nevada real estate market has been battling a bad headache for a decent while and weary industry experts are wondering when it might right itself. There are some positive signs now that the slide may be slowing down, and maybe even coming to a halt. Wouldn't that be something to cheer about?

Here is the proof. The MLS administered by the Greater Las Vegas Association of Realtors, or GLVAR, reports that the amount of homes for resale grew only 1.1% in August to 24,341. This is the smallest monthly uptick all year and it's a good reason to some optimism.

Moreover, in the same release the median home price improved 1.7% to $299,900. Another positive sign toward a better future in the housing market. However, it still is 3.9% less than in August of last year, so let's keep our feet firmly to the ground. That's always a good policy.

Buyer's market does continue to dominate the scene here in the valley, but it appears that soon it'll come to an end. Those who are sitting on the fence, this might be time time to take the plunge and purchase the house you've thought about doing over the last several months. Not only that, but mortgage interest rates are still attractive, too. Double benefit to the buyer.

Pinnacle Las Vegas news

The developer of the $740 million condo-hotel with 1,100 units named a few days ago its third general contractor. The new builder is Dick Pacific Construction which also is a joint venture partner in the project, a marked shift from an earlier arrangement. The first two were signed up as general contractors only. Although the details are largely unknown, this change likely comes from a financial necessity.

The original framework of the development remains pretty much untouched. It'll still feature two 36-story towers linked to one another by three sky bridges. Among the amenities are restaurants, shops, a spa with a fitness center and a large wet deck. A wet deck probably means a pool and such. Construction is now set to kick off later this year and be completed by 2010.

Current condominium market conditions, just like all residential real estate, in the valley are difficult. Available inventory is growing steadily as sales lag and financing of units is getting harder thanks to the present mortgage turmoil. According to experts, a developer with experience and secure finances plus a brand he can put in a good location, like the Strip, will have a much easier time at it than a first-time entrepreneur.

Subprime mortgage legislative proposals from US Congress

The lawmakers are back in Washington, after taking the month of August off for a little R & R. One of the first matters they've decided to work on is the subprime debacle that still roils the mortgage market. Some of the ideas they are planning to float for debate are quite controversial even before being officially introduced. Kind of a test to see what the reaction in the field might be.

One of them is a provision where the investors purchasing mortgage-backed securities on the secondary market would be liable for lender misconduct. More details are needed to fully assess this one, but it appears to be a bad call. Please click on the link in this paragraph to read the entire article.

Vegas luxury condo market feels the pinch

The luxury condominium market was also expected to feel the adverse effects of this uncertain mortgage and real estate environment. And it undeniably is. Some projects have been canceled outright and some are on hold for now, obviously waiting for the financial conditions to improve and the rising construction cost trend to stabilize. This closely mirrors the single-family sector that has been soft for a while.

Through the second quarter of this year there were about 14,000 condos under construction, reports Applied Analysis, a Las Vegas financial consulting company. Please click on the link on this paragraph to read the entire article.

Mesquite housing market cools

Mesquite has been lately called a bedroom community of Las Vegas. And rightfully so. It's only about 90 miles away, a straight shot northeast up the freeway, and definitely has its own small-town aura that is coveted by so many. Pahrump to the west and over the mountain range is the other one.

What comes to real estate, it has been linked to the metropolis all too closely, too. And this one is easy to prove. When the housing market boomed here a few years ago, Mesquite's followed right behind it with the same type of over-heating. And now, as if on cue, it's nursing the very same ills that the soft market has brought to Sin City.

Generally home values there are somewhat lower, but still within striking distance. For the second quarter, the average home price fell to $249,659 when a year ago it stood at $291.379, reports Mesquite GMAC. That amounts to about 14%, which can be called a sizable drop. Inventory is pushing steadily up and days on the market is getting longer, the classic signs of a weakening market.

On the positive side, home building permits grew slightly to 189 through the first six months, compared with 186 last year. And sales as a whole moved up by about 10%, to 149 homes in the second quarter from 135. Although there are a few brighter spots, the overall trend points to a correction that can last for a while.

photo by goobersmyn