Super-luxury housing market still strong in Las Vegas

This segment seems to have it all figured out. It’s generally considered to include homes that go for upwards from $3 million at which level buyers seem to be little concerned about where the Las Vegas real estate market is, what mortgage rates are doing or how the national economy is behaving. They just go out to find a house to their liking and purchase it, often paying cash for it, too. As long as the money is available, it’s usually going to be an easy closing since there is no need to deal with underwriting issues, meeting conditions and that sort of stuff.

Some of the ultra-luxury sales in the last several months took place at MacDonald Ranch, Shadow Creek, Queensridge, TPC Summerlin and Panorama Towers. In 2003 the top price for a home sold in Southern Nevada exchanged hands at $4.2 million while that number increased to $17.4 million in 2007 for a Shadow Creek property, according to GLVAR, or the Greater Las Vegas Association of Realtors. Clearly the values keep going up nicely in this market segment, apparently pretty much immune to what is taking place elsewhere in the valley.

In a stark contrast, the semi-custom product usually in a guard-gated community that not too long ago ranged in price from $1 to $1.5 million is starting to show real stress. A host of them are now on the market for 30-50% less and local observers predict there is still room to go further down. It’s here where the tough economic times obviously have a real impact on the homeowner, especially when he sees the value of the home drop way low. To be several $100 Ks upside down will definitely make you think and some of them have decided to become “mortgage walkers”. They just hand the keys back to the lender and walk away.

All in all, the super-luxury and the lower-end and mid-range segments seem to be holding up rather well at this point. It's the upper mid-range home that is still going through a serious correction.