Can Valley Condo Market Go any Lower? Office Market Shows Signs of Life According to Area Professionals

By Alex Girda, Associate Editor Investors are acknowledging the opportunities they have received with recent median price slides a Residential Resources of Las Vegas report indicates. Condominium and townhome sales have seen increased interest during the past few months as median [...]

Investors are acknowledging the opportunities they have received with recent median price slides a Residential Resources of Las Vegas report indicates. Condominium and townhome sales have seen increased interest during the past few months as median prices continue to go down. According to The Las Vegas Review-Journal, Residential Resources figures place condo sales at the 476 mark. That means that while the figure is lower than September’s 508 transactions, it is stronger than last year’s 469.

The Las Vegas Valley has seen prices drop by as much as $150,000, LVRJ recently noted, with prices now lying in the $50,000 area. The earlier mentioned report placed median prices for condominiums, excluding high-rises, 8.7 percent lower than October 2010, although a 4.6 percent increase has been recorded compared to September 2011. Frank Nason, president of Residential Resources in Las Vegas, was quoted as saying that it seems highly unlikely that the condo market could go any lower.

In other news, LVRJ speculates that the office market may soon find itself on the rebound after looking at RCG Economics’ latest indicators. RCG principal John Restrepo noted that decline rates during 2009 and 2010 were “pretty severe.” He also maintained that while pressure will still be exerted on office rent rates during the next year or so, the market may be restarting itself.

The Equity Group in Las Vegas recently closed its 29th distressed transaction, and this, according to The Review-Journal, brings its sales total to over $41 million. The company’s principal has mentioned that signs of a pickup can be traced back to early 2010 when markets were still destabilized after a disastrous 2009. He also said that commercial real estate now trades at levels situated anywhere between 60 and 80 percent of their peak 2006 values.