Search
 

Vegas Apartment Prices Leveling Off?

LAS VEGAS-For the first time in a long time, the per-unit price of apartment sales here did not increase from the previous quarter.

By Brian K. Miller | Updated on November 26, 2006

LAS VEGAS-Apartment sales here relative to 2005 have been down by around 40% for most of the year, but the third quarter saw something this region has not experienced in a long time: a decline in the average per-unit sales price. An analysis of data collected by a local apartment specialist shows that while the third quarter saw 900 more apartment units changed hands than the second quarter, total sales volume by dollar decreased by $24 million.

The results dropped the year-to-date average sale price to $102,200 per unit from $103,100 at mid-year, according to Mike Belnick’s quarterly Apartment Insider report, which tracks the sales of all apartment complexes with at least four units. It is the first time in many quarters–if not many years–that the average per-unit sales price has not increased from quarter to quarter. The average sale for all of 2005 was $88,700; the average sales price for 2004 and 2003 was $68,700 and $54,600 respectively.

“If there’s any reduction in price, it’s because we’re selling more B and C-class product because the A product has pretty well turned over to a high degree due [in part] to condo conversions,” Belnick tells GlobeSt.com. “So what we are getting is more of that mid-priced property that is changing hands, which is reducing the overall overages. But with the current sales I’m picking up now, [the average per-unit sales price] is going to start shooting up again because pricing is so strong.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.