Las Vegas Property Market on the Upturn Finally

The tide appears to have turned in favor of the Las Vegas property market which saw prices dropping by as much as 70 percent with the US housing meltdown of 2008. Recent statistics show that home prices are on an uptrend and new lows were registered in foreclosures in the city.

Based on figures from the Association of Realtors, the median price of condominiums sold this September rose 19.8 percent, while a 13.7 percent gain was recorded for single family homes. Significantly, sales-listed single family homes and condo units which didn’t receive buy offers for the month dropped by 63.1 percent and 35.6 percent, respectively. This decline manifests the U.S.-wide trend of lower home inventory, rising demand, and upward push on prices.

This September, foreclosure filings nationwide nosedived to a five-year low, resulting in fewer properties bound for lenders’ seizure. For the state of Nevada, a report by RealtyTrac showed that foreclosures declined by 71 percent which translates into one foreclosure filing for every 158 mortgaged homes.

Significantly, international buyers are adding to the local housing demand. An increasing number of visitors from China, Hong Kong, and Taiwan, have been noted recently, and such arrivals are expected to continue for quite some time. According to a projection by the U.S. Department of Commerce, there will be a 219 percent increase in Chinese visitors in Las Vegas by 2015. With the growing influx of foreign arrivals, Terminal 3 at McCarran Airport has been expanded.

Mandarin Oriental Las Vegas is one of the direct beneficiaries of this uptick in international visitors. Its lofty reputation, competitive pricing, and attractive rental income opportunities make the Mandarin popular among foreign buyers. Discounts of as much as a 50 percent are said to be available, making the Mandarin a competitive choice. With net rental yields at 7 percent on the average, acquisition of a unit here is indeed worth a look from foreign buyers.

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