Las Vegas Condos are hot in the Las Vegas Real Estate market. People are choosing to live closer to the center of town and they are choosing to take advantage of the amenities offered by Las Vegas Condos. The high-rise condo market accounts for a large portion of it.
The annual appreciation of high-rise condos hit 40 percent in 2004, drawing investors like a magnet according to Restrepo Consulting Group. Appreciation declined to 25 percent in 2005 and to 5 percent in 2006. By 2006, the appreciation increase was lower than the interest expense on the mortgage loans but it also became increasingly difficult to find buyers.
High-rise condo builders started delaying projects, but excess supply was already on the market. There was a "huge" influx of investors into the Las Vegas housing market, which amplified the local impact when trouble hit. "Speculators will pull the plug quickly. However, some of the investors weren't speculating or planning to flip their purchase for a quick gain. Some investors bought properties for rental income and possibly for later use as a retirement home.
