Prices of apartment complexes in Las Vegas continue to drop

Sales of apartment complexes increased in the first half of this year in Las Vegas. 171 apartment units were sold in 2009–a 38 percentage point gain. Most of those deals were either short sales, bank repossessions or foreclosure purchases.

Even with the increased of sales of apartment complexes, purchase prices still plummeted by 38 percentage points to $53,000 per unit.

For this year, notices of default have been issued to more than 250 apartment complex in Las Vegas and it could be years before prices similar to several years ago could occur again.

As prices of real-estate properties continue to plummet and with the government’s tax breaks, renters are now opting to buying homes.  

According to the Greater Las Vegas Association of Realtors, median home sale prices in Las Vegas were $140,000 in June or 37.8 percentage points less than the previous year.

Las Vegas Business Press reported that banks are making fast deals on foreclosed homes. The news agency said that foreclosed homes continue to dominate the residential sales market.

The news agency added that the recent government’s $8,000 tax credit for first-time buyers also prompted some people to opt for home ownership rather than renting.

Las Vegas business advisory firm, Applied Analysis, reported that the growing number of unemployed and the decrease in demand contributed to the downward pressure on Southern Nevada’s apartment market in the second quarter.

The advisory firm reported that apartment occupancy rate plummeted to a record low of 90.5 percent. The 10-year occupancy average in the valley is 94.2 percent, the advisory firm said.

Applied Analysis added that the average asking rents in the valley dropped to $857 a month or 95 cents per square foot–a close to 4 percent drop from the previous year.