The downturn of the real property market in Las Vegas has taken its toll on the local millionaires.
According to Capgemini, a consulting firm that publishes U.S. Metro Wealth Index, the percentage of Las Vegas millionaires decreased by 38 percent in 2008, second only to Orlando’s 42 percent. Phoenix was listed third, losing 34 percent of its millionaires.
In the national level, the number of US millionaires decreased by 18.5 percent in 2008, Capgemini added.
Millionaires are defined by Capgemini as those with $1 million or more in investable assets, excluding primary residences.
In the report of Capgemini, those millionaires who invested heavily in Las Vegas real estate have been badly affected. This, as housing prices decrease by more than 50 percent since the peak in 2006 and commercial property and land values have dropped as well.
Applied Analysis reported that home inventory in Las Vegas or the number of homes on the Multiple Listing Service has fallen during the fourth week of July to 12,939 or 89-unit decrease from the previous week.
The firm said home inventory decreased by 9,400 units or 42 percent in the previous year. Home inventory has not been this down since 2005, the firm added.
Applied Analysis reported that the units listed are less than number of pending sales. The Multiple Listing Service has 6,405 units listed as short sales and 13,650 units listed as contingent or pending.
In Las Vegas, medical offices performed best compared to the rest of the commercial market during the second quarter, this according to CB Richard Ellis.
The average vacancy rate of medical offices was down from 16.5 percent at the end of the first quarter to 16.1 percent at the end of the second quarter, CB Richard Ellis reported.
According to Bruce Follmer, medical office expert at CB Richard Ellis, landlords of medical offices offered increased tenant improvement allowances and free space to attract tenants.
Follmer added that medical office buildings fared best as the medical profession is very stable. He said office buildings near hospitals are preferred.
Not only millionaires but billionaires have been hit hard as well, just yesterday I read that Warren Buffet has lost $10 billion in one year and Bill Gates too I think lost some $7 billion but he stayed at the top.
I guess it’s all relative! They probably aren’t eating hamburger helper and scrounging up change for gas money but imagine it’s stressfull for them as well. I once heard a quote that only people that think about money more than the rich are the poor. I think people think the guy with a 5 million dollar home is living the good life. The funny thing is he’s more stressed out about his 16k mortgage than most people!
Property in East or West ‘UpMarketArea’ gets pushed as being a bargain during a boom. After the bust, only ‘UpMarketArea Central’ retains its value.
When vanity projects start going up the smart money starts getting out.
Location is still the key criterion. If you can find a bargain in an upmarket area, get stuck in, I say.