Fiscal stability said to help sales for Allure condos
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Monday, August 29, 2011
Fiscal stability said to help sales for Allure condos
Allure Las Vegas, a luxury high-rise condominium development on Sahara Avenue, closed escrow on 17 units in July, bringing total closings for the year to 48, Allure Vice President Matt Brimhall said. He expects similar sales volume in August, leaving fewer than 50 of the 427 units unsold.
July's sales ranged from $196,000 for a 662-square-foot studio on the 36th floor to $357,000 for a three-bedroom, 1,828-square-foot unit on a lower floor.
Four of the buyers were from Singapore, Brimhall said. A majority of the units are owner-occupied, though they are allowed to be rented, he said.
Allure has managed to avoid the foreclosure and bankruptcy issues of other luxury condos in Las Vegas such as One Las Vegas, Loft 5, Streamline and Newport Lofts. Those projects were financed by Corus Bank, which was seized in September 2009 by the Federal Deposit Insurance Corp.
The financial stability of Allure, developed by Chicago-based Fifield Cos., continues to be the key to buyers' peace of mind and the overall health of their investment, Brimhall said.
Condo units start at $175,000 and amenities include 24-hour security at the door, a club room with kitchen, rooftop pool and concierge service.
"It's a very good opportunity at this point, if you look at high-rise construction costs of $495 a square foot and we're selling at $230 a foot," Brimhall said. "High-rise condo inventory on the Strip is decreasing and there's no outlook for competition in the near future."
He noted that the 41-story Allure was recently featured in the Robb Report "Where to Buy Now" section, ranked as the No. 1 value in Las Vegas.
Fifield, established in 1977, has developed more than 50 projects in the United States worth more than $4 billion.
Fifield Senior Vice President Alan Schachtman said Allure's strong sales are a credit to the company's development history and that the developer has continued to work closely with the homeowners association, even after turnover of the building.
Northcap, a company started by John Tippins and Marty Burger in Las Vegas, provides sales and marketing management for Allure.
FAST FACTS
July's housing numbers were down from the previous month, though the median price of both new and existing homes slipped by just $1,000, Las Vegas-based SalesTraq reported.
The new-home median price dropped to $199,000, a 5.2 percent decrease from the same month a year ago, while the existing-home median price fell 12.4 percent to $105,000, getting closer to the $100,000 mark that SalesTraq President Larry Murphy said we could see by the end of the year.
The only bright spot for the month was 4,828 existing-home sales, up 12.4 percent from a year ago.
While existing-home sales could have a record-breaking year, new-home sales will have their worst year in the last two decades. They continued their dismal trend with 315 closings in July, down 22.8 percent from a year ago.
New-home building permits fell to 286 in July, compared with 457 in June and 364 in July 2010.
The slowdown in foreclosures could point to a bottom in the Las Vegas real estate market. Banks took back 1,502 homes in July, 7 percent fewer than a year ago and the lowest number since February.
Murphy said that's surprising because there are thousands of notices of default in the supply chain. More importantly, the "shadow inventory" -- or bank-owned homes not yet released for sale -- is at its lowest point since March 2008.
SalesTraq reported 728 short sales, or lender-approved sales for less than the principal mortgage balance, at a median price of $117,500; 655 auction sales at a median of $91,000; 2,219 bank-owned sales at a median of $97,050; and 1,126 regular sales at a median of $110,500.
HOUSING AFFORDABILITY
Nationwide housing affordability hovered near its highest level in more than 20 years in the second quarter, according to the National Association of Home Builders and Wells Fargo Housing Opportunity Index.
The index showed that 72.6 percent of all new and existing homes sold in the second quarter were affordable to families earning the national median income of $64,200. The affordability measure dipped slightly from the record high of 74.6 percent set last quarter, but remained above the 70 percent threshold initially achieved in the first quarter of 2009.
"At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," said Bob Nielsen, a Reno homebuilder and chairman of the National Association of Home Builders. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."
Monday, August 29, 2011
Fiscal stability said to help sales for Allure condos
Seventeen units close escrow in July, official says
Allure Las Vegas, a luxury high-rise condominium development on Sahara Avenue, closed escrow on 17 units in July, bringing total closings for the year to 48, Allure Vice President Matt Brimhall said. He expects similar sales volume in August, leaving fewer than 50 of the 427 units unsold.
July's sales ranged from $196,000 for a 662-square-foot studio on the 36th floor to $357,000 for a three-bedroom, 1,828-square-foot unit on a lower floor.
Four of the buyers were from Singapore, Brimhall said. A majority of the units are owner-occupied, though they are allowed to be rented, he said.
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The financial stability of Allure, developed by Chicago-based Fifield Cos., continues to be the key to buyers' peace of mind and the overall health of their investment, Brimhall said.
Condo units start at $175,000 and amenities include 24-hour security at the door, a club room with kitchen, rooftop pool and concierge service.
"It's a very good opportunity at this point, if you look at high-rise construction costs of $495 a square foot and we're selling at $230 a foot," Brimhall said. "High-rise condo inventory on the Strip is decreasing and there's no outlook for competition in the near future."
He noted that the 41-story Allure was recently featured in the Robb Report "Where to Buy Now" section, ranked as the No. 1 value in Las Vegas.
Fifield, established in 1977, has developed more than 50 projects in the United States worth more than $4 billion.
Fifield Senior Vice President Alan Schachtman said Allure's strong sales are a credit to the company's development history and that the developer has continued to work closely with the homeowners association, even after turnover of the building.
Northcap, a company started by John Tippins and Marty Burger in Las Vegas, provides sales and marketing management for Allure.
FAST FACTS
July's housing numbers were down from the previous month, though the median price of both new and existing homes slipped by just $1,000, Las Vegas-based SalesTraq reported.
The new-home median price dropped to $199,000, a 5.2 percent decrease from the same month a year ago, while the existing-home median price fell 12.4 percent to $105,000, getting closer to the $100,000 mark that SalesTraq President Larry Murphy said we could see by the end of the year.
The only bright spot for the month was 4,828 existing-home sales, up 12.4 percent from a year ago.
While existing-home sales could have a record-breaking year, new-home sales will have their worst year in the last two decades. They continued their dismal trend with 315 closings in July, down 22.8 percent from a year ago.
New-home building permits fell to 286 in July, compared with 457 in June and 364 in July 2010.
The slowdown in foreclosures could point to a bottom in the Las Vegas real estate market. Banks took back 1,502 homes in July, 7 percent fewer than a year ago and the lowest number since February.
Murphy said that's surprising because there are thousands of notices of default in the supply chain. More importantly, the "shadow inventory" -- or bank-owned homes not yet released for sale -- is at its lowest point since March 2008.
SalesTraq reported 728 short sales, or lender-approved sales for less than the principal mortgage balance, at a median price of $117,500; 655 auction sales at a median of $91,000; 2,219 bank-owned sales at a median of $97,050; and 1,126 regular sales at a median of $110,500.
HOUSING AFFORDABILITY
Nationwide housing affordability hovered near its highest level in more than 20 years in the second quarter, according to the National Association of Home Builders and Wells Fargo Housing Opportunity Index.
The index showed that 72.6 percent of all new and existing homes sold in the second quarter were affordable to families earning the national median income of $64,200. The affordability measure dipped slightly from the record high of 74.6 percent set last quarter, but remained above the 70 percent threshold initially achieved in the first quarter of 2009.
"At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," said Bob Nielsen, a Reno homebuilder and chairman of the National Association of Home Builders. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."
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