Happy New Year and may 2012 be your best year ever! The Las Vegas luxury home market continued to add to its decline in 2011. We had pricing pressure in the luxury home market throughout Las Vegas as we continued to face luxury home foreclosures, short sales and equity sellers that were willing to compete with these price levels. High luxury home inventory and fewer luxury home buyers led to price declines. As an example, I recently sold a Las Vegas luxury home in The Ridges for $2,500,000 that had sold for $4,000,000 in 2005. This is nearly a 40% drop for a luxury home in Las Vegas in one of the best neighborhoods, The Ridges. At this time of the year, I am often asked for my predictions for the luxury home market in Las Vegas. I believe that the Las Vegas luxury home market in 2012 will be much like 2011. The price declines will ease, although it may look and feel like prices are still declining as luxury home sellers reduce their luxury home prices to catch up with recent sales. Unfortunately, we will continue to see luxury home foreclosures, short sales and excessive luxury home inventory. The good news is that prices should not fall too much further as buyers are recognizing the values in the luxury home marketplace. With luxury home inventory high and luxury home buyers still scarce compared to the boom years, the market will probably remain like this for several years. I look forward to the New Year when I can predict price increases for the Las Vegas luxury home market!
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