Condos behind Las Vegas Growth

Some 467 new home subdivisions are being built in Las Vegas which is a record. Sales of new and existing homes also saw a steady growth and more than 100,000 units exchanged hands last year. Most of the top 10 best selling subdivisions all turned out to be condo conversions.

The days of amazing double digits growth of 30-40 percent are over for the present. Things are expected to be more and homes prices are expected to grow at a more sedate 6-8 percent this year. The median price of a new home 2005 stood at $313,372 which is just 6.8 percent above last year's price. A major reason for this is the condo conversion which brought down the median prices considerably and offered a lower price entry home for first time home buyers.

Majority of of the condo conversions will be completed this year and apartment investing will again go up as rents creep higher due to the fewer apartments available for rent. A majority of developers do not favor the councils plans to put a break on condo conversions as they this affordable housing option a stepping stone for greater things for the housing industry. They feel the condo conversions have actually created a lower thresold for first time home buyers. By stopping this many people will never be able to afford to buy a home in their life times. Also, only when homebuyers buy their first home can they build equity to be used to buy move-up home. By breaking this vital link a whole group of homebuyers will be permanently banished from the homebuyer's market.