A new report says that while much of the Las Vegas real estate market has struggled in recent months, the market for higher-end homes for sale in the city has also faced its share of difficulties.
According to Luxury Homes of Las Vegas, during the third quarter of the year, home sales worth more than $1 million dropped 14 percent from last year, while sales worth more than $3 million were up 7 percent during the same period.
"The luxury market has some positive signs and some negative signs. The positives are that the current reduced price levels are attracting buyers. The negatives are bank foreclosures have entered into the luxury market and it will take time to clear some of this inventory, which could keep prices at these reduced levels for the near term," said Kenneth Lowman, broker and owner of Luxury Homes of Las Vegas.
The firm said that roughly 10 percent of homes sold over $1 million in September were foreclosures – much lower than the market as a whole.
MDA DataQuick says that foreclosures accounted for roughly 51.1 percent of all resale homes in September, down from a high of more than 73 percent in April 2009.
