These types of news items are rare today. Las Vegas real estate has been wallowing in a slump for a while, longer than many would like to admit. Lately, though, it has shown some encouraging signs that it still does have a pulse. Record-low mortgage rates have kept it in the game, as have steadily declining home values. The best action right now is in the lower end of the market segment where many first-time buyers and smart investors are having a field day.
And then there is a surprise announcement that a mid-rise luxury condo project in Summerlin is back in business. Developer's bankruptcy had Mira Villa construction brought to a standstill in early 2008 when it was up to 90% complete. Three banks involved in the project have now agreed to provide the needed funding to finish the first phase of a total of 113 units there, as was reported by Nexus 30, the company handling its marketing and sales.
The significance here is that in this still volatile housing environment any bank would risk money, in this case about $37 million total, on a condominium community in Southern Nevada. Of all the places. They obviously predict that better days lie ahead and it's time to take a chance. After all, many similar projects in Summerlin and elsewhere have been canceled, so competition in the mid-rise sector should be limited. Or non-existent.
The unsure aspect there appears to be the pricing, set to start at low $500,000s. The units are rather large and the location is as good as it gets, but still, that's a lot of money in today's economy. The pricing is based basically on where they were when the condo project first kicked off about five years ago.
Something like this could be a catalyst for more similar action to come. At least it's going to get the attention of other lenders who will now carefully monitor how things go at Mira Villa. Everyone in Las Vegas is actually hoping it will signal a new start for this battered real estate segment.
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