Aaron Auxier's VIVA VEGAS! Luxury Real Estate Update - April 2008.

1980's Mentality

The business has changed. Out of the ten MLS resale listings in one local neighborhood, nine were short sales. This means 90% of sellers in that subdivision can no longer afford their mortgage. The neighborhood is a "typical Las Vegas subdivision" - stucco homes, ordinary yards, and middle-of-the-road features which attracted hoards of speculator investors. Scary huh?

The days of "Line 'em up & Sign 'em up" are over. Few agents are capable of coping with the current market challenges as evidenced by a dramatic drop in the number of Las Vegas real estate agents. The business has reverted back to how it was in the 80's, with the focus being on service, experience, and knowledge. Mix that old-school service mentality with a tech-savvy twist and a splash of ritz and you have my firm, Luxury Realty Group (hence our trademark, Your Online Doorway to Luxury Real Estate®).

Providing High-End Lifestyles

I'm grateful that during the toughest of times, I've been able to brand myself as "Hollywood's Connection to Vegas", a title given to me by Alan Mruvka, the founder of E! Entertainment Television. My integrity and experience caters to a niche crowd of clientele who seek luxury lifestyles with long-term exclusivity. While most have gone back to their day job, I've been able to make a name for myself by focusing on providing high-end lifestyles, not selling quick-flip investments.

I've decided to extend my business model to beyond the Strip and high-rise. By having experience and knowledge of luxury homes in premium guard-gated communities and high-density housing in cutting-edge urban communities, I can better accommodate your goals. Below are two areas about which I'm passionate.

-The Ridges, located in Summerlin, is an approximately 800 acre, guard-gated luxury residential community located against the mountainside next to Red Rock Canyon. Since it's beginning in 2000, the neighborhood has been recognized as the 3rd most exclusive guard-gated community in the United States by Forbes.com. The Ridges features professional golfer Jack Nicklaus' Bear's Best golf course, and is also known for its fantastic natural topography and stunning views of the Las Vegas Valley and surrounding mountains.

-Summerlin Centre is the new community hub of one of the nation's largest master planned communities. Summerlin Centre features shops, parks, movie theater, high-density housing, restaurants, the Red Rock Casino, and more. The Shoppes at Summerlin Centre is expected to bocome one of the premiere shopping centers in Las Vegas with over 1 million square feet of retail. Walking trails, and a Life Time Fitness are already underway.

Los Angeles, Chicago, and New York?

At some point, I may be able to offer privileged access to some of the finest, upcoming towers in Los Angeles, Chicago, and New York. While ignored by the media, my recent Top-3 price-per-square-foot records for residential properties in Las Vegas caught the attention of out-of-state developers. My broker Bruce Hiatt and I are reviewing the recent opened doors; if we feel we can provide exquisite offerings to you as a client, we will consider the opportunity. We would only consider this in Los Angeles, Chicago, and New York because of their global appeal.

2002 pricing with 2008 interest rates and buyer terms

Nobody can guarantee when the market is going to rebound. It's disappointing to see agents already posting ads for resale properties in Trump and Palms Place saying "You better hurry before it's too late" or "Only a couple units like this have come on the market!" Could it be because not all buyers have closed yet? I'll judge Trump and Palms Place once all original buyers have closed escrow and retained their units for six months. As of 3/26/08, after being open for almost two years, Signature at MGM Grand (another condo-hotel project), has 163 listings on the market.

At Luxury Realty Group, we provide factual evidence (backed up with statistics) to our clients. Example: According to tax records, homes (in the neighborhood outlined at the start of this article) are selling for about 70% of what the sellers paid in 2004-2005. In Signature, many units are priced below what the original buyers paid. As of 3/26/08 there was 94 listings in Turnberry Towers. What does this all mean? In many ways, our market has gone back to 2002 pricing. Even better for buyers -2008 mortgage rates are at historic lows while sellers are more willing to pay for the buyer's closing costs etc. In addition, many new home communities are offering stellar incentives. Has the market overcorrected? Will it continue to decline? Or will this amazing buyer's market keep us afloat?

Press Update

Do you want to be on TV? I'm making an appearance on an entertainment show in Germany, Austria, and Switzerland about the Strip high-rise market and my life as "Hollywood's Connection to Vegas". The filming will take place a few weeks from now. Email me if you're a buyer interested in being on the show. We'll be touring multi-million dollar penthouses and having lunch at a fine restaurant on the Strip.

If you have a chance, check out the latest issue of the Las Vegas Business Press, on shelves now. They recently selected me as one of the ten 2008 "Rising Stars of Business" in Las Vegas. Mayor Oscar Goodman is presenting the recipients with awards on Friday.

Reality Check

Cancellations and delays - the news gets worse everyday - or does it? The Resort Corridor was never meant to become the "Condo Corridor". I don't know about you, but in 30 years, I'd like to see some implosions make way for new growth. You would almost have to use Eminent Domain to implode a high-rise condo tower. With every failure or delay, there is even more focus on projects like Sky Las Vegas and CityCenter. Just keeping it real, the prime-location Resort Corridor is for mega-resorts and casinos, not oodles of condominiums. With that being said, as of today, the Cosmo is possibly the hottest piece of property on the Las Vegas Strip. See blog (below) about its development costs and location.

And Finally

The new VegasCondoScene.com is almost done. Thanks to my friend Mark Adams, Owner/Operator of VegasTodayAndTomorrow.com, we've created a very easy to use, detailed guide to each project. I'm confident everyone will enjoy the new site.

- FOLLOW ALL LINKS BELOW FOR LATEST ARTICLES -

Las Vegas Strip Photo Update
50 brand new photos - Ready to see what the cool one-bedroom unit looks like at Palms Place? How about the lobby of Trump? See the latest images of Cosmo, CityCenter, Fontainebleau, Encore, Echelon, and the (now vertical) Palazzo luxury condo tower.

Will the Cosmo become a W Hotel?!
According to the Wall Street Journal, Related Companies and Starwood Hotel's W Hotel group have partnered to make a bid on the Cosmopolitan Resort. If it happens, this could be one of the most interesting takeovers in recent Strip memory.

Brand New semi-custom in The Ridges
This entertainer's delight, built by Christopher Homes, features a chef's dream kitchen and stacking sliding doors, allowing you open-air access to your courtyard and backyard. This is your chance to to experience true luxury desert living while being surrounded by custom homes upwards of $18 Million! See pictures and features.

Palms Place Opens
Palms Place has opened, adding a hip new building to Vegas' repertoire. See the latest interior pictures, get a description of the project, and access the latest MLS inventory and pricing as of March 26, 2008.

MGM MIRAGE CityCenter Photo Update
Witness The Crystals come alive as it hits the Strip and Veer Towers shoots out of the rooftop like a pair of fine diamonds. Notice how boutique The Harmon really is and watch the evolution of the Automated People Mover (APM). Oh yeah, the Cirque du Soleil theatre, Mandarin Oriental, and Vdara look great!

76 Acres at $8.4 billion - 8.5 acres at $3.9 billion.
With a cost of about $460 million an acre to develop, the Cosmopolitan Resort is roughly four times costlier to develop (per acre) than CityCenter. Does that show you how New York this project really is? It should.

Trump International Opens
The time is here and we have the latest images, building description, and MLS statistics as of March 26, 2008. Regardless of the challenged condotel financing industry, Vegas is excited to add this luxury building to its collection of fine hotels.

Latest News

-On March 1, 2008, CityCenter pricing (excluding penthouses) was raised 3% across the board. This move sends a pretty powerful message.

-On March 19th, The Plaza Hotel received final approval from the County Commissioner, giving ELAD all necessary entitlements to move forward.

-Harrah's Entertainment Chairman Gary Loveman recently stated that luxury boxes at the 20k-seat arena they intend on building with Anschutz could be customized by the hotel or company that buys them. For instance: guests of George Maloof might enjoy a party-type environment while guests of someone like Steve Wynn may experience a luxury environment. Very unique to Vegas and would be a nice touch.

-Recently, Clark County commissioners approved remodeling plans for the Sahara Hotel Casino. Plans include a new hotel tower and destruction of the Sahara's older mid-rise tower.

Aaron Auxier REALTOR®, ABR can be reached at 702-205-1818

Copyright © 2008 Aaron Auxier. All Rights Reserved.

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.