MGM City Center Expected to Reduce Prices

MGM CityCenter, MGM Mirage’s 8.5 billion dollar showcase property in the heart of the Las Vegas Strip, announced earlier this month that it was likely they would be adjusting the prices downward on the three residential developments in the mixed use project: Veer, Vdara and The Mandarin Oriental. Reductions are being considered in the wake of the world’s economic recession and the local Las Vegas real estate market depreciation of up to 50% on residential properties.

MGM opened sales at the CityCenter in January 2007, when the Las Vegas real estate market was red hot. Original purchasers have been seeking price reductions on the condominiums and condo hotel units they purchased two years ago, during the height of the Las Vegas boom. According to Bob Hamrick, CityCenter’s Sales Manager, “CityCenter remains a unique product that can’t be touched by anything else in Las Vegas. But there are some realities we recognize, and we have to respond.” Any announced price reductions would be offered to original contract holders and to buyers purchasing between now and when the official price reductions are announced in early September of 2009. Rumors are flying that reductions could be anywhere between 20% and 40%.

MGM is also trying to find sources of private financing to help buyers close on their condos. With tighter federal guidelines and banks struggling under a glut of foreclosures, high rise and condo hotel loan programs from Las Vegas mortgage lenders have all but vanished, The few that remain are requiring 50% to 60% down payments and higher interest rates. The Mandarin Hotel is expected to start closing on luxury residential units in December of 2009. Units at Veer, the twin residential towers fronting the CityCenter complex, are expected to begin closing in January of 2010, and condo hotel units at Vdara are expected begin closing if February of 2009.

The next big question is not only how much of a reduction will be offered to MGM CityCenter buyers, but also how the reductions will affect the future of the Cosmopolitan Hotel and Casino next door. The Cosmopolitan, a condo hotel and hotel casino project, was taken over through foreclosure by Deutsche Bank last year, and sales were suspended. There are almost 2,000 current contract holders in the Cosmopolitan that are waiting to hear if the project will move forward with the proposed condo hotel program, or if the contracts will be voided and the units absorbed into the hotel room inventory. Sales in the Cosmopolitan commenced on February 14th in 2005, with over 900 units being reserved the first day in a record breaking frenzy.

Elsewhere on the Las Vegas Strip, real estate investors are snapping up units at fire sale prices in the beleaguered MGM Signature project. Owners of condo hotel units that originally sold from $400k to over $1M have become part of the Las Vegas foreclosures statistics due to high mortgage payments, declining values, and rental incomes below expectations. Current purchasers are taking advantage of prices starting in the mid $100s, or 33 cents on the dollar. Trump Tower is experiencing the same hardship, and there are some real bargains to be had on resale units. The Palms Place luxury condo hotel units, on the other hand, have fared much better due to high occupancy rates in the popular boutique venue. And in general, Las Vegas homes for sale inventories are way down from the same time last year as first time buyers and investors are drawn back into the market by affordable pricing.

Uptick in Siesta Key Homes for Sale Requests

Good news for the real estate industry - Las Vegas and Florida, two of the hardest hit real estate markets, are both reporting that things are looking up again, sooner than expected. Here’s the latest news from another resort style city, Sarasota, Florida.

With some of the finest white sand beaches in the world, Siesta Key beach moved up one spot to the Second Best Beach in the United States on Dr. Beach’s annual 2990 Top 10 Beaches List. Siesta Key was the 3rd best beach in the country according to Dr. Beach. Throughout the years, the beaches of Siesta Key have won numerous awards due to its sparkling white sand which is cool to the touch. Beachcombers love to wander the beaches on this 8 mile barrier island off the coast of Sarasota.

So Far in 2009, Annette Smith, Realtor and John Allen, Broker of Allen Real Estate Services in Sarasota FL report an uptick in sales activity on Siesta Key beach homes and condos. John’s site BuySarasota.com is the premier site for Sarasota area waterfront homes and condos for sale. Siesta Key homes and maintenance-free condominiums ooze with island charm, and residents love their resort lifestyle. Siesta Key sunsets are an extra benefit of island living.

Siesta Key Attractions

Beach: Drum Circle every Sunday until sunset
Shopping in Siesta Key Village
Restaurants: Broken Egg, Turtles, Ophelia’s, Blasé Cafe
Fishing
Boating
Night Life: Beach Club

The Sarasota MLS reports more than 600 properties for sale currently on Siesta Key. Single family homes on Siesta Key range from $215,000 to $15,000,000. Prime locations for Siesta Key homes for sale are the properties closest to the beach and closest to Siesta Key Village. Condo living on Siesta Key is especially popular and currently there are 453 condos, town houses and villas for sale on the Key.

Siesta Key Village

Specialty shops, cafes, and restaurants are abundant in Siesta Key Village where beachgoers have quite an array of surf shops to browse for beach towels, suntan lotions, and most importantly flip flops. Residents and visitors mingle and connect in this small eclectic beach village. Siesta Key is a great spot if you want to live where the sand isn’t hot when it hits your toes!

Additionally, residents of Siesta Key drive a short distance to downtown Sarasota for excellent shopping, restaurants and the cultural venues of this coastal area.

For more information on Siesta Key homes for sale or perhaps a waterfront condo in South West Florida, contact Annette Smith at 941-504-3922 for a prompt reply.

Short Sales Don’t Have to Ruin Your Credit!

Like markets across the country, Las Vegas real estate has been hit hard by declining values and many homeowners are unable to sell their properties without coming out of pocket. Good news has arrived for those who have so far kept their payments current, but have been seriously considering filing for bankruptcy or letting their homes go into foreclosure. Some lenders are now allowing homeowners to go ahead and do a short sale without first falling behind on their payments.

A short sale or pre foreclosure occurs when a homeowner owes more on his property than it is currently worth and the creditor agrees to take less than the amount owed. First the homeowner has to show proof of true hardship which can be due to a variety of reasons: loss of employment or drastic cut in pay, loss of income from investments (stock market declines), illness, divorce, or death in the family. The homeowner has to write a hardship letter explaining in detail why they can no longer afford the payments on the property. They also have to provide tax returns, pay check stubs and current financials to support the hardship letter.

After the seller completes the short sale documentation, the property is put on the market. Once a bona fide buyer makes an offer that is accepted by the seller, the listing agent then submits the offer and the short sale package to the lender for approval. The bank will do their own estimate of value and decide whether to approve or possibly counter the original offer with what they are willing to accept.

Until recently the banks were not willing to look at a short sale package unless the property owner was already behind in their payments. The late payments and the short sale settlement meant the that property owner took a huge hit on their credit scores and were ineligible to buy another home for at least four years.

But with the glut of Las Vegas foreclosures on the market and the increasing costs of maintenance on foreclosure properties, the banks are becoming a bit more lenient toward Las Vegas short sales. Some are now willing to approve a short sale even if the homeowners have kept their payments current. Most of the time the homeowner remains living in the residence and taking care of it until the sale, meaning the properties are in better shape and sell for more than they would later after foreclosure. The credit report reads “negotiated settlement,” and the homeowner may only take a minor hit on their credit score. If their scores were high enough to begin with, they may even be able to buy other lesser priced Las Vegas homes almost immediately, or as soon as they can save up the down payment money.

So if you have been feeling that you need to get out from under a huge mortgage balance, but you hate the idea of damaging your credit, there may be hope! The inventory on Las Vegas homes for sale is down dramatically from what it was a year ago, so it may not be as hard as you think. Contact one of our short sale specialists today and let us help.