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LAS VEGAS-For the first time since the condo boom began here in 2003, the number of condos completed, planned and deleted has declined, according to a new report by Applied Analysis, a locally based business research and advisory firm. At the end of the first quarter, the total was 97,800, down from 98,400 at the start of the year.Of the total, 4,200 units are completed, 13,400 are under construction and 9,584 units are in pre-sales. Another 56,300 units are entitled but have yet to begin pre-marketing or sales activity, while 14,300 units have been suspended or cancelled. Of the 23,000 units under construction or in pre-sales, about half are condo-hotels, which is to say they have some sort of rental program.

Applied Analysis principal Brian Gordon says land owners and developers are dealing with conservative reactions by the investment community and potential buyers in response to recent reports that a supply-demand imbalance is inevitable. “The vast majority of units in the (construction) pipeline have been sold and their total is exponentially higher than the present market inventory,” he says. “While it would have been an unreasonable expectation to believe that all of the projects in the development pipeline would enter the market as planned, it would be equally questionable to conclude that resort and residential condominiums are a passing fad.”

One thing slowing pre-sales of new projects are re-sales of recently completed units. As of the end of March, an estimated 754 existing (resale) luxury units were on the market. Those units have an average asking price of $803,900, or $622 per sf. The average price of those that have sold is $764,500, or $537 per sf.

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