The real estate market for luxury condominiums appeared to have no ceiling for further growth.

Condo sales and home sales around Las Vegas have been hit hard by the credit crunch and inventory glut.  Units that cater to first time buyers have been hit particularly bad by the slump.

The luxury condo market is now starting to show weakness in the face of heavy development and tightening requirements for potential buyers.

Many developments attracted investors who only had to put a 10% deposit down on the property, with the intention to flip it in a couple of years.  However, as the increase in real estate values is below what was expected just two years ago, and fewer buyers qualify for new condos, many investors are simply walking away and taking the loss.

However, sales to overseas buyers could continue to remain strong due to a weak US dollar and the value of Las Vegas as one of the premier destinations for entertainment and gambling in the world.

The market for Las Vegas Luxury Condos could see continuing strength in the most high profile developments.  The most luxurious units could also maintain their value.

However, mid-level units that cater to investors and buyers looking for a second home face a rocky road ahead.

Technorati Tags: Luxury Condos Las Vegas, Market Outlook Las Vegas, Las Vegas Preconstruction Condominiums