The LA Times reports on the condo bust in Las Vegas. "In the last several months, at least seven marquee Las Vegas condo projects have either been canceled or put on hold, causing a dust storm of rumors to swirl through the city and elsewhere as investors wonder if this is a harbinger of a slowdown."

"The reasons for the projects' retreats don't bode well for the larger picture: lack of buyer interest and escalating land, construction and labor costs."

"Speculators have played a role in the current high-rise slowdown. Buyers looking to flip units for a profit, rather than make Las Vegas a first or second home, flooded the market in 2004, raising prices. Most are expected to sell the units when the projects open their doors, some as early as this summer, said (developer) Bruce Hiatt. At least 20% to 30% of the units were sold to speculators."

"Then about six months ago, speculator interest shifted to other markets, which created a shortage of buyers for the latest Vegas projects. Rising prices and a glut of condos contributed to the exodus. 'The market needs more first, second and third-home buyers, rather than flippers,' Hiatt said."

"To launch most condo and condo-hotel projects, a percentage of the units typically are pre-sold by developers to help finance the construction. The Curve ran into trouble when the developers couldn't sell their pre-construction target of 75% of the units, said Paula James, Curve's vice president."

"With the sales office now dark and the well-dressed sales force gone, the company has returned deposits to the 97 buyers with a note saying sorry."

"Without question, the change of course of the marquee players has rumors flying that investor exuberance for high-rise luxury projects is on the wane. 'It raises everyone's eyebrows when this happens,' said (consultant) John Restrepo. For now, with apologies to the city's well-known marketing slogan, real estate investors elsewhere are hoping that what happens in Vegas stays in Vegas."