Lake Las Vegas is a 3,600 acre Master plan community surrounding a 360 acre man-made lake with 10 miles of shoreline, located within 25 minutes of the Las Vegas strip.
The History of Lake Las Vegas
Actor J. Carlton Adair conceived Lake Las Vegas around 1967 as “Lake Adair.” At the time he purchased the land and water rights. In 1987, Ronald Boeddeker acquired 2,000 acres from the US Government when Adair went bankrupt. The property was acquired by Transcontinental Properties in 1990. That same year, 3 billion US gallons of water were diverted from nearby Lake Mead to fill the lake. The lake was built on top of the Las Vegas Wash, which continues to flow under the lake in two 96 inch diameter pipes. In 1995, Henry luck, the former chairman and chief executive officer of Caesars World, became the co-Chairman of Transcontinental Properties. With Sid Bass and Lee Bass, two billionaires from Fort Worth, Texas, he developed the new community. The project cost US $5 billion.
On July 28, 2008, Lake at Las Vegas Joint Venture, LLC filed for Chapter 11 bankruptcy. Lake Las Vegas emerged from bankruptcy in July 2010 with a plan that took nearly two years to complete. All existing debt was wiped away and the development had $30 million in hand to complete several of the unfinished infrastructure projects.
In 2012, John Paulson purchased 835 acres for $17.3 million from Highland Capital and Credit Suisse. Paulson invested more than $50 million upgrading Lake Las Vegas. The development includes a beautiful village and the South West end of the lake with restaurants and retail. The Westin and Hilton Hotels offer luxury accommodations and fine dining. Real Estate offerings include Waterfront homes and Homesites, twelve active new home communities and many resale homes. Lake activities start at the village and include all non-gas powered fun; paddle boarding, kayaking, electric boats and swimming. There are two golf courses; both Jack Nicklaus signature courses. A new Sports Club located off of Lake Las Vegas Parkway includes pools, fitness classes, Tennis courts, Fitness facilities, Pickle Ball and a Members Lounge.
The Las Vegas Spring market has shifted to Fall in 2020
Historically, the number of residential properties closing is highest April, May, June, July and August as families prepare for a fall school year and second home owners purchase their winter homes. Because of the state mandated shut down in mid-March, we experienced a shift in this trend. March was still a strong closing month, with April, May and June very slow and a rise in July, August and September closings. Based on the number of resale homes currently under contract, October will also be a strong month for closing with 4,047 properties under contract and closing in October and November.
We are expecting the current low inventory to increase as tenant occupied properties are made available to show. With some renters not paying rent and homeowners not legally being able to collect rents, some investors are expected to put their investment properties on the market. As difficult as it is for renters who have lost their jobs and have not been able to pay their rent, it has been very challenging for small investors to continue to make their payments when they are not receiving the rents from the tenants.
Governor Sisolak’s Directive allows open houses effective October 1st with guidelines
Open houses of single family and multifamily properties may not take place with the occupant present. There will be a limited number of people allowed in an open house. Attendees at the open house will be required to sign a COVID-19 release and disclosure before entering the open house. Face masks are required for all guests and agents at the open house. Social distancing guidelines apply.
Las Vegas Valley New home sales nearing 2006 levels.
Through the first four months of the year, new home closings have reached 3,264; a 22% increase over the same period last year. If new home closings continue at this rate, we will have seen nearly 10,000 new homes closed in 2018; less than 2006 but nearing those levels. Building permits pulled in April were 1,047, a 28% increase from April of 2017. This brings the total number of building permits through April of 2018 to 4,059, 33% higher than last year. If this pace continues we will have over 12,000 permits pulled in 2018. This increase in permits pulled will pave the way for strong new home sales in 2018 and 2019.
With the increase in new construction sales, construction worker talent is in high demand. There is currently a shortage of construction workers which has slowed down the build time from four months to build a new home to six months.
The current median new home closing price in April was $374,440. This is an increase of 11 percent over prior year. Many factors are causing this increase including; labor shortage, material costs, land costs, high demand for new construction and supply shortage.
In California, all new homes will be required to install solar panels for whole house solar systems in an effort to save energy beginning January 1, 2020. It will be interesting to see if Nevada follows in the same path.
If you describe Real Estate as Luxury enough times, it starts to lose its meaning. Luxury is entirely overused in the Real Estate market to describe properties that do not meet the general definition of a Luxury Real Estate Property. In fact, the term Luxury has been used to describe Ultra Luxury Real Estate; homes of the world’s wealthiest 1% to a small kitchen re-model.
The Institute for Luxury Home Marketing, which specializes in training real estate professionals in high-end home sales, defines luxury as the top 10% of the Real Estate Market in any metropolitan market. You may be surprised to know that 90% of the resale homes that sell in our market are under $630,000.
In addition, there is no official checklist for labeling a property as luxury. Noteworthy, there are some general features that are common in upscale properties:
- Gated communities or buildings with a high level of security
- Prime Location
- Professional Quality Kitchen Appliances
- High End Interior Finishes
- Customized Closets
- Hotel like facilities if the property is located in a luxury building
In the Las Vegas Market in the preceding six months:
The top 10% of the market that sold was $630,000 or above that price point. There were 593 homes that sold with an average days on market of 89 days.
The top 5% of the market that sold was $925,000 or above. 222 homes sold and were on the market an average of 105 days.
The top 1% of the market that sold was $3,000,000 and over. 25 properties sold with an average days on market of 164 days.
Finally, if you are questioning whether your home would be considered in the top 10% of the market, talk with your Windermere Prestige Properties Agent. To preview our Luxury listings go to: www.finevegashomes.com
There is a thirty-day supply of rentals in the Las Vegas Valley, down dramatically from spring of 2017 where there was a ninety-day supply. Why are rentals in high demand and inventory so low? There are several factors affecting this market; one factor is the low inventory of affordable properties available for sale, making it difficult for buyers to find a home.
Buyers making offers and losing out on properties to higher bidders or cash buyers are getting frustrated and putting buying “on hold.” These frustrated buyers are renting apartments, condo’s, townhomes and single-family homes in lieu of purchasing. They may be back in the market but not until the market dynamics change.
Millennials, the 26 to 34-year olds, for the most part do not want the responsibility of home ownership, and they prefer to spend their money on experiences, not a mortgage payment. Many in this age group are also carrying large amounts of student debt, which is impacting their ability to save a down payment or afford the monthly payment.
Vacancy rates have dropped dramatically over the past few years; from 9.48% in 2015 to 3.1% in 2018. This demand has also pushed up overall rental rates.
This is good news for landlords, apartment owners, and Real Estate Investors.
Windermere Prestige Properties has many Rental Homes available; long term and short term. To find out about these offerings go to: www.finvegashomes.com or www.lakelasvegasvacation.com
The data indicates there is lower inventory than spring of 2016. This lower resale inventory of Single Family homes has impacted the days on market. Properties selling within the first 30 days are at 62.6% of total properties available for sale. In addition, there is an increase in the number of properties selling in the first 30 days by 10% when compared to April of 2016.
Average Days to close from list
Total average days on market is now less than 120 days. Properties that are priced right and in the market under $300,000 are getting multiple offers and in many cases, buyers are bidding above list. Some sellers are asking buyers to pay more than the appraised value if the appraisal comes in less than the agreed upon sales price.
Recommendations to buyers
If you are a buyer, we recommend you act quickly writing and presenting your offers. Include your pre-qualification letter from your bank, or proof of cash to close the transactions if you are paying cash. A letter to the seller telling them how much you like the home could be what you need to convince the seller to sell to you in a competitive market.
Leaning towards a seller’s market in 2017
We are seeing a very positive trend appearing in November, 2016. Inventory, which is the number of resale homes available for sale at this moment in time, is at its’ lowest since October of 2013. This is not just a seasonal low. When we compare the inventory from November of 2016 to the previous Novembers we are 16% under November 2015, and 26% below November of 2014.
This trend coupled with and election being over, positive economic forecasts including job growth in Las Vegas; indicate a potential for increasing prices in 2017. Each percentage of price increase in this market means that still underwater homeowners are closer to potential options. Many of these homeowners have not been able to move. These are the residents who have not walked away from their home or short sold their home but rather have stayed the course realizing they still needed a place to live and decided to wait it out. In 2017 these homeowners will get closer to being able to sell and move up, down or out.
Another positive trend if the increase in luxury sale in the market. November sales over one Million dollars are up 46% from prior month.
Interest rates are creeping up as well but we are still at historically low rates making homeownership possible for many.