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