Las Vegas Luxury Home Sales Increase 21% Over Last Year
For the first half of 2018, Las Vegas luxury home sales have seen a 21% increase in resale transactions over the same period last year.
According to data pulled from the Multiple Listing Service, 477 homes were sold for over $500K from January 1st to June 30th of this year, which is 83 more than last year’s count for the same period. Though luxury sales have seen an increase across the board, demand has grown in certain price ranges and declined in others. By looking at the breakdown, one can get an idea of what price ranges are in high demand:
Home sales over $4MM have more than tripled since last year, signaling an increased demand in the ultra luxury market. Only 3 homes sold for over $4MM during the first half of 2017, while 10 homes sold for over $4MM during the first half of 2018.
The $3MM-$4MM range is the only range with a year-over-year decrease — 25% in sales by number of resale transactions, a drop from 12 to 9 homes. One reason for the decrease could be that buyers in the ultra luxury market are taking the opportunity to build custom homes — which are not counted as MLS closed sales — in communities like The Ridges, Summit, and Ascaya. Inventory is low, and buyers willing to spend over $3MM often want very specific features in their home. In these cases, it’s common that buyers prefer to build exactly what they want.
Other price ranges with big sales increases are near the lower end of the luxury spectrum. Home sales in the $750K-$1MM range and the $1.5MM-$2MM have seen increases of 42% and 81%, respectively. Sales in the rest of the price brackets show slight increases or no increase at all (see the table below).
The overall increase in demand for high-end homes comes as no surprise. As Californians continue their exodus from the high taxes and cost of living in the Golden State, relatively low home prices and the lack of state tax in Nevada have become dangling carrots for those seeking financial refuge. Why stay in a smaller, older home when you can have a mansion for the same price?
For the luxury real estate market in Las Vegas, one thing is clear: 2018 is off to an incredibly strong start.
