May
17
2017

Las Vegas Luxury Home Sales Increase by 90%

WHERE IS THE LUXURY HOUSING MARKET NOW?

The higher end home market has come a long way from where it was in 2006 and 2007 at the height of the real estate market. The Las Vegas real estate market like many others across the nation is still recovering. Buyers are in much better shape than many sellers that have little to no equity left in their home.

So far this year according to the MLS there have been 488 closings of homes above $500,000. Just about 43% have been cash deals, 52% conventional financing, and only 1% FHA financing. VA & Private financing represent less than one percent of financing in the luxury home market and a greater percent of the financing is represented by owner carried financing which is currently at just below 2%.

Compared to 2009, where the luxury housing market had 259 closings, this year market sales are already up by almost 90%.

This could be attributed to the low costs attracting a new market of buyers. Many families are now able to afford large custom homes that had been out of financial reach in the past. Even in some of the most desirable areas of town such as Summerlin, The Ridges, and Southern Highlands large custom homes are being sold in the low $200 per square foot.

WHAT’S THE CURRENT LUXURY HOME INVENTORY?

The current inventory of luxury properties is currently at 1264, roughly enough to last for 21 months at this year’s current economic pace. The median asking price for luxury homes in southern Nevada is $699,945 and properties are on average currently selling at 8% below asking.

WHAT’S THE BEST SELLING AREA FOR LUXURY HOMES?

If you’re a homeowner than you already know location is the single one most important feature of real estate. If the amount of luxury home sales defined what the wealthiest part of town is, than Summerlin Las Vegas would lead the pack by a long shot. Summerlin is a master planned community located on the west part of town typically bordering on the south by Tenaya and extending west of the 215 freeway. It is home to some of the best shopping, views, and recreation Las Vegas has to offer including Red Rock Canyon, a fantastic desert getaway for people that like outdoors activities such as hiking and rock climbing.

Summerlin properties account for approximately 48% of this year’s luxury homes sales.

Green Valley residents on the opposite side of town might beg to differ however. Green Valley and the Anthem Hills areas came in number two with approximately 29% of luxury property sales.

Residents in Green Valley would describe it as being a different world and an escape from the everyday Strip action. Green Valley is home to the popular shopping area known as The District and hosts its own ultra lounges, shopping, and fine dining. It is anchored by the local Green Valley Ranch Resort.

WHAT ABOUT THE LUXURY LAS VEGAS HOMES THAT HAVE SOLD THIS YEAR?

The median sales price of luxury homes is $652,500 and on average sits on the market for 135 days. The median price per square foot is $176 for sold properties in 2010.

WHERE IS THE FUTURE OF THE LUXURY HOME MARKET?

Researchers who follow RealtyTraq, a leader is leader in tracking state foreclosure rates says that Nevada is still leading the nation in foreclosures, followed by Illinois, Florida, and then Arizona. If current trends continue the Las Vegas luxury real estate market will continue to thrive as once out of reach properties become available to more and more people.

September 6, 2010

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