Las Vegas Housing Market Continues to Set Records
Vegas Housing Market Boasts Record Sales
During the COVID-19 pandemic, the Las Vegas housing market continues to explode as people continue to flock to the area, setting the highest pace for home sales in the area in 14 years, according to the National Association of Realtors( NAR ). According to Nevada Census data, it is projected there will be a 1.51% increase in population between 2020 and 2025, as well as a 1.46% increase in median income in that same timeframe. California transplants are making up a significant portion of Vegas movers with 50,000 Californians moving to the area between 2017 and 2018.
According to Nevada Census data, it is believed that the more affordable housing available in Las Vegas and space is a big draw for those fleeing states with ever-increasing housing prices and congested areas; the median price for single-family units in the state is $330,000. The surge for Las Vegas real estate in 2020 is seen as far back as April with a 10.6% increase in home values in Southern Highlands. Las Vegas, as a whole, has seen a 25.6% increase in home sales compared to this time a year ago.
One sector of the housing market that has been doing particularly well is the luxury home market. The housing market in the area continues to rise as new residents arrive daily and bringing millions of dollars in equity from the sale of their homes in more expensive housing markets. Las Vegas luxury homes are setting some records for values of properties sold, just recently a $5.35 million home in MacDonald Highlands in Henderson, one of the more expensive in the area; the record for most expensive sold in the Las Vegas luxury real estate market was a 14,464 sq. ft. mansion in The Ridges that sold for $14.5 million just a few weeks ago. The previous sales records in 2020 were the sales of another MacDonald Highlands mansion for $11.25 million by gaming icon Diana Bennett and $10.15 million for an elevated mansion in The Ridges in Summerlin.
Summerlin and Henderson has seen significant surges in luxury real estate sales, particularly Red Rock Country Club of Summerlin and MacDonald Highlands, Seven Hills, and The Fountains of Henderson. Vegas luxury housing market has also seen gains since 2019; there were 596 luxury home sales in all of 2019 in Vegas and that record was shattered by early November in 2020. Sales like these are starting to solidify Vegas as a legitimate spot on the map for high net worth individuals. Who is buying all the mansions? In addition to locals, out-of-state buyers are fueling the Vegas luxury home market; many new buyers of Las Vegas high-end homes are coming from California, Chicago, New York, and Florida. The nice weather, different lifestyle, and no state income tax are big draws for many people. Out-of-state buyers used to represent approximately 25% of luxury home sales but now represent around 70% of buyers, according to recent data. Despite the pandemic affecting the country as a whole in 2020 and is forecasted in 2021, wealthy homebuyers have continued to keep the Vegas luxury real estate market ablaze by utilizing phone calls, FaceTime, and text messages to navigate home tours and submitting offers.
According to the Las Vegas Realtors Association, there has also been a spike in Vegas luxury home sales connected to the Las Vegas Raiders, as was seen with the Vegas Golden Knights when they launched. The move of the Raiders from Oakland to Las Vegas, and their practice facility in Henderson, resulted in the sales of at least 32 homes worth $1 million or more in Southern Highlands, Anthem Country Club, Red Rock Country Club, and Seven Hills. “The Raider Effect” as it is known is not only limited to those directly employed by the franchise but also the attraction of team fans and the team’s creation of jobs in the area. With most of those 32 luxury home sales occurring in Summerlin, the area remains the epicenter of the luxury home sale increase in the area; Red Rock Country Club has also seen an increase in 2020 with 10 sales happening in the first quarter compared to the seven of the first quarter in 2019.
As the housing market in Vegas climbs and climbs, even amid the pandemic, the time to make the move on a home in the area is now. As demand for housing in the city climbs and available inventory becomes a premium, home values surge and will continue to do so. Berkshire Hathaway HomeServices is one of the Las Vegas Real Estate teams handling increased sales and is eager to assist homebuyers to find their new home in Vegas.
For more information on the current Las Vegas market or Las Vegas neighborhoods, contact James Meadows, Berkshire Hathaway Homeservices LasVegasRealEstate.org (702.882.8240).
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