Las Vegas new home sales in 2021 have shown resilience, with numbers exceeding those of the previous two years despite experiencing a typical summer slowdown. According to data from Las Vegas-based Home Builders Research, there were 852 net sales in July, marking the lowest total of the year. However, this figure was 5 percent higher than the 813 net sales in July 2020 and significantly higher than the 434 net sales in July 2019, which were affected by rising interest rates at the time.
The housing market’s strength can be attributed to the continued decline in average 30-year mortgage rates since April, currently sitting around 6.5 percent after peaking at over 7 percent earlier in the year. Home Builders Research President Andrew Smith noted that new home net sales for the year stand at 7,504, representing a 17 percent increase compared to 2020.
In terms of market share, Henderson led the way in July with 27 percent, up from 26 percent the previous year. The northwest valley accounted for 26 percent, down from 29 percent in 2020, while the southwest held 23 percent, a decrease from 25 percent. Smith highlighted concerns about land availability in the southwest area and suggested that homebuilders in that region should consider slowing down their pace of development. North Las Vegas saw its market share increase to 14 percent in July, up from 12 percent in 2020.
July saw 1,040 closings, bringing the yearly total to 7,033, a 13 percent increase over the previous year. Townhomes and other attached products led the way in closings, showing a 25 percent increase compared to 2020. Single-family home closings also saw a healthy rise of 9.9 percent, with attached homes making up 27 percent of the new home closings.
The median price of new attached products in July was $389,197, reflecting a 3.9 percent increase from the same period in 2020. Meanwhile, the median price of new homes reached $534,591, marking a 5 percent increase. More homes in the $500,000 to $600,000 price range were built in July, accounting for 24 percent of the market, up from 21 percent in 2020. Homes priced between $400,000 and $500,000 made up 40 percent, a slight decrease from 42 percent the previous year. Additionally, homes priced between $800,000 and $900,000 saw a notable increase from 1 percent in July 2020 to 3 percent in July 2021.
Smith emphasized that the average new home base asking price in the market has risen by 3 percent since the beginning of the year. Moreover, the average price per square foot increased from $248 in January to $255.13 in July, reflecting a 2.7 percent rise. He noted that individual builders have employed varying pricing strategies in 2021, with some increasing prices by more than 10 percent while others have lowered them by 5 percent or more.
Builder activity remains robust, with 1,109 permits issued in July, bringing the annual total nearly 1,000 permits higher than at the same point in 2020. This marks a 14 percent increase in permits taken out by builders, putting the market on track to obtain over 13,000 permits by the end of the year. Smith attributed the high demand to the lack of available inventory for both new and resale homes.
Lennar maintained its position as the top-selling builder in July, with 193 net sales. The company’s projects with the highest sales included Centennial Heights in the northwest, which recorded 17 net sales and emerged as the best-selling project of the month. Lennar also saw success with Highpoint at Black Mountain Ranch and Hampton in Henderson, each garnering 13 net sales.
In second and third place for July were D.R. Horton with 144 net sales and KB Home with 104. Home Builders Research reported the opening of seven new for-sale product lines in July, introducing 708 lots to the market. D.R. Horton launched two communities in North Las Vegas and another in the southwest, while Lennar opened two new communities in Cadence in East Henderson with Preston Village and Carlton, both offering detached products.
Harmony Homes unveiled another townhome community, Presley Place on Boulder Highway and Sunset Road, and Richmond American Homes began selling at Stonehaven in the southwest. Clark County data revealed that 18 percent of new home closings in July were cash transactions, with financed transactions averaging a loan amount of $435,499. The largest loan for a new home closing in July amounted to $2.6 million for a custom speculative home in Southern Highlands.
In contrast, cash transactions accounted for 30 percent of resale home closings in July, with financed transactions averaging a loan amount of $413,289. The largest loan for a resale home closing in July stood at $3.803 million, facilitated by Zions Bank for a home in MacDonald Highlands built in 2007. Builders acquired 71 acres of undeveloped land in July, with D.R. Horton leading the way by adding 23 acres north of the 215 freeway at Revere Street in the Villages at Tule Springs in North Las Vegas. Richmond American Homes also acquired 2.5 acres in the northwest and just over seven acres in the southwest.
Overall, the Las Vegas housing market in 2021 has shown remarkable resilience and growth, defying the odds of a typical summer slowdown. With increasing demand, fluctuating pricing strategies, and active builder activity, the future looks promising for both buyers and sellers in the region.
