Taylor Morrison division president Kent Lay recently discussed the trends in the new home market in an interview with RJ New Homes. Lay mentioned that concerns over the election and rising mortgage rates had caused a slowdown in sales in the second half of 2024, but he is optimistic about the market picking back up in 2025.
Despite the recent challenges, Las Vegas area home sales have been robust in 2024 and are on track to have the best year since 2021. Lay shared his insights as Taylor Morrison opened its newest community, Lark Hill in Summerlin. This townhome community offers homes priced between $460,000 and $517,000, with 105 homes planned and models already completed.
Lay pointed out that new home sales in the market had slowed in the second half of 2024, following a strong start earlier in the year. He attributed this decline to uncertainty among buyers, driven by two main factors. Firstly, there was confusion about interest rates, with mortgage rates increasing to over 6.5 percent after declining below 6 percent in September. Secondly, concerns surrounding the election also contributed to buyer uncertainty.
However, Lay expressed confidence that as the election uncertainty subsides, buyers who had been waiting on the sidelines would start purchasing homes again. He acknowledged that the holiday season might lead to a temporary slowdown in sales but anticipated a pickup in January. Lay emphasized that Taylor Morrison was well-positioned to meet the demand for housing in the coming year.
In addition to discussing the current market conditions, Lay highlighted Taylor Morrison’s plans for future developments. The company has five new communities planned for 2025, including Skyline Ridge in the northeast and Ashland in Summerlin. These communities will offer a range of housing options, from single-story homes to larger properties exceeding $1 million.
Looking ahead to January 2026, Taylor Morrison is set to open Esplanade at Summerlin, a community with nearly 400 homes featuring resort-style amenities and services. These homes are expected to start in the $700,000s or $800,000s, with some exceeding $1 million. The community center will include a bar, restaurant, café, golf simulator, spa treatments, and more, catering to residents’ diverse needs and interests.
Overall, Lay’s insights shed light on the current challenges and future prospects in the new home market. Despite recent slowdowns, Taylor Morrison remains optimistic about the housing market’s potential for growth and innovation in the coming years.