New home sales up for year despite summer slowdown

Las Vegas new home sales in 2024 continue to run higher than the previous two years despite the typical summer slowdown.

Las Vegas-based Home Builders Research reported there were 852 net sales in July — the lowest total of the year — but it was 5 percent higher than the 813 net sales in July 2023 and the 434 net sales in July 2022 when they were slowed by rising interest rates.

The strength in the housing market comes as average 30-year mortgage rates have continued their steady decline since April, sitting around 6.5 percent after surpassing 7 percent, according to Home Builders Research President Andrew Smith. For the year, new home net sales at 7,504 are running 17 percent higher than 2023.

Henderson led the way in July with 27 percent market share, up from 26 percent a year ago. The northwest valley had 26 percent, down from 29 percent a year ago. The southwest 23 percent, down from 25 percent a year ago, as Smith suggested the southwest area homebuilders should slow because of land availability. North Las Vegas had 14 percent market share in July, up from 12 percent a year ago.

There were 1,040 closings in July, bringing the yearly total to 7,033, a 13 percent increase over 2023. Closings are a lagging indicator.

Those closings were led by town homes and other attached products that are 25 percent higher than 2023. Single-family home closings are up 9.9 percent, Home Builders Research reported. Attached homes made up 27 percent of the new home closings.

The median price of new attached products in July was $389,197, a 3.9 percent increase over July 2023. The median price of new homes was $534,591, a 5 percent increase.

More homes built in July fell in the $500,000 to $600,000 category at 24 percent, up from 21 percent. Those homes priced between $400,000 and $500,000 comprised 40 percent, down from 42 percent. Those priced between $800,000 and $900,000 went from 1 percent of the market in July 2023 to 3 percent in July 2024, according to Home Builders Research.

Smith said the average new home base asking price in the market has risen by 3 percent since the start of the year. As for the average price per square foot, it was $248 in January and has since risen to $255.13, a 2.7 percent increase.

“Individual builders have varied in their pricing strategies in 2024 with some increasing prices by 10-plus percent, and others lowering them by 5 percent or more,” Smith said.

Builder activity remains solid. There were 1,109 permits taken out in July to bring the annual total nearly 1,000 higher than through July 2023. That’s a 14 percent increase in permits taken out by builders and the market is on pace to obtain more than 13,000 permits, Smith said.

“Relatively high buyer demand continues to accentuate the lack of available inventory for both new and resale homes,” Smith said.

Lennar was July’s top-selling builder once again with 193 net sales. Their projects with the most sales were Centennial Heights in the northwest with 17 net sales, also making it the best-selling project in July. Lennar also had Highpoint at Black Mountain Ranch and Hampton in Henderson with 13 apiece.

D.R. Horton with 144 net sales and KB Home with 104 were second and third during the month.

Home Builders Research reported seven new for-sale product lines opening in July, bringing 708 lots into the market. D.R. Horton debuted two communities in North Las Vegas and another in the southwest.

Lennar opened two more communities in Cadence in East Henderson with Preston Village and Carlton, both detached products.

Harmony Homes has another town home community, Presley Place on Boulder Highway and Sunset Road, and Richmond American Homes is now selling at Stonehaven in the southwest, Smith said.

Citing Clark County data, Smith said 18 percent of new home closings in July were cash transactions. Of those that were financed, the average loan amount was $435,499. Smith said the largest loan for a new home closing in July was $2.6 million for a custom speculative home in Southern Highlands.

In contrast, Clark County data shows 30 percent of resale home closings in July were cash transactions. Of those using financing, the average loan amount was $413,289. The largest loan for a resale home closing in July was $3.803 million by Zions Bank for a home in MacDonald Highlands built in 2007, Smith said.

Builders added 71 acres of undeveloped land to their portfolios in July, Smith said. They were led by D.R. Horton, which added another 23 acres north of the 215 freeway at Revere Street in the Villages at Tule Springs in North Las Vegas. Richmond American Homes closed on 2.5 acres in the northwest, as well as just over seven acres in the southwest, he said.