How much does a ‘luxury’ home cost in Las Vegas?

The average “luxury” home in the Las Vegas Valley will set you back about $1.58 million, according to a new study from Zillow.

For its study, Zillow defines a luxury home as being the top 5 percent most valuable homes for sale in a region, with $1.58 million being the average of that top-tier real estate in the valley. And luxury home prices have risen locally to the tune of 7.5 percent over the past year.

In fact, prices of luxury homes in the valley are rising faster than mid-tier homes,” said Mark Stayton, senior public relations specialist for Zillow.

“Luxury homes that sold in June went under contract in a median time of 42 days, compared to just 12 days for the typical mid-tier home,” he said. Stayton added that 23.4 percent of luxury listings received a price cut in June, compared to 23.7 percent in the middle tier and there are 0.2 percent more luxury homes on the market now than last year.

The average mid-tier home is $434,569, which is the average of the middle third of home values in the valley.

Stayton said home values for luxury properties are rising faster than middle-tier properties across the country, which has reversed a trend that previously held for years.

The Zillow report further outlined the national trend in which “luxury home value growth, which has consistently lagged behind the market’s middle tier over the past several years, has now outpaced appreciation on typical homes for five consecutive months.”

The typical luxury home nationwide is approximately $1.62 million, according to Zillow. Looking at the 50 largest metros in the country, a luxury home ranges from $750,000 in Buffalo and up to $5.3 million in San Jose.

“Luxury home values across the U.S. are 3.9 percent higher than a year ago,” the Zillow report stated. “That’s faster appreciation than the 3.2 percent annual growth for the typical U.S. home. For every month from January 2019 — the earliest year-over-year change in Zillow’s records — through January 2024, typical home values were outpacing luxury homes on an annual basis. For every month since, luxury home values have been growing faster.”

Zillow economic research scientist Anushna Prakash said luxury homes can be challenging to sell because the pool of buyers is much smaller.

“That’s one reason prices for them usually grow more slowly,” he said. “We’re seeing a different trend play out this year. Luxury home buyers are likely less affected by higher mortgage rates than a typical buyer, especially repeat buyers who saw their home equity soar over recent years. Many will be able to pay with cash and skip a mortgage payment altogether.”

Las Vegas finds itself in the middle of a housing crisis as residential real estate prices for single-family homes are now close to an all-time record, while condos and townhome prices have already broken through previous records.

The amount of cash buyers has also risen and investors continue to snatch up homes across the valley at an increased rate.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.