Builders grow market share over resales

The annual report released by Las Vegas-based Home Builders Research saw Lennar with 1,669 net sales — sales minus cancellations — in 2022, a decline of 10 percent from 1,855 in 2021. Lennar was No. 2 in 2021 behind KB Home, which fell to third in 2022.

Moving up to the No. 2 spot is D.R. Horton with 1,258 sales in 2020, a 3.5 percent decline from 1,303 in 2021. It was No. 4 in 2021.

KB Home had 1,196 sales in 2022, a 44.6 percent decline from 2,158 sales in 2021. KB caters to entry-level buyers, who were more impacted by the more than doubling of interest rates in 2022.

Pulte Group came in at No. 4 with 1,028 sales in 2022, down 30.4 percent from 1,477 in 2021.

Richmond American was No. 5 with 527 sales, down 50.9 percent in 2021 when it had 1,074 sales.

Touchstone Living was No. 6 with 485 sales, down 25.2 percent from 648 in 2021.

Century Communities was No. 7 with 422 sales, a 53.3 percent decline from the 904 sales in 2021.

Beazer Homes ranked No. 8 with 346 sales, a 32.7 percent decline from the 514 in 2021.

Taylor Morrison ranked No. 9 with 327 sales, a 42.1 percent decline from 565 in 2021.

Tri Pointe Homes was No. 10 with 316 sales, a 55.4 percent decline from 708 sales in 2021.

Closings tell a different story because interest rates didn’t start increasing until later in the spring. Net sales fell 33 percent in 2022 aided by a 58 percent increase in cancellations. Sales before cancellations fell 24 percent. The decline led to a 27 percent drop in permits taken out by builders. There were 14 percent fewer new projects.

There was reduced traffic in subdivisions with a decline of 22 percent in 2022.

Among regions of the valley, the northwest took over the top spot in sales with 27 percent, up from 20 percent in 2021 thanks to Skye Canyon, Skye Hills, Sunstone and northern portions of Summerlin, according to Home Builders Research President Andrew Smith.

North Las Vegas, ranked No. 1 in 2021 with 25 percent, fell to 17 percent in 2022. Henderson held steady going to 22 percent, up from 21 percent. The southwest went from 24 percent to 22 percent.

Of the top 10 selling subdivisions, Dalton from Lennar on the east side of Las Vegas Valley was the only one that consists of single-family products, Smith said. That has been typical for Southern Nevada for some time. Dalton’s average closing price, while still more than $400,000, is well below the overall single-family number because of its location, he said.

The median price for all product types rose 17 percent in 2021. The median price in December was $498,220, a 13.75 percent increase over 2021. The price of single-family homes was $525,000, a 9.5 percent increase while townhomes rose 15.6 percent to $389,589.

Builders closed on 11,854 homes in 2022, only 178 fewer sales, or a 1.6 percent decline, from 2021. There were 8,655 closings of single-family homes, a decline of 245 or 2.5 percent.

There were 2,344 closings of townhomes, a decline of 60, or 2.5 percent.

Builders are growing market share as compared with resale homes, Smith said. The 1,071 closings of new homes in December exceeded 30 percent market share in a market that saw 2,050 resale closings. It’s the second consecutive month to exceed 30 percent and has more than doubled since January when it was under 15 percent.

“The annual mark of 23 percent was something we have not seen since 1992 and was well above the 17 percent seen in 2021,” Smith said. “The ability of builders to offer rate buy downs and other incentives is very likely helping attract buyers in the current market.”

Resale homes came within $40,000 of new homes in May, but that spread has reached $123,000, Smith said.

Lennar closed 1,784 homes, a 1.8 percent decline from 1,816 in 2021. It had a median price of $465,139, a gain of 12.3 percent.

KB Home closed 1,691 homes, a gain of 2.3 percent over 1,653 in 2021. It had a median price of $460,258, a gain of 15.3 percent.

Pulte Group closed 1,514 homes, a gain of 20.9 percent from 1,252 in 2021. It had a median price of $559,287, a 13 percent increase.

D.R. Horton closed 1,365 homes, a 0.2 percent decline from 1,368 in 2021. It had a median price of $457,990, a gain of 17.8 percent.

Richmond American closed 911 homes, a 20.2 percent decline from 1,142 in 2021. It had a median price of $477,386, a gain of 11.2 percent.

Century Communities closed 642 homes, a 27.3 percent decline from 883 in 2021. It had a median price of $486,119, a gain of 28.1 percent.

Touchstone Living closed on 574 homes, a 6.4 percent decline from 613 in 2021. It had a median price of $345,990, a gain of 18.9 percent.

Tri Pointe Homes closed 566 homes, a gain of 8 percent from 524 in 2021. It had a median price of $597,458, a gain of 9.9 percent.

Taylor Morrison closed 534 homes, a 21.6 percent, a gain over 439 in 2021. It had a median price of $546,460, a gain of 19.8 percent.

Toll Brothers closed 462 homes, a 23.2 percent gain over 375 in 2021. It had a median price of $808,294, a 3.9 percent decline, which Smith attributed to closing out on some higher-end homes in Summerlin.

Taylor Morrison closed on the most acres in 2022 at 141. It was followed by KB Home, 108 acres; D.R. Horton, 82 acres; American Homes 4 Rent, 73 acres; Century Communities. 66 acres; Lennar, 60 acres; Pulte Group, 49 acres; Richmond American, 39 acres; Toll Brothers, 31 acres; and Woodside Homes, 23 acres.

Builders acquired more than 800 acres in 2022 with 77 percent of that coming in the first half of 2022, Smith said. Only 3 percent came in the fourth quarter.