Las Vegas custom lot sales drops

The sale of lots for custom homes slowed in 2022 with the economy and higher interest rates, but actor Mark Wahlberg led the way, spending $15.6 million in The Summit Club for 2.5 acres.

Home Builders Research reported there were 171 lot sales in luxury communities in 2022, down sharply from 296 in 2021.

Wahlberg, who last year paid $14.5 million for a Summit Club home as he finishes his custom home undergoing design, paid $10.8 million for 1.56 acres and $4.8 million for 0.94 acres. The bigger lot went for $6.9 million per acre, while the smaller lot went for $5.1 million per acre. Wahlberg’s two-story home measures 7,327-square feet with four bedrooms and four full bathrooms.

The Summit began closing on lots in 2015 and has sold out all its 150 original lots. In 2021, venture capitalist Marc Andreessen paid a record $36.25 million for 4.47 acres to build an estate in The Summit Club.

The second-highest lot sale in 2022 was also in The Summit Club. A buyer paid $10.25 million for 1.27 acres, or $8 million per acre.

There were 10 lots sold in the Summit Club in 2022 with the lowest price at $3.5 million. There were 31 lot sales in 2021.

MacDonald Highlands in Henderson led the way with 80 sales in 2022, with the highest price at $5.5 million. MacDonald Highlands had 91 lot sales in 2021.

Lake Las Vegas had 34 lot sales in 2022 with the two highest lots sold for $1.2 million. It had 61 lot sales in 2021.

Ascaya in Henderson had 26 lot sales with the highest at $2.95 million purchased. There were 52 sales in 2021.

There were nine lot sales in The Ridges in Summerlin in 2022 with the highest going for $6 million. There were 19 sales in 2021.

Southern Highlands had 12 sales with the most expensive at $3.7 million. There were 38 sales in 2021.

Las Vegas-based Home Builders President Andrew Smith said that at the higher end some people believe those buyers aren’t impacted by the economy and higher interest rates. He said he doesn’t agree.

“When you’re talking about that kind of money, a change in interest rates makes a big difference,” Smith said. “I think that’s part of the (decline).”

Dan Coletti, the owner of luxury custom homebuilder Sun West Custom Homes, said he thinks the decline in sales has more to do with lot availability than anything else.

“Some of the inventory has gone down, so there wasn’t a lot to pick from,” Coletti said. “I think that is part of it for sure in The Summit and MacDonald Highlands. Ascaya still has reasonably good inventory, but in the other two communities, many of the premium best lots have been picked over.”

He said doesn’t think this year’s decline in custom lot sales is an indicator of the economy but rather a lack of inventory.

Coletti said The Summit is opening a new section of more than 30 lots and expects them to be snatched up quickly.

“They are creating more inventory, but it’s already being absorbed,” Coletti said.

Coletti said the luxury new-home market remains strong in the uber high end. He said he continues to work on many new projects.

Kristen Routh-Silberman, a luxury Realtor with Douglas Elliman and broker for MacDonald Highlands, said the Henderson hillside development has 29 lots left and expects to sell out by the end of the year.

“MacDonald Highlands is in the last phase of selling lots,” Routh-Silberman said. “(Developer) Rich MacDonald may have an encore performance (with some additional lots). I can’t say more than that.”

Routh-Silberman said there will be other luxury lot options in the valley after MacDonald Highlands sells out.

“Ascaya has lived in MacDonald Highlands’ shadow. They have 330 lots and only 50 houses, so they have a lot for Henderson.”

Tyler Jones, CEO and founder of luxury builder Blue Heron, said that with the onset of the pandemic in 2020 and 2021 there was a rush of people moving around the country looking for bigger and better homes in different neighborhoods and cities.

“That fueled the increase in demand, but at the end of 2022 everything looked a lot different with changes in the economy, interest rates and inflation,” Jones said. “We saw it cool at the end of last year.”

Jones added that because of the strong demand, the supply of lots is decreasing and “a lot of the great stuff got picked over.”

There won’t be many, if any, lot sales in The Ridges in 2023 because there aren’t any, and there are few to be had in the Summit Club, he said.

Jones said the lack of supply will push prices upward on some of the most desirable custom lots. There are a lot of wealthy people continuing to leave Seattle and Southern California and relocate to Las Vegas for taxes and political reasons, he said.

There needs to be some new luxury communities to meet the demand based on the current pace, Jones said.

Southern Highlands and Summerlin have luxury lots coming online as luxury lots are available in Lake Las Vegas and Ascaya.