August 22, 2022 - 8:59 am
Updated August 22, 2022 - 11:23 am
An $8 million home in The Ridges in Summerlin and another for $7 million in Ascaya in Henderson topped the list of closings in July when the existing luxury home segment saw its slowest month since January 2021.
The decline mirrors what’s happening in the single-family existing home market overall, but there’s debate over how much of that decline is attributed to summer vacations or buyers feeling the effects of the stock market decline, worrying about the economy and deciding to stay on the sidelines for now.
There were 105 closings of $1 million and higher in July, down from 155 in June and 167 in July 2021. That’s the fewest closings since 86 recorded in January 2021, according to Forrest Barbee, corporate broker with Berkshire Hathaway HomeServices.
The luxury market hasn’t dried up because there are 157 sales pending of $1 million and higher. That’s only 10 fewer than June, according to Barbee.
■ The most expensive home sold in July was on Promontory Ridge Drive in The Ridges in Summerlin for $8 million. It measures 12,345 square feet with six bedrooms, 7¼ baths and a four-car garage. It was built in 2005 and sits on 0.54 acres.
Listing agent Gavin Ernstone, broker/owner of Simply Vegas, said the home has undergone a complete remodel with higher-end finishes. It has golf course, mountain and city views that are enhanced by a rooftop terrace.
The great room has a seamless indoor/outdoor transition to the backyard where there’s a resort-style pool/spa and outdoor kitchen. The master suite has two sitting areas and a wraparound balcony.
The home has an indoor basketball court, gym and putting green. There’s a game room and movie theater. Javier Mendez, a Realtor with Keller Williams Realty, was the buyer’s agent.
■ The No. 2 sale of the month was on Rockstream Drive in the hillside community of Ascaya that sold for $7 million. The one-story home measures 7,062 square feet with five bedrooms and 5½ baths. It sits on 0.58 acres. Ivan Sher with the Ivan Sher Group with Berkshire Hathaway HomeService was both the listing agent and buyer’s agent.
Sher said the home is perched on a corner lot with unobstructed views of the Strip, valley and mountains from every angle, including a rooftop deck.
The home has five en suite bedrooms, an office with a separate entry and a media room. There’s a gourmet kitchen with two expansive islands with waterfall-edge quartzite. The master suite has its own fireplace and a private patio accessed by pocketing doors. The exterior is built for entertainment with seating areas, a fire pit, outdoor kitchen, spa and pool.
■ The No. 3 home sold in July was for $5.4 million on Cedar Chase Drive in Anthem Country Club in Henderson. It measures 10,333 square feet with seven bedrooms, eight baths and a 10-car garage.
The two-story home has Strip, city, mountains and golf course views. It has an underground wine cellar and theater. The home has seven fireplaces, a wet bar and an atrium. The backyard has a pool, spa, fire pit, fountain and water features. There’s a casita with a separate entrance.
Matthew Brimhall, a Realtor with MDB Realty, was the listing agent. Victor Hecker with Hecker Real Estate &Development was the buyer’s agent.
No other sales were above $3.5 million, which represents a shift in the luxury marketplace. The uber luxury market felt the impact the most.
The median price of luxury homes in July was $1.3 million, down from $2.47 million in June. The average price of luxury homes sold was $1.68 million, down from $2.19 million in June.
Sher said the decline in luxury sales isn’t unexpected because there’s always a shift in every market. That doesn’t mean the market will go backwards but instead he called it a “slight correction” on the luxury side.
“Nothing goes up forever, and I feel we have reached values and a placing in this city that we didn’t think were possible three years ago,” Sher said. “What’s happening now is not just in Las Vegas but throughout the country in luxury markets.”
Sher said the rising interest rates have impacted the lower and middle markets, but on the luxury end, the decline in the stock market and cryptocurrency have impacted the wealthy.
“A lot of buyers in my price range made the decision that they wanted to watch the market,” Sher said. “Some people are expecting doom and gloom, and others want to wait it out a little bit. The reality is just like with COVID, analysts thought the world was coming to an end, and that’s not what happened.”
This won’t be like what happened in 2007 through 2011 during the Great Recession when there was a steep decline in the market in sales and prices, Sher said.
“It’s completely different from that,” Sher said. “There is a slowdown where people are watching. Nobody wants to be spending the most money on a property. A lot of people got burned in the stock market and aren’t as liquid as they used to be. The next phase is they want to put their money in real estate again, but they will be cautious.”
That’s been happening in the last 60 days, and Sher said the luxury market might be in the tail end of that. By the end of the third quarter and beginning of the fourth quarter, Sher said he expects the market to normalize.
“I mean that the frenzy is gone, but people still need to buy and sell houses,” Sher said. “There are still people upset about living in California and paying taxes and not getting the benefit they should be getting for that.”
That exodus from California won’t end anytime soon, Sher said. He also added that the slowdown that is happening now in Las Vegas in the luxury segment has traditionally occurred in the heat of the summer.
“I am already seeing signs of activity coming back,” Sher said. “In the next couple of months, we will see buyers buying and homes that have been overpriced come down while the high-end values remain. I have a lot of buyers ready to place.”
Kristen Routh-Silberman, a partner with Corcoran Global Living, said she sees the decline in the luxury segment more as one of summer and people wanting to take their first vacation in two years. People are willing to take their time and not rush to buy.
“The pandemic migration is over,” Routh-Silberman said. “The great migration isn’t over and continues into Las Vegas. Everything is great on the Vegas real estate horizon, including luxury.”
Routh-Silberman said that through mid-August, there have been more than 1,050 homes of more than $1 million that have been sold in 2022. Another 164 are in escrow. In 2021, about 1,500 homes were sold for more than $1 million.
“If everything closes right now, we’re sitting at 1,200 homes with five months to go,” Routh-Silberman said. “I think 2022 is going to turn out to be our best year yet. I just think it’s the dog days of summer that have hit Las Vegas. I think we’re going back to our normal seasonal low. The fall is coming, and that’s traditionally our big time, and this year should be no different.”
In the $5 million-and-above segment, Routh-Silberman said there have been 35 sales so far in 2022 compared with six under contract. In 2021, there were 14 sales of $5 million and higher.
“We have already doubled our business,” Routh- Silberman said. “I think 2022 turns out to be a bigger year than 2021 with the fact that we got to enjoy a summer break this year.”