Rob's Report - January 2023

Rob's Report

SUMMERLIN, LAS VEGAS, & HENDERSON

Boasting over $900,000 in renovations, this designer dream home sets a high standard of living in Silver Ridge—one of fourteen distinct gated neighborhoods within The Ridges, an ultra-chic guard-gated community that houses the city’s elite. Here, you can enjoy an indoor/ outdoor lifestyle like no other—with 12’ ceilings on the main level, a thoughtfully-designed open floor plan, and oversized glass sliders that connect the great room to the courtyard and backyard. Upgrades to this modern smart home include French oak hardwood flooring, closets and pantries by California Closets, Restoration Hardware light fixtures, Control4 home automation with whole-home sound, and more!

Market Trends

Happy New Year! Now that 2023 has officially begun, it’s a great time to look back on 2022 (and beyond) to better understand where the luxury real estate market stands — and where it might be headed.

December 2022 Sales Data

Guard-Gated Properties

In December, sales in the guard-gated communities we represent were down 8.2% month over month and 57.9% year over year— while inventory nearly doubled year over year. Rising supply and decreasing demand are indicative of the market becoming more favorable for buyers.

2018-2022 Annual Sales Data

Guard-Gated Properties

Looking at guard-gated sales charted over the past five years, you’ll see a big uptick in closed sales that began a few months after the initial COVID-19 lockdowns and peaked in April 2021 with 175 sales that month. Since then, guard-gated sales have been trending downward. However, when you look at the yearly totals, market conditions in 2022 were closer to pre-pandemic (or more “normal”) conditions; there were

$1,000,000+ Sales Totals (2018-2022)

Even with the market slowing down in 2022, there were still 1,525 closed sales for homes priced $1,000,000 and above (with or without guard-gates). To put this into perspective, 2019 had just 586 closed sales in the same price range. How did closed sales nearly triple despite economic uncertainty and rising interest rates? These inflated numbers are evidence of how much prices have soared in recent years; $1,000,000+ sales have increased because there are now substantially more homes valued over $1,000,000 in the Las Vegas market. Things are different than they used to be.

Yes, 2022 had a similar sales volume to 2018 and 2019, but that’s mainly because the beginning of the year still had momentum from 2021’s strong market. Things definitely started slowing down in the latter half of last year. There were a total of 94 guard-gated sales in the last two months of 2022—compared to 113 in 2018 and 147 in 2019. This means that the market has less momentum going into 2023.

How Interest Rate Hikes Affected Financed Buyers in 2022

Now let’s look at how the Fed’s fight against inflation affected the amount of buyers that obtained financing in 2022. As rates crept upward throughout the year, sales volume decreased significantly for guard-gated homes priced at $500,000 and higher.

However, despite mortgage rates more than doubling in some cases, the proportion of buyers that obtained financing decreased only slightly—from 53% of transactions in the first half of 2022 to 50% in the second half.

With that in mind, what are the odds of getting a cash offer on your home sale? The higher the price point, the more likely a home is to have a cash buyer— ranging from 40% of the $500,000-$999,999 purchases to 71% of the $4,000,000+ purchases (in the second half of 2022).

No one is sure where the luxury market will go in 2023, but it will likely hinge on whether the Fed’s future rate hikes end up putting us in a recession. No matter what happens, it’s always wise to have a team of real estate experts on your side. If your goal is to buy or sell this year, we’re always here to help!

COMMUNITY ADDRESS

SUMMERLIN

Country Rose

Estates

SF PRICE P/SF

9801 Camden Rose Court 3,573 $765,000 $214

Eagle Hills 9128 Golden Eagle Drive 5,419 $2,700,000 $498

Mesa Ridge 10679 Patina Hills Court 4,543 $2,725,000 $600

Red Rock Country Club 2045 Alcova Ridge Drive 5,037 $2,438,000 $484

3047 Red Springs Drive 3,085 $1,350,000 $438

3174 Dove Run Creek Drive 2,325 $1,260,000 $542

Reverence 3041 Raywood Ash Drive 4,141 $1,475,000 $356

2640 Nevada Agave Lane 3,882 $1,425,000 $367 3000 Dusky Willow Lane 2,123 $1,155,000 $544

3031 Full Lotus Drive 2,695 $900,000 $334 11193 Black Fire Opal Drive 2,441 $875,000 $358

The Ridges 5 Promontory Ridge Drive 10,621 $11,750,000 $1,106 4204 Lapis Ridge Court 4,618 $3,200,000 $693

31 Hunting Horn Drive 4,888 $2,700,000 $552 35 Panorama Crest Avenue 4,380 $2,300,000 $525

Willow Creek 10869 Eden Ridge Avenue 3,951 $1,230,000 $311

COMMUNITY ADDRESS

SF PRICE P/SF LAS VEGAS

One Queensridge Place

Southern Highlands

9101 Alta Drive, #1703 4,879 $4,400,000 $902

9101 Alta Drive, #1003 2,638 $1,260,000 $478

9101 Alta Drive, #1007 2,271 $1,150,000 $506

9101 Alta Drive, #606 2,137 $1,015,000 $475

15 Fire Rock Court 6,202 $3,900,000 $629

30 Pebble Dunes Court 6,902 $3,350,000 $485

11803 Weybrook Park Drive 2,742 $805,000 $294

Spanish Trail 35 Princeville Lane 6,823 $3,865,000 $566

12 Congressional Court 4,439 $1,600,000 $360

8341 Plum Creek Court 2,973 $1,375,000 $462

HENDERSON

Anthem

Country Club

27 Anthem Creek Circle 5,624 $1,600,000 $284

Ascaya 1 Boulderback Drive 4,832 $5,800,000 $1,200

MacDonald Highlands

1493 Foothills Village Drive 9,227 $4,700,000 $509

1491 Reims Drive 6,917 $2,000,000 $289

No closed sales for the month of December in Aventura, Bellacere, Canyon Fairways, Corta Bella, Country Club Hills, Eagle Rock, Mountain Trails, The Palisades, The Summit Club, Tournament Hills, The Vineyards, Canyon Gate, Queensridge, Regency at the Lakes, Spanish Hills, Ten Oaks, Tuscan Cliffs, The Fountains, Hillsboro Heights, Legacy Estates, Roma Hills, Seven Hills - Rapallo, and Seven Hills - Terracina/Venezia