Summer is traditionally considered the buying season in the real estate industry. While we see year-round activity in Las Vegas luxury real estate, there is an increase in buying and selling during the summer, despite the heat.
Why Luxury Las Vegas Real Estate This Summer?
Every real estate transaction is unique in that both buyers and sellers reach the closing table for their own reasons. But, there are a few generalizations observed during peak times.
Families make relocation decisions during the kids’ school break to minimize transition time. This intermission gives all parties involved an opportunity to find the ideal home, pack, move, and settle in before a new school year begins.
People tend to take vacation time from work during the summer. What better way to spend days away from the office than touring luxury homes in Las Vegas?
The weather is dependable in the summer. We know it’s going to be hot here, but we won’t be dodging rainstorms or cold snaps. Abundant sunshine also aids in emphasizing the natural light that streams in through retractable glass walls.
Las Vegas tends to see the greatest benefits and detriments in terms of economic conditions. When people and corporations have money to spend, they come to Las Vegas. In the case of a financial downturn, Las Vegas is left in the desert dust as investors swiftly get out of town.
The current status of luxury Las Vegas real estate is somewhere in between those two extremes. To me, this signals a pause before a rapid increase in activity. History shows that stable home prices and a six-month supply of inventory (which Las Vegas has) are the calm before the storm.
In other parts of the country, the shift from a buyer’s market to a seller’s is becoming more apparent. Tight inventory in metropolitan areas like Dallas, Texas where they only have two months’ worth of listings causes an increase in purchase prices. Dallas-Fort Worth Metro is reporting 100.4% list to purchase price for the first quarter of 2016.
While this is an unwelcoming situation for first-time home buyers, it benefits those sellers in the luxury real estate segment. Prospective buyers will potentially pull the pocketbook out sooner if they fear a price increase.
Appreciating Luxury Real Estate
Another indicator that luxury property in Las Vegas is ready for lift off is the appreciation values in the valley. Homes purchased in 2015 have an average appraisal increase of $23,811 — almost double the national average.
The rental market in Las Vegas is also stable, allowing condo and apartment owners to keep rents at a profitable level. For those owners who purchased passive income-generating property in years past, their return on investment is increasing as property values increase. They can charge the same or increased rents and still see high occupancy rates.
It’s these folks I was referring to earlier, those who could enter the realm of homeownership, but there aren’t a lot of choices in their price range. When entry-level properties do hit the market, investors or individuals with readily available down payment money snatch them up.
The New Summits Club
When Howard Hughes Corp. announced their involvement in Las Vegas’ newest ultra-lux development (The Summit) the reaction was mixed. Some opinions fell into the “Las Vegas can’t support another multi-million dollar neighborhood” category. While the optimists chimed in with “If a super luxurious development is going to succeed, it will be in Las Vegas.”
They pulled in Discovery Land Co. from Scottsdale, Ariz. to assist in achieving the design and execution of the new venture. Discovery Land specializes in resort design and construction, with a focus on activities, convenient layouts, and services provided.
What’s interesting about The Summit’s blueprint is that there is a mix of luxury property types within the neighborhood. Future residents can choose from multi-acre custom estates to condo-style lofts that are adjacent to the clubhouse.
The point of mentioning The Summit in this context is that Howard Hughes Corp. and Discovery Land Co. have been in the real estate development industry a long time. They understand timing and how to mitigate risk. If they are investing in the next level of Las Vegas luxury real estate —that is a good sign.
Find Your Las Vegas Dream Home This Summer
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