May 16, 2007
Ken Lowman, Broker/Owner of Luxury Homes of Las Vegas , reported one of his strongest sales months on record in March. Lowman sold nearly $10,000,000 in luxury home value in March, with two of those sales going out at or above $2,000,000. “March is generally a good month in the luxury market and leads into our spring selling season which is our peak selling period,” Lowman noted. “I think there has been some pent up demand from last fall and the holiday season. We have noticed a considerable spike in activity this month that should continue. The wealthy luxury home buyer is still seeking out attractive places to live, like Las Vegas ,” Lowman explained.
Lowman’s sales results are bucking the local trend. In the first quarter of 2007 132 homes sold over $1,000,000 according to the Greater Las Vegas Association of Realtors Multiple Listing Service. This is an 18% decrease from the first quarter of 2006. The average price of those sales was $1,112,917 in 2007 versus $1,532,458 in 2006, a notable decline; however, Lowman pointed out that the average size of that home dropped from 4683 square feet to just 4038 square feet this year. The dollar per square foot of these sales only dropped approximately 14%. “I have a solid base of business and use active marketing techniques to capture Buyers which has enabled me to achieve excellent results for my clients. I believe the market is in balance with an adequate supply of both Buyers and Sellers. We are working very hard, but are still selling homes almost everyday.”
The ultra-high end of the market, homes valued over $3,000,000, saw slightly better comparisons. There were 8 homes sold over $3,000,000 in the first quarter of 2007 versus 9 sold in the first quarter of 2006. The average sales price dropped while the median price increased slightly and the average square footage dropped, going from 9114 square feet to 7316 square feet. “The emergence of the high rise luxury penthouse has contributed to this decrease in square footage,” Lowman stated. “The part-time luxury buyer prefers high quality in smaller, more manageable spaces that include high rise condominiums.”
In the month of April, 2007 there were 53 homes sold over $1,000,000 which is up from 51 closings in April, 2006 and represents a 3.9% increase in the number of sales. The average price was up from $1,255,417 to $1,787,750. Lowman attributes this to more homes selling in the ultra-high end of the market. Over the $3,000,000 mark, 8 homes closed in April, 2007 compared to just 1 closing in April, 2006. “I foresee this trend to continue as higher lot and construction prices have led to more homes being constructed and sold over $3,000,000 then ever before in our history. We also have a steady stream of qualified buyers in this price range relocating to Las Vegas .”
“I believe that the luxury home market has stabilized and do not expect further declines,” predicted Lowman. “Today’s land cost and construction cost will put a floor on the luxury home market. For example, we are beginning to see a shorter supply of custom lots and custom homes that offer strip and /or golf views. This decrease in supply will cause prices to firm. I am already seeing success with new projects like Canyon Edge that offer strip views, because the views are getting harder and harder to find and this continues to be a huge Buyer preference.”
Ken Lowman has specialized in the luxury Las Vegas real estate market since 1995. He can be reached at 702-216-HOME or on his website at www.luxuryhomesoflasvegas.com or by email firstname.lastname@example.org