July’s luxury home segment saw its slowest month since January 2021, led by $8 million in The Ridges at Summerlin and another $7 million in Askaya in Henderson.
The decline generally reflects what’s happening in the single-family housing market, but there’s debate over how much of the discounting comes from summer vacations or buyers feeling the stock market’s decline, worrying about the economy and deciding to stay put. For the time being.
In July, 105 closings were $1 million or more, down from 155 in July and 167 in July 2021. That’s the fewest closings since 86 in January 2021, said Forrest Barbe, corporate broker at Berkshire Hathaway Home Services.
The luxury market hasn’t dried up, with 157 sales valued at one million dollars or more. That’s just less than June 10, Barbee said.
■ The most expensive home sold in July was $8 million on Promontory Ridge Drive in Summerlin. It has 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 Ernston, broker/owner of Simply Vegas, says the home has been completely remodeled with high-end finishes. It has golf course, mountain and city views enhanced by a rooftop terrace.
The great room has a seamless indoor/outdoor transition to the backyard with a resort-style pool/spa and outdoor kitchen. The main room has two sitting areas and a wraparound porch.
The house has an indoor basketball court, gym and putting green. There is a games room and a movie theater. Javier Mendez, a Realtor with Keller Williams Realty, was the buyer’s agent.
■ The No. 2 sale of the month was a $7 million sale on Rock Stream Drive in the hilltop community of Askaya. The one-story home has 7,062 square feet, five bedrooms and 5½ baths. It sits on 0.58 acres. Evan Scheer with Evan Scheer Group of Berkshire Hathaway HomeService was both the listing agent and buyer’s agent.
According to Sher, the house is on a corner lot with unobstructed views of the valley and mountains from every direction, including the deck from the roof.
The home has five bedrooms, an office with a separate entrance and a media room. There is a beautiful kitchen with waterfall-top quartzite with two wide islands. The master suite has its own fireplace and private balcony accessed through pocket doors. The outdoor area is built for entertaining with seating areas, fireplace, outdoor kitchen, spa and pool.
■ The No. 3 home sold in July was $5.4 million on Cedar Chase Drive at Henderson’s Anthem Country Club. It’s 10,333 square feet with seven bedrooms, eight baths and a 10-car garage.
The two-story home has views of the Strip, city, mountains and golf course. It has a cellar and a theater in the basement. The home has seven fireplaces, a wet bar and an atrium. Backyard features pool, spa, fire pit, waterfall and water features. There is a casita with a separate entrance.
Realtor Matthew Brimhall of MDB Realty was the listing agent. Victor Hecker with Hecker Real Estate and Development was the buyer’s agent.
No other sales exceeded $3.5 million, which represents a shift in the luxury market. Uber’s luxury market has 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 median price of luxury homes sold was $1.68 million, down from $2.19 million in June.
“There is always change in every market, so the decline in luxury sales is not unexpected,” Sher said. That doesn’t mean the market will pull back, but rather a “slight correction” on the luxury side, he said.
“Nothing lasts forever and I feel like we’ve reached values and a place in this city that we didn’t think was possible three years ago,” Scheer said. It’s happening now, not just in Las Vegas, but in luxury markets across the country.
Rising interest rates have affected the low and middle markets, but at the luxury end, the decline in the stock market and cryptocurrency has affected the wealthy, Sher said.
“A lot of buyers in my price range have made the decision to look at the market,” Sher said. “Some people are expecting doom and gloom, and others want to wait a little longer. The reality is like with covid, analysts thought the world was coming to an end, and that’s not what happened.
This will not be the case during the Great Recession of 2007 to 2011, when markets and prices fell sharply, Scheer said.
“It’s completely different,” Sher said. “There is a slowdown that people are seeing. No one wants to spend a lot of money on real estate. Many people are burned by the stock market and are not as liquid as before. The next step is they want to put their money back into real estate, but be careful.
That happened in the last 60 days, and Scheer says the luxury market may be on the tail end. At the end of the third quarter and the beginning of the fourth quarter, Sher said he expects the market to normalize.
“I mean, the frustration is gone, but people still have to buy and sell houses,” Sher said. There are still people who are upset about living in California and paying taxes and not getting the benefits they deserve.
That exodus from California isn’t ending anytime soon, Scheer said. He added that the current slowdown in the luxury segment in Las Vegas is usually due to the heat of the summer.
“I see signs of movement coming back now,” Scheer said. “Over the next couple of months, we’ll see buyers buying and overpriced homes coming down as high-end values remain. I have a lot of buyers ready to put up.”
Christine Root-Silberman, a partner with Corcoran Global Living, explained that the luxury segment is on the decline as it’s summer and people are looking to take their first vacation in two years. People are willing to take their time and are not in a rush to buy.
“The epidemic is over,” says Ruth-Silberman. “The Great Migration is not over and continues to Las Vegas. Everything is good on the Vegas real estate horizon, including luxury.
Ruth-Silberman said that as of mid-August, more than 1,050 homes sold in 2022 were worth more than $1 million. Another 164 are in distress. By 2021, nearly 1,500 homes sold for more than $1 million.
“If everything closes now, we’re sitting on 1,200 homes with five months to go,” Ruth-Silberman said. “I think 2022 is going to be our best year. I think it’s the dog days of summer when Las Vegas hits. I think we’re going to go back to the normal seasonal lows. Fall is coming, and that’s typically our big time, and this year should be no different.”
In the $5 million and over segment, Rutt-Silberman has 35 sales so far in 2022, compared to six under contract. In 2021, there were 14 sales of $5 million or more.
“We’ve already doubled our business,” Ruth-Silberman said. “I think 2022 is going to be a bigger year than 2021 because we can enjoy the summer break this year.”