How Las Vegas luxury home market defied national trend

Luxury home sales in Clark and Washoe counties held steady in 2022, according to a new report commissioned by Nevada State Bank.

Last year in Clark County, 2,130 homes sold for more than $1 million, nearly the same number that sold in 2021 (which was 2,136), according to data compiled by Applied Analysis, on behalf of Nevada State Bank, from Clark and Washoe county government records. About 25 percent of the luxury transactions closed at over $2 million, with the majority priced between $1 and $2 million.

According to the report, the number of sales in Clark County that closed at $5 million or more dropped from a record high of 70 set in 2021, to 47 last year.

James Rensvold, an executive vice president and director of Private Banking for Nevada State Bank, said 2022 was essentially a repeat of the year before when it came to luxury home sales in Clark County, despite the national real estate market dropping off because of rising mortgage rates.

“Sales volume and sales price in both major markets stayed close to 2021 values,” he stated in a news release. “After the record highs of 2021, home sale volumes leveled off in the latter half of 2022 as interest rates climbed, a trend expected to continue into 2023 as national mortgage rates remain above 6 percent.”

The Resort Corridor, which is defined as the Las Vegas Strip and surrounding areas – Las Vegas Boulevard between the 215 Beltway and Sahara Avenue, had the highest average sale price of any area within all of Southern Nevada — an average of $2.1 million per transaction across 73 sales. Summerlin and Henderson were next in line in terms of overall sales as nearly a quarter of the luxury homes sold in Southern Nevada (530) were located within Henderson, with MacDonald Highlands, Lake Las Vegas and Anthem Country Club leading the way.

In Northern Nevada, luxury home sales dropped slightly in 2022 compared to 2021, however, New Southwest and Incline Village saw massive increases last year as sales increased 71.3 percent and 49.3 percent, respectively.

More than half of all the luxury home purchases in Northern Nevada were located near Lake Tahoe, which is just west of Carson City. Once again New Southwest and Incline Village led the way, as the average sale price for a home in Incline Village last year was $2.8 million and $1.7 million in New Southwest.

The report further stated that the “past year has been a roller coaster for the housing market, and luxury homes have proved no exception.” However, it noted that “the trajectory over the remaining half of the year likely hinges on the future interest rate environment.”

According to the Federal Housing Finance Agency House Price Index, home prices in Nevada rose 11.7 percent over the first half of 2022 before dropping “substantially” for a net annual growth of 8.1 percent.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.