Real Estate Q&A with Thomas Wright and Randy Char

The luxury real estate market in Las Vegas has surged since the pandemic and brought in new ownership groups seizing the opportunities in Southern Nevada.

Among them is Thomas Wright, who with his business partner, Scott Webber, acquired Synergy Sotheby’s International Realty, which was renamed Las Vegas Sotheby’s International Realty. It’s one of their many Western markets, which also include Utah, Colorado, Lake Tahoe and Reno; and Palm Desert, Riverside, Ventura and Ojai, San Luis Obispo in California; and Boise and Sun Valley in Idaho.

In the midyear 2024 luxury broker rankings, Sotheby’s was eighth with $141 million, 31.1 percent higher than $107.5 million a year ago. It ranked eighth in 2023.

Real Estate Millions interviewed Wright and Randy Char, president and corporate broker of the Las Vegas office.

Q: What was your interest in Las Vegas?

Wright: We acquired Synergy Sotheby’s in October 2020 from Gene and Kyle Northup and subsequently rebranded it. Vegas is an amazing market for a few reasons. It’s the most international market because of the visitors that come from all over the world. Second, it’s a fantastic place for people to live. Besides the Strip and attractions, people love living in Las Vegas. There’s a lot of recreational opportunities and a lot of great people. It’s become a sports city and has a high quality of life. It was very attractive for us to want to be involved in the market.

Q: Was there a concern about taking over the franchise at the start of the pandemic?

Wright: No. We are long-term players. When we see an opportunity we like, we try to structure ourselves to be ready for all opportunities at any time. The timing wasn’t great, but when you are a long-term player and in it to build value and something of substance, it doesn’t matter when you start. You get after it.

Q: What type of transactions do you handle?

Wright: We will help any buyer or seller at any price point because we believe luxury is an experience that you give to a client. The misconception in our industry is that luxury is a price point. Naturally, the brand is geared toward properties in the higher price points, so we tend to see ourselves as a leader in that arena and working to become that in the Las Vegas market. We’re newer entrants, and as we build the services and the brand, they’ve been very receptive to it.

Q: Why did we see so many companies move into Las Vegas to be in the luxury real estate market?

Wright: The residential real estate industry has seen consolidation around some of the bigger brands primarily because it’s a flight to quality. As the industry has cooled, the competition becomes more fierce in the quest to list and sell properties; you’re seeing agents turn to quality brands and brokerages that can provide platforms to help them compete and ultimately their buyers and sellers be successful. We are global and able to leverage the relationship with the auction house to get access to the world’s exclusive clientele to sell luxury properties.

Q: What is it about Las Vegas that has done that?

Wright: Consumers are seeking companies that have reputable brands. Sotheby’s International Real Estate is a leader in luxury real estate and is known as a very reputable and consistent quality brand. That’s why you’re seeing the national brands come into the market because buyers and sellers are demanding it and those companies are responding.

Q: How is the real estate industry going to be affected with all of the new rule changes, especially with commissions?

Wright: It’s becoming very consumer-focused, which is fantastic. We embrace the changes. Anytime the consumers have more choices and more clarity and understand what services are being offered and what they’re paying for, we welcome that. We have always had the practice of getting signed agency agreements ahead of showing properties. We’ve always believed in transparency and disclosure. When the industry moves in that direction, that favors the quality players and experience. They are seeing a flight to quality in uncertain times.

Q: How is Las Vegas different from your other markets where you have offices?

Wright: Las Vegas will always be different. It has incredible restaurants, entertainment and sports, and an unbelievable outdoor lifestyle. You combine that with a competitive tax structure and wonderful neighborhoods, you are going to want people to seek it out and be there. It’s very different and not like anywhere else. It is one of the most international markets that we have. The Las Vegas Strip and associated tourism brings in people from all over the world. It also combines what we see in some of our metro markets and secondary resort markets. It is an interesting market that combines a lot of different elements and attracts a lot of different buyers. The Las Vegas market is one of our favorite places to be. It’s been fantastic for us.

Q: What’s happening with the Las Vegas real estate market as we head into 2025?

Char: The market has been very steady for the last year, and, overall, we have about 6,000 active listings and 1,600 current pending sales that equates to about a three-month supply for the overall market. For the luxury market over $1 million, there’s 912 listings and a seven-month supply.

Q: What is your take on the luxury real estate market in Las Vegas?

Char: We definitely see that it’s been robust and we see that continuing the next year. The under $1 million market is more interest-rate sensitive than the luxury market. We’re seeing a lot of people who want a more favorable tax environment coming from places like Northern and Southern California.

Q: What is the biggest issue facing the luxury market?

Char: Right now it’s the lack of modern inventory. It’s a bifurcated market where we have older and traditional large-scale homes. The issue with some of those homes is that they require a lot of work to bring them current. The sellers are either underestimating the time and effort, or the buyers don’t want to go through it or feel the costs are too exorbitant because construction costs have been rising. The buyers, on the other hand, if the home is modern and well-maintained and upgraded and in a highly desirable master-planned community, those (deals) are going really strong. The greatest challenge is for that type of supply to continue to come on the market.

Q: What impact are interest rates having on the luxury market?

Char: Cash buyers aren’t going to be affected by that at all; and the total market this year there’s 21,614 closings and 6,200 in cash. That’s 28.7 percent for cash. (For homes) over $1 million, there’s 1,450 closings and 646 for 44 percent in cash. Over $5 million, we have 64 closings, and 56 were cash. That’s 87 percent of the buyers paying cash. The current rates have been bouncing around for some time, and people have accepted the new normal. If rates were to drop, we could see a surge in demand across the whole market.

Q: Now, that the election is behind us, how is that affecting the market?

Char: Since the election is behind us, we’ve been seeing a spike in activity in the luxury market, especially. Buyers who were sitting on the sidelines are now re-entering with the uncertainty of the election no longer holding them back. Whatever they thought about the election results, at least it’s gotten behind us and people can make their plans accordingly with confidence.

Q: Why is Las Vegas attracting all of these multimillionaires and billionaires?

Wright: I think it’s a lifestyle. When you provide the amenities those people are looking for, they’re going to migrate to them. Las Vegas in that club is catering to that clientele. We’ve seen some changes in Las Vegas. It has become a very attractive sports market that has attracted more residents and has a favorable tax structure that attracts corporations and the quality of life is high. People are finding it a great place to live and raise families and finding great outdoor activities as well as dining and entertainment.

Char: As a longtime Vegas resident who’s been in the profession for a long time, the quality of life here is exceptional and just getting better. There’s tax benefits and growing demand for luxury living. Communities like The Summit, Ascaya, MacDonald Highlands and Southern Highlands are great communities that are redefining high-end living and offering elevated experiences that are catering to discerning buyers. The pandemic played a role in driving individuals out of California and into Vegas where their money can go further. You’re seeing a surge in some of these custom-home builders and semi-custom builders transforming the architectural landscape and making Vegas a hot spot for luxury homes.

Q: California has been important to the Nevada real estate marketplace and where do you see that heading?

Wright: It doesn’t appear that the tax climate in California is going to improve anytime soon. Compared to where you can be in Nevada it is driving that migration and why I’m very bullish in residential real estate in Las Vegas. COVID has changed the way people view their work-life balance. They realize now they can work in various places, and they are prioritizing the lifestyle and quality of life over location. They will leave a city that’s challenged with crime and homelessness and get into a place that doesn’t have severe traffic and you can spend more time at home or with family or on your bike or hiking. California’s challenges continue to grow, and there’s been out-migration because of it.

Q: What’s on tap for you for 2025?

Char: We’re excited about the performance of our company. I think it speaks to the quality of the agent base that we have, and we’re growing. In October, the top two sales were sold out of Las Vegas Sotheby’s International Realty out of Las Vegas and Henderson. We think the demand will continue to grow. We’re going in a position where our company, brand and agents help all the people coming here. We’re also excited for the city. It continues to evolve with the sports teams and Hollywood 2.0. This is the most exciting market we can possibly be in.