New home sales in Las Vegas are soaring and so are the prices. In August, the valley experienced the highest number of new home sales so far this year with 763 recorded sales. So far this year, 5,027 new homes have sold. That’s an increase of 60% year to date over last year.
Closings aren’t the only thing going up, so are prices. The median price in August was $266,389. That’s a year to year jump of 31%. Most of that price increase was in the first half of the year and while prices are expected to continue to escalate, the pace is predicted to slow.
The absorption rate of new homes is going up due to the cost of raw land. Many land deals do not pencil out and so it creates a lack of replacement lots. So when subdivisions sell out, as many have, new build communities are not always replaced. As a result, subdivision in competing areas that are not sold out are experiencing an increase in sales.
Builders pulled 673 new home permits in August. That brings the 2013 total to 5,067 which is a 26% year to year increase, putting Las Vegas on pace for 7,500 – 8,000 permits this year.