The desire for new luxury homes during the COVID-19 pandemic hit record levels in 2020 and shows no signs of slowing down in 2021 as Mark Davis, owner of Las Vegas Raiders, and a building contractor willing to donate $ 12 million build, have acquired custom land mansion in the southern highlands to specification.
Andrew Smith, president of Home Builders Research, reported that 313 single-family homes valued at $ 1 million or more were closed in 2020, up 26.7 percent from 247 in 2019. Sales of new homes decreased $ 750,000 rose 11.7 percent in 2020.
“It has to do with the California factor of the people who move here and how nice a house they can get for $ 1 million in Las Vegas is,” said Smith.
Existing real estate sales of $ 1 million rose 38 percent in 2020, reducing the supply of inventory in the market. According to realtor Forrest Barbee of Berkshire Hathaway HomeServices, that market remained strong with 87 luxury closings in January while pending sales of over $ 210 million at month end.
There were 44 closings of $ 1 million and more in the Custom Lot division in 2019. This corresponds to an increase of 41 percent to 62 from 1 million US dollars and more in 2020. When comparing all ticket sales, 106 and 2020 155 tickets were closed. Lake Las Vegas, the Summit Club at Summerlin, Ascaya, the Southern Highlands, the Ridges at Summerlin, the MacDonald Highlands, and Seven Hills at Henderson were among the leaders in sales.
This was spearheaded by Davis, who set the record in 2020 for the highest price for the sale of his custom lot at The Summit Club at $ 10.5 million, which he received to mutual fund manager Evan Michael on July 31, according to public records Stone sold. That’s $ 2 million more than Davis bought for the 1.21-acre property in December 2017.
Davis turned around days later and paid $ 6 million for a four-acre property in the hillside community of Ascaya, which is closer to the Raiders’ headquarters. That was the fifth highest ticket sales of 2020.
Luxury builder Blue Heron is building a house for Davis, the details of which are not yet known.
“Blue Heron is honored to be Mark Davis’ chosen architecture, interior design and construction company for its new home,” said Tyler Jones, owner of Blue Heron. “His home design has been completed and we are in the process of laying all the necessary foundations for the start of construction. Mark’s home is a collaboration between Customer Vision and our professional team, resulting in an experimental design that we’d love to bring to life. “
The second largest property sale in 2020 was for $ 9.1 million in MacDonald Highlands in Henderson and sold to Horizon Lights LLC.
The show home on Lake Las Vegas was the most expensive and best-known new home sold in 2020 at $ 6.5 million. It’s on the north coast in the Estates in Reflection Bay. It measures 8,838 square feet with 300 feet of waterfront property.
Lake Las Vegas developer Raintree Investment Corp. said it was the most expensive sale since 2007. The buyer was Joseph Martin of Reno and Forbes Entrepreneur Trust, according to Clark County records. This sale is expected to be slightly exceeded in 2021 due to the strength of the luxury market.
A $ 12 million mansion is under construction in the southern highlands, and it’s a special home that shows confidence in the market. The home, which is expected to be completed in four months, is more than 18,210 square feet on 1.33 acres. It has nine bedrooms and 12 bathrooms. The Mediterranean-style home is being built by a Beverly Hills developer and investor, Attia Group, who built luxury villas in Beverly Hills and Bel Air, according to Bob Barnhart, owner of Luxurious Real Estate, the home’s listing agent.
“There are a lot of California buyers looking at the property right now,” said Barnhart. “There’s a lot of excitement about getting a huge house for the money, especially if you’re from California. It feels like it’s halfway through. “
There is even a local connection to the house. The architect is Quinn Boesenecker from Pinnacle Architectural Studio in Las Vegas. Robbins Construction of Henderson is the contractor.
The house with a garage for six cars has two main floors and a walk-in basement with a poker room, a hair salon, a cinema, an ultra lounge, a day spa, a training room and two guest suites.
The main floor has a second master bedroom, office, living room, family room, formal dining room, kitchen, kitchen kitchen and two other guest suites. The house has a detached guest casita in the front of the house.
The upper floor has three guest suites and a master bedroom, Barnhart said. The house has double stairs and a central fireplace and looks dramatic when stepped through the front door with a large skylight.
The main kitchen opens to the family room, and it has more of a formal entrance to the dining room, Barnhart said. It has a walk-in wine cellar. There are plenty of windows and pocket doors at the back of the house. It opens to the Southern Highlands golf course and two-story pool. It has a walk-in garden.
“What stands out is the size of the house,” said Barnhart. “It’s impressive. Most of the homes are close together with no backyard. This has a porte cochere and motor space in front of the house, basketball court, two-story pool, gazebo, outdoor deck, and large BBQ cabana area. It has the feeling that it is no longer difficult to find in Las Vegas. “
The developer is willing to take a risk based on supply and demand, Barnhart said.
“Fortunately, the demand for luxury real estate is much higher than what is currently available in Las Vegas,” said Barnhart. “The timing between now and this summer, in my opinion, is at the highest level we’ve seen in Las Vegas, to a boom and comeback and people leaving California and coming here (who) have found homes of this stature want.”
Erika Geiser, Vice President for Sales and Marketing at luxury manufacturer Christopher Homes, said the luxury market was still “very hot” at the beginning of 2021. You see a lot of California buyers and there is little inventory for them to choose from given the strong 2020 in terms of luxury sales.
“From the point of view of the new houses, there are only small stocks in which the builders have no stocks,” said Geiser. “It’s all gone, and even in the resale market, houses come on the market and they go quickly if the price is right and looks right.”
Christopher Homes had three sales in December, three in November, three in October, four in September, two in August and five in July. In January, Christopher Homes had nine sales in his Vu collection at MacDonald Highlands – both single family homes and paired homes.
“In a month it was the best we had in years,” said Geiser. “Our average prices are over $ 2 million. We’re the only luxury manufacturing in a new home that is semi-custom with a full view of the Strip. We are also the only contractor who is on a golf course with new homes. If someone wants to live on a golf course, there are no new golf course hometowns in this city. You’ll need to either buy a custom or an old resale home. People realize it’s us when they want a golf course home or a view of the Strip. “
Mark Wiley, director of the luxury division of Keller Williams Southwest and Southern Nevada, agreed that the biggest problem in the luxury market is the lack of inventory. Builders are overwhelmed and sellers and delayed and that has led some buyers to seek out and remodel existing homes.
Wiley said he’s working with nameless developers to kick off a few luxury new home projects in late 2021 and 2022 to keep up with demand in the $ 1 million to $ 2 million category. Southern Highlands and Lake Las Vegas are destinations for single-story homes ranging from 3,000 to 5,000 square feet on larger lots with privacy.
“You identify needs and decide to get into this room,” said Wiley. “It’s not a traditional builder. They have done it on a smaller scale in the past. You see the opportunity. “
People have seen what luxury builder Blue Heron has been doing with their luxurious designs for modern homes in the Southern Highlands and MacDonald Highlands in Henderson and the high demand for their product, Wiley said.
“People bought them for $ 2 million and put them back on the market for $ 3 million in the southern highlands,” Wiley said.
There are many buyer-customers who have been frustrated with the lack of inventory of new homes, Wiley said. Instead, they look to places like Country Club Hills and find a 5,000 square foot home, redesign the layout, and get a new yard with modern finishes. People can set up a home there for around $ 1 million to $ 1.2 million and $ 500,000 to $ 600,000 for remodeling.
“It gives you as close to a modernized home as you get,” said Wiley. “The upside is that you get right in the middle of those communities you wanted to stay in – close to Summerlin and the country club that you’ve been a long time member. This reconstruction must grow. “
Wiley said these buyers want to put a lot of money in their backyards while others focus on the inside. They change the rooms according to their wishes. They take french doors in the back of the house and install vanishing doors. They want to get a modern look by taking old chimneys and putting in linear chimneys and changing colors like brown to shades of gray that people want today.
Buyers want a garden with a pool and fun spaces, including outdoor kitchens and pavilions, as people spend more time at home during the coronavirus pandemic.
California leads Wiley’s pool of buyers, but he has others from other parts of the country. People have developed equity in their homes, and that is what drives the desire for luxury in Las Vegas, he said. COVID-19 should also boost activity in 2021.
“They look at this and say if they cash out and have a high interest rate their affordability is and will be better than ever,” said Wiley. “So they say let’s go and get the house you’ve always dreamed of.”