While you have probably heard a wide range of methods that industry professionals use to foresee a market downturn, the most accurate predictor of market behavior that I have seen in my nearly two decades of selling homes is months’ supply.
Real Estate Insights
Since the COVID restrictions began in 2020, the construction industry has seen an increase in inquiries for everything outdoors from entertainment areas to swimming pools. The influx in demand and the disruption in the supply chain has caused products and services to increase in price as well as projects to be delayed.
I am often asked why a home in Summerlin may cost a little more than a similar home outside of a master-planned community (MPC)? The simple answer lies in the old adage: You get what you pay for.
I have the very fortunate opportunity to personally coach the top 25 sales professionals of my firm, monthly. While the intent is to impart helpful guidance to support them in their business, the real beneficiary is me, as I have the advantage of obtaining a very accurate snapshot of our market through these amazing conversations.
In my 20 years in the residential construction industry with major homebuilders across the nation, I’ve never seen a year quite like 2021. I anticipate 2022 will look much like last year, as we will continue to see supply chain issues, skyrocketing land prices due to the artificial lack of supply, and increased processing timeframes as jurisdictions struggle to recruit and hire qualified staff.
Searching for homes in Las Vegas has become a sport. It’s as competitive as the NFL or a UFC title fight at the MGM Grand between two opponents that hate each other. Getting an offer accepted is like making it to the playoffs. Actually, closing the deal is like winning the championship!
We’ve never lived through a year like 2021. In case you don’t remember, we said that at the end of 2020. I expect the Las Vegas luxury market will get hotter in 2022 and remain hot for at least another several years.