Expert says lower interest rates to fuel new home sales

Northwest Las Vegas, led by the growing development of Sunstone that effectively ranks among the top 20 of master plans in the nation, edged out fast-growing Henderson as the top location for new homes sold in the valley for the first six months of 2024.

Las Vegas-based Home Builders Research reported there were 1,770 net sales — sales minus cancellations — of new homes in the northwest, an area that includes parts of Summerlin up to Charleston Boulevard. That’s a 5 percent increase from 1,684 in the first six months of 2023.

The northwest net sales topped the 1,750 in Henderson, which saw a 33 percent increase from 1,311 during the first six months of 2023. That was aided by Cadence in east Henderson with 705 net sales, up 52 percent from 465 in 2023, according to Home Builders Research.

Sunstone, which has a new home medium price of $510,173, put the northwest valley over the top with 347 net sales, a 141 percent increase over the 144 in the first six months of 2023. Sunstone is a master plan of Lennar, Shea Homes and Woodside Homes that offers attached town homes, single-family homes and an age-qualified neighborhood.

Sunstone’s strong showing would have netted it 19th in the nation in master plan rankings based on the midyear numbers released by RCLCO. Because Sunstone is a new development, it hasn’t been evaluated by RCLCO but could be added to the full-year list that comes out in January.

Cadence with a new home medium price of $451,625 was ranked fourth in the nation, while Summerlin, which has a new home medium price $716,794, was fifth in the RCLCO rankings.

RCLCO had Inspirada in west Henderson with 261 sales, one more than 260 in 2023. That ranked it 38th in the nation.In its new list, Home Builders Research, however, listed Inspirada with 369 sales, a 36 percent increase that would have placed it in 18th place in the nation.

North Las Vegas bounced back in the valley rankings with 931 net sales, up 55 percent from 600 in 2023. North Las Vegas had been the leader in the valley with 2,952 net sales in 2020 but has dropped as communities have filled up.

Home Builders Research reports Villages at Tule Springs in North Las Vegas had 273 net sales in the first six months, some 190 percent higher than the 94 in the first six months of 2023. It ranks fifth in the valley.

Other top communities as ranked by Home Builders Research had Skye Hills in the northwest valley at No. 6 with 270 sales, a 12 percent decline. That was followed by Skye Canyon with 235 sales, a 12 percent increase. Lake Las Vegas was eighth with 182 sales, a 15 percent increase.

In North Las Vegas, Valley Vista had 137 sales, 23.4 percent higher than the 111 in 2023, placing it ninth in the valley. Rounding out the top 10 was Sedona Ranch in North Las Vegas with 94 sales after there were none during the first six months of 2023.

Home Builders Research released a more detailed list of top builders in Las Vegas beyond the top 10 announced in July.

■ Lennar led Las Vegas homebuilders in net sales during the first half of 2024 with 1,198 net sales, some 19 percent higher compared with the 1,009 in the first half of 2024.

■ Lennar was followed by D.R. Horton with recorded 931 net sales, 6 percent higher than the 879 in 2023.

■ The Pulte Group was next with 900 net sales 15 percent higher than the 785 in the first half of 2023.

■ KB Home finished fourth and was the only builder to record a decline by falling 15 percent. They had 728 net sales, down from 856 a year ago.

■ Richmond American was fifth with 578 net sales, up 37 percent higher than the 422 in 2023.

■ Century Communities was sixth with 410 net sales, 122 percent higher than the 185 in the first six months of 2023.

■ Toll Brothers was seventh with 360 net sales, 80 percent higher than the 200 in 2023.

■ Beazer Homes was eighth with 277 net sales, 9 percent higher than the 255 in 2023.

■ Tri Pointe Homes was ninth with 273 net sales, 43 percent higher than the 191 in 2023.

■ Taylor Morrison was tenth with 258 net sales, some 32 percent higher than the 195 in 2023.

■ The expanded list starts with Touchstone Living at No. 11 with 252 net sales, a 3.2 percent increase over 2023.

■ Woodside Homes had 225 net sales, a 108 percent increase.

■ Harmony Homes had 135 net sales, a 45 percent increase.

■ Shea Homes had 95 net sales, a 121 percent increase.

■ Pinnacle Homes had 15 net sales, a 55 percent decrease.

■ Summit Homes had 10 net sales, a 67 percent increase.

■ Paragon Life Builders had four net sales, a 69 percent decrease.

■ Signature Homes had three net sales, an 87 percent decrease.

Home Builders Research also released its forecast that Southern Nevada builders will end 2024 with 13,336 permits, the second most since right before the Great Recession housing downturn. That’s a 13 percent increase over 2023, when there were 11,808 permits. The most recent high was 15,043 in 2021 coming out of the pandemic.

The 6,652 net sales during the first six months of 2024 are 19 percent higher than the 5,859 in 2023. It’s still below the 7,348 in the first six months of 2021. That’s much better than the rest of the nation where home sales fell 1.1 percent in the first half of 2024.

Home Builders Research President Andrew said Las Vegas is likely faring better because more people are moving into the valley compared with the rest of the country.

“Our demand remains so strong with people wanting to move here,” Smith said. “That’s the most logical explanation. Demand is so strong and retail inventory is so low, and new homes continue to do well because of that. Also, the ability (for builders) to buy down the mortgage interests and get people to mid- to high-5s is making a big difference.”

If the Federal Reserve cuts rates in the fall as expected, that will result in lower mortgage rates, Smith said.

“The activity in all areas whether sales, permits and land purchasing has been dependent on what the rates are doing,” Smith said. “If they go down and our demand doesn’t seem to be drying up at all, it will be great for the market on the sales side. The resale side will see improvement there as well.”