Homebuilders midyear report shows sales increase

Lennar led Las Vegas homebuilders in net sales during the first half of 2024 as seven of the top 10 builders saw double-digit increases compared with 2023.

The first half of 2024 was a strong one for builders despite a slowdown in June as the temperatures rose.

There were 884 sales in June, which was down 31 percent from 1,273 in May, according to Home Builders Research President Andrew Smith.

Compared with previous Junes, there were 1,048 in 2023, 846 in 2022 and 935 in 2021.

It was still a good start to the year with 6,652 net sales, 16 percent higher than 5,589 in 2024 as sales ramp up despite elevated mortgage rates.

1. Lennar’s 1,198 net sales — sales minus cancellations — was 19 percent higher compared with the 1,009 in the first half of 2024. Lennar was June’s top-selling builder again with 148 net sales.Their projects with the most sales were Axel at Sunstone in the northwest with 19 net sales and Dalton on the east side with 16, according to Las Vegas-based Home Builders Research.

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

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

4. 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.

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

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

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

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

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

10. Taylor Morrison was 10th with 258 net sales, some 32 percent higher than the 195 in 2023.

Home Builders Research reported five new product lines opening for sale in June, bringing more than 670 lots into the market.

Lennar opened two more communities in the Cadence master plan in Henderson with Preston Pointe and Brighton, both detached products, Smith said.

D.R. Horton opened two new lines in the Kalea project in North Las Vegas, some 246 attached units and 140 detached, Smith said.

KB Home added another subdivision featuring its line of townhomes in Inspirada in Henderson.

The building permit total of 984 was 16 percent lower than June 2023 while the second quarter total of 3,490 was 5.5 percent higher than second quarter of 2023, Smith said. The six month total of 7,012 is 17 percent higher than 2023 through June.

Smith said land closing activity in June saw builders add more than 100 acres of raw land to their portfolios. KB Home, Tri Pointe Homes and Lennar each added parcels in the newest portion of Summerlin.

Separate from sales, closings reported by Home Builders Research showed there were 1,053 in June, a 1.5 percent increase from June 2023. In the second quarter, the 3,060 closings were 7 percent higher than the second quarter of 2023, The 2024 total of 5,993 closings was 12 percent higher than 2023 through June.

New home market share in overall closings in June was 27 percent, Smith said.

There were 769 single-family detached closings in June, 1 percent fewer than a year ago. In the second quarter, there were 2,291, 7 percent more than in the second quarter of 2023. The 2024 total sits at 4,455, 9 percent higher than 2023 through June.

Attached products closed 284 units, 10 percent higher than in June 2023. In the second quarter, there were 769 attached closings, 7 percent more than in the second quarter of 2023.

The 2024 total of 1,538 is 24 percent higher than 2023 through June. Market share for attached new home products in June was the highest of 2024 at 27 percent, Smith said.

For the year, 25 percent of the net sales were attached products. The median new home closing price for all product types was $497,000 in June 2024, a 6 percent percent increase from June 2023, Smith said.

The median new home closing price for single-family detached products was $536,583, up 7 percent from June. For attached product types, the June new home median closing price was $385,990, 6 percent higher than June 2023, Smith said.

Home Builders Research reported 22 percent of new home closings in June were cash transactions. Of those that were financed, the average loan amount was $444,752.

The largest loan for a new home closing in June was $3.74 million by American Heritage Lending for a home in the SkyVu project by Christopher Homes in MacDonald Highlands in Henderson, Smith said.