Luxury home sales buck overall market

Led by a 85 percent year-over-year increase in the third quarter driven by Pulte and Toll Brothers’ new development in Summerlin, Las Vegas’ new homebuilders are selling 61 percent more homes priced over $1 million with three months to go in the year.

Las Vegas-based Home Builders Research reported there were 230 sales of $1 million and higher between July and September, the most recent period available. That’s up 85 percent over the 124 in the third quarter of 2024.

For the year, there have been 564 sales of $1 million and higher, 61 percent above the 351 in the third quarter of 2024. Rising costs are part of the reason for the increase by pushing homes that would have cost under $1 million in the past couple of years to between $1 million and $1.1 million.

Even KB Home, which is more known for entry-level homes, has found success in that segment by selling nine homes priced just above $1 million but under $1.1 million. It had none a year ago and now has 10 for the year through the first three quarters at its community the Reserves at Alton in Summerlin.

The gains continued to be led by an emerging luxury custom-home community in Summerlin called Ascension, a project of Toll Brothers and Pulte. For the year, the two builders have sold 228 homes in Ascension with 86 coming in the third quarter, 80 in the second quarter and 62 in the first quarter. The two sold 100 in 2024 with 98 of those in the second half of the year as it kicked into gear.

Taking Ascension out of the mix in both years, luxury sales of 336 over 251 a year ago would be up 34 percent.

Ascension is located between the Summit Club and Mesa Ridge. Its sales are priced from $1 million to $3.1 million.

Pulte led the way among builders during the third quarter with 62 sales followed by Toll Brothers with 56. Taylor Morrison was third with 32 followed by Lennar with 27 and Richmond American with nine.

Christopher Homes and Pinnacle had five each. No other builders had more than three.

Christopher Homes had the highest priced new luxury production home tracked by Home Builders Research at $6.9 million at its SkyVu in MacDonald Highlands in Henderson. It also had one priced at $5.5 million. The calculation excludes custom homes built by buyers who own their land ahead of time.

Most of the new luxury production homes were in Summerlin.

Taylor Morrison has 49 luxury sales so far this year, after 28 for all of last year.

Taylor Morrison has its Portofino development in Lake Las Vegas with prices between $1 million and $1.5 million. It opened in December 2023 with 275 lots and sold 137 so far with one of its collections priced above $1 million reaching $1.5 million.

Taylor Morrison also has Ashland in Summerlin where it has sold 35 homes since opening in December 2024. The build out is 92 lots. It starts at $1.1 million and goes to $1.5 million.

Taylor Morrison Division President Kent Lay said the increase comes down to supply and demand.

“We’ve deliberately gone after more of that market share because the demographics are good,” Lay said. “Buyers over $1 million aren’t as sensitive to the interest rates. A lot of them are cash buyers or can come in with higher down payments so their mortgages aren’t as high as they would be for somebody else. There’s demand for higher-end products from buyers trying to move up.”

Taylor Morrison is opening Esplanade at Red Rock in the second or third quarter of 2026 with two product lines above $1 million. Models will start in the first quarter. There will be 389 lots in the development.

“It is a resort-style community with a clubhouse with a restaurant and bar in it,” Lay said.

Lay said Taylor Morrison continues to search for other sites for luxury development.

“With prices the way they are going, I think you’re going to see more and more of $1 million-plus housing because of the price of land,” Lay said. “In most parts of the valley, the land for new homes is $1 million or more (per acre).”

Lay said developments like Ascension are doing so well because many people don’t want to go through the process of building a custom home. He said he’s not surprised by KB Homes entering the luxury market.

“You can only do so many products under $1 million and compete with yourself and everybody else,” Lay said. “You have to diversify and expand your net a little bit.”

KB Home Division President Jim McDade said Summerlin is one of the most-sought-after master plans, and the Reserves at Alton had some homes that just surpassed $1 million. Most KB Homes there have closed between $700,000 and $800,000 and above. There are 66 lots in Alton Reserves with about 15 expected to be $1 million and above. It has sold 50 and delivered 43 since opening in November 2024.

“One of the things you will see in general in Summerlin as Howard Hughes has released more home sites as you work your way north and west and up the mountain, you get the opportunity for some nicer views,” McDade said.

The $1 million two-story homes measured 3,063 square feet, McDade said. He wasn’t aware of any production homes at that price point in the past in Las Vegas.

McDade said these homes are for those second or third move-up buyers.

“None of the homes started at $1 million,” McDade said. “The base price started about $700,000, and we allow people to personalize their home with the design studio options and with lot premiums on a site that was elevated and had some nicer views that pushed it to $1 million price points.”

McDade said that the price point isn’t KB’s “bread and butter” and that the builder instead is focused on attainable homes. But even people in Summerlin “want to get the bang for their buck,” he added.