Las Vegas Weekly Traffic and Sales Update

For the week ending May 31, 2015 the new homes segment in Clark County jumped back up after a couple of weeks below what we've seen for most of the year.  The net sales per subdivision came in at 1.0 and consumer traffic per subdivision was a very strong 22.2.  Four builders reported at least 20 sales, led by Ryland Homes with 41 which was a 20% market share alone.  To wrap up the month of May, Lennar Homes led all builders with 103 net sales, meaning they have reported over 100 sales in each month of 2015.

The top selling subdivisions for the week were both in the Northwest sub-market but at opposite ends of the pricing spectrum.  Lennar's Tapestry shared the crown with DR Horton's The Orchards with seven net sales. Tapestry's homes start at $185,990 and 1,242 square feet while The Orchards' products top out at 4,400 square feet and $447,990.

This discrepancy between the entry level and high-end availability has been a well publicized topic of discussion both locally and nationally.  In the chart included here, you'll see that nationally in 2013 24% of homes built were under 1,800 square feet.  When we look in our database at the current new home products currently available, we see that just 123 plans or 12.5% are under 1,800 square feet.  Many locals both outside and inside the industry are wondering how this trend (and the current sales activity) can continue when wages are not growing fast enough to keep up.  

This topic was also brought up last week at our Housing Outlook conference.  For those of you that were unable to attend, we have made the presentation from HBR President Dennis Smith available for download on our website.  The packet is filled with useful charts and data as our clients have come to expect.