Las Vegas’ luxury market finished the second half of 2023 in a much stronger position than 2022, and that bodes well for the high-end resale market going into 2024, Realtors say.
December closed with 101 sales of $1 million and higher, including two in excess of $10 million, and recorded its third highest yearly annual sales total in history with 1,379, down 12 percent from the 1,562 in 2022, according to Forrest Barbee, corporate broker for Berkshire Hathaway Home Services.
The 2023 decline came during the first half of 2023 when buyers were adjusting to higher interest rates, concerns about whether the economy would go into recession and the real estate market.
Those concerns dissipated in the back half of 2023 as the economy and stock market remained strong and buyers adjusted to interest rates, which have been falling since mid-October and are under 7 percent and affect luxury buyers at the lower end.
Las Vegas recorded 717 sales of $1 million and higher during the last six months of 2023, a 26 percent increase over the 569 in July through December 2022.
The record is 829 in the last six months of 2021 as people emerged from the COVID-19 pandemic and went on a luxury buying spree. That year finished with 1,686 sales of $1 million and higher.
The highest sale in December was for $13.9 million in cash for a home under construction on Chisel Crest Court in Ascaya.
The custom home being built by luxury builder Blue Heron has five bedrooms and 6½ baths and a six-car garage. It will have a pool. The two-story home measures 8,942 square feet and sits on 0.60 acres.
“The home pays homage to the natural landscape, evoking awe and tranquility,” according to the listing. “Clean lines and structured forms dominate, while softness is found in the stunning curve of the cul-de-sac and back elevation. Enjoy courtyards, flawless indoor-outdoor concepts, and exquisite views that bathe the home in natural light.”
Kylie Ann Lum with UMRO Realty Corp. was the listing agent while Ivan Sher with IS Luxury was the buyer’s agent on behalf of David and Karen Hollister, according to Clark County property records.
Sher said the home will have an incredible Strip view and great finishes. He called it one of the top-of-the-line properties being built in Ascaya.
“When you are buying there at this price point, you are looking for finish level,” Sher said.
The No 2 sale was for $10.5 million to Anthony Toti, the CEO and president of Mesquite Gaming who already lives in MacDonald Highlands. The one-story home in MacDonald Highlands in Henderson measures 7,679 square feet with five bedrooms and seven baths. It has a 12-car detached garage and four-car attached garage that brings the total to 10.433 square feet. The home on Dragon Point Drive was built in 2022 and sits on a 1-acre lot.
Kristen Routh-Silberman with Douglas Elliman of Nevada was the listing agent while Keri Lade of The Agency was the buyer’s agent.
The home has a movie theater, gym, bar with a game area, and an office. The yard has a pool with a sunken fire lounge and swim-up bar stools. There’s an outdoor basketball court. It’s a Richard Luke architect design on a private island at the end of a cul-de-sac.
The No. 3 sale was for $6.6 million for a new home on Chalk Hill in Southern Highlands. The one-story home measures 7,898 square feet with three full baths, one partial bathroom and a four-car garage.
“The custom kitchen features top-of-the-line appliances, beautiful cabinetry and a large center island,” according to the listing. “Host dinner parties in the formal dining room or enjoy casual meals in the breakfast nook with stunning views of the pool. Entertain your guests in the home’s impressive theater room, bar and game room. The primary suite is a true oasis, featuring a spa-like bath, walk-in closet and a private balcony overlooking the pool. The backyard is an entertainer’s paradise, boasting a large pool, spa and built-in barbecue.”
Branden Hamika with Wall Street Realty was the listing agent while Kaori Nagao-Chiti with Las Vegas Sotheby’s International was the buyer’s agent. The buyer is WYKM Trust with Daniel Brusilovsky as the trustee.
No other single-family homes sold for in excess of $5 million in December.
Sher said he’s bullish on 2024 and that it will be better than 2023.
“The real estate market in general didn’t do well in 2023 other than the luxury market,” Sher said. “It was incredible for us. We were lucky and skated through the challenges that many of my friends had to go through at other brokerages in a market that wasn’t strong outside of luxury.”
Sher said during the second half of 2022 when interest rates started climbing, high-end buyers weren’t worried since they aren’t financing their homes. Their concern, however, is that they assumed that may be the start of a real estate crash.
“The first half of 2022 made everyone feel like it was going to be the best year yet and the second half was a challenge,” Sher said. “The people with money said we were not interested and were not buying and this happened from July onward last year. In January 2023, buyers saw it wasn’t a crash and were ready to get back in gear. That’s why the end of 2023 is so much stronger.”
Sher said he had sales in 2023 at $25 million, $20 million, $19 million and many others in excess of $10 million.
“Even in 2021, we didn’t have sales at that level,” Sher said.
The Rob Jensen Co. reported 18 sales of $4 million and greater during the fourth quarter, surpassing the 14 in the final three months of 2022 and one fewer than the 19 in the final three months of 2021.
Routh-Silberman said January is already strong for her with a sale for $8.45 million in MacDonald Highlands.
“I think 2024 is going to outpace 2023,” Routh-Silberman said. “This is where smart money has to make a move.
You have some big developments that are going to sell out in 2024, including (lots at) MacDonald Highlands and The Summit Club in Summerlin. Red Rock Country Club has sold out and Anthem Country has sold out. That’s going to further tighten the inventory.”
Routh-Silberman said luxury listings added in the second half of 2023 helped with sales in addition to the stock market reaching an all-time high that gave a boost of confidence to high net-worth individuals.
“While mortgage rates don’t affect the luxury market as much, it’s an indicator of what’s to come,” Routh-Silberman said. “Interest rates coming down sends great signals to the market. We have to have more people loosen up and sell their house.”