Las Vegas and Southern Nevada had a record 218 luxury resales in April, led by a $9 million sale, and a high-profile $3 million purchase in Summerlin by Janie Buss, the daughter of the late Los Angeles Lakers owner Jerry Buss.
Despite a declining stock market and rising interest rates, the luxury real estate market remains strong for now. How long that continues as stocks continue to tumble will be answered in the coming months.
Through the first four months of 2022, the Las Vegas area had 659 sales of $1 million and higher, with March and April both setting all-time records. The 197 sales in March broke the record of 172 in March 2021. There were 533 luxury resales in the first four months of 2021, according to Forrest Barbee, corporate broker for Berkshire Hathaway HomeServices, who tracks the luxury market on the Multiple Listing Service.
There were 270 luxury sales pending as of May 1, according to the MLS, Barbee said.
The median price of luxury homes sold in April was $1.4 million. The average price was $1.84 million. Properties were on the market for 35 days, according to Barbee who added he doesn’t see a downturn in the luxury market.
“We’re already hearing with interest rates going up that it’s going to drive prices down,” Barbee said. “It’s not, and the reason is the demand, particularly at the high end, remains stellar. The only time in those markets the prices came down was when interest rates went up and that’s when we were losing jobs. Allegiant Stadium is having a hiring event for 1,800 positions. I don’t think you can disconnect all hirings coming from the people moving in who are buying high-end properties. They are creating jobs.”
Those wealthy individuals concerned about the stock market have been pulling out cash and putting it into high-end real estate that’s going up double digits a year, Barbee said. That’s not happening in the stock market.
“This shows how stable and solid the growth is here,” he said. “All of these people who are waiting for doom and gloom. There’s no dark cloud over our heads, here.”
Evangelina Duke-Petroni, a Realtor with the Ivan Sher Group with Berkshire Hathaway HomeServices, Nevada Properties, who had the No. 2 April sale at $8.29 million in MacDonald Highlands in Henderson, said luxury homes “that are special, unique, and turnkey are selling very quickly.”
Those that aren’t are staying on the market longer than they have been in the past, she added.
“In the luxury market, that buyer isn’t as easily diverted by the interest rates,” Duke-Petroni said. “It’s a market dictated more by the stock market. There are people who are waiting to see what will happen as far as being more cautious. But that doesn’t solve our problem with the lack of inventory.”
However, Duke-Petroni said she doesn’t see anything that reflects any of the gloomy news people see about the stock market and the economy. Luxury buyers are still looking for special properties, and when they find them are willing to pay a premium.
“We are on somewhat of a mountain when it comes to real estate prices,” Duke-Petroni said. “I do not believe that we are in a bubble. In a healthy market, you will always have valleys and peaks, but there’s nothing we’re seeing in our day-to-day world that indicates any sort of bubble or crash.
People who are coming are legitimate buyers seeking Las Vegas for a lot of different reasons and that’s not stopping.
My property (in MacDonald Highlands) is a prime example. It was zero days on the market (by being in the coming soon status 30 days before going live). It had a lot of interest before it went live.”
Shanta Patton, a Realtor with ERA Brokers Consolidated who represented a couple paying $5.3 million for a home in Lake Las Vegas that was originally on the market in 2020 for $7.95 million, said she’s not seeing any slowdown in the luxury market. There was a lot of competition in the purchase of that home, she said.
“What I’m seeing is homes that have been on the market for the last couple of years (like this one) are now starting to get offers,” Patton said. “A lot of luxury properties have adjusted to that. There’s still buyers out there. We looked in the Henderson area, and there were multiple offers on those homes.”
The highest-profile sale in April occurred in Summerlin where Buss, who’s mailing address was listed as Manhattan Beach in Clark County property records, bought a five-bedroom home on Red Arrow Drive in Red Rock Country Club for $3 million. The two-story home built in 2001 measures 5,122 square feet and has golf-course views. There’s a four-car garage.
The home has a beach-entry pool, spa, waterfall and built- in barbecue in the backyard. The home has a theater room with a wet bar. All bedrooms have private baths.
There’s a chef’s kitchen, walk-in pantry, built-in bar in the family room. The courtyard entry has a fireplace.
The seller was Michael Danzi, according to Clark County property records. Barbara Angelo of Signature Real Estate Group represented Danzi. Jessie Keller with Fathom Realty served as the agent for Buss.
Angelo said the luxury market remains solid, although there continues to be a lack of supply. She said it could “slow a little but it’s not going to drop.” It remains a high-end market because while Las Vegas has a lot of stucco homes that look alike, luxury homes are difficult to find.
“I think what could slow it down is fear of the unknown,” Angelo said. “Interest rates are going up a little and there is a lot of talk about inflation, and people are holding back a little bit. They’re not quite as free to do things. They might want to wait a little bit and see what’s going to happen. It seems to have slowed down but not dropped.”
■ The No. 1 sale in April took place in The Ridges in Summerlin for $9 million. Located on Hawk Ridge Drive, the two-story home measures 8,639 square feet with four bedrooms and five full baths, two partial baths, and a four-car garage.
The listing called it the finest home on the market in The Ridges. It had undergone an extensive remodel that included the backyard and swimming pool. It has large bright rooms with pocket doors. The dining room is attached to a courtyard. There’s a wine cellar and bar. The master suite has a separate seating area and private balcony for Strip and mountain views. It has a gym and sauna.
“It’s a beautiful house in The Ridges with fantastic views of the city and nicely elevated above the eighth fairway at Bear’s Best,” said Gavin Ernstone, broker/owner of Simply Vegas and the listing agent. “It’s a stunning home that we sold pretty much on the first day of the market. We had multiple offers and sold it for the full list price.”
Clark County property records show Robert and Kelly Foss were the buyers and represented by Steven Thomas of Real Broker LLC. The sellers were John and Robin Grant.
Ernstone said the luxury market continues to be strong. Inventory remains low but buyers are plentiful.
“The good quality stuff is selling right away,” Ernstone said. “It’s very positive and looks like it will continue to do so the remainder of the year.”
■ The No. 2 sale of the month was in MacDonald Ranch Drive in MacDonald Highlands, selling for $8.29 million.
The one-story home built by Sun West Custom Homes measures 8,495 square feet and has five bedrooms, 5½ baths and four-car garage.
The home received honors from the Southern Nevada Home Builders Association as a 2018 Silver Nugget Awards winner for “Best Custom Home of the Year” and “Best Luxury Single Family Home,” Duke-Petroni said. “The house is spectacular. It’s one of our all-time favorite properties I’ve been able to market. I’ve had it twice. It’s near a golf course and has quality finishes unlike any you see.”
The Parke M Berolzheimer Trust was the buyer. Hikronos LLC was the seller. Emily Sherwood of Corcoran Global Living was the buyer’s agent.
■ The No. 3 sale in April was for $6.45 million on Scenic Rim Drive in MacDonald Highlands. The one-story home with a basement measures 5,986 square feet and has five bedrooms and a six-car garage.
It has a two-story pool with fire features. Michale Zira, a Realtor with Trueu Real Estate was the listing agent. Melinda Zolowicz of Simply Vegas was the buyer’s agent.
One other high-profile sale in April was featured in Real Estate Millions in 2020 and sold for $5.3 million in an all-cash sale.
The three-story, Mediterranean-style mansion at Lake Las Vegas, was a bargain considering it was listed for $7.95 million in 2020.
It measures 10,045 square feet and has four bedrooms, 8½ baths and a five-car garage. The Italian-inspired estate is one of only two homes that has both lake and golf course frontage. The main staircase is handcrafted balustrades and handrails and there are Jerusalem stone floors throughout the home built in 2004.
The main floor has a raised formal dining room with a chandelier of Italian handblown glass. The chef’s kitchen has custom cabinetry, a large island and a breakfast nook.
There are two built-in offices and a casita. The lower level features two en suite bedrooms, wet bar, wine cellar, snooker table, theater room and access to the lagoon pool, guest house and two-slip boat dock.
The third floor is dedicated to the master suite with a gym, steam shower and dry sauna. Each level has an elevator, laundry room and patios for entertaining.
Mitchell Fulfer with Berkshire Hathaway HomeServices Nevada Properties was the listing agent. Patton was the buyer’s agent. The buyers are Darryl and Adriane Brown, according to Clark County property records.
Adriane Brown’s LinkedIn page said she’s a venture capitalist and listed her as managing partner with Flying Fish Partners in Seattle. She is also listed as a board member for KKR & Co., American Airlines, Axo and eBay.
She previously served on boards of Allergan and Raytheon. She is a former executive for Honeywell and Corning Inc. She was also president and chief operating officer for Intellectual Ventures, an invention and investment company that commercializes inventions.