LAS VEGAS, NV – Amid lowering mortgage interest rates, new home sales in Las Vegas have begun to increase yet again, with February showing the most home closings in the region since 2007. As a result of the recent surge in purchases, home builders in Southern Nevada have ramped up their efforts to keep up with the renewed demand, purchasing land and pulling an increased number of permits.
Andrew Smith, President of Las Vegas-based Home Builders Research, reported this week that in February there were 1,110 new home closings, which represents a whopping 42 percent increase year-over-year. That is the most new homes sold in February in Las Vegas since 2007, when that number reached a very impressive 1,427.
The sales numbers for all types of homes for the first two months of 2024, both new and pre-existing, also show a positive upward trajectory. So far this year there have been a total of 1,888 sold, which is an increase of 31 percent year-over-year.
Smith noted that the increase in sales in Las Vegas can be attributed to lowering mortgage rates over the past month after previously peaking at 7.79 percent in October 2023; in January, 30-year fixed mortgage rates were at approximately 6.6 percent, and currently sit at 6.87 percent this week.
Builders have responded to the spike in sales in earnest, taking out 1,023 permits in February, an increase of 42 percent from February 2023. The total for the first two months of this year combined is 2,196 permits, a year-over-year increase of 79 percent.
Among buyers acquiring financing for their home purchases in February, Smith noted that the average loan amount was $419,421, with the largest loan being $1.3 million by Digital Federal Credit Union for a home in the Arches community in Summerlin.
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