As of Thursday, February 22, 2018, there are exactly 391 active listings priced at $1 million or higher. But what does that really mean in terms of the market? If the supply is 391, how long would that meet the current demand?
A simple way to break it down is looking at the number of sold homes in the last 365 days (408) and divide that by 12; we then see on average that the market is moving 34 homes per month in the luxury sector. With 391 homes currently listed, that inventory would last just under one year.
This information is helpful for understanding market trends. We know the demand is increasing quicker than the market can supply when the length of the time that inventory can last decreases. Typically, if the inventory falls beneath a year’s worth, there is a steady upward trend in home values. Which we have seen increasingly over the last 2 years.
Let’s take a closer look at the inventory. Of the 391 homes listed for $1 million or more, 80% are behind a gate and have a pool, 76% are less than 20 years old, and 70% are 2 levels or more. Only 25% have some kind of Strip view and 17% include golf course frontage, for that reason both add increased value to a property. The median price of the current inventory is $1,600,000.
The highest priced listing is $12 million higher than anything else on the market, coming in at a modest $30 million price tag. As expected based on city size, 26% of the luxury homes are located in Henderson versus 84% in Las Vegas, however, of that 84%, the vast majority are located in the Summerlin.
The market in one week.
The last 7 days have been fairly active with 18 new listings and 11 new closings. The average list price was $1,898,722 and the average sale price was $1,636,636, this ratio is very common. The average list price is almost always higher than the average sale price. Similar to the overall market, 80% of the new listings have pools and sit behind gates
Interestingly, 4 of the new listings are in the same neighborhood, Spanish Trails, and only 4 were listed in all of Henderson. Additionally, 17 of the 18 homes have four or more bedrooms.
If we look at the 11 sold properties, 6 are in Summerlin, 1 is in the Northwest and 4 are in Henderson. They all had four or more bedrooms and 9 had pools.