Home sales are on the rise across southern Nevada, especially for newly built homes. In fact, construction for new homes or master plan communities have been popping up all over town, and the reason is as simple as supply and demand, mainly because the population is growing.
Abe Dejonge and his wife have lived in Clark County for four years, and now they’re touring model homes in the New Skye Canyon community.
“We live in a home that’s previously been lived in, and we’d like to go into a newer home,” Dejonge said.
However, they’re not the only ones looking to buy new in the market.
“We looked at homes possibly four to five homes that we were interested in, and by the time we called our realtor and asked them the going on’s with them, we were told they were sold already,” Dejonge said.
The Las Vegas housing market is in the midst of its biggest growth since the recession. However, analysts from Home Builder Research aren’t ready to call it a “housing boom.”
“I think the builders are doing a much smarter job of just building to demand,” said Andrew Smith said, VP Home Builders Research. “Fifteen to ten years ago we were spec-building, just putting up houses and assuming people were going to buy them.”
Smith says in 2004, 32,000 new home permits were issued at an all time high.
During post-recession, there were just 3,000 permits issued in 2011, but since then we’ve been steady on the rise. Buyers have noticed that net sales of new homes in early 2017 are up 18 percent from last year.
“It seems like they’re out there more now, you know even in our area, at the other end,” said Dejonge. “They’re just building them, and they’re being sold as quickly as they’re being built. It’s just astonishing.”
So why new construction specifically?
Realtors credit a strong demand and tight inventory with a shortage of available homes on the market to buy as the reason.
Researchers say they expect to continue to see an increase in new housing permits over the next few years. New home prices are also expected to rise another six to eight percent next year.