The Private Bank by Nevada State Bank released the latest edition of its High Net Worth Report series today. The report examines the latest trends in the luxury housing market in Nevada. This issue features guest columnist Ivan Sher of The Ivan Sher Group, who shares his expert insights on the underlying trends that are driving growth in the luxury market.
Highlights from the report include:
2018 proved to be the best year for luxury home sales in a decade, as 734 homes in Southern Nevada sold for at least $1 million, a 24.4 percent increase over the 590 such properties sold in the region during the prior year.
Nearly 250 luxury homes sold in Southern Nevada in 2018 were new construction, an increase of 80.4 percent from the 138 million-dollar new home sales in 2017, marking a significant acceleration in new luxury home sales. The growth in new home sales, specifically, suggests confidence in the future of the market both on the part of homebuilders and homebuyers.
In Northern Nevada, a total of 303 existing homes sold for at least $1 million in 2018, a 79.3 percent increase over the 2017 total of 169. While total sales increased sharply last year, the average price declined 12.1 percent, from nearly $2.1 million per home to slightly over $1.8 million.
Homeowners from California represent a significant portion of luxury home buyers entering the Southern Nevada market. Homeowners from the Golden State can translate home equity into a similarly sized yet much lower priced home in the Silver State. California homeowners also face limits on tax deductions for state and local income and property taxes due to the federal Tax Cuts and Jobs Act of 2017, providing additional incentive to relocate to the low-tax environment in Nevada.
“Nevada’s solid and stable economic environment is driving many positive trends in our state, and the high-end housing market is no different,” said James Rensvold, executive vice president/director of private banking. “The recent trends in luxury home sales and pricing trends are a reflection of the many advantages provided by our economy for Nevadans throughout the state.”
The Private Bank High Net Worth Report is available on Nevada State Bank’s website at https://bit.ly/2YhJAGe or by contacting The Private Bank directly at 702.855.4596.
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