LAS VEGAS – The Private Bank by Nevada State Bank released the 25th edition of its High Net Worth Report series. The spring 2016 edition examines recent trends in the luxury housing market in Nevada and includes insights by guest columnist Fafie Moore, broker and owner of Realty Executives of Nevada.
Traditionally defined as homes worth $1 million or more, because of recent pricing volatility, the luxury home market for this analysis is defined as resale single-family homes that are 4,500 square feet or larger. Highlights of the report include:
In Clark County, the median single-family home price in the luxury market climbed $79,000 to $900,000 in 2015, a 9.6 percent improvement over 2014 and the highest level since 2007. Despite three consecutive years of gains, the median price in the luxury home market remained 32 percent below the $1.3 million peak of 2007.
Median prices per square foot in Southern Nevada followed a similar pattern. From a high of $254 in 2007, the median price per square foot dropped to a low of $103 in 2012 before the recent multi-year improvement pushed it up to $177. Similar to the median luxury home price, the price per square foot remained about 30 percent below peak levels.
Lower pricing stimulated sales activity throughout the downturn. In 2007, 405 luxury homes were sold. Luxury sales climbed to a peak of 683 in 2013 and have since dipped as prices rose. Yet the 483 luxury homes sold in 2015 represented a 19 percent increase over 2007, indicating continued demand for homes in the high-end market. Currently, about 460 new and resale luxury homes in Southern Nevada are listed for sale at $1 million or more, with a median list price of $1.6 million.
In Northern Nevada, high-end housing prices did not fall as far as and have recovered more quickly than they have in Southern Nevada. The median luxury home price in Washoe County increased by $219,000 last year, a 17.8 percent climb that brought the median price to $1.5 million and within 9 percent of the pre-recession peak.
On a price-per-square-foot basis, Washoe County’s luxury home market has recouped almost all of the value lost during the economic downturn. The median price per square foot reached $308 in 2007 before declining over four consecutive years to $176 in 2011. Since that point, the price has climbed to $293, which represents 95 percent of the 2007 level.
“Few Nevada homeowners were immune from the devastating effects of the Great Recession. After many years of decline, it is encouraging to see the results of the ongoing recovery and rising property values across all markets, including the luxury home segments in both northern and southern Nevada,” The Private Bank Executive Vice President Randy Boesch said. “These pricing rebounds help build equity for high net worth households and generate greater economic opportunity throughout our state.”
The Private Bank publishes the High Net Worth Report quarterly. Briefings will be made available on Nevada State Bank’s website at www.nsbank.com/HNWreport or by contacting The Private Bank directly at 702.855.4596.
About The Private Bank by Nevada State Bank(@NSBPrivateBank)
The Private Bank by Nevada State Bank provides a full range of personalized financial services for high net worth and high-income clients, including deposit and lending services and wealth management planning.
About Nevada State Bank (@nevadastatebank)
Nevada State Bank, a division of ZB, N.A., is a full service bank offering a complete range of consumer, private and business banking services with branches statewide. Founded in 1959, Nevada State Bank serves 20 communities across the state of Nevada. ZB, N.A.’s parent company is Zions Bancorporation, which is included in the S&P 500 and NASDAQ Financial 100 indices (NASDAQ: ZION). For more information on Nevada State Bank, call 702.383.0009 or access www.nsbank.com.