Our September housing statistics in Las Vegas were very similar to what was counted in August. Several of the categories for new and resale home activity were virtually unchanged month to month. However, we counted 636 recorded new home sales in August. It was a one-month increase of 97 closings, or 18 percent. Our 2015 sum is now at 4,212, which is an annual increase of 475 transactions, or 12.7 percent. Not a bad year for new home sales, right? The month-to-month closing activity is displayed on the following graph. The Las Vegas new home segment is improving.
The median price of the August new home closings was $305,047. It is relatively unchanged from July, actually an $881 decrease. However, year-to-year the August median price is a $15,419 increase, or 5.3 percent. There were 24 high rise developer closings included in the August figures, so when we remove them from
the August totals, the median price increases by $1,698 to $306,745 for the remaining recorded sales. The price segmentation of the new home closings in August pretty much followed the trend we have documented during 2015. The next chart displays the market share of the new home recorded sales (closings) by price range. We included two data sets from 2014 and from 2015. It appears the change in price segmentation began in 2015 and has continued during the year. The largest change was in the $400,000 – $499,999 price segment.
There were 696 permits pulled in the metropolitan area of Las Vegas in August, putting the annual total at 5,506. This is an increase of 800 permits, or 17 percent. This seems like another nice year-to-year escalation in home building activity.
The industry has averaged 688 permits per month in 2015 up to this point. It this carries forward for the remainder of the year, we could see 8,250 or so permits. That would be an annual increase of more than 1,600 permits or 24 percent. We don’t think the total will end up that much, because typically demand will soften during the 4th quarter.