“Money will always flow toward opportunity, and there is an abundance of that in America. Commentators today often talk of “great uncertainty.” But think back, for example, to December 6, 1941, October 18, 1987 and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain.
Don’t let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than when I was born. The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective.
We are not natively smarter than we were when our country was founded nor do we work harder. But look around you and see a world beyond the dreams of any colonial citizen. Now, as in 1776, 1861, 1932 and 1941, America’s best days lie ahead.”
Berkshire Hathaway 2010 Annual Report
Sure, this isn’t the heyday of yesteryear, but we still live in an amazing place with incredible opportunity. I like this quote because it’s a reminder to focus on the good in what we have and all the opportunity that lies ahead. Whether it be your job, relationships, or real estate, focus on what’s possible and make something happen!
Top 8 Sales of 2010
2010 was a year for some great buying opportunities in the market. Here is a recap of the top 9 closed sales for the year by sales price. I will also mention the closed $/square foot. I don’t think that this measurement is a proper way to determine value in the Luxury market. However, it can still be fun to look at.
The highest sales price for 2010 was 23 Golden Sunray Ln. The home is 12,921 sqft in Promontory at The Ridges. It was believed to be headed into foreclosure from the private financing on the home. This may have been the reason for the rapid reduction in the list price from $13,995,000 to $8,895,000 in just 7 months and a final sales price of $7,000,000, closing January 29th. The home was located on the Bear’s Best golf course with a double fairway view and had a pretty amazing pool. At $542/sqft, this is a 35% discount compared to the Falls that sold in 2008 at $825 and wasn’t on the course.
The next highest closing at $6,000,000 was 23 Eagles Landing Ln in Southern Highlands Country Club. The home was 10,582 sqft, brand new and on 1.1 Acres, which is a very large lot when it comes to guard-gated custom homes. It was on the golf course and the landscaping was not complete. The final $562/ft is a strong price for the neighborhood. The home came on the market in February at $6,995,000 and closed July 7th. This is the 3rd highest sales price in the golf club since its inception. The highest sale was Gavin Maloof (of The Palms) purchase of 27 Eagles Landing Ln for $10,000,000 ($741/sqft) in July 2007. The boxer Floyd Mayweather purchased 2 Wood Creek Ct for $9,500,000 ($747/sqft) in May 2009.
8 Crystal Tree Pass in Anthem Country Club is a 15,020 sqft 9 bedroom on a Paseo. The home came on the market October 29th and took just a few days over a month to go into contract. It was listed at $4,999,900 and sold for $4,700,000, only 6% off the list price. The home was highly upgraded and clearly priced to sell. This is the only home in Henderson on the list.
Promontory at The Ridges continues to be the hot spot for Luxury sales. 18 Promontory Ridge Dr
Is a contemporary single story home on the Bear’s Best golf course with a North facing backyard overlooking Red Rock Country Club & the mountains. Originally listed at $6,750,000 in 5/24/08, the home was eventually reduced to $5,499,000 and sold for $4,500,000 to a poker player on January 12th. This was the highest price/sqft of the year at $596/sqft, but remember that single story homes sell for a higher price/ft than a 2-story. Building up is cheaper than out, which requires a larger foundation and roof. Plus I think they still left money on the table. Had the home been priced correctly in 2008, it could have pulled a higher price.
7 Golden Sunray Ln was built by Chris Finlay of Palm Canyon Development. On the golf course in Promontory at The Ridges, this home sold fast. The home is 8,546 sqft and was brand new, never lived in, when it sold for $4,361,500 ($510/sqft) in 28 days, closing December 1st. The homes built by Palm Canyon Development have really been popular in The Ridges. The design criteria for the neighborhood is Desert Contemporary and Palm Canyon designs have all spent minimal time on the market and continue to fetch some of the best prices in the neighborhood.
The hottest home of the year goes to 10209 Summit Canyon Dr. Located in the quiet enclave of Bellacere in Summerlin, this brand new 10,300 sqft Tuscan home sold twice in 2010. That’s right, 2x! It first sold 2/22/10 for $4,000,000, then again 11/22/10 for $4,275,000 at $415/sqft. The first time with financing, the second with cash. The home backed up to the green belt in the neighborhood. I think one of the leading factors behind this home being popular is the style of the home and that it was new. If buyers want brand new in Summerlin, The Ridges is pretty much their only option. So when something brand new comes along with a Tuscan look, that is something that looks more out of Southern Highlands, it becomes a unique opportunity for someone that prefers the style over the Desert Contemporary found at The Ridges.
Spanish Hills is an older neighborhood, but still popular due to its closer proximity to The Las Vegas Strip. Basketball player LeBron James is rumored to have a house there, along with other big names like poker magnet Doyle Brunson. 5100 Spanish Heights Dr was originally purchased in 10/05/06 for $8,500,000 by actor Nicholas Cage. Eventually the actor lost this home to foreclosure and it was picked up fast by an investor on 1/26/10 for $4,200,000. The 14,306 sits on a hillside with great views of the Las Vegas Strip. The investor that was also buying other multi-million dollar estates in Las Vegas over the past few years closed on the deal, remodeled it and now has it back on the market for $7,910,000. This is the oldest home on the list, built in 2003.
27 Skybird Ct is 7,785 sqft of contemporary living located in Redhawk at The Ridges. It sits on the Bear’s Best golf course. Gary Ackerman, Chairman & President of Gaudin Automotive Group originally bought it for $5,400,000 5/1/09, and then listed his home in Anthem Country Club for $10,750,000. His home in Anthem never sold. Eventually he relisted and sold 27 Skybird for $4,100,000 ($527/sqft) on May 1st. This home has tall soaring ceilings, great views with walls of glass and was very well finished. The first time the home sold in `09 took 25 days, the second time was 22 days. This goes to show there is always demand for the truly luxurious and unique properties.
All of these sales were guard-gated and most were brand new. All the sales were cash, except for the first of the two sales at Summit Canyon. Las Vegas is a new city that continues to reinvent itself with its casinos, restaurants, hotels, etc. Most buyers are looking for something new or a home that doesn’t need anywork, regardless of how good the deal is. Orange County’s luxury agent Rob Giem summed this up very well in his blog post titled A Flight To Quality
Some parting thoughts: If you are considering building, consult a couple Realtors about what is desirable. No matter how long you plan to live in the home, many sellers plans have changed abruptly and have had a difficult time selling a home that may have just been too custom or didn’t quite take advantage of the view right. With The Ridges doing the best with price integrity, it may be the “safest” place to build for your money. Thinking about listing your home? Staging, updating, etc. can make all the difference in a timely sale at a good price vs. no sale. There is more to pricing a home than $/ft. Looking at the range of Sales Price/Assessed Value for your neighborhood could be more relevant. Golf course & guard-gated seem to be the most desirable. I appreciate your thoughts and look forward to reading your comments.
The November numbers are in and are available for download as a pdf. Charles Kap & I discuss the numbers on the video clip.
Click here to download the complete report
Jenson Group Stats – October 2009
The temperature is HOT and so are the Las Vegas real estate deals. I’ve said it before, the home prices are better this go around than the first Las Vegas boom. Investment properties are cash positive and everything else seems to be selling at around 50% off from the peak. Inventory is low on homes that meet conforming loan limits, so time is of the essence. Call or email The Jenson Group today to get started and be sure to check out July’s market stats.
Single Family Residences (SFRs) Under $1 Million:
- Number of Listings on Market: 20982 (-0.7%, 156 unit decrease from December)
- Quantity Sold: 1995 (-8.4%,183 unit decrease from December)
- Average Sales Price: $183,290 (-7.3%, $14,358 decrease from December) ( Down 24.6%, or $59,722 from July 1, 2008)
- Number of Foreclosures on Market 1st of Month: 9174 (-0.6%, < 1% change from Dec)
- Number of Foreclosures Closed: 1587 (-3.4%, a 56 unit drop from December)
- Number of Short Sales on Market 1st of Month: 7203 (0.8% decrease from month prior)
- Number of Short Sales Closed: 180 (-26.5%, 65 unit drop from December)
Luxury SFRs Over $1 Million:
- Number of Listings on Market: 807(5.1% decrease from month prior)
- Quantity Sold: 3 (2 unit decrease from month prior)
- Average Sales Price: $2,108,333 (13% increase over month prior)
- Number of Listings over $3 Million on Market: 180 (-3%, 6 fewer units form December)
- Number of Closings over $3 Million: 1 (First closing since October, 2008)
- Number of Foreclosures on Market: 1st of Month 21 (unit decrease from month prior)
- Number of Foreclosures Closed: 1 (1 unit decrease from December)
- Number of Short Sales on Market 1st of Month: 19 (4 unit decrease from month prior)
- Number of Short Sales Closed: 0 (Only 1 MM+ Closing since August, 2008)
Condominiums Over $1 Million:
- Number of Listings on Market: 177 (3% increase over month prior)
- Quantity Sold: 0 (1 unit decline from December)
- Number of Foreclosures on Market 1st of Month:0 (no change over month prior)
- Number of Foreclosures Closed: 0 (no change over month prior)
- Number of Short Sales on Market 1st of Month: 0 (1 unit drop from month prior)
- Number of Short Sales Closed: 0 (no change over month prior)
- Total Number of SFRs Sold: 1998 (-9%, 186 unit drop from December)
- Total Number of Foreclosures Closed: 1588 (-3%, 57 unit drop from December)
- Total Number of Short Sales Closed: 180 (-26.5% 65 unit drop from December)
- SFR Average Sales Price is down 24.6% in the last 6 months.
- January’s 7 ¼ % Sales Price decline is the biggest drop in more than a year.
- Single Family Homes Under 1 Million are at the lowest number of listings since June ’08.
- SFR Sales are at the second lowest point in a year, under 2000 units for January.
- January showed declines in several key stats: number of sales, days on market, # of distress sales, a drop to zero of 1MM+ Condos, continuing slide in average sales price, and an increase in monthly SFR supply to 10.9 months.
- November was the weakest month in the last half of 2008, December showed a strong improvement during a traditionally slow time of year, but January returned to weak sales numbers giving up December gains in almost every category.
- Distress sales to a new all time high of 88% of all sales.
- Inventory of homes peaked in July 2008, and has remained constant between 21,524 and 20,982.
- Lower interest rates and a drop in the average sales price under $184,000 for homes <$1M is attracting more bargain hunting Foreclosure and short sale buyers to the Las Vegas market.
*Data as of February 1st, 2009; Does not include new home builder sales