Las Vegas could see highest price ever paid for a home in 2021

ARTICLE FROM: LAS VEGAS REVIEW-JOURNAL

Ultra-luxury sales are boosting the cumulative value of home sales in the Las Vegas Valley, and it won’t be surprising if Las Vegas sets an all-time record in 2021 for the highest price ever paid for a home.

Las Vegas Realtors sold $1.68 billion worth of $1 million-plus homes during 2020, a 60 percent increase over 2019, and 2021 shows no signs of slowing as the leading brokerages vie for the No. 1 spot to topple perennial luxury category champion Berkshire Hathaway HomeServices.

The year is already off to a strong start during the first four months of 2021 with 524 luxury sales of $1 million and higher between January and April, according to the Multiple Listing Service of the Las Vegas Realtors association and tracked by Forrest Barbee, corporate broker with Berkshire Hathaway HomeServices. With the winding down of the COVID-19 pandemic, the year is on pace to blow away the 856 luxury home sales during 2020, according to research firm BrokerMetrics, which tracks Realtor transactions on the MLS.

Barbee said there were 162 sales of $1 million and higher in April alone, the second-highest month in history behind the 170 in March. There are 257 pending luxury sales on the MLS, he said.

The luxury market has been on fire since the economy reopened from the COVID-19 shutdown as people relocate from California and other states and local residents look to upgrade.

The value of the sales is outpacing the volume of sales, as not only prices appreciate but as more buyers than ever look to purchase uber-luxury homes of $4 million and above.

Berkshire Hathaway handled 285 luxury transactions in which it was the buyer’s or seller’s agent totaling $630.3 million. That’s a 20.3 percent market share. It had a 18.5 percent market share in 2019 when it handled 217 transactions totaling $428.3 million.

“There’s not a segment in the market that isn’t hot, including luxury.” said Mark Stark, CEO of Americana Holdings, which includes Berkshire Hathaway HomeServices, Nevada Properties, Arizona Properties and California Properties. “We’re dealing with a true supply and demand issue. We’re low on inventory because in the past downturn in 2007 to 2011 we didn’t build anywhere near the homes we should have. Now, we’re dealing with that challenge. You got household formations growing, and for our business that’s going to grow. Then you have low interest rates and a (strong) stock market. There are a lot of things fueling the success of the marketplace.”

The 2021 rankings of luxury teams in Las Vegas haven’t been unveiled yet, but in its 2020 release, Colorado-based Real Trends placed Realtor Ivan Sher’s group with Berkshire Hathaway as the No. 1 team with $322.8 million in sales. He was 19th in the nation among large teams.

Sher already has the top sale for 2021 at $11.3 million in the Country Club Hills, home of former gaming executive Barry Shier. And Sher has a home under contract in Ascaya in Henderson that is listed for $15.9 million, according to the MLS. Sher holds the all-time record of $17.5 million for a Summerlin home bought by magician David Copperfield in 2016.

When the 2021 rankings are released measuring 2020, it should show $443 million in volume, Sher said. That is his highest ever for his team of 14 agents and should be surpassed by what he is doing so far this year with volume approaching $250 million, he said.

Sher stands out in a highly competitive segment.

“Some people talk about it being a cutthroat business, but I’m not a part of that,” Sher said. “Most of us are friends. If I focus on what somebody else is doing, I’m never going to help my client, myself or my team.”

Sher credits longtime Las Vegas Realtor, mentor and business partner Florence Shapiro, who died of cancer in 2016, for helping set the stage for what he has been able to do, building a great team and support staff. He partnered with Shapiro in 2005.

■ Berkshire Hathway was No. 4 at $2.21 million.

Berkshire Hathaway, which was second in transactions, ranked No.1 in overall sales volume followed by Realty One Group in a Las Vegas marketplace that had $15.3 billion in sales. Berkshire had $2.6 billion in volume and 5,787 transactions for an 8.7 percent market share. It had a 6.9 percent market share with units.