Four Southern Nevada communities are in the top 20 nationally for homebuilder sales this year, but overall home hunters are pulling back from last year’s buying frenzy due to rising mortgage rates.
Builders recorded 592 home sales this year through June in Summerlin, the fourth highest among planned communities in the United States, according to a report released Monday by real estate consulting firm RCLCO.
Summerlin’s total sales, however, were down 38% from the same period last year.
Builders sold 459 homes in the nation’s seventh-largest community of Henderson’s Cadence; 388 in the Inspirada community of Henderson, 12th plus; and 333 at Skye Canyon in the North West Upper Valley, ranked 18th, the RCLCO reported.
Sales at Cadence were up 4% year over year, but were down 16% at Inspirada and 11% at Skye Canyon, according to the report.
Las Vegas Valley communities are consistently among the nation’s top-selling locations for homebuilders, and this year is no different. Summerlin, for example, spans 22,500 acres along the western edge of the valley, has a population of over 100,000, and has long been a major source of new home sales.
But as the report shows, home sales are plummeting in Southern Nevada and around the United States amid a sharp rise in mortgage rates that has made it more expensive to buy a home after a year of falling. huge price gains.
Collectively, homebuilder sales this year in the 50 best-selling planned communities across the country are down 18% from the same time last year, the RCLCO found.
Builder confidence has also “dipped” this month as high inflation and rising interest rates “stuck the housing market by significantly slowing sales and buyer traffic,” the Commission said on Monday. National Association of Home Builders.
“Affordability is the biggest challenge facing the housing market,” Robert Dietz, chief economist for the builders’ association, said in a press release.
Rising mortgage rates wiped out the cheap money that fueled the unexpected U.S. housing boom after the pandemic. The average rate on a 30-year home loan was 5.51% last week, down from 2.88% a year ago, mortgage finance giant Freddie Mac reported.
“With the highest rates in over a decade, house prices at elevated levels and inflation continuing to impact consumers, affordability remains the biggest barrier to homeownership. for many Americans,” Freddie Mac chief economist Sam Khater said in a press release.
In Southern Nevada, builders sold single-family homes for a record median closing price of $497,210 in May, up 17.6% from a year earlier, according to Las-based Home Builders Research. Vegas.
Buyer traffic, however, fell to its lowest level of the year.