An increase in real estate sales could be driving increased taxable sales numbers in the furniture market, according to local retailers.
The latest sales tax numbers released by the Nevada Department of Taxation earlier this month showed one sector saw a particularly high jump in sales over last year.
Furniture and home furnishings stores taxable sales in May, the latest month reported, jumped 288 percent over the same time last year.
May reported $885,727 in sales, up from $228,307 in sales in the same month last year.
Overall for the year, furniture and home furnishings sales in Nye County are up 24 percent, as this year has seen $3.83 million in sales compared to 2014’s $3.09 million.
Ron Frazier of Frazier Furniture, said he’s seen numbers similar to the report’s and that a special they’ve run helped their sales.
“I think that some of it has to do with us running a 20 percent off sale,” Frazier said. “It is a better value for the customer, but it still allows us to take care of our fixed charges and take in a little bit of profit.”
Furniture Warehouse owner Loida Nacpil-Schulz agreed with Frazier, stating she also has seen a sharp jump in sales.
“Probably near there,” Nacpil-Schulz said. “I was looking at my records and it increased drastically.”
Nacpil-Shulz attributed her sales jump to the gradual rebound of real estate in town, with outsiders looking to live in a place where it’s cheaper to live.
“It’s because a lot of people are now attracted to here in Pahrump, all the people from Las Vegas because of the high cost of living in Las Vegas,” Nacpil-Schulz said. “We are a lower cost of living and we are very generous to medium (class) people. Set income people is who we attract and that’s what we work.”
Through the first six months of 2015 the number of single-family residences sold was 195 homes sold for a total of $33.46 million, for an average home price of $171,870. This is compared to 2014’s numbers from the same time that saw 193 units sold for a total of just over $30.94 million, with an average home price being $160,870.
Frazier explained that the strong sales have continued for his store well into the summer months.
“Actually July was the best July that we’ve had in about six-or-seven years,” Frazier said.
With the strong start, Nacpil-Shulz sees the trend of increased sales continuing.
“Come fall and winter, because holidays are coming, we are hoping for it to continue for the better,” she said. “Hoping for a continuance and more.”
Overall, Nye County saw a slight decrease in taxable sales in May with $41.84 million this year, contrast to 2014’s $44.31 million, making for a -5.6 percent change.
For the year the numbers are even worse, as through May Nye County has pulled in $449 million in taxable sales, 23 percent lower than 2014’s taxable sales through May of $582 million.