Pahrump home sales expected to jump after slow first quarter

Lennar leaped to the top spot in the builder rankings as overall net sales recorded their second highest total during the first quarter since 2018, as the northwest valley led the way in new-home sales and prices continue to set records.

There were 3,478 net sales (sales minus cancellations) in January through March, trailing only the 4,113 recorded in the first quarter of 2021, according to Home Builders Research President Andrew Smith. The 2021 January to March total was an anomaly since the first quarter totals were 3,185 in 2018, 2,584 in 2019 and 3,113 in 2020.

“Builders will tell you the numbers can be higher but they’re restraining themselves because they can’t meet demand on production,” Smith said. “It’s more of a point of how strong things were at the beginning of last year and not something bad brewing in the market right now. With the decreases, it’s almost strictly a factor of not being able to keep up with demand with lot replacement. A lot of builders don’t have the lots on the books to replace what’s been selling out over the last two-plus years.”

For more than a year, however, builders have been assembling parcels at in-fill areas and even knocking down older homes, Smith said during his annual webinar to the homebuilding industry.

“It doesn’t seem like a big deal, but it’s something we didn’t see in Las Vegas until now,” Smith said. “The land acquisition department is finding ways to assemble pieces next to each other with different owners and making it work because there are not a lot of options.”

Sales should pick up if permits are an indication. Smith reported there were 4,153 permits issued to builders in the first quarter, the most of any quarter since the pandemic began in 2020. There were 3,776 issued during the fourth quarter of 2021 and 3,931 in the first quarter of 2021.

For closings, a lagging indicator, there were 2,693 during the first quarter, down 2 percent from the first quarter of 2021.

The northwest valley, which traditionally trails the rest of Las Vegas in sales, took the lead in the first quarter with 885 net sales, surpassing the 841 in the first quarter of 2021.

Pahrump sales declined from 84 a year ago to 21 in the first quarter of 2022.

Mountain Falls in Pahrump had 17 sales in the first quarter of 2022, down from 23 in 2021.

But Smith said homes sales in Pahrump will increase in 2022 with projects from D.R. Horton, Richmond American and Taylor Morrison.

“I’m not seeing anything going yet in the outlying areas, but I know with affordability concerns, there’s definitely interest and people looking,” Smith said of other potential areas in Southern Nevada.

According to real estate aggregator, RocketHomes there were 616 homes for sale in Pahrump in April. The median price was $355,300.

which was fifth in 2021, moved up to third place with 425 sales, 32 percent increase over the 322 in 2021.

Valley Vista recorded $396,990, up 19.2 percent from $332,990 in 2021. e sale compared to 37 in 2021.

Mountain’s Edge had no sales after 28 a year ago.

Rhodes Ranch had none after eight a year ago.

Southern Highlands had none after 38 a year ago.

Summerlin had the highest median closing price in the first quarter at $694,833 compared to $567,319 a year ago, a 22.4 percent increase.