The price of medium density residential land in Las Vegas popped 19% in the 4th quarter, and prices have nearly doubled from a year ago, reports the LVRJ. Some 60% of the city’s homes may be underwater, but builders see a screaming market. Hubble Smith reports, “A surge in demand for new homes has created ‘extraordinary market conditions’ in which bid prices are higher than the logical value, said Bill Lenhart, managing partner of Sunbelt Development and Realty Partners.”
The median new home price was $220,355 in January, a 4% increase from a year ago. However, the average price per square foot increased 26% from last year to $116/sf.
Builders pulled 56% more permits in 2012 than they did the previous year. But the 5,846 new home permits is but a sliver of the permits pulled during the boom. In 2006, over 36,000 new homes were sold and closed in LV.
The average land price of $202,983 is still only a third or fourth the average price at the top of the boom.