Las Vegas real estate brokers doubled the value and amount of luxury home and apartment transactions in 2021 and the top four firms maintained their same rankings as in 2020, according to research firm BrokerMetrics, which tracks transactions of real estate agents on the Multiple Listing Service.
The Las Vegas Valley saw 1,685 transactions of $1 million or more processed by real estate agents in 2021, just doubling the 825 such transactions in 2020. Every listing and every sale counts as one. There were 501 in 2018 and 596 in 2019, reflecting how the luxury market has benefited from the COVID-19 pandemic and Californians and those in other states buying in Las Vegas because of its value and l absence of state income tax. In terms of dollar volume, these 1,685 transactions were worth $3.18 billion in 2021, compared to $1.56 billion in 2020. The value was $909.7 million in 2018 and $1.08 billion in 2019.
BrokerMetrics numbers can only track transactions made by brokerages based on the MLS Association of Las Vegas Realtors. It does not include off-market sales.
Berkshire Hathaway HomeServices Nevada Properties once again led the way in Southern Nevada in the luxury market. It tops the list by volume at $1.14 billion and transactions at 515. It has a market share of 17.9% for volume and 15.3% for transactions.
In 2020, it managed $630.3 million for an 18.7% market share. It handled 285 luxury transactions for a market share of 16.5%.
In the overall All Price Sales Volume category, Berkshire Hathaway again ranked first with $3.61 billion. It ranked first in 2020 with $2.66 billion. It was, however, second in transactions with 6,457. That’s behind Realty One Group’s 8,040.
Ranking second again in luxury category volume was Simply Vegas with $529.8 million in its 262 transactions. It recorded 136 transactions worth $285.7 million in 2020. Simply Vegas ranked third in volume for all transactions at 3,954.
No. 3 by volume was Las Vegas Sotheby’s International with $340.5 million, compared to $176.688 million in 2020. It processed 103 transactions compared to 74 in 2020.
No. 4 by volume was again real estate group one with $325.9 million, up from $162 million in 2020. It handled 198 transactions in 2021, which ranks third in the luxury group. It processed 96 transactions in 2020. Realty One was second in the overall market with $3.31 billion in volume.
Number 5 was Urban Nest Real Estate, which jumped from No. 8 a year ago. It achieved a volume of $209.1 million, representing a market share of 3.3%, compared to $77.4 million and a market share of 2.3% in 2020. It processed 115 transactions, which places it fourth in this category, compared to 50 transactions in 2020.
No. 6 by volume was Las Vegas Luxury Homes with $177.5 million from just 78 transactions. It ranked seventh in 2020 with $81.5 million across 37 deals.
Number 7 was eXp Real Estate with $159.3 million in volume, up from ninth place in 2020 where it made $68.3 million. He managed 108 transitions in 2021, compared to 38 in 2020.
Number 8 was International luxury real estate with $142.3 million, up from $95.4 million in 2020 when it was ranked fifth. It processed 57 transactions, compared to 41 a year ago.
No. 9 is a newcomer to the top 10 in Huntington and Ellis with a volume of $129.7 million and 68 transactions.
Number 10 is Windermere Premium with a volume of $113.5 million and 57 transactions. It ranked 10th in volume in 2020 with $64.1 million and 32 deals. Luxe Estates & Lifestyles at No. 17 fell from the top 10. It was ranked sixth by volume in 2020. Zar Zanganeh’s business moved to The Agency, a Beverly Hills-based luxury brokerage last fall .
A relative newcomer to the market late last summer, Corcoran Global Living, a California-based brokerage firm that courted top luxury agents from other firms, ranked No. 23 during its short run. on the market. The brokerage handled 26 transactions with a dollar volume of $55.1 million over approximately four months of existence. If this same trend were to continue, the company would rank just outside the top five.
Corcoran Global Living founder Michael Mahon has promised his company will be in the top three within 18 months and plans to eventually take the top spot at Berkshire Hathaway. This has fueled competition in the market.
Don Kuhl, partner and chief broker at Corcoran Global Living, said their growth has been “beyond their expectations. We had people who thought we would be gone in 18 months, and I think the evidence so far is quite the opposite. We are certainly here to stay and make our presence known.
Kuhl said he expects the brokerage to be in the top five by the end of 2022.
Last fall, Mark Stark, CEO of Berkshire Hathaway HomeServices Nevada, Arizona and California Properties, dismissed the fact that Corcoran had taken the top spot from his company and was a major player in the market. He continued with this position.
“They’re not on my radar,” Stark said. “I watch the top 10. I don’t even hear of them, and I don’t hear of them doing anything special in any form.”
The top 10 companies held 51% market share with an average transaction of over $2 million. The average transaction across the luxury market was $1.89 million, compared to $1.95 million in 2020. This reflects a higher transaction count of just over $1 million. The top 10 held about 47% market share for transactions. In 2020, it was around 49%.
Luxury deals were only on the market for 51 days in 2021, compared to 92 days in 2020. Huntington & Ellis had the fewest days on market at 26. Urban Nest Realty had the second fewest days on market at 32.
In the overall market by volume at all price points after the top three of Berkshire Hathaway, Realty One and Simply Vegas, the ranking in order was Urban Nest Realty, eXp Realty, Signature Real Estate, Coldwell Banker Premier, Platinum RE , Keller Williams Southern and Keller Williams Market. These same 10 companies were among the top 10 by number of market transactions at all price points.
The average trade price in 2021 was $427,308 with the average days on market at 27. In 2020, the average price was $362,375 with an average days on market of 41.
There were 103,994 transactions in the market, which includes representation of buyers and sellers. These sales totaled $44.4 billion. In 2020, there were 84,498 such transactions with a volume of $30.6 billion.
Brokerage chiefs weigh in on the market
Stark said they “killed him” in 2021. He said he had just returned from his company’s national convention and that Berkshire Hathaway real estate agent Ivan Sher and his team were No. 1 in the national and international network.
“We’ve had an amazing year across all luxury in every market we operate in (across three states),” Stark said. “We achieved third place in the country among all international and domestic Berkshire Hathaway companies (in gross closed commissions).”
For the overall market, Stark said prices would stay at current levels, but sales are expected to slow with limited inventory. Everyone is waiting to see where the economy is going, including rising interest rates that will impact sales, he said.
Despite these concerns, January was the best month on record for the brokerage and February fell just below a February record in 2021.
“Let’s not let the axis of the world fall on its own, and I think we’ll have a solid year,” Stark said. “It may not beat 2021, but it will be a solid year.”
For the luxury market, Stark said he doesn’t see it slowing down unless the stock market takes a big hit.
“Other than that, there’s a lot of money there. There is little inventory in luxury properties, and that’s the only aspect that would affect units,” Stark said. “You can’t sell properties you don’t own.”
Las Vegas Sotheby’s president Randy Char was more optimistic. He sees 2022 “looking robust” and expects the momentum to continue as prices slowly rise.
“It might not be at exactly the same level of appreciation as it was last year,” Char said. “It’s too early to tell, but there’s plenty of activity if the house is in a good neighborhood.
We are very enthusiastic and we benefit from many recommendations from all over the world who call wealthy people wishing to move here. »
Char said the market remains strong despite low inventory levels. What people don’t realize, however, is that stocks move quickly, he added.
“It’s not that there’s no supply there, it’s just that we’re going through it fast because people keep moving into town and taking advantage of interest rates” , Char said. “A lot of people continue to have very healthy wealth from the stock market or from successful businesses. They want to move for a better lifestyle, and a lot of that depends on the quality of life in their home, as they spend more time there and dedicate office space to it. The luxury housing market here benefits as it has more space and more yard, security and privacy which are important in the high end market.
Kuba Jewgieniew, CEO and Founder of Realty ONE Group, had a different view. He said, “Prices are getting ahead of themselves” and the luxury market is peaking.
“We’re in 45 states, not just Las Vegas, and we think the second half of this year things will start to stabilize,” Jewgieniew said. “The cycle will start to shift to a normal cycle and that will continue throughout the next year. Luxury is first. When the market gets hot, usually two or three years later, retail and luxury follow. When things are about to slow down, it’s the other way around Commercial and slow luxury first.
Jewgieniew said there were a lot of cash buyers buying fourth and fifth homes. The dynamics of rising interest rates and inflation and falling stock markets set people back.
“Discretionary spending year-to-date has slowed and people are starting to hoard more money,” Jewgieniew said. “I think that pattern will continue. People are not going to outbid each other. The frenzy will subside in the second half of the year.