Builder Incentives in the Las Vegas Valley

Builder Incentives in the Las Vegas Valley – Summer 2022

As the months go by, expect to see the builders slashing their prices and offering huge incentives towards buyers. Not only are they offering lower interest rates and locking them in for up to year, but we will see them cutting prices on lot premiums, cutting prices on the base price, offering closing cost incentives or buying down the rate, as well as credit towards the design studio.

In this article I will be going over what June 2022 new construction sales was and what types of incentives builders are offering.

MARKET UPDATE FOR NEW CONSTRUCTION SALES

Builders logged 713 net sales — new purchase contracts minus cancellations — in Southern Nevada for the month of June, which is down 23.7% from the same month last year, according to Las Vegas-based Home Builders Research.

June’s sales tally was the lowest of the year and marked the third consecutive month of sliding sales in new construction in the Las Vegas Valley. Over the past two months, some builders have even started to slash their base asking prices for the first time in a very long time.

Nationally, the pace of new-home sales in June dropped 8.1% from May and 17.4% from June 2021, federal data shows.

Overall, builders logged just over 12,900 net sales in Southern Nevada last year, the most since 2006, Home Builders Research previously reported.

For new construction in Southern Nevada, the median closing price for single-family homes in June was a record-high $513,295, up 17.7% from a year earlier, according to Home Builders Research.

Builders are also seeing more and more buyers cancelling deals amid growing real estate market pessimism. To counter this slowdown, homebuilders are offering more incentives and cutting back on the number of homes they are building.

The national cancellation rate among homebuilders reached 14.5% in June, according to the results of a survey conducted by John Burns Real Estate Consulting. That marked the highest rate since April 2020, when the COVID pandemic initially brought the housing market to a near-standstill.

Four communities in Southern Nevada are among the top 20 nationally for homebuilders’ sales this year.

1. Builders logged 592 home sales this year through June in Summerlin, the fourth-highest among U.S. master-planned communities, according to a report from the real estate consulting firm RCLCO. Summerlin’s sales total, however, was down 38% from the same period last year.

2. Builders sold 459 homes in Henderson’s Cadence community, seventh-most in the nation. Sales in Cadence were up 4% year over year.

3. 388 homes sold in Henderson’s Inspirada community, 12th most in the nation. Sales in Inspirada were down 16% year over year.

4. 333 homes sold in Skye Canyon in the upper northwest valley, 18th most in the nation. Sales in Skye Canyon were down 11% year over year.

BUILDER INCENTIVES

Some of the Las Vegas new home developments around the Valley are offering incredible builder incentives in both upgrades and financing options. Many projects do have standing inventory and/or homes that will be move in ready within 30 to 90 days.

PULTE/AMERICAN WEST

• Offering realtor co-op at 4% of base price
• Offering Buyer’s closing cost paid up to 6% ($30,000) with Pulte Mortgage, with standing inventory homes only.
• They have over 30 quick move-ins across the valley
• Lot premiums at Carmel Cliff are selling for half off.
• Quick Move-in homes for September 2022 – get 4.25% interest rate with Pulte Mortgage.

RICHMOND AMERICAN

• Offering 3% of base price towards closing costs if you use their in-home lender. This is supposedly ending July 31, but we shall see how things go.
• Extended rate lock

Somerston Community in the NW

• All Single-story Ranch homes from 1740ft2-2800ft2.
• Reduced Lot Premiums ($0-$10,000)
• $20,000 PRICE REDUCTION on ALL FLOORPLANS (See Attached Price Sheet)
• 3% of the base price of your purchased home toward your closing cost when you use their in-house lender HomeAmerican Mortgage Company.
• $20,000 to go toward your Home-Gallery selections.

TOLL BROTHERS

• Offering 4.99% interest rate on a 30-year fixed rate on their quick move-in homes that are eligible to close by 9/15/22.
• Free rate lock on homes closing by 10/31/22.

TAYLOR MORRISON

• Summer funds sales event – offering 4.99% interest rate on a 30-year fixed rate, when you choose one of their quick move-in homes and close by September 2^nd to take advantage of the 4.99% interest rate, on a conventional loan.
• Also offering up to 4% of purchase price towards your closing costs for using their in-home lender. You can help secure your interest rate for 6, 9 or 12 months!
• Hello Neighbor Referral Program – $2,000 design credit towards their new home if they are referred by someone who lives in a Taylor Morrison Community.

LENNAR

• Purchase today on select condos or townhomes and pay $0 in closings costs
• Offering 4.99% interest rate on a 30-year fixed rate if you use their in-house lender, for any move-in ready homes.
• Will help with closing costs.

TRI POINTE

• Offering 3% of base price towards closing costs if you use their in-home lender.

CENTURY COMMUNITIES

• Get up to $15,000 towards closing costs or discount points when you finance with their affiliate lender, Inspire Home Loans. Contract by 7/30 and close before 9/30.

D.R. HORTON

– Special interest rates on certain D.R. Horton Homes. For a limited time DHI Mortgage is offering special interest rates on certain D.R. Horton homes.

As experienced new home agents, we may even be able to negotiate a reduction in the sales price for you with some of our preferred builders. Our team is committed to finding our clients every discount possible on their new Las Vegas home purchases.

Las Vegas Market Update – July 2022

Also, if you are thinking about buying or selling in the Las Vegas Valley, CLICK HERE or you can call me at 702-370-5112.

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Angela O’Hare
Favorite Las Vegas Realtor
Home Realty Center
Lic. #180246
702-370-5112
[email protected]
www.neighborhoodsinlasvegas.com