It is no surprise that the performance of the housing market can ebb and flow along with the broader economy. While not necessarily reflective of the entire industry, KB Home, one of the largest homebuilders in the United States, reported a 30-percent year-over-year increase in order volume for last quarter. The surge in activity is reflective of rising demand for new housing units across the nation. National new home sales totaled 566,000 in the 12 months through February 2017, representing a 13.0-percent annual increase and the highest 12-month total since mid-2008. In explaining his company’s sales growth, KB Home Chief Executive Officer Jeffrey Mezger pointed to a shortage of supply and strong demand in all of his company’s markets.
Positive new home market trends are evident in Nevada, and in some cases, the industry in the Silver State is outperforming the national trends. In Southern Nevada, new home closings during the 12 months ending February 2017 grew by 17.3 percent to 8,198, the highest 12-month total in nearly eight years. The latest results also continued a 19-month streak of double-digit annual growth in new home sales activity. Pricing within the new home segment moved directionally consistent with rising sales numbers. In February, the median closing price for a new home in southern Nevada was $329,992, representing a 4.8-percent year-over-year growth rate.
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