DR Horton and Pardee Homes gobbled up most of the recent land offering from the government here in Las Vegas. The Bureau of Land Management auctioned off some 109 acres, raising around $21.4 million. This purchase is almost universally being heralded as a great sign for the Las Vegas housing market. Since the housing crash in 2008, the government has only sold around 30 acres of Las Vegas land. It's not that the government didn't want to sell, the developers simply had no interest in buying. With the massive amounts of foreclosures on the market from 2008-2011, partially developed communities sat vacant across the valley as home builders essentially closed up shop. Now, with inventories of existing homes at all time lows, builders are once again in the buying mood.
It also seems that they are willing to pay a premium for the land they are purchasing. According to BLM officials, the $21.4 million paid for the auction's nine parcels exceeded the appraised value of the land by more than $7 million. The sale price worked out to be around $181,000 per acre. Values during the recession had sunk as low as $5K - $25K per acre. The rebounded price, however, is still much lower than the bubble prices of 2006/2007, when acres of land in Las Vegas sold for upwards of $650,000 per acre.
Robert Deville, president of Harmony Homes in Las Vegas, reiterated that land is becoming increasingly difficult to come by in the now booming Las Vegas real estate market. “We came to a grinding halt with the problems we had," he explained, "and
now the demand is there but the plots and land supply is not. Right now it is very difficult to find parcels. I’m always
looking for land.”
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