Las Vegas is experiencing a huge increase in land prices with a 90% increase in residential land prices from a year ago. We are also seeing an increase in land sales which are up 37%.
Many homebuilders are purchasing up as much land as they can to meet the growing demand for new homes in the Valley.
Prices averaged over $202,000 an acre for medium density residential land in the fourth quarter of 2012 compared with $104,000 in the first quarter of 2012.
This will lead to higher new home prices in 2013 and 2014.
Homebuilders are paying close to $300,000 and $400,000 an acre in communities such as Southern Highlands.
Low resale inventory is what is driving up the demand and the prices.