January has already gotten off to a roaring start with a $13.5 million sale in The Ridges in Summerlin, and luxury Realtors said they are expecting a strong beginning to 2025.
Realtors said some of that added strength in the luxury marketplace is unfortunate, and something they prefer wouldn’t have happened. This month’s California wildfires that destroyed more than 10,000 homes, including many valued in the multi-millions, has prompted those homeowners to look to other locales to buy, including Southern California, Northern California, Phoenix and Las Vegas.
Some are looking to rent first in Las Vegas before purchasing, and one Realtor reported a family whose home is still standing but the surrounding community devastated are already under contract to buy a new home in Canyon Gate Country Club. Another Realtor said a Southern California resident impacted by the wildfires is under contract for an existing home in The Ridges for $2.6 million.
Unfortunately, the tragedy of the wildfires builds on a trend of migration from Southern California.
Unlike the other aspects of the real estate market that are interest-rate sensitive and rely on mortgages, the luxury marketplace has been immune to that, especially as the stock market rises and deals close with cash.
Listing agent Gavin Ernstone, owner of Simply Vegas, got the year started strong with his $13.5 million sale in The Ridges on Flying Cloud Lane. It involved one LLC selling to another. Azure 53 LLC was the seller, according to Clark County public records. Ron Venture with Allison James Estates & Homes represented the buyer, whose LLC is managed by Red Global 4 LLC located at the Hughes Center. Its manager is listed as entrepreneur, venture capitalist and philanthropist Darin Feinstein, according to records from the Nevada Secretary of State. The deal closed with cash on Jan. 16.
“It’s a very busy start to the year,” Ernstone said. “We’re just seeing a very solid influx of people buying. The market is the strongest it’s been in about three years.”
The two-story home in the Azure neighborhood in The Ridges sits on 0.89 acres and measures 12,445 square feet with five bedrooms, five full baths, four half baths and a four-car garage. It was built in 2013.
“Situated on a huge, near-acre lot with utmost privacy and amazing mountain views, this home has style, finish and build qualities that are second to none,” Ernstone said in his listing. “It has a fantastic floor plan with dual primary suites with one up and one down. Both suites have gorgeous spa-quality baths and spectacular walk-in closets.”
The listing said the home has a chef’s dream kitchen loaded with Wolf and Sub-Zero appliances, double islands, a breakfast counter and walk-in pantry.
The great room features a showcase wine cellar and large bar that Ernstone said is perfect for entertaining. The upstairs game room converts into a movie theater.
“Multiple pocketing doors create the ultimate indoor/outdoor vibe and lead to an oasis-like backyard,” the listing said. “There’s an enormous pool, chic cabana, full outdoor kitchen and putting green that transform the yard into the ultimate private resort.”
California impact on luxury market
Zach Walkerlieb with Keller Williams MarketPlace, said he had one existing home recently go under contract for $2.6 in The Ridges to someone from Malibu whose home survived. There and two others looking to buy, one from Malibu and the other from Pacific Palisades. Their homes weren’t destroyed, but they are dealing with a loss of utilities.
“The fires were the straw that broke the camel’s back,” Walkerlieb said. “They are still impacted by the fires. They are within weeks of buying. One will be around $2 to $3 million, and the other one is up to $15 million.”
Walkerlieb said most of the impact will be on the luxury segment and described how they haven’t gotten any calls for those seeking homes under $1 million.
“Any move that is going to be occurring is going to be coming in from higher end and not impacting the average market,” Walkerlieb said.
Cami Lincowski, a Realtor with Platinum RE Professionals, said this is the busiest she’s been in her seven-year career and now with the fires, she’s gotten calls from California agents with clients displaced by the fires and looking to relocate to Las Vegas. They don’t want to rebuild and face a wildfire destroying their homes again, she added.
“I have speaking to many potential buyers (from Pacific Palisades) saying their house has burned down and don’t know what to do,” Lincowski said. “They just know they want to leave California. I was busy before the fires, and now I’m even busier. It’s unfortunate what happened, but people need a place to live. They don’t want to live in California with the bad memories they have with their home gone. They can’t even build now with that ground, and it will be so expensive with permits. Why not get more bang for your buck here in Las Vegas and have the security it won’t happen again.”
Lincowski said she expects many people to rent first to see in what part of the valley they want to buy. Others who already know about The Ridges and MacDonald Highlands in Henderson or Southern Highlands are ready to buy or build, she said.
Ivan Sher, owner of IS Luxury, said his office has been receiving calls about people interested in luxury real estate after being displaced.
“It’s incredibly tragic, and there’s no words to illustrate how unfortunate everything has unfolded,” Sher said.
Because so much of the Las Vegas population is from Southern California, people here are impacted personally, Sher said. It’s their friends, family and relatives.
Sher predicts the displacement will add “significant buyers” to Las Vegas along with renters. The calls initially are about rentals, but there are people also looking at purchasing as well, he added.
“Those who are wealthy and considering leaving the state for tax purposes the fires are their tipping point, and they’re done and not going back,” Sher said. “Other people are waiting to see what happens. Those people will rent while the other people that have made their decision are going to buy.”
Sher, who has an office in Newport Beach south of Los Angeles, said there will be people looking to stay in California and move either down or up the coast as well as considering Las Vegas.
Luxury inventory in Las Vegas has climbed in recent months but if there is an influx of people by the second half of 2025, prices could increase to offset the demand, Sher said.
“They are in shock right now, and don’t know what to do,” Sher said. “Renting gives them an opportunity to hold still and instead of making rash decisions.”
Kristen Routh-Silberman, a Realtor with Douglas Elliman Las Vegas, said it’s not a subject agents like herself enjoy talking about because it’s such a tragedy and no one wants to earn business this way.
The Las Vegas office of Douglas Elliman is working with its agents in Los Angeles to help those people find housing and expects “a huge wave” of relocations. They’ve been holding Zoom meetings with their offices and are categorizing rentals, homes for sale and furnished homes for sale.
“Myself and several agents in our company have been talking directly to people that need to relocate and purchase or rent in Las Vegas,” said Routh-Silberman, a former Californian. “I’ve had sorority sisters that have lost homes and friends who are now becoming your clients. Nobody wants to sell real estate this way. It turns your stomach.”
Routh-Silberman said just when they thought the post-COVID rush was over for the luxury market and going back to a traditional spring and fall market, she expects a busy summer even during the oppressive heat as parents look to find homes before school starts.
Douglas Elliman is also getting calls from investors wanting to buy luxury homes in Las Vegas because they see rental opportunities or the ability to hold them and flip them, she said.
“It’s brand new in that it’s tied to the fires,” Routh-Silberman said of that interest from investors wanting to buy multiple properties. “They are coming in to look at houses at everything from $750,000 to $1.5 million to make the rentals for people. They know our (luxury) rental market is almost non-existent. They know these people need to rent before they figure out what they want to do.”
Many wealthy Californians with school-aged children are likely wanting their kids to be in private schools, and Routh-Silberman said their office is reaching out to those institutions in Las Vegas about openings because deadlines to apply are approaching.
There will be many displaced people who consider moving up north closer to Santa Barbara or south toward Newport Beach and San Diego, Routh-Silberman said. Others will consider the San Francisco Bay Area. What may keep people in California is a better public school system compared to Las Vegas, she said.
“For those who don’t have kids, we think Las Vegas is No. 1 across all categories for both rental and purchase and high-rise and single-family,” Routh-Silberman said. “Under age 50 is probably homes and over 50 probably it will break 50-50 to condos and homes.”
Routh-Silberman said she spoke to one person who lost their home and flew to Mexico to process what happened before coming to Las Vegas to look at homes.
Douglas Elliman said their office has already put together a task force to also help displaced homeowners to obtain movers, obtain rental furniture and help with the Department of Motor Vehicles.
“It’s almost like a concierge service to help them all along the way,” Routh-Silberman. “We gotta get ready for an unprecedented ability to help people in every aspect from pet boarding to concierge doctors.”
What’s also happening, Routh-Silberman said, is that luxury developers are planning to ramp up production of their new homes beyond what they planned.
Some Californians have already purchased a new home.
Brian Krueger with Coldwell Banker Premier has the listing on a new home that will be completed by the summer and is now under contract for $2.5 million in Canyon Gate Country Club. They have had inquiries about the Cello Tower condominium project under construction in downtown Las Vegas as well.
“We have someone flying in from San Diego that wasn’t affected by the fire,” Krueger said. “It’s having a trickle effect. It’s got a lot of Californians whether they were directly affected or not to pause and ask do I really want to live in Southern California. We have been seeing Californians coming here for years because of our pro-business environment and no state income tax. For some of these individuals, it was the straw that broke the camel’s back.”
“Million Dollar Listing’ celebrity Realtor Josh Altman told the media that at least half of the people who lost their homes in Pacific Palisades won’t return there and many will look at nearby Brentwood, Santa Monica, Beverly Hills and Bel Air.
“It is very early in the stages, but builders will (get more sales) because the resale inventory is still tight,” Krueger said. “People will say they’ll come to Vegas to rent and have a home built by Blue Heron or one of these custom builders. They will get more bang for their buck on properties here. Many of those displaced had homes of $2 million, $5 million, $10 million and $20-plus-million.”
Krueger’s client for the Canyon Gate Country Club home, which is under construction said he’s relocating his wife and son from La Canada Flintridge even though his home wasn’t destroyed. They barely escaped the inland Eaton fire with widespread destruction nearby. He owns an ad agency in Los Angeles where he plans to commute on a regular basis and didn’t want to use his name for business reasons. He said he hasn’t decided whether to rent in Las Vegas before his home is completed or remain in California until then.
The man said it’s the second time his home, valued about $4 million, has come close to being destroyed by wildfires, and he even hardened the property with wildfire sprinklers though it probably wouldn’t have helped with the high winds.
“It was sobering and gave us a little bit of wake-up call for how real it is,” the man said. “I could watch the fire line march its way toward me, but luckily I have the Jet Propulsion Lab between me and Altadena. They were going to protect the JPL area, and the winds died down at the right time and it didn’t leap the canyon.”
The fire devastated the surrounding commercial area, and he has fears about the air quality and environmental hazards.
The man said they chose Las Vegas because of its proximity to Los Angeles to commute in addition to family.
“The money also goes further,” the man said. “For $2.5 million, I can get a great house here, but it’s really hard to stretch that in L.A. I have family in Vegas and some business in Vegas as well. It was on the radar before all of this, but it wasn’t serious enough to move. This brought it to the front.”