So what’s happening with Bank Owned (REO) and Short Sale Listing availability?
These numbers reflect a continual drop in available REO and short sale. The 3119 available REO listings is a long way from the more than 10,000 that were on the market a few months ago
Now we can download the May 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. Please note the “Available Homes” count; inventory levels dropped significantly in each of the past four months even as the closings have soared. This inventory drop combined with the increased sales activity sent the one month absorbtion rate to 33%. REO sales still accounted for seventy-eighty percent (78%) of the May closings with another seven percent (7%) attributed to short sales. The raw market forces of supply and demand for bank foreclosures has intensified the number of multiple offers being presented on these properties. Here is a breakdown of by price points as to how the REO properties sold in May:
Here is a price breakdown of the currently available REO properties in Las Vegas, North Las Vegas and Henderson.
May closings sold according to the following terms:
Sold Term Average Sale Price
- Cash 36%…..$108,000
- Conv 24%….$185,000
- FHA 312……$155,000
- VA 6%………$189,000
Market activity and closed units again soared in May to numbers we haven’t seen since August 2005. However, despite the fact that the median sales price for single family homes dropped 1.2%, the average closed sales price actually increased 3.8% in May. One month of numbers does not a trend make, but this could well be a defining moment in the current market. We know that there are a large number of foreclosures to be released in the Greater Las Vegas Market, but they are being released very slowly even as the inventory continues to drop. At the same time investor and consumer confidence has clearly returned to our market in a significant way. This could be one of our most active summer markets in many years!