The availability of both bank-owned and short sale listings continue their decline while demand remains strong in the current market. REO listings have dropped to around 2600 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to 4800. REO closings in August accounted for 70% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 12% of August sales. But again – let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers again accounted for over 17& of all residential sales last month. This yielded 700 closings that were NOT a result of a bank owned sale or short sale!
Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of August with the Classic or Traditional Closings. First here is the price analysis of bank-owned closings:
By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.
Now let’s download the August 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count continues to drop as the closings remain at very high levels. This inventory drop combined with the increased sales activity resulted in a one month absorption rate to 39.5%. Demand remains very high even as investor and first time buyer confidence grows in Las Vegas. However, the most significant market change during August was in the Cumulative Days on Market (CDOM) statistics. It dropped to 145 days from 165 days only one month ago! This is the lowest that the CDOM has been since I began tracking these numbers in the Fall of 2007!!!
August closings sold according to the following terms:
- Cash 42% with an average sales price of $121,807
- Conv 23% with an average sales price of $200,075
- FHA 28% with an average sales price of $148,658
- VA 5% with an average sales price of $179,900
Market activity continues to be robust with demand and consumer confidence both soaring. I hope that the market information provided on traditional closings will convince you to seriously consider building up your listing inventory with traditional listings that are priced correctly! Maybe it’s time to go back to farming neighborhoods that have homes with equity that can now compete well in this market. For example – research communities where the last sales dates were earlier than 2002! There could be a treasure chest of potential listings just waiting for you there.
For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;