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 2300 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to nearly 4700. However, there are nearly 4600 available traditional listings. REO closings in September accounted for 67% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 14 of August sales. But again – let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for over 18& of all residential sales in September. This yielded 771 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 September 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 September 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 of over 42%. The dwindling inventory which only holds about a two to three week supply of bank owned listings is fueling this absorption rate. Demand remains very high even as investor and first time buyer confidence grows in Las Vegas. Yet the most positive statistic for September was the 2% increase in the median price of a Single Family Residence (SFR) which increased to $138,000. This represents the first monthly increase in the SFR median price in 16 months. You can see that several areas in Las Vegas enjoyed average price increases in September as well.
September closings sold according to the following terms:
- Cash 43% with an average sales price of $120,495
- Conv 23% with an average sales price of $201,378
- FHA 28% with an average sales price of $148,917
- VA 5% with an average sales price of $183,332
Market activity continues to be robust with demand and consumer confidence both soaring. The Las Vegas Area market has increasing segmented itself into three separate and distincts markets; bank owned, short sale, and traditional. We have observed the rapid and significant shift from REO to short sales and traditional sales listings over the past several months! Are you making the adjustments in your own business model and plan to adapt to these changes? If not, it may be time to “move your own cheese” and get ahead of the market shifts! Have you taken a traditiona listing lately? It just could be money in the bank right now and well into 2010.
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