Las Vegas Housing Stats – October 2009 Update

tax_creditA Strong Start to the 4th Quarter of 2009 !

The availability of bank-owned listings has dipped while available short sale listings continue their decline.  Demand remained very strong in the current market for October. REO listings have dropped to around 2100 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to nearly 4400.  However, there are nearly 3900 available traditional listings. REO closings in September accounted for 64% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 16% of August sales. But again – let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for over 19% of all residential sales in October.

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of October with the Classic or Traditional Closings. First here is the price analysis of bank-owned closings:

reo-soldpricing-oct2009

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.

traditionalsales-oct2009

Now let’s download the October 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count dropped slightly 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 45%.  Demand remains very high even as investor and first time buyer confidence grows in Las Vegas. Yet the most positive statistic for October was the modest increase in the median price of a Single Family Residence (SFR) which increased to $139,100. This represents the second monthly increase in the SFR median price in 18 months.  However, the more volatile avegare price declined slightly indicating some short term downward price pressures that cannot be ignored

October closings sold according to the following terms:

  • Cash 42% with an average sales price of $115,916
  • Conv 24% with an average sales price of $198,888
  • FHA 29% with an average sales price of $152,079
  • VA 5% with an average sales price of $182,425

Market activity continues to be robust with demand and consumer confidence both soaring.  Of course the best news is that Congress extended the First Time Homebuyer Tax Credit through April 2010 and expanded the program beyond first time homebuyers.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

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Categories: Market Stats, MLS, Pricing | 3 Comments

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3 thoughts on “Las Vegas Housing Stats – October 2009 Update

  1. this is a laugh for you from me 🙂

    I can’t spell and beer doesn’t help. 🙂

    Like

  2. Leeza

    Wow, was this written by Harry Reid? Dude, are you really THIS completely out of touch with reality?

    New York Times: “Consumer confidence makes unexpectedly sharp fall in early October” For the record, consumer confidence fell over 5.5 percent. I wouldn’t exactly call that “soaring,” even though you, for some reason seem to think it is.

    Commercial construction is pretty much at a stand-still, hotel occupancies keep going down, and the unemployment rate has skyrocketed here in the valley. It came out within the last week that Las Vegas leads the nation in foreclosures, with a rate that is SEVEN times the national average, and 68% of all sales are bank sales of foreclosed homes.

    You claim that “The availability of bank-owned listings has dipped.” Again, are you really THAT clueless? There has, in fact, been an increase of nearly 9 percent from last quarter and an increase of nearly 54 percent from the third quarter of 2008.

    With all of that said, how can you claim that we are experiencing “A Strong Start to the 4th Quarter of 2009 !” What on earth are you smoking?? And, if you are a realtor I feel so very sorry for your clients.

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    • Forrest

      I could not agree with you more on the Commercial front; in fact we are looking for another 18 -24 months or more of pure misery for commercial real estate in Las Vegas. However, residential real estate has benefited from both investor confidence and first time home buyer incentives as that market segment is trying to form a soft bottom as far as market values are concerned.

      When I look at available REO listings I’m looking at a single snapshot in time because that reflects what the consumer is facing on a daily basis. We have seen a drop from over 10,000 available bank owned listings in our MLS to just over 2100 today. We are now seeing REO inventory hit the local market at only about the same rate that existing available properties go under contract. That is creating an insidious multiple offer situation that favors cash sales. But we will wait until the first of 2010 to see if any quantity of new inventory really floods our market.

      The Greater Las Vegas residential real estate market did start off strong by recording more units sold than August and September; typically October stats for residential resales begin a seasonal decline. Also keep in mind that I am only addressing residential resale transactions since the numbers and stats surrounding new home sales remains anemic at best. It is expected that economic recovery will begin with a rebound in residential resale homes – and we are beginning to see signs of that! Having a very strong October on the heels of several previous good months is hopeful; however, it only takes one or two down months to give back all the momentum and dampen demand. Still I remain cautiously optimistic that we are beginning to see daylight at the end of the economic recovery tunnel in Las Vegas.

      Like

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