Real Estate Agencies

There is one word that aptly describes the April residential data for Las Vegas: Strange.

For example, the new home segment of the market is being hit particularly hard by slow sales and low prices. The 267 sales total in April was the second lowest of the year and 44% below the level of last April. New home prices fell to $189,099—a level not seen November 2002. What makes this strange?

• The number of new home subdivisions increased to 244, the largest total since September 2009.

The word strange can also be used to describe inventory as well. At a time when foreclosures were expected to rise, they fell. In fact, the April tota1 of 833 foreclosures was 44% below the same month last year.   Just as strange was that the MLS inventory not only fell a few dozen to 14,182, its composition changed. We are now looking at a total of 47% short sales in that total, about 3% lower than any time in the last six months.
To describe existing home market results, perhaps the best word to use would not be strange but unusual. 

• The price of a short sale (which ranged from 20% of total sales in January to 16.5% of sales in April) has not changed. It is still $120,000.
• The price of an auction property (which ranged from 12.9% in January to 15.8% of sales in April) has slid just a few dollars from $92,400 to $90,100 over that time period. 
• The price of a foreclosed home – the bulk of the market – has actually risen $500 in that time period to $105,500. And, foreclosures, which accounted for 37.6% in January now account for 39.7% in April.
• But what is strangest of all is there has been no real price change in an existing home sale from January to April. Existing homes accounted for 29% of sales in January. In April, they accounted for 28%. But, the median price has not changed from $110,000 over that period.

It would be easy to suggest from this kind of data that Las Vegas may have reached a pricing bottom. The problem is, there is still the potential for more foreclosures to drop prices  further. 

Yes, the number of foreclosures held by financial institutions has been declining steadily since last May.  The issue is the foreclosures to come.
Strangely enough, we have found several different sources which claim they know how many foreclosures we’ll see in the next year. The plain answer is: no one knows. And, until that figure is ascertainable,