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March may have come in like a lion in other areas of the country, but for the Las Vegas residential real estate world, it was like a lamb.
While Las Vegas’ March 13.3% unemployment may not be something to celebrate, it is the lowest mark since December 2009. The state reported a year over year employment increase for the first time in 39 months.
Unfortunately, first quarter residential housing statistics for the Las Vegas market contained little additional news that would suggest a recovery is imminent. Virtually every number that suggested change could be on the way was offset by a corresponding negative number.
For example, the number of existing home sales did jump (5.6%) to 5,114 in March, even as prices slid to their lowest totals in nearly two decades. But, significantly, more than seven out of ten of those sales were distressed properties. The 2,131 foreclosures sold at $106,500 represent 41.7% of the existing home sales. The 533 auction sales at $93,500 represent 10.4% of the sales. And, 929 short sales at $120,000 account for 18.2%. In short, existing home sales improvement was the product of distressed property. More than half were cash sales. Almost four out of five were vacant.
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The 1,521 “non-distressed” sales amounted to just 29.7% with an average price of $108,500. That’s a slightly better percentage than last month.
New homes sales continued to lag behind last year. First quarter new home sales lagged last year by 41% at 781 total. The March tally of 279 sales was just 10 units above February and prices for new homes rose slightly to $195,950. (February was their lowest price point since 2002.)
While prices and sales are always major measures of a market’s potential, inventory is the most telling component. There were 2099 bank repossessions in March – the highest total since last April. Yet, the number of REO’s held by financial institutions continued its very slow decline, reaching its lowest point since last May (11,684).
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MLS inventory remained stable at 14,269 with roughly half of those homes listed as short sales. The number of new home subdivisions was also stable at 239, and the number of closings per subdivision averaged just over one per month.
Are these numbers likely to change? If so when, and what has to happen to make them change? Answers to those and other questions will be discussed at Crystal Ball this Thursday, April 21, at the Alexis Park Resort (375 E. Harmon). Speakers include Mayor Oscar Goodman, Frank Wyatt, president of the Southern Nevada Homebuilders Association and Larry Murphy, president of SalesTraq. There will be a question and answer period following the presentations.
You may pre-register for $29 on line at http://www.crystalballseminars.com/nev ($39 at the door) Each attendee will receive a complimentary copy of the SalesTraq Q1 Las Vegas Housing Summary, a $125 value.
Hope to see you there
Respectfully submitted,
Steve Bottfeld, Marketing Solutions
Larry Murphy, SalesTraq™
