Las Vegas Home Sales Continue Record Pace in 3Q, Prices Still Down 8.6% Over Last Year

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Based on statistics released today by the Greater Las Vegas Association of Realtors (GLVAR), sales of local homes, condominiums and townhomes in September and during the third quarter of 2011 continue to set a record pace. Prices were up over last month but still down from last year.

According to GLVAR, the total number of local homes, condominiums and townhomes sold in September was 4,108. That's down from 4,693 total sales in August - which GLVAR said was the second best month ever for existing home sales in a single month in Southern Nevada. At the same time, September's sales total was up from 3,603 sales one year ago. Within that total, single-family home sales during September increased by 15.5 percent, while sales of condos and townhomes increased by 8.7 percent, all when compared to September of 2010.

"This month's report is about what we expected," said GLVAR President Paul Bell. "Local home sales usually fall a bit in September after peaking in the summer."

On a quarterly basis, Bell said the third quarter proved to be the best quarter so far this year for local home sales. GLVAR tracked 12,838 local housing unit sales during the quarter that ended Sept. 30. That's up substantially from 10,989 sales during the third quarter of 2010. At this rate, he added, 2011 could surpass the record set in 2009, when GLVAR reported 46,879 total home sales for the year.

Bell attributed the continued surge in sales to strong demand for homes in the Las Vegas area, especially among investors, and to historically low housing prices. Though the steady stream of cash buyers are not necessarily influenced by low mortgage interest rates, he said it also helps that 30-year mortgage rates have dropped below 4 percent to their lowest level in U.S. history.

GLVAR reported the median price of all single-family homes sold in September was $123,400. That's up 2.8 percent from $120,000 in August, but down 8.6 percent from $135,000 one year ago.

The median price of all local condominiums and townhomes sold in September was $56,500, up 0.9 percent from $56,000 in August, but down 13.1 percent from $65,000 one year ago.

GLVAR reported that the median price of bank-owned single-family homes sold in September was $107,900, up 3.6 percent from $104,100 in August. The median price of single-family homes sold as part of a short sale in September was $125,000, down 2.5 percent from $128,250 in August.

In September, GLVAR reported that 50.7 percent of all existing homes sold in Southern Nevada were purchased with cash. That's down from 51.2 percent in August and from 52.0 percent in July.

Meanwhile, 23.5 percent of all existing homes sold in Southern Nevada during September were short sales, which occur when a bank agrees to sell a home for less than what the borrower owes on the mortgage. That's up from 21.7 in August, but still down from a peak of 34 percent set in June 2010.

Bank-owned homes accounted for 49.4 percent of all existing home sales in September, down from 50.2 in August.

GLVAR reported that the total number of homes listed for sale on its MLS decreased from August to September, with a total of 21,866 single-family homes listed for sale at the end of the month. That's down 2.4 percent from 22,400 single-family homes listed for sale at the end of August and down 3.8 percent from one year ago. GLVAR reported a total of 4,129 condos and townhomes listed for sale on its MLS at the end of September. That's down 15.1 percent from 4,862 in August and down 30.5 percent from one year ago.

The number of available properties listed for sale without any sort of pending or contingent offer also fell sharply from the previous month and year. By the end of September, GLVAR reported 10,678 single-family homes listed without any sort of offer. That's down 4.6 percent from 11,190 such homes listed in August and down 10.2 percent from one year ago.

For condos and townhomes, the 1,888 properties listed without offers in September represented a 20.9 percent decrease from the 2,387 properties listed without offers in August and a decrease of 40.1 percent from last year.

This month's GLVAR statistics include activity through the end of September 2011. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners.

Other GLVAR report highlights include:

• The monthly value of local real estate transactions tracked through the MLS during September decreased by 9.4 percent for homes, to nearly $495 million. For condos and townhomes, the total value of all sales in September was more than $69 million, down 5.3 percent from August. Compared to one year ago, total sales volumes in September were up 3.8 percent for homes, but down 10.5 percent for condos and townhomes.

• Through September, 60.7 percent of all homes and 61.3 percent of all condos and townhomes sold within 60 days. That compares to August, when 64.1 percent of all homes and 67.7 percent of all condos and townhomes sold within 60 days.

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