Las Vegas Housing Market Reports 12.7% Yearly Sales Decline in August

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According to the latest housing numbers released this week by the Greater Las Vegas Association of Realtors (GLVAR), home sales continued to cool in August 2010, but home prices did go slightly higher.

GLVAR President Rick Shelton said the association's statistics continue to indicate that the local housing market is "bouncing along the bottom." He said the expiration of the federal tax credit for homebuyers was a major contributor to the 12.7 percent decline in single-family home sales in Southern Nevada between August 2009 and August 2010. The tax credit sparked home sales last summer and until it expired April 30, but he said it also led to slower sales since then.

"This decrease in sales from 2009 to 2010 is relative to the spike in sales we saw during this same time of year between 2008 and 2009, when the tax credit was available," he said.

Meanwhile, the median single-family home price in Southern Nevada during August rebounded to $140,000, up 3.7 percent from July, up 3.3 percent from August 2009 and matching the price from June 2010. The median price of local condominiums and townhomes sold in August was $67,000, down 1.5 percent from $68,000 in July, but up 1.1 percent from one year ago.

Like last month, GLVAR reported a slight decrease in short sales and an increase in sales involving foreclosed homes. In February, 22 percent of all existing homes sold in Southern Nevada were short sales. That rose to 25 percent in March to 27 percent in April to 29 percent in May to a high of 34 percent in June to 31 percent in July to 30 percent in August. Bank-owned homes accounted 53 percent of all local home sales in February, falling to 50 percent in March to 43 percent in April to 40 percent in May to 38 percent in June before inching back up to 42 percent in July and 43 percent in August.

According to the GLVAR, the total number of local homes, condominiums and townhomes sold in August was 3,638. That's down from 3,748 in July and down from 4,039 one year ago.

Shelton said the percentage of local homes purchased with cash held steady at 45.9 percent, matching July and just shy of record levels. This suggests investors continue to see value in buying local real estate at bargain prices, he said.

Shelton said buyers are also benefiting from increases in the total number of homes listed for sale and the number of homes listed without any sort of pending offer. August marked the fourth straight month that both inventory categories showed an increased number of homes listed for sale.

By the end of August, GLVAR reported 11,327 single-family homes listed for sale without any sort of pending or contingent offer and another 3,026 such condos and townhomes. For single-family homes, that's an increase of 11.9 percent from July's inventory total and an increase of 32.0 percent from August 2009. For condos and townhomes, the inventory without offers in August increased by 4.6 percent from last month and 18.9 percent from last year.

As for the larger, or gross, number of listings on GLVAR's Multiple Listing Service, GLVAR reported a total of 22,624 single-family homes listed for sale at the end of August. That's up 4.0 percent from July and up 7.7 percent from one year ago.

GLVAR reported 6,006 condos and townhomes listed for sale on its MLS at the end of August. That's down 0.5 percent from July but up 9.0 percent from one year ago.

This month's GLVAR statistics include activity through the end of August 2010. GLVAR distributes such statistics each month based on data collected through its Multiple Listing Service, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners.

GLVAR market report highlights include:

• The total number of local single-family homes sold in August was 2,819. That's down 4.4 percent from 2,948 in July and down 12.7 percent from 3,229 in August 2009.

• The total number of condos and townhomes sold in August was 819, up 2.4 percent from 800 sales in July and up 1.1 percent from 810 such sales one year ago.

• The value of local real estate transactions tracked through the MLS during August decreased by 2.3 percent for homes, from more than $487 million in July to more than $476 million in August. For condos and townhomes, the total value of all sales was more than $73 million in August, up 1.8 percent from nearly $72 million in July. Compared to one year ago, total sales volumes in August were down 10.4 percent for homes and down 5.4 percent for condos and townhomes.

• Through August, 68.1 percent of all single-family homes and 66.3 percent of all condos and townhomes sold within 60 days. That compares to July, when 69.5 percent of all single-family homes and 74.4 percent of all condos and townhomes sold within 60 days.

 

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