Another month, another completely misleading chart published by the LVRJ.
In this morning’s paper, the number one most misleading chart in Las Vegas real estate:
This is the chart that caused me to start Frothing Developer. This is the “I’m mad as hell and I’m not going to take it anymore chart”.
The only way you can come up with this is if you take the enormous number of units that went into contract in May, along with the enormous number of units that went into contract in April, and March, and count them as available inventory.
I have argued before why this is nonsense. A unit is not “available” if someone else has it under a binding contract.
What REALLY happened in May?
The only ACCURATE metric of available inventory is the count of the homes that you can actually go out and buy. This is represented in the GLVAR database with one of two status codes “EA” and “ER”.
The count for EA and ER on May 1 was 22,719. The count on May 31 was 22,329. 3 days later it had dropped to 21,914.
So inventory in May actually dropped by nearly 400 units.
This is the actual chart of inventory in Las Vegas, when you strip out units in contract.