Home Resales Surge

The RJ reports this morning that “Home resales for ’08 already near to matching [the entire total for] ’07.

The Las Vegas housing market is “moving along” and eating through excess inventory of foreclosures, which now account for about 80 percent of resales, a local housing analyst said Monday.

Dennis Smith of Home Builders Research reported 829 new- home sales in August and 3,051 recorded resales.

….

The inventory of single-family home listings dropped sharply in the first week of September and pending sales on the Multiple Listing Service have been hovering around 200 since June. The resale market continues to absorb inventory of foreclosures and short sales, or homes sold for less than the mortgage owed.

It’s also good to see how low the new-home permit level is:

New-home permits fell to 485 in August, compared with 668 in July and 802 a year ago, Larry Murphy of SalesTraq reported. Overall, permits are down 55 percent for the year at 4,216.

Now that it’s sub-500 per month, that means that the industry is only adding about 6000 homes a year in supply. That may seem like a great deal, but it’s not, especially when you consider that this number doesn’t count homes that are essentially destroyed or torn down. This doesn’t happen in the newer neighborhoods much, but teardowns are more common than one might think. Each time, for example, that an old apartment building is razed near the strip, it removes units from the supply.

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