Home Resales Surge

September 23, 2008

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.


Vegas Goes One Way While The Rest Of The Country Goes Another

June 23, 2008

I’ve been frothing quite a bit about how important it is that Las Vegas sales are up month over month, compared to 2007. It’s important because most of the country is heading in the opposite direction, selling fewer houses than in 2007. Look at how different things are over in Southern California:

By ALEX VEIGA
AP Business Writer

LOS ANGELES —

Sales volumes for the region climbed about 8 percent from April but were down nearly 15 percent from May 2007.

In all, 16,917 new and preowned homes were sold in May, down from 19,874 in the same month last year, the firm said.

Only in a few other parts of the country are sales higher now than a year ago, and they’re all places where the downturn has been harshest, such as Sacramento. Here’s a report from Sacramento.