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.
August 20, 2008
Hubble Smith fleshes out the statistics from yesterday:
Home sales are making a comeback in Las Vegas and inventory has been reduced to about an eight-month supply, but prices continue their free fall from a year ago, a strong signal that the housing market has yet to enter recovery.
Actually, if you divide 3,173 into Monday’s inventory level of 22,091, you get 6.96 months, but we’re getting the benefit of the April/May spring buying boom right now, so it will probably widen a bit in the next two months.
Hubble also points out that foreclosure sales are pretty closely matched to new foreclosures, suggesting we’re near equilibrium:
Perhaps overlooked in all of the reports is that foreclosure sales in Las Vegas were about 85 percent of the number of new foreclosures, indicating that the market is nearing equilibrium between foreclosure absorption and foreclosure creation.
That’s one benchmark for recovery, Murphy said.
“When we get to the point where the banks are selling more than they acquire, then and only then will we be in a recovery mode,” he said.
August 19, 2008
The RJ Reports:
Las Vegas-based SalesTraq today reported 3,173 existing home sales in July, up 56.5 percent from the same month a year ago and the highest monthly total since September 2006.
Higher than my initial report, but that’s probably because of belated updating of July sales by agents.
May 20, 2008
Home sales surged 22% in April in Southern California…Sales of new and resale homes and condos reached 15,615 in April, up from 12,808 in March and the highest monthly total since August, according to DataQuick Information Systems.
We’re not the only hard-hit area to be bouncing back on sales. Full article here.