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.
June 26, 2008
New home sales spiked dramatically and were up week-over-week against both 2007 and 2006 in the most recent week, as reported by the Ryness Report, which compiles sales statistics from new home developments across the Las Vegas Valley.
This is the first since 2005 that weekly sales have topped the prior two years, and it is only the second time since 2005 that new home sales numbers topped the previous year’s sales.
Weekly traffic to sale ratios, a strong indicator of buyer demand, went from 30:1 in 2007 down to a much healthier 16:1 in the past week. While one week doesn’t make a trend, taken in context of the overall upward trend for 2008 this is a very positive development.
Chart courtesy of The Ryness Company
June 26, 2008
Good results for May, well-outperforming “analyst expectations”.
The inventory of existing homes dropped, nationwide from 11.2 months of inventory to 10.8 months of inventory from April to May, a 3.3% reduction.
On absolute terms, the national inventory dropped from 4,553,000 to 4,490,000, a reduction of 63,000 homes.
Existing home sales rotes 2% to a 5m per year pace.
Full results here.
May 27, 2008
The Wall Street Journal is starting to get the word. This is one of the first national articles that highlights Las Vegas recovery strength:
Home sales are rising in some U.S. metropolitan areas where lenders have slashed prices on foreclosed properties.
In the Las Vegas area, sales of single-family homes in April were up 30% from a year earlier.
Full article here.