Despite record setting foreclosures in the Las Vegas valley, home sales are climbing. The number of sales for October have surpassed levels during the 2004 and 2005 boom for the same month. The Las Vegas homes market is in full swing.
Don't count southern Nevada down and out when it comes to the Las Vegas real estate market. Despite the media's best efforts to portray Las Vegas as a ghost town, people are snapping up real estate. The year started off with the most dismal home sales the valley had seen in years. Home prices had fallen to pre-2003 levels and inventory kept climbing as more Las Vegas properties went into foreclosure. Prices in most market segments have now hit bottom and savvy investors are taking full advantage.
Taking a look at the sales figures for October, a whopping 71% of all residential closings were bank owned REO sales. Inventory is still high and the number of available listings are going up for single family residences. The red hot Las Vegas condos market has cooled a bit. Given the state of the credit market, you would think there would be less financed homes. However that isn't the case as only 18% of the closings in October were cash. FHA loans had the lion share of closings at 39%, with conventional loans at 36%. VA loans made up the remaining 5% for the month of October.
Its a safe bet that the foreclosure wave isn't over. There are thousands of loans due to adjust in the next six months, so expect inventory levels to remain high. Most banks have caught on to the market and are becoming a little more flexible (and realistic) in their pricing. The number of short sales should also sure to go up. It will be interesting to see what will happen to the market when the new administration takes over next year. In the meantime, the Las Vegas market is still going strong.
Published by Charles Richey on November 10, 2008 05:45 PM
