BluefoxToday blog : Las Vegas home sales soft

Las Vegas home sales soft

 

The pattern is quite familiar. For several months in a row now the stats that the local analyst Home Builders Research puts out show that home sale numbers remain soft. The market is in a funk, that's clear. Besides product oversupply, there also is another factor in the mix at this time of the year. Namely, when the middle of the summer temperatures reach 111 degrees and higher, who wants to go out house shopping. It's called a seasonal trend.

Here's a quick rundown on some of the numbers that matter. New home sales decreased in June by 45% from a year ago and existing sales dropped 36%. This is pretty much what has been happening for the last four to six months.

The only bright spot in the Las Vegas real estate market continues to be the median price level. The June new home and resale median sales prices actually rose a few ticks from May's numbers. That is somewhat surprising. A local developer says he knows why. Vegas is gradually turning itself into a top-tier city with multiple beneficial factors - weather, except now, solid economy, terrific entertainment, to mention a few of them - that just attract people here to live and own property. He cites as an example San Francisco a few decades ago where prices were predicted to crash and they went up instead. Because people wanted to set up house over there.

When we compare median price levels with last year's, they are down a tad, 2% for new homes and 4% for resales. All in all, not much has changed recently.

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 4 commentsEsko Kiuru • July 20 2007 07:13PM

Comments

Median prices may be up a tad, but on what volume??? Our prices are up slightly too, for the few homes that have sold.  Problem is that not enough are selling because the prices are so high few buyers are interested.

Listing agents advise sellers to "hold out".  Maybe our prices look good but home buyers lost about 40% of purchasing power in the past 5 years.

It's not a healthy market.  Too few buyers chasing too many homes.  Too many agents chasing too many listings. 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 10 years ago
I really believe the market being a little soft only helps the experienced and hard working agents make more money.  Just my 2 cents
Posted by Highland Beach Condos David Serle, Boca Raton Agent David Serle (RE/MAX Services) over 10 years ago
Esko - Great point - in 111 degree weather not many folks want to be outside doing anything - let alone house hunt! Keep on blogging!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 10 years ago

Lenn,

For the activity to pick up here, prices should come down some.

David,

Soft market definitely will weed out some agents and lenders.

Tony,

Being from Phoenix, you know the impact of the heat, even on home buyers.

Posted by Esko Kiuru over 10 years ago

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