Wednesday, July 08, 2015

Las Vegas Real Estate in June: Sales Increased 12.8% YoY

by Bill McBride on 7/08/2015 09:40:00 AM

This is a key distressed market to follow since Las Vegas has seen the largest price decline of any of the Case-Shiller composite 20 cities.

The Greater Las Vegas Association of Realtors reported GLVAR reports home sales, prices post double-digit increases from one year ago

According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in June was 3,693, up from 3,274 one year ago. Compared to June 2014, 14.2 percent more homes and 6.3 percent more condos and townhomes sold this June.
...
Since 2013, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. In June, 6.7 percent of all local sales were short sales – which occur when lenders allow borrowers to sell a home for less than what they owe on the mortgage. That’s down from 10.8 percent one year ago. Another 7.6 percent of June sales were bank-owned, down from 10.1 percent one year ago.
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The total number of single-family homes listed for sale on GLVAR’s Multiple Listing Service in June was 13,740, down 0.7 percent from one year ago. GLVAR tracked a total of 3,474 condos, high-rise condos and townhomes listed for sale on its MLS in June, down 6.5 percent from one year ago.

By the end of June, GLVAR reported 7,432 single-family homes listed without any sort of offer. That’s up 4.3 percent from one year ago. For condos and townhomes, the 2,329 properties listed without offers in June represented a 0.2 percent decrease from one year ago.
emphasis added
There are several key trends that we've been following:

1) Overall sales were up 12.8% year-over-year.

2) Conventional (equity, not distressed) sales were up 22% year-over-year.  In June 2014, 79.1% of all sales were conventional equity.  In June 2015, 85.7% were standard equity sales.

3) The percent of cash sales has declined year-over-year from 34.7% in June 2014 to 28.4% in June 2015. (investor buying appears to be declining).

4) Non-contingent inventory is up 4.3% year-over-year. The table below shows the year-over-year change for non-contingent inventory in Las Vegas. Inventory declined sharply through early 2013, and then inventory started increasing sharply year-over-year. It appears the inventory build is slowing  - but still ongoing.


Las Vegas: Year-over-year
Change in Non-contingent
Inventory
MonthYoY
Jan-13-58.3%
Feb-13-53.4%
Mar-13-42.1%
Apr-13-24.1%
May-13-13.2%
Jun-133.7%
Jul-139.0%
Aug-1341.1%
Sep-1360.5%
Oct-1373.4%
Nov-1377.4%
Dec-1378.6%
Jan-1496.2%
Feb-14107.3%
Mar-14127.9%
Apr-14103.1%
May-14100.6%
Jun-1486.2%
Jul-1455.2%
Aug-1438.8%
Sep-1429.5%
Oct-1425.6%
Nov-1420.0%
Dec-1418.0%
Jan-1512.9%
Feb-1515.8%
Mar-1512.2%
Apr-157.6%
May-157.8%
Jun-154.3%