Monday, March 07, 2016

Las Vegas Real Estate in February: Sales Increased 9% YoY, Inventory Up Slightly

by Bill McBride on 3/07/2016 11:01:00 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 Local Housing Market in Good Shape Heading into Spring, GLVAR Reports

According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in February was 2,676, up from 2,452 in February of 2015. Compared to the same month one year ago, 7.5 percent more homes and 15.8 percent more condos and townhomes sold in February.
...
By the end of February, GLVAR reported 7,328 single-family homes listed without any sort of offer. That’s up a mere 0.2 percent from one year ago. For condos and townhomes, the 2,267 properties listed without offers in February represented a 6.5 percent decrease from one year ago.

GLVAR continued to report annual declines in distressed sales and increasing numbers of traditional home sales, where lenders are not controlling the transaction. In February, 6.6 percent of all local sales were short sales – when lenders allow borrowers to sell a home for less than what they owe on the mortgage. That’s down from 9.3 percent of all sales one year ago. Another 8.6 percent of all February sales were bank-owned, down from 9.7 percent one year ago.
emphasis added
1) Overall sales were up 9.1% year-over-year.

2) The percent of cash sales decreased year-over-year from 37.4% in Feb 2015 to 31.4% in Feb 2016. This has been trending down.

3) Non-contingent inventory for single-family homes was up 0.2% year-over-year.  The table below shows the year-over-year change for non-contingent inventory in Las Vegas.  Inventory is important to watch - if inventory starts increasing again, then price increases will slow.

Las Vegas: Year-over-year
Change in Non-contingent
Single-Family 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%
Jul-155.1%
Aug-153.5%
Sep-15-0.8%
Oct-15-7.1%
Nov-15-5.2%
Dec-15-11.2%
Jan-160.6%
Feb-160.2%