Thursday, May 05, 2016

Las Vegas Real Estate in April: Sales Increased 4% YoY, Inventory Declines Slightly

by Bill McBride on 5/05/2016 10:41:00 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 Southern Nevada Home Prices Holding Steady with Increasing Sales and Tight Supply

According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in April was 3,518, up from 3,379 in April of 2015. Compared to the same month one year ago, 2.4 percent more homes, but 0.7 percent fewer condos and townhomes, sold in April.
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By the end of April, GLVAR reported 7,357 single-family homes listed without any sort of offer. That’s up 0.8 percent from one year ago. For condos and townhomes, the 2,231 properties listed without offers in April represented an 8.5 percent decrease from one year ago.

GLVAR continued to report declines in distressed sales and a corresponding increase in traditional home sales, where lenders are not controlling the transaction. In April, 4.5 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 7.2 percent of all sales one year ago. Another 7.1 percent of all April sales were bank-owned, the same as in March and down from 8.3 percent one year ago.
emphasis added
1) Overall sales were up 4.1% year-over-year.

2) The percent of cash sales decreased year-over-year from 30.4% in April 2015 to 28.1% in April 2016. Cash buying peaked in February 2013 at 59.5%. This has been trending down.

3) Non-contingent inventory for single-family homes was up 0.8% year-over-year.  Inventory for condos was down 8.5%.    Inventory is important to watch - and inventory is still tight.