Tuesday, June 06, 2017

Las Vegas Real Estate in May: Sales up 28% YoY, Inventory down Sharply

by Bill McBride on 6/06/2017 08:00:00 AM

This is a key distressed market to follow since Las Vegas saw the largest price decline, following the housing bubble, of any of the Case-Shiller composite 20 cities.

The Greater Las Vegas Association of Realtors reported Despite housing shortage, local home prices and sales keep rising, GLVAR Housing Statistics for May 2017

Despite a shrinking housing supply, the Greater Las Vegas Association of REALTORS® (GLVAR) reported today that local home prices and sales continued to rise.
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 At the current sales pace, GLVAR President David J. Tina said Southern Nevada now has less a two-month supply of existing homes available for sale. A six-month supply is considered to be a balanced market.
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... The total number of existing local homes, condos and townhomes sold in May was 4,297, up from 3,349 in May 2016. Compared to one year ago, sales were up 24.8 percent for homes and up 11.4 percent for condos and townhomes.

According to GLVAR, total sales to date in 2017 are 17,963, which includes all homes, condos, townhomes and other residential properties sold through GLVAR’s MLS. These sales continue to outpace 2016, when 41,720 total properties were sold in Southern Nevada. That was more than the 38,577 properties sold during 2015. It was also more total sales than in 2014, but fewer than each year from 2009 through 2013.
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By the end of May, GLVAR reported 4,972 single-family homes listed for sale without any sort of offer. That’s down 32.4 percent from one year ago. For condos and townhomes, the 630 properties listed without offers in May represented a 71.8 percent drop from one year ago.

For several years, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. That trend continued in May, when 3.1 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 compares to 4.5 percent of all sales in May 2016. Another 3.7 percent of all May sales were bank-owned, down from 6.1 percent one year ago.
emphasis added
1) Overall sales were up 28% year-over-year.

2) Active inventory (single-family and condos) is down sharply from a year ago (A very sharp decline in condo inventory).

3) Fewer distressed sales.