Friday, August 08, 2014

Las Vegas Real Estate in July: YoY Non-contingent Inventory up 55%, Distressed Sales and Cash Buying down YoY

by Calculated Risk on 8/08/2014 08:21:00 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 median local home price hits $200,000

According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in July was 3,314, up from 3,274 in June, but down from one year ago. Total sales increased thanks largely to a 12.2 percent monthly increase in condo and townhome sales.

GLVAR said 35.6 percent of all existing local homes sold in July were purchased with cash. That’s up slightly from 34.7 percent in June, but still near a five-year low and well short of the February 2013 peak of 59.5 percent, suggesting that fewer investors are buying homes in Southern Nevada.
In July, 11.5 percent of all existing local home sales were short sales. That’s up from 10.8 percent in June. Another 9.1 percent of all July sales were bank-owned properties, down from 10.1 percent in June.
The total number of single-family homes listed for sale on GLVAR’s Multiple Listing Service in July was 13,717. That’s down 0.9 percent from 13,838 in June and down 2.9 percent from one year ago.

By the end of July, GLVAR reported 7,266 single-family homes listed without any sort of offer. That’s up 2.0 percent from 7,126 such homes listed in June, and a 55.2 percent jump from one year ago.
emphasis added
There are several key trends that we've been following:

1) Overall sales were down about 9% year-over-year.

2) Conventional (equity, not distressed) sales were up 13% year-over-year.  In July 2013, only 64.0% of all sales were conventional equity.  This year, in July 2014, 79.4% were equity sales. 

3) The percent of cash sales has declined year-over-year from 54.5% in July 2013 to 35.6% in July 2014. (investor buying appears to be declining).

4) Non-contingent inventory is up 55% year-over-year.

More inventory (a major theme for 2014) suggests price increases will slow.