Las Vegas Home Sales Continue To Fall, But Decline Is Slowing

Las Vegas new home sales increased year-over-year in September 2010. At the same time, though, the overall home sales declined by double digits because of a substantial drop …

Las Vegas new home sales increased year-over-year in September 2010. At the same time, though, the overall home sales declined by double digits because of a substantial drop in existing home sales. Median home prices remained flat compared to a year ago, as the weak economy, lack of job growth and lack of federal tax credits continued to impact potential home buyers. See the following article from HousingWire for more on this.

Las Vegas home sales fell 15% in September from a year ago but held flatter than normal on a monthly basis, according San Diego-based real estate data provider MDA DataQuick.

There were 4,276 new and resold home sales in Las Vegas for September, down 0.2% from August. Monthly sales did fall nearly as far as the 22.2% drop from June to July as investor demand, low mortgage rates and late-closing Summer transactions leveled countered the expiration of the homebuyer tax credit.

Sales of newly built homes increased 4% from a year ago, while existing home sales dropped 19.3%.

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“Beyond the lost tax credits, the housing market has been undermined by a weak economic recovery, a lack of significant job growth and potential homebuyers’ concerns about job security,” according to DataQuick.

Workouts on prevalent developments in the area are being sought. MGM Resorts International and Dubai World, an investment bank backed by the Dubai government, are trying to refinance the $1.8 billion loan on the CityCenter development they own located on the Vegas Strip, Bloomberg reported Thursday.

“Moreover, without the tax credit deadlines, only super-low mortgage rates are pressuring would-be buyers to purchase sooner rather than later.”

The median price on for a new or resale home in Las Vegas stood at $130,000, flat from a year ago and the month before. But it’s a 58.3% drop from the $312,000 median peak in November 2006.

Vegas, which holds the highest foreclosure rate of any metro area in the country, according to RealtyTrac, had 2,687 homes lost to foreclosure in September, down 15% from last year but up 9% from August.

The peak came in February 2009, when lenders foreclosed on 3,718 homes.

This article has been republished from HousingWire. You can also view this article at
HousingWire, a mortgage and real estate news site.

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