VEGAS INC Coverage
Sun Topics
Las Vegas’ existing home prices fell to their lowest level in 21 years during the first quarter and that value pushed sales in March to their highest point in nearly six years.
The median price paid for existing single-family homes, condos and town homes fell 10 percent year-over-year in March to $108,000, and for the year is now $109,000, according to a report released by Las Vegas-based SalesTraq.
The median price hasn’t been that low since it was $104,300 in 1990, SalesTraq President Larry Murphy said. Murphy said a $108,000 home today would be worth less than $59,000 in 1990 when including 3 percent annual inflation.
“We aren’t even factoring in cost-of-living increase,” Murphy said. “That’s like values are at a 50-year low. It just shows how undervalued we are right now.”
Buyers took advantage of those low prices in March when 5,114 housing units were sold, the most since 5,648 were sold in August 2005. The average price per square foot of homes sold in March was $70.57, an 11 percent drop from March 2010.
Investors gobbled up properties on the market with more than half of sales using cash, SalesTraq reported.
Seven of 10 sales of existing homes were distressed properties. Foreclosures accounted for nearly 42 percent of sales, SalesTraq reported. More than 10 percent were sold at auction, while short sales in which the owner owes more on the mortgage than the home is worth accounted for 18 percent of sales.
Four of five homes sold in March were vacant and more appear to be heading into that pipeline. Banks foreclosed on 2,099 homes in March, the first time the number has exceeded 2,000 since April 2010. At the end of 2010, banks backed off foreclosures because of a national controversy over their documentation process.
“The first quarter residential housing statistics for the Las Vegas market contained little additional news that would suggest a recovery is imminent,” said Steve Bottfeld, executive vice president of Marketing Solutions who puts out the monthly numbers with SalesTraq. “Virtually every number that suggested change could be on the way was offset by a corresponding negative number.”
The new-home market remained weak with 279 closings in March. While that’s the most this year, it’s still 44 percent below March 2010. New home sales have been weak since the end of the federal tax credit for first-time homebuyers ended in April 2010.
The median price of new homes sold in March was $195,950, about $7,000 higher than February but 6.5 percent below March 2010.
The price per square foot of new homes sold in March was $101.98, a 2.5 percent drop from March 2010.
Builders boosted their home permits slightly in March by obtaining 339, the most since August, but the valley is on pace to fall short of the 3,776 permits issued in 2010.
In the existing home market, the median price of short sales captured the highest price at $120,000. That was followed by traditional sales at $108,500, foreclosure sales at $106,500 and auctions at $93,500.
Murphy will talk about the first quarter of the Las Vegas housing market and its direction during a Crystal Ball seminar that starts at 8 a.m. Thursday at Alexis Park Resort, 375 E. Harmon Ave. Speakers include Las Vegas Mayor Oscar Goodman and Frank Wyatt, president of the Southern Nevada Home Builders Association. The cost is $29 in advance and $39 at the door. For more information, go to www.crystalballseminars.com/nev.