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Jan. 09, 2009
Copyright © Las Vegas Review-Journal

December brings dramatic increases in Las Vegas home sales

By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL
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Home sales nearly tripled in December from the same month a year ago, though median prices declined 32.7 percent, the Greater Las Vegas Association of Realtors reported Thursday.

The inventory of homes for sale remained relatively stable, up 0.6 percent from a year ago at 22,144 units.

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    • It's the fourth straight month of dramatic sales increases for both single-family homes and condos and townhomes. The 2,498 home sales are up 184.2 percent from 879 in December 2007, while the 455 condo sales are up 172.5 percent from 167 a year ago.

    Sue Naumann, the Realtors association's president, said she's encouraged to see the jump in monthly sales during a challenging time in both the local and national economies.

    December is traditionally a slow time of the year in real estate because of the holidays and colder weather, she said.

    "This shows that buyers are realizing that this is a great time to buy a home," Naumann said.

    She stopped short of predicting when local home prices may rebound, but continued to emphasize that the market presents opportunities that "can't last much longer."

    Amid predictions that home values will decline further, some real estate skeptics are saying it's better to hold off a few months for that "smokin' deal."

    "It's a tough situation," Frank Nason of Residential Resources said. "Some of my agents represent investors scooping up deals. They don't really care if they've found the bottom. They're getting homes below replacement cost, they're holding them for three to five years and they're getting cash flow. So to them, it's a no-brainer."

    Nason said most of his buyers are owner-occupants and they're in the same situation. They understand interest rates are at historic lows for 30-year mortgages and they're going to live in the home for five years or more.

    "Yeah, prices are still declining, but it's like buying a stock. Do you try to pick the bottom? Again, they understand they're buying a home at below-replacement cost," he said.

    Median home prices dropped to $175,000 in December, the lowest level since 2003. Condo prices are down 51.4 percent from a year ago at $89,900.

    Bank-owned properties, or foreclosures, accounted for 41 percent of all listings in December and slightly more than 75 percent of all closings, Nason reported. Short-sale properties, offered at less than the mortgage owed, accounted for 31 percent of listings and 11 percent of closings.

    The percentage of vacant listings continues to increase, Nason said. He found 65.2 percent of single-family listings vacant in December, compared with 44 percent in the beginning of 2007. Condo vacancies rose to 74 percent from 57 percent during the same period.

    Greater Las Vegas Association of Realtors statistics are based on data collected through the Multiple Listing Service, which does not account for new homes sold by builders, sales by owners and other transactions not involving a Realtor.

    Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

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    Get Real wrote on January 16, 2009 04:39 PM: The Dramatic increase in Sales for December of 2008 compared to December of 2007 is because Sales WERE SO BAD for December of 2007.

    If you sell one house in December of 2007 and two houses in December of 2008, that's a 100% increase in sales.

    If you think it's going to get any better anytime soon... I suggest you do some real research and find out how many price drops just took place in the past 30 days....


    perry wrote on January 15, 2009 07:21 PM: there over 32,000 foreclosure in las vegas. 5 % apr. people are trying to refinance they can't one way or another. yes there is application goin in but no acceptance. under new program that started in oct. last about loan modification on 377 was modified. lender want to much to modified you have to jump thru the hoop.there will be more foreclosure more layoffs. when there layoff there be foreclosure.


    Fred wrote on January 10, 2009 08:46 AM: This article is hi-larious. Nobody in their right mind would believe such nonsense. Tourism is down, No jobs available, unemployment at 7%+, and people are buying houses in a tourism town, Ah NO.

    This is a sales pitch, same as it was all the way to the bubble burst, even when houses were selling at 300k+, they were all on the TV and Radio saying now was the time to buy.

    Fact is they NEVER give up, Never.....


    Sales Pitch wrote on January 09, 2009 10:32 PM: Yawn!!!!!!!!!!! Another buy it cheap buy it now sales pitch.


    Doom and Gloom wrote on January 09, 2009 09:05 PM: Wynnvegas - First of all, you must have missed the part about "If you're a seller right now - sorry, it's not good." Second, you're trying to sell in Cleveland! Need I say more?

    The fact that it's been 3 years and you can't even get anyone to look is also a little scary. Are you for sale by owner? Sounds like your price reductions are behind the market, and/or you aren't able to compete with the foreclosure down the street. Again, not a good time to be a seller...especially in Cleveland.


    burn baby burn wrote on January 09, 2009 08:57 PM: Wait a minute... the inventory of houses for sale remained realtively stable....even after selling almost 2500 houses? did that many more houses enter the market? If so can some explain to me how this dramatic increase in sales count do any good?


    headbanger wrote on January 09, 2009 08:55 PM: CAUSE..exactly... require the 20% down payment...and take that money and give to the buyers here who actually DID put 20% down when they made their purchase. Why not ? these people have actual cash losses as opposed to paper losses..and are now in worse equity positions that the subprime and irrespnosible borrowers.


    wynnvegas wrote on January 09, 2009 08:05 PM: Liar - Liar your pants are on fire, your nose is longer than a telephone wire !!! Sound familar? You say now is a good time to buy? I'm here in Cleveland retired and trying to move to Vegas. Earlier today my banker told me my home that has been up for sale for over 3 years, has lost over 40% of it's value due to this mess. I have dropped my price by more than that, and can't get anyone to even look. People are not buying anything because this storm is no where near over. So tell the truth, now is not the time to go into debt for anything. WynnVegas


    Vicky S wrote on January 09, 2009 07:50 PM: blank stare....waiting on the punch line


    CAUSE wrote on January 09, 2009 05:58 PM: I blame Government and Banks for causing this with "stupid loans" (100% financing and I/O etc). Were hey Drunk? In fact, I propose new criminal charges PUI (politicing under the influence) and BUI (banking under the influence). As such, they must modify to give equity in properties (including RENTALS) of the "honest" people who are UPSIDE DOWN. The dishonest people need to get foreclosed on, and return to renting as they did before.

    Solution- require down payments (80/20 LTV) and eliminate ownership "programs" (that is not fair to those who are not "entitled"). Restore responsibility into system.


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