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Las Vegas home sales down 26.5 percent in October
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LAS VEGAS REVIEW-JOURNAL
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LAS VEGAS REVIEW-JOURNAL
Las Vegas home sales dropped 26.5 percent in October from a year ago and inventory climbed 7.5 percent, an indication that the final quarter of the year may be more sluggish than usual for the local housing market.
The Greater Las Vegas Association of Realtors reported 2,599 single-family residential sales in October, compared with 3,535 in the same month a year ago. The number of homes on the Multiple Listing Service grew to 22,570 from 20,998 a year ago.
Fewer homes were sold in October than September every year since 2005, Realtors association President Rick Shelton said.
"We can also expect less activity in the coming months as we head into what is traditionally our slowest season for home sales," he said.
The median home price slipped to $133,000 in October, down 1.5 percent from September and down 4.4 percent from October 2009, the association reported.
Realtors sold 786 condominiums and townhomes during the month at a median price of $65,000, a decrease of 7.5 percent and 7.1 percent, respectively, from a year ago.
About 28 percent of all existing home sales in October were short sales, or lender-approved sales for less than the principal mortgage balance, down from a peak of 34 percent in June. Foreclosures accounted for 42 percent of October sales.
Housing analyst Larry Murphy of Las Vegas-based SalesTraq said recovery in the housing market will be prolonged by stagnant population growth in Clark County.
"Think about it. If population growth is zero, then the demand for new housing units is also zero," he said. "OK, it's slightly higher than zero because some housing units will be demolished or destroyed by fire."
Home builders produced about 12,000 new homes in 1990, when Las Vegas had a population of 770,000 and was growing at 5.4 percent annually. New-home production increased to roughly 21,000 in 2000, with a population of 1.4 million. With a static population of nearly 2 million in 2010, no new homes are needed, Murphy said.
The percentage of homes purchased with cash rose to an all-time high of 46.5 percent in October, the Realtors association reported.
Shelton said he's not aware of any major city in the nation with such a high percentage of cash buyers over an extended period of time.
"This speaks volumes about our housing market and how well-funded buyers believe that prices will eventually appreciate," he said.
The number of available properties listed for sale without any pending or contingent offer also increased in October to 12,379 single-family homes, a 4.1 percent increase from September and 53.3 percent increase from a year ago.
Frank Nason of Residential Resources said October's 26 percent year-over-year decline in sales is the worst of seven consecutive monthly declines.
"I was really shocked, to tell you the truth," he said. "Not good, especially considering the historical low interest rates, incredible deflationary efforts by the Federal Reserve and no oversight of Fannie Mae and Freddie Mac that just keep producing mind-boggling losses."
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
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Why do people seem to count on the government for help so often around here, and then immediately blame someone else if they don't get what it is they want? Whatever happened to personal responsibility?
Where is our Senator Reid who is going to save us? Come on Reid, we're waiting for you to send us all the pork. After all, all your supports said you are the most powerful democrap and no one else could do more for Nevada. Oh wait, you said no one else could do more for Nevada. Did you really mean that no one else would do LESS for Nevada.
The mortgage interest writeoff is way overblown for the average working class stiff. Assume a $200K house at 5%. That is about $10,000 in interest. Add $2,000 for taxes and you are at $12,000. The standard deduction (what you get if you don't claim anything) is about the same amount for a married couple.
In other words, there is no tax benefits at all for the mortgage deduction in the above scenario. Granted, if you have large charitable contributions or happen to be `lucky' and collect a bunch of W2Gs for those video poker wins, it will help, but it is not as valuable as everyone makes it. If I had a choice, eliminate the deduction and give us a small rate cut
@Alcohol...in my opinion if they mess with that mortgage interest deduction we can expect a tidal wave of foreclosures at least on par with what we have going on right now. Removing or reducing that deduction effectively increases the price of homeownership..and for severely underwater owners it could be the last straw that pushes them to walk away.
To: Frank Salerno,
Foreclosures in Las Vegas are due to double in size. Our property tax bill this year went down a whopping $500.00 and the Clark County Assessor assessed our home a $125,000. 3 to 4 yrs. ago it would have sold for $300,000.
Expect a ton of more foreclosures and suicides.
The good news is that employers are actually hiring again. City Center, which opens in December hired 30,000 employees alone. Station Casinos is again hiring (100) and will be looking for more people. Gambling revenue went up 2% from last year and the Strip hotels are continuously full. An arena may be approved for the Strip (3000 jobs). The arena alone will cost $2 to $3 billion. I believe Las Vegas has turned the tide.
Tip: there are going to be alot of tax sales too (for people who have not paid their taxes). That is sponsored by the City, County and State. Wow, you can get some great deals! And you get the title to the property outright! Title means you own it clean and clear. You have to call that Governmental agency and ask to get on their mailing list.
Tip: Congress is considering dropping the Morgage deduction completely and/or really cutting it down as to how much you are allowed to take. I will fight that one by calling my congressional represenatives on Monday. That is a killer for me and if they do it I will start oweing the Federal Government every year. And, so will many other people and that is it's intent. To bring more money in.
Frank, you owe me a six-pack!
Where is Mighty Mouse? Senator Reid! That crazy lady was right! Do something SAVE US! You are our only hope! Soon we'll have to become government employees!
Say...gambling revenues are up!..at least the casinos will do alright! Good thing they have rent-a-senator service!
Deficit Panel Pushes Cuts
By JOHN D. MCKINNON, COREY BOLES And MARTIN VAUGHAN
"WASHINGTON—A White House commission laid out a sweeping proposal to cut the federal budget deficit by hundreds of billions a year by targeting sacrosanct areas of U.S. tax and spending policy, such as Social Security benefits, middle-class tax breaks and defense spending."
http://online.wsj.com/article/SB10001424052748703805004575607691377554472.html?mod=googlenews_wsj
Maybe Harry can do something?
Use taxpayer money, buy these homes, and give them to illegals? (all in exchange for future votes of course)
Go Harry! Go!
@Frank.Salerno -- Do you live in Las Vegas? If so, look around you. Do you see any reason for anybody to move here? Are any good jobs being created? No Jobs = No Market for real estate. The real estate market should not confuse you. It's going nowhere, and it will go nowhere for a very long time. Even real estate professionals are giving up trying to put any kind of spin on it. Hunker down, that's about it.
Every day I read the articles in the RJ regarding the real estate market here. I get so confused as to its direction, up, down, sideways, etc. Seriously, does any one have any idea of the market.
For Slam Dunk: Very original and clever of you to use the exact words from a TV commercial. Would you be knowledgeable enough to name the film that the ex drill sergeant in the commercial played a base commander? Now as far as other posters having high school at best educations, my educational history managed to place me into electronic and component engineering positions for over 20 years as well as 7 years in media research. Now just how do you come to your conclusions and what do you use for a pedestal?