O'Brien-Nikolov Team
The Las Vegas Sun by Steve Green: Vegas, Detroit show weakness as home prices rise nationally. The new Case-Shiller Home Price Indices issued Tuesday show the Las Vegas real estate market continues to underperform the national market. Home prices overall rose in June in 20 big-city markets covered by the report. But Las Vegas and Detroit were the two exceptions, with falling prices. The report, issued by credit rating agency Standard & Poors, said that overall the 20-city index of home prices rose 1.4 percent from May to June. But prices were down 2 percent in Las Vegas and 0.8 percent in Detroit, Standard & Poors said. Tuesday's report is in line with recent reports on home prices and foreclosures showing some stabilization nationwide -- but also showing continuing problems for the Las Vegas and Nevada markets. Las Vegas was hit hard by the subprime mortgage crisis starting in 2007 as many mortgages went into foreclosure when their interest rates reset higher.
Homeowners -- many speculating that prices would rise -- typically found themselves underwater as the debt against their properties exceeded their values. The U.S. gambling capital more recently has been hit hard by the U.S. recession, which reduced visitation to Las Vegas and sharply reduced activity in the big Southern Nevada construction and development industries. Las Vegas-area unemployment has soared, hitting 13.1 percent in July. Overall, the good news about the national economy was contrasted with the bad news in Las Vegas in Tuesday's Case-Shiller report. "As seen in both seasonally adjusted and unadjusted data, as well as the charts, there are hints of an upward turn from a bottom. However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness," David Blitzer, chairman of S&P's Index Committee, said in a statement. "While not alone, Las Vegas and Detroit continue to be two markets that are struggling severely. These are the only two markets that fell in June and saw deterioration in their annual rates of return. Since their relative peaks they have fallen 54.3 percent and 45.3 percent, respectively," the report said. While falling home prices are a symptom of the troubled economy in Las Vegas, they are keeping real estate agents busy selling homes that are now suddenly affordable for those able to quality for mortgages. The Greater Las Vegas Association of Realtors earlier this month said that with bank-owned foreclosure sales still dominating the market, sales of existing homes, condominiums and townhomes in July were off just slightly from June's record numbers. July sales totaled 4,602 units. The Realtors said the median price of existing single-family homes in the Las Vegas area was $138,800, down 0.9 percent from June. The median price of condominiums and townhomes was $67,000, up 1.5 percent.
Case-Shiller Home Price Report August 2009
Now, I agree with this entire article,but they ALWAYS leave out the relevant information for buyers and sellers. As I continue to work with more and more buyers trying to take advantage of the market, I'm running into problems getting offers accepted. I'm not writing "low ball" offers, and in most cases I'm bidding above list price. I have a CASH buyer who has submitted four strong offers, and she's getting out bid every time. How is that possible? In Las Vegas, our total available inventory of single family homes is 8666 as of August 31st. Out of that, there are 1939 foreclosures available, and 3583 short sales. Short sales can take anywhere from 30-180 days to close. Many "traditional" sellers are still trying to hold on to their inflated prices, which keeps these properties on the market a lot longer. The best priced homes are the foreclosures. Last month, over 4400 homes sold. With that many sales, and only 2000 bank owned homes available, the competition for them is stiff. Short sale transaction ARE moving faster, but you still have to be very patient. If you'd like to search for Las Vegas Foreclosures click here.
Felipe Crook
Prudential Americana Group Realtors
Las Vegas Nevada
1-866-589-1646
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