Las Vegas new home sales strong

Jennifer Robison

Friday, July 26, 2002 | 10:54 a.m.

A real estate research firm unveiled data Thursday that show new home sales in the Las Vegas Valley were down slightly in June, though sales remain on course to break last year's record.

Numbers compiled by SalesTraq and analyzed by research firm Marketing Solutions show new home closings in the valley totaled 1,897 units in June, a drop of two tenths of a percent when compared to June 2001.

Yet, the firms say sales through the first six months of 2002 remain 2 percent ahead of sales in the first six months of 2001, a banner year during which builders sold nearly 23,000 new homes.

Larry Murphy, president of SalesTraq, said a dwindling supply of subdivisions and the small lead over last year's closings make it difficult to predict whether 2002 will set a record.

The median new home price rose 6 percent in June year-over-year, to $183,000.

Existing home closings totaled 3,481 units in June, a 17 percent year-over-year increase.

The median existing home price in June was $146,000, a 6 percent increase from June 2001.

Steve Bottfeld, senior analyst and executive vice president of Marketing Solutions, said homeowners looking to sell property are having luck with the existing-home market.

"The average home (in Las Vegas) is on the market 55 days, and the average seller gets 98 percent of the asking price," Bottfeld said. "However, in Orange County (Calif.), the average time on the market is 24 days, and buyers are getting 100 percent of their asking price.

"There's a darn good chance that will happen in Las Vegas. It will happen when we don't have enough (new-home) permits, and new home sales will begin to fight directly with resales. It will happen in anywhere from 6 months to two years."

Bottfeld said the market's performance for the remainder of 2002 will hinge on three issues: terrorism, Yucca Mountain and the economy.

He said a terrorist attack is not as likely this year as some public officials say, because "for the first time in a long time, the American public is aware. That awareness will hurt terrorists."

He said Nevadans who want to preserve the local economy also need to continue efforts to derail the federal government's plan to bring high-level nuclear waste to Yucca Mountain.

"There's one simple thing, and that is to protect ourselves. Anything we do that affects tourism will kill us. No tourist wants to go home dayglo Orange. Nor does any tourist want to go home glowing in the dark. That will be the perception."

In addition to terrorism and Yucca Mountain, Bottfeld said the housing market could be affected by Americans' loss of confidence in the country's business leaders.

"It's going to take a while for that confidence to return," he said. "Look for a national recession that will not affect Las Vegas at all."