Home prices show signs of stability in October

Tuesday, Nov. 18, 2008 | 1:42 p.m.

Price depreciation of existing homes sold in October slowed to its lowest level since April as sales remained strong despite the lingering credit crunch.

The 3,476 sales of existing homes in October marked the largest amount since June 2006, when there were 4,302 sales. It was more than double the 1,676 sales in October 2007, according to statistics released by Las Vegas-based SalesTraq.

Home prices remained stable, falling $2,800 to $184,000. Prices have been much steeper in recent months. Since February 2007, prices have tumbled $104,000.

Steve Bottfeld, executive vice president of Marketing Solutions, said the October housing statistics give the Las Vegas real estate community some much-needed hope as the Thanksgiving holiday approaches.

"They suggest that Las Vegas may be among the first markets to emerge from the real estate slump affecting the nation," Bottfeld said.

The reason for his optimistic take is that while prices didn't rise in October, they are close to September levels. The median sales price of all new homes, including high-rise condos, fell nearly $4,000 to $249,000, Bottfeld said.

Discussion: 5 comments so far…

By stevem

11/18/08 at 2:07 p.m.

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the bulk of these homes sales are investors buying them for rental properties.

anyone that has access to the MLS can tell you there's an explosion of homes for rent.

now, the problem is that there are getting to be fewer and fewer REAL jobs in this town to fill those rentals.

there's a house for rent in my neighborhood that has been on the market for 3 months and it's a fair price and in good shape.
By joncmac

11/18/08 at 2:27 p.m.

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I really think we are close to the bottom on the market in Vegas. Defintely some rays of light in these stats. Think about all the aid, from Citigroup and others. In addition to Citi, Fannie Mae, The federal gov't FHA, many states, JPMorgan Chase, Wachovia, and Bank of America/Countrywide have committed to helping over 2 million homeowners between them keep their homes. I found more info on the programs here.
http://www.needhelppayingbills.com/html/...
By gqbossing

11/18/08 at 3:13 p.m.

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Don't be fooled by one month of mixed data. If sales and prices moved up at the same time that would be a different story.

Typically we see the most sales in the spring and in the fall, this doesn't surprise me.

The fundementals still point to lower home prices:

1. Unemployment 8% and moving nevative with business still slowing down
2. Emmigration of people (less people to rent from people buying homes to rent as well as home owners)
3. Oversupply of homes to people to live in them
4. Lack of tourists to rent homes for weeks at a time.
By VegasRepos

11/19/08 at 7:19 a.m.

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I agree with joncmac. Inventory is holding steady and prices are as well. Recently the banks repos, which are pulling the market down, have begun to hold on to foreclosures and only list them as other foreclosures come off the market. That way they don't shoot themselves in the foot by driving the price down further. If inventory is being controlled then prices will hold relatively steady. Also with many homes at below $70 per sq. foot ( well below replacement cost ) see: http://www.VegasRepos.com for details, many buyers a realizing this is a good time to buy and hold for the long term as indicated by rising sales. Combine that with new housing starts at an all time low and tens of thousands of new jobs coming to Las Vegas, people are realizing this temporary crisis will not last forever and will probably turn on a dime just as in previous cycles.
By azsk8fan

11/19/08 at 8:03 a.m.

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Some people are afraid to even rent a home these days because what's the guarantee that the homeowner is making their housepayment each month - these people may come home from work one day to find a foreclosure notice on their door and an order to vacate the property..........I would be very leery renting a home from a stranger.