Existing-home sales remain healthy

By Buck Wargo

Friday, Aug. 28, 2009 | 3 a.m.

Demand in July for Las Vegas homes was strong with buyers snatching up the most since September 2005 amid the housing boom.

Las Vegas-based SalesTraq reported 4,675 existing homes sold in July, 12 more than June. The Greater Las Vegas Association of Realtors reported June sales were higher than July, but the organization only counts transactions that use the Multiple Listing Service and includes some new-home sales.

SalesTraq’s data show a robust existing-home market with sales exceeding 4,000 since April. At the current rate, 2009’s sales will exceed 2008’s by early September. Through the end of July, 26,038 homes have sold compared with 31,617 for all of 2008. That’s a 63 percent increase, SalesTraq President Larry Murphy said.

Prices of existing homes have held steady since SalesTraq reported a trough of $120,000 in April. The median price in July was $124,900, $900 higher than June’s revised price of $124,000.

Prices have fallen 57 percent from the market’s peak in June 2006. The price per square foot of existing homes sold in July fell to $76.08, the lowest level this year, SalesTraq reported.

The stability of prices appears to be linked to foreclosures. The inventory is shrinking because of the strong demand by investors and first-time buyers, analysts said.

In July 59 percent of the existing homes sold were foreclosures, according to the statistics. The dip below 60 percent is considered significant because the other homes sold in July had a median closing price of $140,000. Foreclosure homes had a median price of $112,000.

The foreclosure inventory has dwindled because of the strong demand and a moratorium on foreclosures through early March. Also, a state law that took effect July 1 allows homeowners to seek mediation with lenders to modify their loans. The law’s effect is being watched.

In July 2,471 homes were repossessed, the second highest month this year. But 2,759 foreclosure properties were sold, SalesTraq reported.

The inventory of existing homes declined in July, dropping to 11,905 from 12,653 in June and 20,641 in July 2008. Murphy said the supply is enough for 2.9 months. SalesTraq reports that 54 percent of those homes are vacant.

In the new-home market, closings fell to 409 in July from 472 in June. At that rate, it’s unlikely new-home sales will reach 5,000 this year. At the end of July 2,698 new homes had sold compared with 9,965 for all of 2008, SalesTraq reported.

The median price of new homes had a rare month-to-month gain. The median price was $210,000 in July, up by $1,000 from June.

The median price per square foot, however, declined as builders constructed smaller, more affordable homes, analysts said. The median price was $105.44 per square foot, down more than $2 a square foot from June.

The average sales per subdivision was 1.5 in July, with 272 active subdivisions, down from 452 in July 2008, SalesTraq reported.

Despite lackluster sales, home permits issued in July increased to 452. That is the most since August 2008 but considered tepid by historical standards.