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StumbleHome sales, prices fall in Las Vegas in July
Associated Press File
Realtors said the expiration of a federal tax credit translated into lower homes sales and prices last month in the Las Vegas market.
Monday, Aug. 9, 2010 | 11:04 a.m.
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The expiration of the federal tax credit to purchase a home has put a damper on the Southern Nevada housing market.
The Greater Las Vegas Association of Realtors reported today that closings of homes in July fell 12 percent from June and were down 21 percent from July 2009.
Prices for homes also fell in July to $135,000, down 3.6 percent from $140,000 in June and down 2.7 percent from $138,800.
Analysts warned that the April 30 expiration of the $8,000 credit for first-time buyers and a $6,500 one for other buyers would likely slow sales.
The GLVAR reported 2,948 sales of single-family homes in July in Clark, Nye, Lincoln and White Pine counties. That’s down from 3,360 in June and 3,738 in July 2009.
When combining single-family homes, town homes and condos, the 3,748 sales were down 12.2 percent from 4,265 in June and 18.5 percent from 4,602 in July 2009.
The 800 condo and town home sales in July were down 11.6 percent from June and 7.4 percent from July 2009.
GLVAR President Rick Shelton said the latest numbers show the housing market is bouncing along the bottom.
“Our (sales volume) decrease is matching the increase we saw in the previous several months due most certainly to the federal homebuyers tax credit,” Shelton said.
Shelton said that with prices and interest rates at low levels demand should remain solid.
Foreclosure sales increased in July while short sales declined, the GLVAR reported.
That reverses the trend that has taken place for 2010.
Short sales had reached a high of 34 percent of all sales in June before falling to 31 percent in July. In February, only 22 percent of sales were short sales.
As for foreclosures, they constituted 42 percent in July after falling to 38 percent in June. Sales of bank-owned homes accounted for 53 percent of sales in February.
The July trend was reflected in the percentage of homes purchased with cash, which rose to 45.9 percent in July.
The GLVAR tracks closings of homes only listed on the Multiple Listing Service. It’s primarily existing homes but could include some new homes listed by builders.
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Private sector jobs are needed. Period.
nothing to do with homebuyer credit, if only someone with an economics degree could write for the sun..
no jobs, declining economy, higher taxes, stimulus,banks without money, huge debt, greed of the past 10 years, all point to a very long downturn probably a 20 year cycle of bust..
The tax credit did nothing but cannibalize sales that would have happened later in the year. Look for slower times ahead as more folks lose their jobs and are unable to qualify to buy homes.
Imagine, what would happen if the 30,000 to 70,000 unit "shadow inventory" were released on the market?
And what would happen if even more people walked away and left the state?
Tom Shermspun
The Great Ruins of Las Vegas Tour (on Facebook)
So what you're saying is we haven't hit bottom. Combine this news with the jobs report and you can see where it is going to be years before things settle out, at least in Vegas.
I'm still waiting. It's just a matter of time until I can buy my two bedroom condo in Summerlin for $40,000 cash, including all closing costs. In the meantime, the money is parked in the bank, and it's not going anywhere.
It's still a great time to buy a home. The prices are great.
What's kind of depressing is that over 40% are cash deals. People with money are still buying these thing. The rich will get richer, even when the economy is down.
This is a bad time to buy. The banks are playing games with the inventory to get bidding wars. As soon as they release the homes (shadow inventory) it will be a slaughter.
If they keep releasing only 10 a week. We will have a depressed market for a decade.
Buyers beware
http://www.youtube.com/watch?v=2SipXbgyi...
"Shelton said that with prices and interest rates at low levels demand should remain solid."
Solid as in swiss cheese? Now is really, really the time to buy. Really.
"The expiration of the federal tax credit to purchase a home has put a damper on the Southern Nevada housing market."
No, the federal tax credit provided an artificial boost, forcing home prices up above what the market was willing to pay.
This is what happens when you got a socialist in the white house. Not to mention his cronies in the House and Senate. Cut taxes and you'll see this market turn right around.
The Las Vegas market is headed down. Banks can't manipulate the free economy forever.
I'm going to wait till your average 4/3/3, granite, pool, 3,900 sq ft home goes for $86,999 then I will buy.
It will be very scary, because at that price, I probably will overpay,
but I'm betting that in 2043, that same home will appreciate to $89,500.
I expect a large number of additional foreclosures in my area in the next year. Homes were built in 2005 and 2006 and many of those who have a rate increases or balloon payment won't be able to make it any longer.
lets use your head here, who wants to buy in vegas when its 110 degrees in the shade? with the failing casino industry, the marginal schools, re-used water system and poor state government, this enviornment is perfect for seniors, lizards and dinosaurs.
I agree that Reid is at least partly to blame for this. Remember the congress has been lead by the Democrats for the past 4 years and look what has happened to the economy since 2006! I know there are other underling factors, but the entire country has to be back on its financial feet before we will feel any improvement here.
gbigs, you hit it right on the head. Harry Reid and the Dumbo-crats are to blame for the housing debacle we face. Support Sharon Angle
Well, after coming off of 46 days of record heat, maybe it was too hot for people to buy homes in July?
Tightwad talk radio, that tells people not to buy anything or gamble, has caused the housing market to be damaged, along with Bush having two wars that have cost 1 trillion dollars so far.
you and your sister are jerkoffs Cindy. Clean that Portland closet out yet? How about the kitty litter? overflowing isnt it?
Youre irresponsible and you laugh at those left holding the bag.
Your arguments for walking away and not paying what you committed to are childish at best.
Thanks to idiots like you and your sister the real estate system boomed and crashed.
rich people move the economy. you don't elect a president with a clear message of "i hate rich people" and then expect those rich people to spend money.
What happened to the quotes from Bottfield and the housing market going up and this being the time to buy?
Chunky says:
He's not rich by any measure but Chunky knows enough that if the "rich are not getting richer" the average and poor are in really bad shape.
The government only delayed what was / is inevitable and that is the cycle of our economy. There has to be a bottom before we can climb back to the top. Let the bottom happen so we can move on!
Mr. & Mrs. Chunks do not need or want the government to solve their problems. Government is rarely the answer.
That's what Chunky thinks!
Obama needs to be impeached. Harry Reid must be voted out.
This housing problem will be around for awhile and one of the reasons is this scenario: Most of the residents with high good paying jobs own upside down mortgages and since the banks will not modify their mortgages, they are buying another big house at half the price since they qualify. After they move in to the cheap new house, they foreclose the expensive upside down house and the banks will get it at a much lower price compared to modifying their old loans. This problem will go on until all the houses with upside down mortgages get foreclosed.
Buy now and start losing money tomorrow. All these cash buyers who have been buying the last year have lost their butts big time and they are placing them back on the market for a lower cost creating even more inventory to be sold. This market will NOT recover anytime soon. Owners are in Denial and are asking for too much. Sadly,the Equity in their home dictates the price that they are asking.Las Vegas is in a huge black hole with no bottom.
interest rates heading up soon, can't wait for that day, then the real crash will start
if equity was the main reason you bought real estate, did you screw up! i do not feel sorry for all the flippers and people who upgraded to a larger house then had the market crash. blame obama, reid, pelosi even hillary, but dont blame yourself; it wasnt your fault!
1) SHADOW INVENTORY 2) BOOMERS' BAD CREDIT 3) INDUSTRY CONCENTRATED TO GAMING = FEW JOBS
4) LESS AND LESS SUCKERS, Ooops I mean buyers and Investors. 5)UTILITIES ARE EXPENSIVE IN THIS HIGH TEMP IN SUMMER, LOW TEMP IN WINTER 6) GAS PRICES WILL NEVER COME DOWN 7)REAL ESTATE IS DEAD IN LAS VEGAS, AND IN ANY PLACE.
For people who thinks it's the political parties, increase your knowledge by knowing the real identity of the Federal Reserve, and know the basics of our monetary scenario, in this "Fractional Banking" we were doomed, but it does takes sometime. AND ASK..."WHAT DOES GOD WANTS US TO DO WITH LAND?"
There are fundamental investment reasons why the housing prices may not drop much lower. If one has $200k to invest, there aren't many attractive investment vehicles:
1) CD - 1-3%, no risk
2) Munis and bonds - 4%-8%, low-mid risk
3) stock market - very volatile, high risk
4) buy a business - decent return but requires regular management, mid-high risk in this economy
5) buy real estate for rental income - receive 7%-12% cash flow at current prices. Risk is relatively low, when compared to stock market.
If home prices drop further, that only makes the investment more compelling, and should bring in additional investors. Anyone who survived the stock market have seen 70% increase from the low in 3/09, and selling stock now to buy LV homes at 66% below peak is not the worst trade. Home prices in LV from here on should, for a large part, follow ROI.
darren's dad is blind. INVEST? Into what? In real estate where the SHADOW INVENTORY could be as high as 100K or as low as 30K?
Percentages in investment presentation of yours that you are showing here, as you know, is a pump-up the market as high as possible. You maybe a realtor trying to sell however and whatever is the situation.
Get another profession. Real estate will never recover. Look around you, do some research. What is happening had never happened before.
Solid investment? GOLD AND SILVER! PRINTING MONIES IS NOW MAKING US A THIRD WORLD COUNTRY AND PRINTING MORE IS NOT THE ANSWER! AND TRYING TO PLAY MIND GAMES TO SAVE YOUR SKIN IS PRACTICALLY A DECEPTION ON YOUR PART!
vegasishot,
Darrensdad is talking about investment into a rental property, not a flipper property. The controlling factor here is what you can get for rents and the price you pay for the property, not what the property will be worth in one year or five years. As a simple example, if you can get a house for $100,000 and rent it for $1k a month, you are getting a 12% return on investment prior to maintenance and taxes. If you pay $1k a year on maintenance and $4k a year in taxes, it's still 7%, which is better than many other investments. Obviously, there are risks, but there are for all investments.
Even people in my neighborhood are packing up and moving out, everyone is so upside down in this town I don't see a recovery for at least 10 years.
Levi Johnston wants to run for mayor in Wasilla, AK. Hey, now that's a town for me! A town run by a former Playgirl model? God help them all!
@goingbust-
Fairly sound except for the very real threat of declining rents. I know people who are renting single-family, detached homes for $800/ month and finding rentals availaible for $750. Rental owners are becoming increasingly desperate. Apartment vacancies are increasing and rents are falling. "Luxury" high-rise condos are renting for $1000 or less. At 7% after costs and taxes, (disregarding depreciation) the ROI grows very thin. To be successful, an investor must be highly selective and drive very hard bargains to get the absolute lowest price on the best product in the best possible location, and have the resources to keep R&M costs low.
In the LV market, until the population reduces sufficiently, the unemployment rate will continue to climb, thus compressing the market while continuing to increase inventory. Las Vegas is in a classic bust cycle in direct proportion to its 20+ year boom. Ask anyone from Calgary to Houston what it was like from '85 to '95 after the oil bubble burst.
actually I have made substantial gains investing in the volatile stock market, buy when prices are dropping sell when prices are gaining. I would not touch property at all at the moment, it has a long way to fall and you cannot release your funds easily when prices are still going down.
Banks will soon have to release the hidden properties as they won't have much choice, wall street will make their decision for them soon, if the banks don't
goingbust,
You are misleading people. Let me give it to you again, real estate is dead, especially in Vegas. Rental prop? Talk to an appraiser, and you will know something today, the value is based on probable rental income to be COLLECTED!
A...LOT....OF....PEOPLE....HAD....LEFT....VEGAS!
Do you understand what it means? Do you know that rent rates had dropped? YUP! Several yrs now in a row and not getting any better. Even commercial property. WE...HAVE...TOO...MANY...BUILDINGS...VS
.....PEOPLE. Take Eco101 which is SUPPLY VS DEMAND. AND not even considering HIDDEN SUPPLIES(SHADOW INVENTORY).
ALL INVESTMENTS COMPARED TO RENTAL PROP. ARE YOU NUTS? SIMPLE MATH YOU CAN NOT UNDERSTAND, LOOK AROUND YOU, TALK TO PEOPLE, GO TO CAR WASH BUSINESSES OR RESTAURANTS...FEW PEOPLE FOR YEARS NOW IN VEGAS AND GETTING WORST BY THE DAY.
Check out craigslist freebies, for several years I have seen people drop everything to leave Las Vegas, like it is the TITANIC. Do not mislead people. You are like this Journalist with a local TV back in early 2008, interviewing a realtor, and between them, they have decided-->"Best time to buy real estate". How irresponsible!! Whoever took their advice are now in a deep you know what. That is OK with you apparently. DECEPTION IS WORST THAN A STRAIGHT LIE! Then both of you go to Church to show your outside appearance?
Too many victims of real estate already, don't you think it's enough? PLUS BOOMERS MAKES THE WHOLE WORLD GO AROUND, ECONOMICALLLY. INVESTING???? OR RETIRING???? Oh yes, most now have bad credit. Even the dream of recovery ever happens, REAL ESTATE INDUSTRY HAVE A LOT LESS BUYERS, just considering the BABY BOOMERS RETIRING and/or with BAD CREDIT!
vegasishot,
Please take your meds.
Conservatives like to talk about taking personal responsibility while without a sense of irony blame the closest liberal for everything (in this case Harry Reid).
If you're honest with yourself this entire facade of the American dream and owning a home no matter what was pushed by both left and right because it panders to voters.
The fundamental problem is that we Americans live on credit and instead of driving a modest car, must drive the monster 4x4; instead of a modest home, needs to get the biggest, baddest house on the block; instead of buying things in cash, must get the more expensive alternative on credit; instead of saving, spends; and so forth, on the line.
Ultimately all the fools who signed on the dotted line (which turned out to be millions and millions of stupid people of all shapes, sizes, color and background, got us collectively into this mess.
It doesn't help matters that Nevada is a dump for a state- last in education, health, quality of life issues, uneducated work force, et al. That's why we're last.
TheKash hang in there for awhile longer and you will be buying your 2 bedroom Condo in Summerlin for $40,000.
@goingbust
You are right with your figures and bring up some very good points, but buying an investment property and then renting it out in Las Vegas is a very bad proposition. Unlike after the Housing Crash now, a rental home in an established area wasn't a problem at all. A renter was surrounded by other owners, and the rental property was taken care of. Be it by peer pressure to look like other neighbors, or even if the owner had to contract upkeep services to ensure no HOA violations would take place.
Now days, it's a totally different story. First and foremost, the overwhelming majority of houses in neighborhoods are going up for rent. The supply and demand of rental houses then forces landlords to in turn be competitive with their rates, and that drives both monthly rental fees and ultimately profit margins down. And then sometimes if there are too many choices available, even with a competitive rate, you still might not be able to get a renter. No rent means negative cash-flow, and you're making payments on that second house. Some landlords cannot cope with this, and then turn to a very nasty option:
Section 8. When you rent out to welfare families, you don't have to chase down rent checks every month. It's a guaranteed check. But like a rotten tooth ruins a smile, as soon as 1 landlord goes Section 8, quality renters get either scared away or chased out.
It doesn't matter that some apartment complexes now are competitive with their rates against investment properties for rent, nor that versus renting a house there are other disadvantages. What does matter is that most apartment complexes are running background checks that help keep criminals out of their communities, whereas investment properties don't. Furthermore the new trend for many apartment complexes is to stop accepting Section 8 to attract quality, responsible renters, and even have security patrols. Whereas the with rental properties criminals and violent welfare families are moving in and taking over neighborhoods.
You idea sounds good on paper, but it's not a sustainable business model, and it's destroying neighborhoods and property values. Houston, Texas is a great example of this in their Alief suburbs. Section 8 chased out quality families, and now the former suburb is an exurban ghetto just like most of Las Vegas will eventually become.
Gee maybe the Developers should figure out who their market is. SENIORS AND RETIREES who want SINGLE STORY, common walls, nice back yards, desert landscaping, bus lines, low real estate taxes, NO schools nearby, grocery stores nearby, modest square footage--with lots from 1300-1600 square feet.
Quote: "This is what happens when you got a socialist in the white house..." Might I remind you that it was GWB and his daddy who got the country into this mess long before Obama who must now fix this mess. Republicans have very convenient and short memories.
Please look up and read political information from at least 20 yrs ago. This did not start with GWB...get your facts right. He went into office with a 200 million + dept waiting for him. I know that alot of us have been totally against the war. But this President retaliated against the terrorist devils who did a number on us in our own backyard...Would you all been much happier if he went to visit the muslems and bowed at their feet while kissing their hands. GWB was driven to attack Iraq by information that was relayed to him by people he trusted. weapons of mass distruction have been found since the invasion. They are hidden all over Irag, Afghanistan, Pakistan and other muslim countries. When will you realize that this is a religious war to these people. We as a country are considered to be devils and are called dogs to be killed. In my opinion, the mistake GWB's and his generals(advisors)made was to give Irag too much time by warning them 6 wks. before attacking them. There was plenty of time for the people that have been down trodden for years by Saddams' thugs to leave. I would have sent bombers in and leveled Bagdad without mercie. Then our fatalies would not have been so horrific by sending our troops on foot into hostile land. The same thing goes for the other countries that sanction the tel-a-ban and insurgents that keep attacking then running back to the countries mention above.
Now about Nevada economy and low priced housing. When the money started leaving Nevada, the people who were living/working here left. They were sending just about all of their earnings to their own country. As the jobs started to dry up, they left to go back to their real homes. These same people were able to rent or buy their homes by having several families live at these properties with each wage earner paying a small portion of the large rent/mtg. No hardship for them when there are a bunch of them pooling their money. Wake up and band together to keep the people who are running our country in line and demand that they stop giving bailouts! Alot of good the stimulus did. Unfortunately, some peoply who haven't voted for years if ever were actually walking around saying how excited they were about getting the money and making plans of never having to work anymore! I witnessed this behaviour while I was working at a casino. Fools!!! And no I will not vote for Sharron Angle or Harry Ried...will vote independant or liberterian. I think that they are both slick. I stay away from slick smooth talking politicians. By the way, I still cannot figure out why my coworkers and family didn't catch on about voting for a man that has a muslim name, muslim father and a mother that is an athiest, and has still to prove his birth home. My my, there is alot to think about. Do not belittle folks who have their own opinion about all this.
A shot in the arm awaits the Vegas economy, and it starts with the Nevada SB 437 set to take effect in January.
The program calls for Energy Audits of homes for sale. An audit evaluates the house for efficiency and allows for Energy Efficient Mortgages to cover the most efficient and for Energy Improvement Mortgages to upgrade the house and roll the cost of improvements into the mortgage.
These steps will spur investments in our homes, add jobs to the private sector, and stimulate our local economy. It may even impact the housing market by assisting buyers in making decisions based on the future operating costs, eliminating the guesswork and the shock and awe of shoddy construction.
@Axiom-
ON THE MONEY! Let's repost that one with some of my own emphasis:
"Conservatives like to talk about taking personal responsibility while without a sense of irony blame the closest liberal for everything (in this case Harry Reid).
If you're honest with yourself this ENTIRE FACADE OF THE AMERICAN DREAM AND OWNING A HOME NO MATTER WHAT was pushed by both left and right because IT PANDERS TO VOTERS.
THE FUNDAMENTAL PROBLEM IS THAT WE AMERICANS LIVE ON CREDIT and instead of driving a modest car, must drive the monster 4x4; instead of a modest home, needs to get the biggest, baddest house on the block; instead of buying things in cash, must get the more expensive alternative on credit; instead of saving, spends; and so forth, on the line.
ULTIMATELY ALL THE FOOLS WHO SIGNED ON THE DOTTED LINE (which turned out to be millions and millions of stupid people of all shapes, sizes, color and background) GOT US COLLECTIVELY INTO THIS MESS.
IT DOESN'T HELP MATTERS THAT NEVADA IS A DUMP FOR A STATE- last in education, health, quality of life issues, uneducated work force, et al. That's why we're last."
Reid, however, is part of the problem, long-ago sold to the big interests and enslaved to the rush of power. First, he needs to go. Second, the herd needs thinning...
Banks are playing games and holding inventory off of the market to keep prices up. This is also enabling new home builders to keep building and essentially adding even more inventory to the market.
In any other market, this would be called price fixing and illegal. However, when you have a Government that has essentially poured $100 Billion+ into a bunch of programs that have only delayed the inevitable, they'll never admit they were wrong and wasted the U.S. Taxpayers dollars with failed policies.
On top of that.. all of these failed policies only help the banks and not home owners or renters. Artificially High prices and sending Money to Wall Street is never good for the local economy. With the amount of bank owned homes and empty inventory sitting around in Clark County, prices should be at least 10% lower right along with rents. In fact, the rental market should be even lower with all of the new mega apartment buildings built in the past two years but government subsidies are creating higher prices for everybody... even if you don't qualify.
Las Vegans need to stop drinking the Government Kool-Aid programs that only help out the poor and tell their representatives they are tired of sending money to the banks and Fannie Mae / Freddie Mac. Until then, we'll never be on a truly sustainable road towards a real recovery.
@Airweare,
"A shot in the arm awaits the Vegas economy, and it starts with the Nevada SB 437 set to take effect in January.
The program calls for Energy Audits of homes for sale. An audit evaluates the house for efficiency and allows for Energy Efficient Mortgages to cover the most efficient and for Energy Improvement Mortgages to upgrade the house and roll the cost of improvements into the mortgage.
These steps will spur investments in our homes, add jobs to the private sector, and stimulate our local economy. It may even impact the housing market by assisting buyers in making decisions based on the future operating costs, eliminating the guesswork and the shock and awe of shoddy construction."
You are joking right? Mandating that somebody spends their money in one sector only takes that money from other sectors. Adding the costs on to the mortgage only sends more money to the banks on Wall Street.
You must be in some sort of business that will be profiting from this mandate. Anybody else should see this as what it is... forced spending.
When the economy is in a Debt Problem, the last thing you do is FORCE people to spend money. A truly free country lets people decide for themselves if they want an energy efficient home... or not.