Home sales, prices fall in Las Vegas in July

By Buck Wargo

Monday, Aug. 9, 2010 | 11:04 a.m.

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.