Investors, cash buyers become larger part of housing market

By Buck Wargo

Wednesday, Feb. 3, 2010 | 1:50 a.m.

Sales of new and existing homes priced below $200,000 comprised 77 percent of transactions in Las Vegas in December as investors remain an integral part of the market, a real estate information firm reported.

That price point also continues to be a favorite of first-time buyers. In December 2008, 58 percent of the sales fell under $200,000, San Diego-based MDA DataQuick reported.

Federal Housing Authority loans, a popular form of financing with first-time buyers, accounted for 50 percent of all home purchases, the firm reported.

Investors and those buying a second home accounted for 40 percent of all Las Vegas homes sold in December, up from 36 percent in November and 31 percent in December 2008, the firm reported.

Cash purchases accounted for nearly 46 percent of sales, up from 43 percent in December and 33 percent in December 2008.

The median price paid in these all-cash deals was $100,000, said DataQuick spokesman Andrew LePage.

Foreclosure sales continued to wane in December but still accounted for more than half of all December transactions. The firm reported 63 percent of sales of existing homes and condos were foreclosures, down from a peak of 74 percent in April 2009.

DataQuick reported the combined 5,315 sales of new and resale homes and condos was the highest in December since 2006, when 5,780 homes sold.

December marked the 16th consecutive month that sales have risen year-over-year, LePage said. December’s sales were 33 percent higher than December 2008.

DataQuick confirms what other research firms have reported -- that prices have changed little in recent months.

The median paid per square foot for single-family homes remained at $76, the same as it’s been since October. That’s down 60 percent from the peak of the market of $190 per square foot in June 2006, the firm reported.