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StumbleHome sales up 64 percent last year in Las Vegas
Despite second-highest number on record, officials say downturn is far from over
Published Friday, Jan. 8, 2010 | 10:01 a.m.
Updated Friday, Jan. 8, 2010 | 11:23 a.m.
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Home Sales
These sales totals include all existing single-family homes, condos and townhomes sold each year in the Southern Nevada area from 2000 through 2009, according to the GLVAR.
- 2000: 17,947
- 2001: 21,921
- 2002: 26,513
- 2003: 35,824
- 2004: 71,963
- 2005: 41,401
- 2006: 29,956
- 2007: 18,555
- 2008: 28,618
- 2009: 46,879
The Southern Nevada housing market showed signs of recovery in 2009 by recording the second-highest number of home sales in the region’s history.
The 46,879 sales of single-family homes, condos and townhomes through the Multiple Listing Service was 64 percent higher than the 28,618 in 2008, according to statistics released this morning by the Greater Las Vegas Association of Realtors.
“It is a good sign, but it is just a number and doesn’t reflect the whole picture of what needs to happen,” said Dennis Smith, president of Home Builders Research and Southern Nevada housing analyst. “There are going to be people who see that number and make too much out of it, but I am not going to jump up and wave the flag. We are not there yet.”
Smith said he remains concerned about the high jobless rate triggering more foreclosures. Prices have stabilized for now, but Smith said he’s concerned more homeowners will walk from their mortgages if there’s no appreciation.
“We are not out of the woods,” Smith said. “I think we will see a similar rate of sales in 2010, but I think it will take two or three years before we have enough comfort to say we are out of this.”
The number of sales in 2009 was second to the 71,963 in 2004 when investors started to flood the market to flip homes.
No one is saying that’s the case this time with demand driven by first-time homebuyers taking advantage of lower prices and an $8,000 tax credit, and investors who have a long-term focus of making income from rentals.
Seventy percent of the sales we have seen this summer have been either investors or first-time homebuyers, Shelton said.
“What we have done is return Las Vegas to an attractive zone and now have an affordability factor that will allow the city to attract people back once we have unemployment in check,” Shelton said. “We are cradling very close to where we need to be -- I don’t want to call it a recovery or rebound – but frankly more of a return to some type of normal which we haven’t seen for a while.”
The rebound in home sales in 2009 is quite a contrast to 2009 when only 18,555 units were sold in Southern Nevada. The GLVAR statistics include Las Vegas, Pahrump, Mesquite and Laughlin and are primarily comprised of existing homes, which make up the bulk of the MLS.
“Anything that depletes the inventory is a good sign in my eyes,” Smith said. “It will just make things turn that much quicker. The sales have helped prices stabilize.”
In December, the GLVAR reported the 3,420 sales of existing homes was 10 percent higher than November and 37 percent higher than December 2008. The median price of homes sold, however, fell $4,000 or 3 nearly percent to $136,000.
The median price of condominiums and townhomes fell 4 percent to $65,300 even though sales rose 7 percent from November to 776. Those sales were up 71 percent from December 2008, the GLVAR reported.
The jump in sales doesn’t mean Realtors are making a lot of money from the transactions, Smith said. Commissions are based on sales prices and since prices are down more than half of where they were two to three years ago, that has cut deeply into their income, he said.
New GLVAR President said the decade that just ended was a roller coaster ride for Las Vegas. He admitted it’s been a challenging time for the housing market and economy as a whole.
“I can’t imagine this new decade being anything like the one we just experienced,” Shelton said.
The GLVAR reported the percentage of homes bought with cash during December was 40.4 percent. About 60 percent of the homes sold in December were bank-owned but that percentage declined in the last half of 2009 because of a dwindling supply of inventory, officials said.
The GLVAR reported there were 19,707 homes listed at the end of December, a 5.5 percent decline from November and 11 percent below its mark in December 2008. Of that total, there were 8,405 units listed without offers.
As for the condo and townhome market, there were 4,576 units available at the end of December, down 4.4 percent from November. There were 1,819 units listed without offers.
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Just think, if the government had not have done the bailout or offered the tax credit, home prices would have fallen even further, probably ending the recession quicker, but more importantly, allowing even more people to afford a home - the goal of the entire program that got us into this mess in the first place.
TIme to buy 3-4 houses, and get a huge home equity loan! Im rich biatchez!
Well, I dont think this is an accurate % because I have not heard of individuals buying, just doing modified loans, and investors are the biggest buyers right now... So I question this article of the facts.
These homes are all garbage grade 3 materials cookie cutter houses that aren't worth the paint job on the outside anyways..
Bottom feeding speculators. From California mostly.
"Home sales up 64 percent last year in Las Vegas"
At least he is an optimist because it should read
"Foreclosure sales up 64 percent last year in Las Vegas"
I hope that these 46,879 people bought these homes to live in for a long time and didn't get adjustable rate mortgages, most will surly be underwater on their mortgages by this time next year, but if they bought them to live in it won't matter, if they bought them to make money, they will be losers for a long time.
What? I thought I read an article last week that says home sales are down 16% from last year? Are we just fudging numbers to make people feel better again?
I gave up my house in 1985 in Houston, due to a severe depression caused by low oil prices. Yet, all the time, the pundits kept saying that things were going to get better. Every year. Never did. I paid $61,000 for a 3 bedroom house in 1980.
Now Houston is booming. Gas and oil is back. Guess what my former house is worth? $90,000. Yippee. Could have made 30 Grand in 30 years. A Grand a year. I probably would have paid $350,000 for the mortgage and taxes in that time span. Whoop-de-doo.. And don't forget that Houston has very high real estate taxes. Best thing I ever did was to 86 the house in Houston. Plus the weather is rotten. "Here, Mr. Bankster, take your lovely house, I've got better things to do elsewhere."
I wish all you people holding on in Vegas the best of luck, but I say "Bail out now". I'm retired in Henderson, life is easy, and the best thing I ever did was to ditch the worthless house back in Houston. Oh, my Henderson house? Paid $143,000 for a view of the Strip in 2000. Nice place. Owe $89,000 now. I learned my lesson.
"Life's lessons learned"... Think about it.
but what's really staggering and should really worry people about the health of this town is that with all those sales...all those buyers...prices are still falling.
do wee need to sell 200,000 homes THIS year to get the prices to go up?
there's more inventory out there than there will ever be people in this town to fill them. until there is 1 house, with 2 people wanting to buy...prices won't go up.
Do not believe any government agency. I don't know where they get the figures but the only house sales are SHORT sales and foreclosures. The houses are bought by corporations expecting to make quick money . Those days are over!
Many of our posters are exactly on target.
If you were to borrow $250,000 now for your bargain Las Vegas "palace" you will pay over the life of the loan at 5%-6% (imaginary):
250,000 INTEREST
250,000 PRINCIPAL
42,000 PROPERTY TAX
30,000 INSURANCE
18,000 WATER
10,800 SEWER
18,000 GAS
45,000 ELECTRIC
10,500 GARBAGE
36,000 SECURITY
25,000 MAINTENANCE
35,000 REPAIRS/REPLACEMENTS
45,000 LANDSCAPING
54,000 HOA DUES
10,000 CLOSING COSTS (BUYING)
25,000 REAL ESTATE BROKER COMMISSION (SELLING)
$904,300 is what you're going to shell out just to live there for the life of the loan.
This doesn't even include food, entertainment expenses, furniture, televisions, computer, phone, internet, and concern for the property "investment" while you're away on vacation (if you can afford to take one) which adds another $540,000 for your "investment" lifestyle.
That's $1,444,300 dollars ($1.444 mil for short).
Before you even start having any savings or retirement money (if any), you have to make AT LEAST $30 PER HOUR before taxes just to LIVE there, (and do nothing else).
Did you get that...? That's a minimum of $30 bucks per hour WITHOUT a 401k or an IRA or any EMERGENCY SAVINGS or any RETIREMENT or VACATIONS AT ALL.
NONE.
But if you do want all that, add another $25 an hour for it. Which means your bargain "palace" lifestyle is going to cost you $55 bucks an hour. Day in. Day out. Pay up.
$55 bucks an hour.
So, after you're done paying for 30 years, you're going to be dead broke and STILL have a house on your hands to pay for or TRY to sell.
Oh, yeah. Here's come the commission types who will jiggle this around and say what bad numbers these are and that "it's a good time to buy!" ('cause they make money off you when you do).
Wrong.
Re-read all of these posters. They are correct.
And so am I....
it going to be a tough years when all government program for housing will end and it will because the government can't sustain this anymore. we going to see alot problem there will be foreclosure and bankruptcy. there no construction going on. no one doing any approvement to there house if they going to loose it. i been since here 1992 i never see this bad it scary. last time it been this slow was when luxor and mgm open. this going to be worst. all these union construction worker that includes me too who have house will loose them it either paid mortage or feed your family. this is sad because all these bank we bail out in 2008 will not help and lend money this is going dry up this city. it sad this city got away from trying to be family friendly when that happen that was beginng of the end for this city. and u wonder why orlando is number tourist destination is because they disneyland. 6 flag park. all we have here is trash in the desert and dead animal carcasses. this not a family friendly town. education went to hell. why would any company moved here if education sucks. so much for education first mr. gibbons. i am sure sandoval will screw education. same with montandon. how come montandon hasn't said anything what going on because he doesn't have nothing.
if i was single i would have file for bankruptcy last year ans start over
Many thanks to the post by THE WIZARD OF OZ - I'm sure that will enlighten many who read this story.
Also, it's not hard to increase sales to 64% when you've got the incentive by the government on 'first-time' purchases (I think the credit is about $8,000 or something like that).
It's not hard to increase sales when the prices have dropped by 40 to 50% from what they were.
It's not had to increase sales when the investors take advantage of short sales and foreclosures so they can make big $$$, and ultimately end up becoming the newest slum-lords on the block.
It's not hard for vultures to feed from the vermin; the dead, those who paid too high of a price for their home, and have lost their jobs/homes/etc., and are suffering while others are basking in this new-found opportunity.
So, what is the percentage that have now become homeless; jobless, bankrupted, etc., - does it match closely with that 64% number??????
until the economic engine starts running at full speed, dont expect a lot of things to get better. this cycle of recession wont go away for a long time.