Las Vegas home sales increase as prices fall in June

By Buck Wargo

Thursday, July 8, 2010 | 10:21 a.m.

Southern Nevada home sales picked up in June, but prices dipped slightly, according to a report released today by the Greater Las Vegas Association of Realtors.

The 3,360 sales reported in June were 16.5 percent higher than May, which was the first month after the expiration of the federal tax credit to stimulate the housing market. Despite the increase, June’s sales were 11 percent lower than June 2009.

The median price for homes sold in June fell 1.4 percent from $142,000 to $140,000. That is the same price as June 2009.

GLVAR President Rick Shelton said the housing market seems to be taking one step back for every two steps forward.

“To really rebound from the downturn of the past few years, we need to see home sales, inventory and prices all pointing in a positive direction for an extended period of time,” Shelton said. “For the most part, two of these three key factors have been in place. We just need prices to go up consistently.”

In the condominium and town home market, the 905 sales were 17.7 percent higher than May. The median price of units sold was $70,000, down 2.8 percent from May.

The GLVAR primarily tracks sales of existing homes, but some new homes are included.

Short sales continued to increase in June while foreclosure sales continued their decline.

The GLVAR reported that 34 percent of the sales were short sales in which owners owe more on their mortgages than the homes are valued. It has steadily risen over the past several months. It was 22 percent in February.

Because short sales are a growing segment of the market, that should help with the extension of a deadline to qualify for the tax credit from June 30 to Sept. 30 for homes sold by the end of April, Shelton said. Completing short sales is a time-consuming process.

The GLVAR reported that 9,174 single-family homes were on the market at the end of June without offer, a 14 percent increase over May. The median price of those listings is $165,000, $25,000 higher than the median price of units sold in June.