Report: Las Vegas housing market saw September slump

By Buck Wargo

Friday, Oct. 29, 2010 | 4:42 p.m.

The weak economic recovery in Southern Nevada kept buyers on the sidelines in one of the slowest Septembers in recent history for the Las Vegas housing market, according to a California-based research firm.

September’s sale of 4,275 new and existing homes combined was 9.8 percent below the average for the month of September, dating back to 1994, according to MDA DataQuick of San Diego.

The 451 sales of newly built homes were 4 percent higher than September 2009, but it was still the second lowest month on record for a September, the firm said. Sales of existing homes in September fell 19.3 percent from September 2009.

Sales have been hurt by the ending of a federal tax credit for homebuyers, the firm noted.

Las Vegas was bailed out by investors continuing to acquire foreclosure properties and from buyers spurred on by low interest rates, said DataQuick spokesman Andrew LePage. Absentee buyers purchased 43.1 percent of all homes sold in September and buyers who used all cash accounted for nearly half of the sales.

“Beyond the lost tax credits, the housing market has been undermined by a weak economic recovery, a lack of significant job growth and potential homebuyers’ concerns about job security,” LePage said. “Without the tax credit deadlines, only super-lower mortgage rates are pressuring would-be buyers to purchase sooner rather than later.”

Prices continued to hold steady.

DataQuick reported the median price paid for existing single-family homes in September was $135,500, up $500 from August and September 2009. The price per square foot paid was $77 a month, up from $76 in August.

That marked the sixth consecutive month the price per square foot didn’t fall, LePage said. Prior to April, that indicator had fallen year-over-year each month since late 2006. The $77 per square foot is nearly 60 percent below the peak of $190 in June 2006, the firm said.