If the median price of a single-family house is used as a sole indicator for the health of a real estate market, then Sin City would be hailed as being on the mend. According to GLVAR, or Greater Las Vegas Association of Realtors, Las Vegas median price grew to $142,000 in April, a strong 4.4% improvement from March. Not only that, it also is 0.2% higher from the same month last year, for the first time the year-over-year number is positive since 2007. Single-family house prices peaked in Las Vegas in February of 2007 at $310,000. The slide without a doubt has been blood-thinning.
That, however, is only part of the monthly housing picture here in Southern Nevada.
Single-family house sales tallied up 2,951 units in April, a surprising decline of 224 closings from March. Adding to the weakness in this category is the fact that it's also a 7.7% setback from last year. March showed solid strength and it was widely believed in Las Vegas real estate circles April would follow along those lines, supported by inexpensive mortgage money. But that didn't happen. Puzzlement is painted across faces of everyone who has a stake in the local housing market.
The inventory of single-family houses edged up by some 300 units from March, continuing a recent slow upward trend. But it's 5.6% below the March of 2009 figure, if that is any consolation for Las Vegas real estate experts.
Short sales are steadily gaining ground in Southern Nevada, having 27% of the volume in April, while in February its share stood at 22%. REOs, or bank-owned property, dropped to 43% of April sales, a 10% drop from what it did in February. Clearly mortgage lenders are adjusting strategy now from foreclosures to short sales. What's alarming is that REOs and short sales still dominate the Las Vegas resale market with 70% of all transactions. That makes for a major imbalance that will obviously take some time to untangle.
It's evident that the Southern Nevada - including communities of Summerlin, North Las Vegas, Henderson, Green Valley and Mountains Edge - real estate market is desperately looking for a straighter path out of the current jam. When one key category shows promise, and draws cautious smiles, then another pops up to coldly erase the good feeling. It sure remains work in progress.
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