www.lasvegasmtg.com Report: Is Las Vegas housing inventory rising due to declining sales? The Greater Las Vegas Realtors and Applied Science has reported that Las Vegas housing inventory has been increasing weekly at a pace of 280 homes per week since late April. The housing inventory in Las Vegas has increased to 14,854 a 4,800 increase in four months.
Current housing inventory has increased by 20% over last year withvacant or tenant occupied properties representing 80% of the standing inventory. Contingent sales that are currently pending, 80% are short sales that require the banks approval. The Short Sale process is slow and tedious with a success rate of only 25% in actual closing.
In a recent article about the concerns HUD Secretary Shaun Donovanhad about declining sales nationally of existing home sales since the First time Home Buyer Tax Credit had expired in April 30th we are seeing the same statistics in Las Vegas. Las Vegas has seen a decline over last year mirroring the west coast numbers of 31% decline in pending sales.
With rates as low as they have been in a half a century and housing prices at 1980 levels a slowing of sales and higher inventory does not paint a rosy picture for a recovery for our Las Vegas Housing Maket relatively soon. If the Federal government re-instates the Tax Credit will we see another spurt of buyers interest only to slow after it is removed?
It is only speculation on my part but the increase in inventory might be the release of shadow inventory we have heard, about but did not see in listings. If this is true, the release of more inventory while consumer demand is slowing is not a positive outlook for home prices stabilizing in Las Vegas for the short term. What is your opinion?