February, 2014. According to National Title of Nevada, 534 New Homes were sold in December, 2013 at a Median Sales Price of $300,469. Sales of existing homes was 3,453 units at a median sales price of only $160,000. Expect the price gap between new and existing to narrow as this wide of a gap is not sustainable.
In the same period, 428 homes were sold at foreclosure auction while 367 Notices of Default (NODs) were recorded. NOD is the first step in the foreclosure process.
With a relatively week US Dollar and historically low prices, Canadians have enjoyed an advantage for investment and vacation home purchases in the US and Las Vegas, Nevada. According to CBC News in Canada, that is changing. CBC cites, Arizona and Florida as two favorites among Canadians and where buyer competition is making it tougher for non-US residents to buy at such previously fruitful prices.
This is also happening in Las Vegas, NV where decreased inventory and huge demand are making it more difficult for Canadians to purchase homes at such incredible discounts. Of course, the market dynamics make it difficult for local purchasers as well. Canadians still have an advantage for buying a home in Las Vegas, however. Because most Canadians purchase with all cash and a favorable currency exchange rate they are still realizing better ROI than US investors.
Supply for the whole Las Vegas valley area is only about 4000 single-family homes. This is extremely low. Far lower than a normal market. Demand, represented by the pink line (homes in escrow) is at record numbers. Further, this does not show the true demand–those looking for a home but don’t have an accepted offer yet.
List prices are way up. Luckily for buyers the sales prices have not come up as fast as the asking prices. However, it is very difficult to get a non-cash offer at market price accepted–there are always multiple aggressive offers on all reasonably priced homes.
Is Las Vegas’ housing market ready to make a comeback? CNN Money thinks it just might.
With brisk sales, low inventory (yes, the press generally misinforms the public about Las Vegas’ home inventory) Las Vegas is poised for a turnaround.
See article from yesterday, here:
From DigTriad.com / WFMY 2 News
“Shadow inventory” are properties that are either foreclosed on or are expected to be soon and are not on the market yet. Investors often ask me about the “huge shadow inventory” looming in Las Vegas which they believe will some day flood the market. My response is, don’t always believe what you read on the investment blogs. I’ve checked and double-checked and couldn’t find much evidence of banks holding on to Las Vegas / Clark county inventory. I specifically asked Wells Fargo to confirm their previous statement that they are not holding back on releasing inventory. A spokesman replied, “That’s correct. It’s not beneficial for us to do so. We want to get the asset sold.”
Well, now the statistics bear that out. The National Association of Realtors just released their “Las Vegas-Paradise Area Local Market Report, First Quarter 2011″ So you might think that Las Vegas is in the top three states with the most shadow inventory. Or maybe, top ten? How about the truth: LAST. Las Vegas has the LEAST AMOUNT OF inventory off the market in terms of months supply. Here is the list: