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Las Vegas Starts 2010 with a Saturated Housing Market

Posted on February 10, 2010 by Jordan There have been 0 comments

The continuing trend of strategically defaulting on a residential mortgage will hurt the Las Vegas housing market in 2010 more than it will help it. Although more houses are being moved, more people are falling into foreclosure and housing prices continue to drop with no signs of an end. Realtors sold 2,608 single-family homes in Las Vegas during January, a 17.3 percent increase from the same month a year ago. The median price dropped 15.7 percent from a year ago to $134,925, though it's down only 0.8 percent from the previous month. Inventory decreased 10 percent from a year ago to 19,742 listings. Taking out pending and contingent sales, or homes that are under contract, the number is reduced to 8,107 available units.

Inventory is at a high level because of foreclosures and shows no sign of lowering any time soon. The demand doesn’t exist in Las Vegas to absorb the supply of homes on the market through this year and most of 2011.The beginning of the year is looking a lot like the end of 2009, with home prices in double-digit decline from year-ago figures and sales posting double-digit gains.

One of the more promising trends in January was the continued increase in short sales and a decrease in sales involving foreclosed homes. In January, 21.1 percent of all existing homes sold were short sales. This suggests that lenders are more willing to work with homeowners and work out short sales as an alternative to foreclosing on homes.

The extension of the First Time Home Buyer Tax Credit has also impacted the market in a positive way. Home buyers now have the opportunity to take advantage of the credit for another three months. It looks fairly evident that the Las Vegas housing market will struggle in 2010 as it faces more price declines and a growing number of foreclosures. For a state that has the second worst unemployment rate in the US watch for prices to fall even more throughout the year.


This post was posted in Vegas News

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