Las Vegas new-home prices rise
Median prices for new homes in Las Vegas rose in March and climbed above year-ago levels, a report Thursday from SalesTraq housing research firm showed.
The new-home price increased 3.3 percent from February to $201,668, and is up 1.6 percent from $198,400 in the same month a year ago, according to the March report.
The resale median was $103,000, an increase of $2,200 from February, but down 4.3 percent from $107,663 a year ago. Prices for nondistressed homes rose for the third straight month, to $105,000.
The housing market continues to be stressed, said Brian Gordon, principal of Applied Analysis, which acquired SalesTraq in March.
"Listings are down and foreclosure volume took a nosedive," Gordon said. The new-home market remains in a "diminished state" with just 352 sales in March, he said. That’s a fraction of the 1,600 a month that were selling during the boom years. Still, they’re up 24.4 percent from the previous month.
Not only is the new-home sector showing signs of stability, the resale market continues to adjust to new market realities, Gordon said. There were 4,773 resales during the month, a 9.1 percent decrease from March 2011 with 54 percent of closings in cash.
A key factor in the performance of Las Vegas’ housing market is foreclosure volume, the analyst said. During March, a "paltry" 322 homes were repossessed by lenders, roughly half of the previous month and down 84 percent from a year ago, Gordon noted.
Gordon said it appears some new developers are feeling more optimistic about demand as the count of residential building permits grew to 514 in March, more than double the previous month and 43.2 percent more than a year ago.
It’s true that 500-plus permits is not a "game changer," but it does reflect the highest monthly permit total since March 2010 when 700 permits were pulled, Gordon said. Before that, he has to go back to August 2008 to find the last month with more than 500 permits.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
