Las Vegas Real Estate: Foreclosures Only 7% of Available Residential Listings
Las Vegas Real Estate: Foreclosures Only 7% of Available Residential Listings
As of this writing, the Greater Las Vegas Association of Realtors Multiple Listing Service (MLS) showed a total of 8,793 active Single Family Homes, Town Homes and Condominiums available with no offers. Here is the breakdown:
- 649 foreclosure listings which comprise 7.3% of all listings
- 1,338 short sales which comprises 15.2% of the market
- 1,987 distressed sales (short sale + foreclosures) which equates to 22.5% of the market
- 6,806 listings are traditional sales which make the up 77.5% of the market
The University of Nevada-Las Vegas’ Lied Institute for Real Estate (pronounced “LEED”) reported in its Housing Market 2013, 2nd Quarter (displayed above) there were an estimated 72,737 vacant properties in the Las Vegas area. This is a vacancy rate of 9.4%. It is clear from the numbers of listed homes as compared to the overall vacancy rate in the Las Vegas real estate market that there is still a sizable shadow inventory that exists.
Another interesting component of the overall health of the market is new home sales. According to Lied’s Oct 2013 Market Conditions Report, new homes sales were down 77% from last year at this time. You may be wondering what new home sales would have to do with the amount of foreclosures. The relevancy is that still 41% of homes with mortgages are under water (UNLV LIED INSTITUTE FOR REAL ESTATE STUDIES, REPORT ON NEVADA HOUSING, OCT 2013, PAGE 16). The prospect that prices have peaked means that those yet hoping to get bailed out by rising prices are unlikely to see that scenario pan out, leading to more distressed sales.
If this data correctly suggests that prices will stall or decline once again; then the action buyers and sellers should take is pretty clear. If you were thinking of selling now is a great time to lock up your equity. If you’re looking to buy, you’ll need to look at this market very honestly when deciding whether or not to enter.
About the Author
Paul Rowe is a real estate investor and REALTOR® with Shelter Realty Inc. He can be reached at (702) 376-7379. With hundreds of short sales negotiated successfully over the past 12 years, Paul works exclusively with distressed property owners and potential foreclosure and short sale victims in Southern Nevada who owe more on their mortgage than their property will appraise for.