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(September 2009 Las Vegas real estate report)

Las Vegas home sales for August 2009 were down for July by 13.6%. This is primarily due to the lack of new inventory entering the market while we are experiencing a substantial increase in the number of Buyers in the Las Vegas home market. Although the MLS showed 20,999 listings in the market only 8,579 units were not under contract and waiting to close. Approximately 68% of the total Las Vegas home sales were foreclosures called banks (REO’s). The median price of a Las Vegas home has held some what steady for the last 5 months. The total Las Vegas single family home listings for August fell -2.8% from July 2009. We believe that the foreclosure inventory has yet to increase due to the Banks slowing of final auctions. It has become apparent that the completion of foreclosures through the Sherrifs auction is much slower as the Mortgage holders are flooded with mediation and other internal problems in completing the reposessions. According to Realtytrac we will be seeing increased inventory levels.

We are continuing to see a marked increase in the number of Buyers in the Las Vegas real estate market. Sales are down 13.6% from July in most part due to lack of available REO inventory. We are seeing multiple offers on properties under $250,000 and many of these better properties are recieving over 12 offers. The Sellers (Banks) are now setting asking prices below their market value by as much as 20% in an effort to turn their properties into an eBay style auction. The properties are selling well above the asking price and in some cases above the sales prices of the surrounding properties. With over 40% of the Las Vegas homes being sold for cash to investors the appraisal ceases to be a factor in these cash sales. Investors are purchasing properties based on rental cash flow and in many cases this value exceeds the sales prices of like homes in the area. This results in cash investors paying more than a financed owner occupant can pay for the same home.

We are starting to see foreclosures of loans from prime borrowers on “Alt. A” or cafeteria loans. This means we will see an increase in higher priced, larger Las Vegas homes, resulting in some great buys for buyers with large cash down payments in the purchasing range of $475,000 range and above as the mortgage market is more difficult to qualify for loans over $415,000 currently.

Las Vegas is experiencing increased unemployment of 13.1% in July. The unemployment rate has been growing which will result in additional Las Vegas real estate foreclosures.

With the increase sale activity and drop in new Las Vegas REO inventory it is becoming increasingly harder to find homes in excellent condition to purchase. Las Vegas homes still can be purchased below the median price but these homes are increasingly in need of repair and redecorating. I have seen countless homes for sale at below 50% of what they were selling for at the height of the market. Las Vegas homes are truly ON SALE! But it appears that the Las Vegas real estate market is stabalizing as inventories decrease, sales increase and the median price is now holding steady.

I would  like to invite you to contact me in person for specific opportunities in this exciting Buyers market.

Max Schmidt
702-334-2200

Contact Max and let him know what you are looking for here NOW!

Source: Greater Las Vegas Association of REALTORS®

Las Vegas Real Estate Market Charts

Las Vegas listing history to August 2009

Las Vegas homes SOLD history through August 2009

Median home sales price history Las Vegas real estate through August 2009