Asking prices for Las Vegas homes fall 16 percent

Average asking prices for homes in Las Vegas have been reduced 16 percent, or $61,776, from November, San Francisco-based Trulia.com reported Wednesday.

The average price after reduction was $331,589 as of Feb. 1, compared with $393,365 before the reduction, the online real estate firm showed.

Also, 18 percent of listings in Las Vegas experienced price reductions, which is lower than the 21 percent of homes on the market in the United States that have experienced at least one price cut.

The total dollar amount slashed from asking home prices dropped to $22.6 billion, compared with $28.1 billion in November, a 19 percent decrease. Reductions in Las Vegas totaled $1144 million.

Lower levels of price reductions indicate that the national real estate market may be getting healthier, Trulia spokesman Ken Shuman said. Las Vegas still has a ways to go, he said.

"Nationally, you're under the average, but in terms of what people are chopping off, you're way over," Shuman said. "What we're seeing in your market and other markets with high foreclosure rates is competition to sell and with ever-changing market conditions, prices in your market may have dropped 5 percent a month over the last three months. "

Of the top 50 U.S. cities surveyed, only seven had price reductions of 30 percent or higher in February, compared with 21 in November.

Cities with the largest four month change were San Francisco (-46 percent); Oakland, Calif. (-43 percent); Sacramento, Calif. (-42 percent); San Jose, Calif. (-40 percent); and Indianapolis (-39 percent).

Las Vegas-based Applied Analysis business advisory firm reported inventory of 10,363 homes for sale on the Multiple Listing Service as of Feb. 8, down 33 from the previous week and a 48.1 percent decline from the same week a year ago.

The mix of properties for sale continues to slant toward distressed assets with 44.3 percent of listings noted as short sales, or sales for less than the balance owed, and 15.6 percent already owned by the banks, Applied Analysis reported.

Housing analyst Dennis Smith of Home Builders Research said the Trulia report doesn't distinguish between new and resale prices.

"All I can tell you is look at price per square foot of homes that closed escrow. It's been consistent for both new and resale for the last seven months," Smith said. "I don't know about San Francisco and Indianapolis. I just look at Vegas."

Home Builders Research showed a resale median price of $123,000 at the end of 2009, a 24.6 percent decline from the previous year. New home median prices fell 11.5 percent to $216,854.

Smith said prices will change month to month, but he doesn't think they'll continue to drop by the end of the year.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.