Home sales increase; prices continue to fall

Following the trend of recent months, home sales in Las Vegas increased substantially in March from the same month a year ago while median prices continued to fall.

The Greater Las Vegas Association of Realtors reported 2,980 single-family home sales during the month, a 30 percent increase from February and more than double the number from March 2008.

The median price fell to $149,000, down 4.2 percent from the previous month and down 38.7 percent from a year ago.

Inventory of units available for sale increased slightly to 22,812 in March, compared with 22,142 in February. It’s up 0.2 percent from a year ago.

Realtors association President Sue Naumann said she didn’t see any big surprises in the monthly statistics.

“As prices drop, sales climb. It’s pretty much the same we’ve had the entire quarter,” she said. “Of course, we do have all that inventory out there, but it’s holding steady. They’re being cleaned out.”

It’s good to see nearly 3,000 home sales in March, Naumann said. With interest rates at their lowest level since the 1960s and median prices under $150,000, people are encouraged by the return of housing affordability in Las Vegas.

“I hate to sound like a parrot, but it’s a buyer’s market,” the Realtor said. “What else defines a buyer’s market? Unless they’re giving them away.”

Rob Jenson of ReMax Central in Las Vegas finds it interesting that inventory remains so high despite the increase in monthly sales. Inventory of single-family homes peaked in July and has stayed around 21,000 to 21,500 units, he said.

Distressed sales accounted for 86 percent of closings in March. There were 2,252 foreclosure sales during the month, a 39.6 percent increase from February. Short sales, or homes sold for less than the balance owed, rose 17.7 percent to 193, Jenson reported.

Las Vegas home prices have returned to the level of April 2002, said John Restrepo of Restrepo Consulting Group. Five to seven years of equity, some of it real and some of it on paper, have essentially been wiped out by the housing crash, he said.

“In the long term, a return to some level of affordability is vital to the region’s quality of life,” he said. “However, in the short to intermediate term, it is very traumatic to consumer and business confidence.”

Realtors sold 604 condos and townhomes in March, more than triple the 198 units sold in the same month a year ago. The median sales price was $70,500, down 56.7 percent from a year ago.

Realtor statistics are based on data collected through the Multiple Listing Service and do not necessarily account for homes sold by builders or owners or other transactions not involving a Realtor.

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