Las Vegas new home sales increase … barely

The new home market is starting to move forward in Las Vegas, albeit very slowly, housing analyst Dennis Smith of Home Builders Research said Wednesday.

“Forward, meaning stabilizing,” he said. “To most in the industry, or those who used to be in it, it couldn’t be much worse. Our read from home builders is they feel stuck in a vacuum and can’t find a way out.”

Home Builders Research reported 426 new home sales in August, compared with 407 sales in the previous month. For the year to date, new home sales have decreased 57 percent to 3,167.

The median price of a new home rose for the third straight month to $210,00. It’s up $3,451, or 1.7 percent, from July and down $46,000, or 18 percent, from a year ago.

Home builders have cut overhead more than anyone thought was possible, Smith said. He knows people who worked 20 years or more for home builders, contractors and title companies that have been let go.

“There are a ton of very qualified people linked to the housing industry out of work and desperately looking for employment,” he said.

Sales of existing homes declined from the previous month to 3,833 closings. However, total resales are up 52 percent for the year at 28,468. The median resale price dropped another $3,000 to $122,000 and is down $78,000, or 39 percent, from a year ago.

Smith said he’s hearing from Realtors that they still have interested buyers and investors looking at real estate-owned, or bank-owned, properties. However, the good homes are difficult to find and there continues to be multiple offers written on them, he said.

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