The Las Vegas Sun ran a front page article Monday, January 17th entitled “Home Sales in Las Vegas Slide in 2010.” The article reveals that “the sale of new single-family homes in Las Vegas in 2010 fell by 4.2 percent from a year earlier to its lowest point since the mid-1980s.” This statistic applies to new construction only. The article also notes that the sale of existing homes fell in 2010 for the first time in three years. Both of these statistics according to Home Builders Research.
4,753 new construction single-family homes were sold in Las Vegas in 2010. This is 207 properties lower than 2009, and the lowest mark for new home sales in Las Vegas in over 20 years. Las Vegas new construction saw its high point in 2005 with 30,829 homes sold.
Depending on which data you use, the sales of existing homes in Las Vegas dropped between 2-5% in 2010.
What is interesting to note, is why home sales declined in 2010. According to Dennis Smith, President of Home Builders Research, the main reasons for the decline were the end of the $8000 Federal new home tax credit in April and “a limited inventory of homes.”
While it may seem counter-intuitive, this comment by Smith is enlightening and lines up precisely with my ongoing reports of sales conditions here in Las Vegas throughout 2010. While demand, especially from investors, has continued to rise for Las Vegas real estate, the available supply of homes has dropped dramatically. According to Sales Traq, the average inventory of Las Vegas homes on the market in 2010 was 12,517, down from 13,926 in 2009. Bank repossessions also fell 10 percent in 2010 to 21,499, down from 24,000 in 2009. This was due largely to a self-imposed moratorium at the end of the year, the firm said. This has resulted in many potential Las Vegas real estate investors failing to close on investment properties in 2010. Some have wasted months chasing short sales, some have found themselves in multiple bid situations trying to purchase one of the limited REOs available, and some have simply temporarily given up looking and waited for the long anticipated “shadow inventory” of foreclosures to materialize.
While these conditions have frustrated potential buyers, I have sold more real estate in 2010 in Las Vegas than ever before. I have developed a buying system that has allowed me to successfully locate and purchase quality investment properties for my investor clients at great prices. If you are interested in purchasing great, turn-key investment properties in Las Vegas, or simply want more information on this volatile market...please don’t hesitate to contact me.
Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com
www.viewpointequity.com
