Las Vegas Real Estate Market Report April 2009

Las Vegas Housing Stats - April 2009 Update (Forrest Barbee, Corporate Broker)

Let’s begin this month by taking a look at current REO vs Short Sale Listings.

	Available	Pending
REO Lisings	4191	6273
Short Sales	6405	4160

These numbers reflect a drop in available REO listings of nearly 1800 just in the past month while pendings increased by nearly 600. Similarly available Short Sale listings dropped by nearly 500 while pendings incrased by nearly 1000.

Now we can download the April 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. Please note the “Available Homes” count; inventory levels dropped significantly in each of the past three months even as the closings have soared. However, the April drop in inventory is the most significant in a very long time due to the lack of REO properties coming onto the market. REO sales still accounted for eighty percent (80%) of the April closings with another eight percent (8%) attributed to short sales. Keep in mind that the dwindling REO inventory combined with an increasing demand for bank foreclosures has created an increased number of multiple offers on these properties. Here is a breakdown of by price points as to how the REO properties sold in April:

April closings sold according to the following terms:

Sold Term Average Sale Price

Cash 39% $107,000
Conv 23% $196,000
FHA 31% $151,000
VA 5% $183,000

Market activity and closed units soared in April to numbers we haven’t seen since August 2005 despite the fact that the average closed sales price has dropped 40% in the past twelve months. In truth the price drops have fueled a robust resale market. However, MLS Area Codes 402, 403, 404, 502, 505 and 602 experienced modest increases in closed sales prices.

Isn’t it interesting that we have more short sale listings than REO listings but end up the month with 80% of GLVAR closings being attributed to REO sales and only 8% due to Short Sale closings? The inefficiencies in processing and closing short sales continues in this market. The short sale listing agent is the key to closing any short sale in this market. Short sale listing agents that routinely close 90% of their short sales are remarkable in their ability to qualify the seller and then work with that client to ensure that all required documentation is provided to the bank or mortgage company in a timely manner.