Nearly 75 Percent of Las Vegas Resales Previously Foreclosed On

June 26, 2009 No Comments »

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Last month, 73.4 percent of Las Vegas-area homes and condos that were resold had been previously foreclosed on in the prior 12 months, according to DataQuick.

That’s up from the 55.9 percent share that was distressed a year earlier, a sign that the crisis is far from over.

The only good news (if you want to call it that), is that sales are up, with 4,536 new and resale homes and condos closing escrow during the month, up 1.9 percent from April and 23 percent from a year ago.

It was the highest monthly sales total since March 2007, and the strongest May since 2006; but again, it’s mainly distressed sales.

Unfortunately, the median price paid for resale single-family detached houses (the largest home type category in the area, best price gauge) continues to slip, falling to $140,000 from $142,000 in April.

It’s 40.9 percent lower than a year ago, and stands at its lowest point since February 2001; not to mention it’s 55.2 percent below its peak of $312,250 set in June 2006.

Meanwhile, newly built home sales remain “extraordinarily low” because builders can’t compete with the heavily discounted foreclosures on the market.

Last month, just 365 new homes were sold, 61.3 percent below May 2008 numbers and 80 percent below the average for the month of May going back to 1994; no wonder the builders want all those tax credits, appraisal rules, low mortgage rates, etc.

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