Foreclosure for Sale Drove Rise in Las Vegas Home Sales

by Simon Lindsay on cities

Total home sales soared in the Las Vegas metro area in June, driven by a large percentage of foreclosure for sale, based on real estate sales data in Nevada.

Total home sales in June increased by nearly 22 percent to 5,519 new homes, resale homes and resale condos in the metro area covered by Las Vegas and its major suburb Paradise. June sales marked an increase of over 44 percent from June 2008 and the highest total monthly sales since December 2006 when total sales soared to 5,780 units. June sales this year also marked the highest June sales since June 2006 when 8,110 units were sold.

Foreclosure for sale drove the rise in June sales as nearly 70 percent of total resales of condos and homes in June were foreclosed homes, marking a 59-percent increase from June 2008 although marking the lowest share since December 2008 when the percentage of foreclosure for sale was nearly 69 percent.

Resales of foreclosure for sale reached its highest level in April this year when nearly 74 percent of total resales were foreclosure for sale units.

June sales also marked the 15th straight month that sales of pre-owned single-family homes increased on a year-to-year comparison. A total of 4,042 pre-owned single-family homes were resold, marking the highest June sales of existing homes since June 2005 when 4,846 units were sold. Resales of condos had monthly increases on a year-to-year comparison for the past 12 months.

The median sales price for all newly-built and pre-owned homes and condos in the Las Vegas metro area was $135,000, the same as the median in May but marked a substantial drop of 41.3 percent from the June 2008 median of $230,000.

Similarly, the median sales price for pre-owned single-family homes in the region stayed the same in June compared to May at $140,000 but decreased by 37.9 percent compared to June 2008. The June median sales price was the lowest monthly median since February 2001 when the median also went down to $140,000 and was more than 55 percent below the peak median price of $312,250 in June 2006.

According to housing analysts, more foreclosures are expected in the Las Vegas metro area because repossessions made by lenders rose in June. Almost 3,600 condos and homes in Clark County became foreclosure for sale units in June, a significant increase of 54 percent from May and 34 percent from June 2008.