Las Vegas real estate market update and resale home sales for October 2008. Do we see light at the end of the tunnel? Home prices seem to have reached the lowest and month to month sales have increased.
Year to date prices for new homes declined 17.3 percent. News of new homes prices at this level could be near the bottom. Las Vegas home builders can’t sell and make a profit at lower prices.
Good news for the residential housing market that prices didn’t fall far from the previous month. Median new home prices were $249,000, a $4,000 decline, and existing home prices were $184,000 or a $2,000 decline.
Builders are starting to show their price per square foot. Some are displaying $100 a square foot or below and that’s near their cost. When you factor in the cost of the land they could be undercutting their total cost.
Resales have increased due to 60 to 70 percent bank foreclosures and reo properties sold. They contributed 3,140 resales for October. A 13.1 percent increase from Oct 2007.
Year to date new home sales from the multiple listing service shows 9,134 closings or a decline of 46 percent. New Las Vegas homes sales in October was 842 compared to a year ago of 1,324 sales.