Las Vegas home sales, prices slide in October

By Buck Wargo

Published Wednesday, Nov. 10, 2010 | 11:24 a.m.

Updated Wednesday, Nov. 10, 2010 | 11:40 a.m.

Southern Nevada home sales continued to weaken in October and prices fell as a result, according to a report released today by the Greater Las Vegas Association of Realtors.

The 2,599 sales of single-family homes were 7.4 percent lower than September and down nearly 27 percent from October 2009.

The median price of homes on the Multiple Listing Service was $133,000, down 1.5 percent from $135,000 in September. The price has fallen 4.4 percent from $139,100 in October 2009, the GLVAR reported.

Sales have fallen since the federal government ended its tax credit, effectively on April 30, for first-time homebuyers and move-up buyers.

The GLVAR attributed the decline to seasonal trends because fewer homes have sold in October compared to September, since 2005.

“We can also expect less activity in the coming months as we head into what is traditionally our slowest season for home sales,” said GLVAR President Rick Shelton. “After weathering the holiday months of November, December and January, I’d expect local home sales and hopefully prices to pick up a bit through 2011.”

In the condominium and town home market, the GLVAR reported the 786 sales fell 1.4 percent from September and 7.5 percent from October 2009. The median price was $65,000 – the same as September, but 7.1 percent lower than the $70,000 it was in October 2009.

The slowdown in sales is increasing the inventory on the market without offers.

The GLVAR reported the availability of homes at the end of October was 22,570, a 0.7 percent decline from September, but there were 12,379 homes without offers. That’s an increase of 4.1 percent from September and 53.3 percent from October 2009.

Investors continue to play a key role in Southern Nevada housing market sales. The percentage of homes purchased with cash accounted for 46.5 percent of all sales in October, up from 45.4 percent in September.

“We’re not aware of any other major city in the nation that has seen such a high percentage of cash buyers for a prolonged period of time,” Shelton said. “This speaks volumes about our housing market and how well-funded buyers believe that prices here will eventually appreciate.”

The GLVAR tracks sales on the MLS in Clark, Nye, Lincoln and White Pine counties. It may include some new homes as well.