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Builders Raise Hopes Despite Surge in Las Vegas Cheap Homes



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By : John Cutts    99 or more times read
Homebuilders nurture hopes of increased new-home sales despite the continued surge in Las Vegas cheap homes. They cite the sharp slowdown in the declines in new home prices and sales.

According to Nevada-based Home Builders Research, sales of new homes in February dropped to 322 units from 375 units in February 2009 and the sales price median dropped by 5 percent or by $10,900 to $209,000.

However, home builders were encouraged because the declines were manageable, unlike last year when cheap multi family foreclosures and bargains at foreclosure auctions in Las Vegas dragged down new house sales and prices to losing levels.

According to Dennis Smith, president of Home Builders Research, home sales and price figures are encouraging because the free fall in prices in 2008 and in 2009 has stopped. He added that the sales price median for February still fell by more than 14 percent to $124,000, but the median has remained relatively flat over the past 9 months, fluctuating between the narrow range of $122,000 and $126,000.

Distressed sales still ruled the market in February, with 46 percent of all home resales accounting for bank-owned homes, but the percentage has broken down the 50-percent barrier.

According to Las Vegas research firm SalesTraq, the sales price median for Las Vegas cheap homes in February was $115,000 while the price median for all other types of homes was $120,000.

The median price for all previously owned homes sold was $118,000, marking a 17.5-percent drop from the February 2009 median while the median sales price for all new homes sold was $206,255, a drop of 5.2 percent year-over-year.

Sales of new homes in February, based on SalesTraq data, fell by 4.5 percent from 358 units to 342 units while sales of pre-owned homes shot up to 3,229 units, an increase of 15.3 percent.

SalesTraq also reported that bank repossessions totaled 1,349 units in February, relatively unchanged from January but down sharply from 2,230 units in February 2009. With a total of 1,485 REO units sold, sales of bank-owned homes again exceeded repossessions. A total of 10,128 REO units were in bank listings in February, far below the 16,454 repossessed units in February 2009.

According to Smith of Home Builders, the February sales figures show that the price and sales impact of Las Vegas cheap homes has started to weaken, as the number of home sales for every newly-developed subdivision in the city spiked in March.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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