Archive for December 4th, 2012

Las Vegas Home Market Gains Noted

Tuesday, December 4th, 2012

A study covering the inclusive period of October 2011 to October 2012 indicated that the ailing U.S. home market might have entered a stage of recovery. The analysis, which appeared on the monthly housing summary of Realtor.com, showed that listed home prices in sixteen major metro areas across the United States rose by double-digit levels during the one-year period. Notably, even some of the areas hardest hit by the real estate meltdown, like Las Vegas, appear to be gaining some stability.

The Realtor.com market reading covered 146 U.S. metro areas. Several market data were factored into the analysis, among which are total number of listings, median list price, and median age of inventory. The monitored asking prices of residences for sale indeed indicate that the sellers engaging the market are showing a higher level of confidence. Increases in the median list price were noted in over one-half of the studied cities.

Las Vegas, one the cities hit the earliest (as well as the hardest) by the mortgage foreclosure in 2006, may have reached a turnaround point earlier this year. According to the Realtor.com study, the average listing price in this metro area gained 12.41 percent from October 2011 to October 2012. This increase was traced to home investors hunting for bargains as residential prices started to level off and showed signs of stability.

Curiously, the state of California which led in the housing boom and bust as a result of subprime mortgage lending, now appears leading the U.S. home market out of that debacle, as Bloomberg observed. Eight California cities are in Realtor.com’s list of top sixteen metro areas which posted double-digit spikes in home asking prices.
Sacramento topped this listing with a gain of 31.01 percent, a hefty increase that was reflected even on a month-to-month gain. The median list price rose by over 14 percent for this metro area from September to October this year, the only U.S. locality to have achieved such a monthly double-digit gain.

Median home list prices Santa Barbara, which came in second in the listing, rose 27.03 percent. Significant reductions in housing inventory have been registered in this California metro area for the past two years. Another California city topping the Realtor.com list, San Jose, at fourth place, experienced a 20.49 percent increase in the average asking prices. Several months ago, Zillow ranked this metro area as the No. 1 sellers’ market in the U.S. Realtor.com also tagged San Jose as a “top turnaround town” where the homes listed for sale have fallen already by 44 percent.