July Report on Nevada s Housing Market This series of reports on Nevada s Housing Market is presented by the Lied Institute for Real Estate Studies at the University of Nevada, Las Vegas. These reports provide monthly updates on housing market trends for stakeholders throughout Nevada.
Nevada s Housing Market July Table of Contents Nevada Statewide Trends... 2 Northern Trends.. 10 Southern Trends.. 14 Rural Trends... 18 Page 1
Nevada s Housing Market July Nevada Statewide Trends Population: 2,890,845 in Housing Units: 1,209,756 in Source: U.S. Census Bureau: State and County QuickFacts Page 2
Nevada s Housing Market July Nevada Statewide Trends Statewide new home sales decreased as Northern Nevada saw a large decrease in new home sales and Southern Nevada saw a slight decrease. All three regions in Nevada saw month to month decreases in existing home sales. Humboldt Elko The statewide distress share saw a monthly decrease as both short sales and REO sales decreased. At 9.3 percent, the July distress share was the lowest it had been since August. Statewide average new home prices saw a monthly decrease driven by Southern Nevada s large decrease in new home prices. All three regions in Nevada had year over year increases in new home prices. Washoe Storey Carson City Lyon Pershing Churchill Lander Eureka White Pine Existing home prices increased on a month to month and year to year basis for all three regions in Nevada. Douglas Mineral Single Family Home Sales* July M2M Change Y2Y Change New 825 2.7% 0.4% Existing 5,464 5.0% 5.6% Distress Share 9.3% 9.3% 22.9% Residential Construction Total Starts 1,418 111 +161 Single Family 1,034 171 +99 Multifamily 384 +60 +62 Average Single Family Sales Price* New $374,294 3.6% +7.5% Existing $248,558 +1.8% +7.5% Distress $187,681 +1.5% +6.8% Esmeralda Nye Clark Lincoln Source: Lied Institute calculations and the State of the Cities Data Systems by U.S. Department of Housing and Urban Development. *Figures portray Three Month Moving Weighted Averages Page 3
Nevada s Housing Market July Nevada Statewide Trends Average Price in Thousands 100 200 300 400 Single-Family Home Prices Monthly Number of Sales 0 4000 6000 8000 10000 Single-Family Home Sales Date (January - July ) Date (January - July ) Existing New Existing New The Single Family Home Prices figure above shows the three month moving average price of existing homes and new homes. Existing homes are single family homes that were exchanged from one private owner to another. This includes homes sold by real estate agents, owners, and lenders. New homes are single family homes that were exchanged from a builder to a private owner. The other figure, Single Family Homes Sales, illustrates the number of those transactions for both existing and new homes. A seasonal pattern is obvious in the Single Family Home Sales graph, with more home sales during the summer than during the winter. Page 4
Nevada s Housing Market July Nevada Statewide Trends 20 40 60 80 100 Proportion of Affordable Home Sales Housing Affordability Date (1 Quarter - 2 Quarter ) Las Vegas Reno Nation Source: National Association of Home Builders Note: Series denote the proportion of home sales affordable at median income. Equilibrium 250 Clark Listings in Hundreds 130 160 190 220 100 Nevada Single-Family Homes for Sale Date (January - July ) Clark Washoe Source: Greater Las Vegas Association of Realtors and Reno-Sparks Association of Realtors 10 20 30 40 50 Washoe Listings in Hundreds The Housing Affordability figure shows the proportion of home sales that could have been bought by borrowers earning at least the local median income, with a conventional loan. This index was developed by the National Association of Home Builders (NAHB), to provide a benchmark of affordability. The other figure, Nevada Single Family Homes for Sale, shows the numberofhomes availableforsale attheend of themonth. These numbers include new listings that are awaiting a purchasing contract, as well as homes that are under contract and about to sell. Page 5
Nevada s Housing Market July Nevada Statewide Trends Monthly Number of Sales 0 1000 3000 4000 Single-Family Distress Sales Date (January - July ) Share of Distress Sales 0 20 40 60 80 Share of Distress Single-Family Home Sales REO Sales Short Sales Date (January - July ) Single Family Distress Sales is a figure that displays the monthly number of Real Estate Owned (REO) sales and short sales. REO sales are homes that have been repossessed by lenders through foreclosure and then sold in the market. Short sales, on the other hand, are homes that were sold for an amount below the owner s outstanding mortgage balance. Both numbers are three month weighted moving averages. The other figure, Share of Distress Single Family Home Sales, tracks the proportion of home sales (including new home sales) that were REO sales or short sales. The long term decline in that share continues, even as the number of such sales remains roughly level, indicating an increasing number of normal sales. Page 6
Nevada s Housing Market July Nevada Statewide Trends Count in Thousands 0 20 40 60 80 100 Foreclosure Trends Date (January - July ) 90+ Days Delinquent Foreclosure Inventory The Foreclosure Trends figure includes two series: the 90+ Days Delinquent series and the Foreclosure Inventory series. The 90+ Days Delinquent series consists of the number of homes that are secured byaloanindefaultfor90daysormore.this includes homes that are in the process of being foreclosed. The Foreclosure Inventory series consists of homes that have begun the foreclosure process or are in some stage of foreclosure. The other figure depicts what proportion of homes secured by a mortgage have positive equity or negative equity. When a home has a market value at or above its outstanding mortgage balance, it is consider to have positive equity. Otherwise, the house has negative equity. Page 7
Nevada s Housing Market July Nevada Statewide Trends Monthly Frequency 0 4000 6000 8000 10000 Notices of Default and Repossessions Date (April - July ) REO 3-Month Moving Average NOD 3-Month Moving Average Actual REO Actual NOD Monthly Frequency 0 4000 6000 8000 Residential Home Auctions Date (April - July ) Notice of Trustee Sales 3-Month Moving Average The first figure shows the monthly number of Notices of Default and Repossessions. The Notice of Default (NOD) is the initial stage of foreclosure that starts at least 90 days after the homeowner s mortgage default date. Not all homes that receive a NOD will necessarily be foreclosed. There exist other alternatives homeowners can invoke such as a loan modification, deed in lieu of foreclosure, and short sale. The other figure, Residential Home Auctions, shows the monthly number of homes that received a Notice of Trustee Sale and underwent a public auction. It includes both the successful and unsuccessful auctions. Those that were unsuccessful revert back to the lender. Page 8
Nevada s Housing Market July Nevada Statewide Trends New Jersey New York Maine Hawaii Florida New Mexico Connecticut Delaware Vermont Rhode Island 11. Nevada Ohio Illinois Massachusetts Oklahoma Maryland Pennsylvania Indiana Kentucky Louisiana 0 Top 20 States in Foreclosure Inventory 2nd Quarter 2.15 Ranked 10 in Q1 2 4 6 8 10 Percent of Loans in the Foreclosure Inventory Source: Mortgage Bankers Association's National Delinquency Survey 12 New Jersey Mississippi Maine New York Connecticut Rhode Island Florida Ohio Arkansas Delaware Alabama Missouri West Virginia Massachusetts Maryland Indiana Illinois Pennsylvania Louisiana Georgia Vermont 22. Nevada Kentucky Wisconsin South Carolina 0 Top 25 States in Foreclosure Starts 2nd Quarter 0.35 Ranked 23 in Q1.25.5.75 1 Mortgage Foreclosure Starts as Percent of Stock Source: Mortgage Bankers Association's National Delinquency Survey 1.25 These figures rank Nevada nationally on the basis of data provided by The Mortgage Bankers Association s National Delinquency Survey. The Top 20 States in Foreclosure Inventory uses the proportion of outstanding loans that are in the foreclosure inventory that is, the number of home loans reported to be in some stage of foreclosure divided by the total number of home loans serviced. The Top 25 States in Foreclosure Starts is a ranking that uses mortgage foreclosure starts as a percent of stock. In other words, this is the number of initiated foreclosures divided by the total number of home loans serviced. Page 9
Nevada s Housing Market July Northern Trends Population: 629,906 in Housing Units: 271,431 in Source: U.S. Census Bureau: State and County QuickFacts (Carson City, Churchill, Douglas, Lyon, Storey, and Washoe County) Page 10
Nevada s Housing Market July Northern Trends New home sales decreased 14 percent on a month to month basis the largest monthly decrease since September. There were over 30 less new home sales in July than in July. The share of homes sold under distress decreased on a month to month basis for the sixth consecutive month. The distress share was down 4.3 percentage points on a year over year basis. This decrease was driven by decreases in both short sales and REO sales. Washoe Humboldt Pershing Elko Total Residential construction starts saw a large increase as there were 379 Multifamily starts in July. Multifamily starts were the highest they had been since June. Northern Nevada was the only region in Nevada where new home prices increased on a month to month basis. Carson City Single Family Home Sales* July M2M Change Y2Y Change New 129 14.2% 20.4% Existing 1,256 1.7% 3.9% Distress Share 4.7% 8.8% 41.7% Residential Construction Total Starts 636 +401 +417 Single Family 262 72 +49 Multifamily 374 +329 +368 Average Single Family Sales Price* New $404,768 +0.7% +12.2% Existing $303,806 +1.2% +7.7% Distress $207,642 2.5% +7.2% Storey Douglas Lyon Lander Churchill Mineral Esmeralda Nye Eureka White Pine Lincoln Clark Source: Lied Institute calculations and the State of the Cities Data Systems by U.S. Department of Housing and Urban Development. *Figures portray Three Month Moving Weighted Averages Page 11
Northern Trends Nevada s Housing Market July Page 12 Average Price in Thousands 150 200 250 300 350 400 0 500 1000 1500 Monthly Number of Sales Single-Family Home Prices Date (January - July ) Existing New Single-Family Home Sales Date (January - July ) Existing New Share of Distress Single-Family Home Sales 0 20 40 60 Share of Distress Sales Date (January - July ) 0 100 200 300 400 Monthly Number of Sales Single-Family Distress Sales Date (January - July ) REO Sales Short Sales
Nevada s Housing Market July Northern Trends Count in Thousands 0 5 10 15 Foreclosure Trends Monthly Frequency 0 500 1000 1500 Notices of Default and Repossessions Date (April - July ) Date (January - July ) REO 3-Month Moving Average Actual REO 90+ Days Delinquent Foreclosure Inventory NOD 3-Month Moving Average Actual NOD 70 80 90 100 Percent 10 20 30 40 50 60 54.30 Equity Measures as of Quarter 2, (Home Value - Mortgage Balance) 49.81 28.32 19.21 12.98 8.18 Monthly Frequency 0 200 400 600 800 1000 Residential Home Auctions 0 Positive Equity Negative Equity Source: CoreLogic Date (April - July ) Notice of Trustee Sales 3-Month Moving Average Page 13
Nevada s Housing Market July Southern Trends Population: 2,114,801 in Housing Units: 871,807 in Source: U.S. Census Bureau: State and County QuickFacts (Clark County) Page 14
Nevada s Housing Market July Southern Trends Existing home sales decreased on a month to month basis and year to year basis after five consecutive months with increases. There were 200 more existing home sales in July than July. New home sales also decreased slightly on month to month basis. Humboldt July was the second consecutive month with a large monthly decrease in Multifamily homes. Single family starts saw a month to month decrease for the first time since November. Washoe Pershing Elko New home prices decreased over 4 percent on a month to month basis. This was the largest month to month decrease since November. New home prices were up $23,000 on a year over year basis. Existing home prices saw a slight increase in price for the fifth consecutive month. Existing home prices were up $16,000 on a year over year basis. Single Family Home Sales* July M2M Change Y2Y Change New 681 0.3% +5.4% Existing 3,963 6.0% 5.2% Distress Share 10.7% 9.3% 19.2% Residential Construction Total Starts 764 504 256 Single Family 754 237 +50 Multifamily 10 267 306 Average Single Family Sales Price* New $371,510 4.4% +6.5% Existing $237,295 +1.7% +6.9% Distress $190,623 +2.3% +8.2% Carson City Storey Douglas Lyon Lander Eureka Churchill Mineral Nye Esmeralda White Pine Lincoln Clark Source: Lied Institute calculations and the State of the Cities Data Systems by U.S. Department of Housing and Urban Development. *Figures portray Three Month Moving Weighted Averages Page 15
Southern Trends Nevada s Housing Market July Page 16 Average Price in Thousands 100 200 300 400 0 4000 6000 8000 Monthly Number of Sales Single-Family Home Prices Date (January - July ) Existing New Single-Family Home Sales Date (January - July ) Existing New Share of Distress Single-Family Home Sales 0 20 40 60 80 Share of Distress Sales Date (January - July ) 0 1000 3000 4000 Monthly Number of Sales Single-Family Distress Sales Date (January - July ) REO Sales Short Sales
Nevada s Housing Market July Southern Trends Count in Thousands 0 20 40 60 80 Foreclosure Trends Monthly Frequency 0 4000 6000 8000 10000 Notices of Default and Repossessions Date (April - July ) Date (January - July ) REO 3-Month Moving Average Actual REO 90+ Days Delinquent Foreclosure Inventory NOD 3-Month Moving Average Actual NOD 70 80 90 100 Percent 10 20 30 40 50 60 66.99 Equity Measures as of Quarter 2, (Home Value - Mortgage Balance) 61.96 38.53 28.76 23.25 17.61 Monthly Frequency 0 4000 6000 8000 Residential Home Auctions 0 Positive Equity Negative Equity Source: CoreLogic Date (April - July ) Notice of Trustee Sales 3-Month Moving Average Page 17
Nevada s Housing Market July Rural Trends Population: 146,138 in Housing Units: 66,518 in Source: U.S. Census Bureau: State and County QuickFacts (Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Mineral, Nye, Pershing, and White Pine County) Page 18
Nevada s Housing Market July Rural Trends Rural Nevada was the only region in Nevada where new home sales increased on a month to month basis. This was the first monthly increase in new home sales for Rural Nevada since February. The share of homes sold under distress decreased for the second consecutive month. The July distress share was down 2.7 percentage points on a year over year basis. Washoe Humboldt Elko Both Single Family and Multifamily starts decreased on month to month basis and were unchanged on a year to year basis. Distress home prices saw a month to month increase and a large year over year increase. July was the third consecutive month where distress home prices decreased on a year over year basis. Average distressed homes sold for $15,000 less in July than in July. Carson City Single Family Home Sales* July M2M Change Y2Y Change New 14 +5.1% 31.7% Existing 218 6.8% 15.6% Distress Share 9.3% 9.5% 22.5% Residential Construction Total Starts 18 8 +0 Single Family 18 6 +0 Multifamily 0 2 +0 Average Single Family Sales Price* New $236,392 1.7% +2.5% Existing $143,271 +1.1% +10.5% Distress $92,333 +2.6% 14.2% Storey Douglas Lyon Pershing Lander Churchill Mineral Esmeralda Nye Eureka White Pine Lincoln Clark Source: Lied Institute calculations and the State of the Cities Data Systems by U.S. Department of Housing and Urban Development. *Figures portray Three Month Moving Weighted Averages Page 19
Rural Trends Nevada s Housing Market July Page 20 50 100 150 200 250 300 Average Price in Thousands 0 200 400 600 800 Monthly Number of Sales Single-Family Home Prices Date (January - July ) Existing New Single-Family Home Sales Date (January - July ) Existing New Share of Distress Single-Family Home Sales 0 10 20 30 40 Share of Distress Sales Date (January - July ) 0 20 40 60 80 Monthly Number of Sales Single-Family Distress Sales Date (January - July ) REO Sales Short Sales
Nevada s Housing Market July Rural Trends Count in Thousands 0.5 1 1.5 Foreclosure Trends Monthly Frequency 0 50 100 150 200 Notices of Default and Repossessions Date (April - July ) Date (January - July ) REO 3-Month Moving Average Actual REO 90+ Days Delinquent Foreclosure Inventory NOD 3-Month Moving Average Actual NOD 70 80 90 100 Percent 10 20 30 40 50 60 43.47 Equity Measures as of Quarter 2, (Home Value - Mortgage Balance) 39.87 25.18 21.39 16.27 13.79 Monthly Frequency 0 50 100 150 200 Residential Home Auctions 0 Positive Equity Negative Equity Source: CoreLogic Date (April - July ) Notice of Trustee Sales 3-Month Moving Average Page 21
Nevada s Housing Market July About the Lied Institute The Lied Institute was established in 1989 by the Lee Business School at the University of Nevada, Las Vegas to foster excellence in real estate education and research. Through partnerships with business and community leaders, the Lied Institute strives to improve the real estate business and effective public policy practices in Southern Nevada. The institute produces relevant and timely real estate research, supports educational programs in real estate economics and finance for students and professionals, and provides community outreach and continuing education. Lied Institute for Real Estate Studies 4505 S. Maryland Parkway, Box 456025 Las Vegas, NV 89154 6025 Edward Coulson Director (702) 895 1660 Ed.Coulson@unlv.edu Betty Campbell Program Coordinator (702) 895 4492 Betty.Campbell@unlv.edu Peter Counts Data Analyst (702) 895 3223 Peter.Counts@unlv.edu Copyright Report on Nevada s Housing Market Readers may reproduce the publication s items if they cite the publication name and date, and note the copyright of Lied Institute for Real Estate Studies, University of Nevada, Las Vegas. Page 22