October 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 October Table of Contents Nevada Statewide Trends... 2 Northern Trends.. 10 Southern Trends.. 14 Rural Trends... 18 Page 1
Nevada s Housing Market October Nevada Statewide Trends Population: 2,839,099 in Housing Units: 1,198,907 in Source: U.S. Census Bureau: State and County QuickFacts Page 2
Nevada s Housing Market October Nevada Statewide Trends All three regions saw a decrease in existing home sales. Southern Nevada was the only region to see a decrease in new home sales. Both Southern and Northern Nevada saw month to month increases in single family and multi family starts. Humboldt Elko The share of homes sold under distress decreased slightly in October. There were 253 REO sales in October the lowest total since May. Washoe Pershing Lander Eureka Statewide new home prices increased slightly in October as Southern Nevada saw a small increase in new home prices. Average new home prices were over $350,000 for the first time since May. All three regions experienced a decrease in average existing and distress home prices. Carson City Storey Douglas Lyon Churchill Mineral White Pine Single Family Home Sales* October M2M Change Y2Y Change New 660 4.5% +16.2% Existing 4470 7.1% 1.8% Distress Share 11.8% 2.4% 31.7% Residential Construction Total Starts 1,201 +388 +51 Single Family 805 +24 +82 Multifamily 396 +364 31 Average Single Family Sales Price* New $350,043 +0.1% +8.9% Existing $234,889 0.2% +10.0% Distress $172,763 2.5% +6.1% Esmeralda Nye Clark Lincoln Source: Lied Institute calculations using CoreLogic Data 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 October 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 - October ) Date (January - October ) 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 October Nevada Statewide Trends 20 40 60 80 100 Proportion of Affordable Home Sales Housing Affordability Date (1 Quarter - 3 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 - October ) Clark Washoe Source: Greater Las Vegas Association of Realtors and UNR's Center for Regional Studies 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 October Nevada Statewide Trends Monthly Number of Sales 0 1000 3000 4000 Single-Family Distress Sales Date (January - October ) REO Sales Short Sales Share of Distress Sales 0 20 40 60 80 Share of Distress Single-Family Home Sales Date (January - October ) 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 October Nevada Statewide Trends Count in Thousands 0 20 40 60 80 100 Foreclosure Trends 70 80 90 100 Percent 20 30 40 50 60 61.5 Equity Measures as of Quarter 3, (Home Value - Mortgage Balance) 57.3 31.9 25.4 19.0 0 10 Date (January - October ) 90+ Days Delinquent Foreclosure Inventory Positive Equity Negative Equity 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 October Nevada Statewide Trends Monthly Frequency 0 4000 6000 8000 10000 Notices of Default and Repossessions Date (April - October ) REO 3-Month Moving Average Actual REO NOD 3-Month Moving Average Actual NOD Monthly Frequency 0 4000 6000 8000 Residential Home Auctions Date (April - October ) Notice of Trustee Sales 3-Month Moving Average Source: RealtyTrac Source: RealtyTrac These two figures are based on numbers gathered from County records by RealtyTrac. 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 October Nevada Statewide Trends New Jersey New York Florida Maine Hawaii Connecticut New Mexico 8. Nevada Rhode Island Delaware Maryland Illinois Vermont Pennsylvania Ohio Massachusetts Oklahoma Indiana Kentucky Oregon 0 Top 20 States in Foreclosure Inventory 3rd Quarter 2.57 Ranked 8 in Q2 2 4 6 8 10 Percent of Loans in the Foreclosure Inventory Source: Mortgage Bankers Association's National Delinquency Survey 12 New Jersey Maryland Rhode Island Mississippi New York Connecticut 7. Nevada Ohio Delaware Florida Indiana Georgia Arkansas Alabama Pennsylvania Maine Kentucky Louisiana Tennessee Missouri 0 Top 20 States in Foreclosure Starts 3rd Quarter 0.49 Ranked 5 in Q2.25.5.75 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 20 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 October Northern Trends Population: 621,826 in Housing Units: 269,452 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 October Northern Trends Northern Nevada new home sales increased slightly in October. Northern Nevada was still the only region in Nevada where new home sales were down year over year ( 3.4 percent). Northern Nevada was the only region where the share of homes sold under distress increased month over month in October. REO sales still decreased month over month for Northern Nevada. The distress share was down more year over year in Northern Nevada than any other region in Nevada. Northern Nevada has been seeing higher monthly and yearly increases in single family starts than Southern Nevada. Northern Nevada multifamily starts have been down year over year each month since July. Carson City Single Family Home Sales* October M2M Change Y2Y Change New 106 +1.0% 3.4% Existing 1078 4.2% +3.0% Distress Share 7.7% +2.0% 36.7% Residential Construction Total Starts 237 +51 +16 Single Family 217 +31 +52 Multifamily 20 +20 36 Average Single Family Sales Price* New $366,402 0.5% +6.5% Existing $287,302 0.7% +13.4% Distress $203,980 0.5% +4.3% Douglas Washoe Storey Lyon Humboldt Pershing Lander Churchill Mineral Esmeralda Nye Eureka Elko White Pine Lincoln Clark Source: Lied Institute calculations using CoreLogic Data 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 October 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 - October ) Existing New Single-Family Home Sales Date (January - October ) Existing New Share of Distress Single-Family Home Sales 0 20 40 60 Share of Distress Sales Date (January - October ) 0 100 200 300 400 Monthly Number of Sales Single-Family Distress Sales Date (January - October ) REO Sales Short Sales
Nevada s Housing Market October Northern Trends Count in Thousands 0 5 10 15 Foreclosure Trends Date (January - October ) 90+ Days Delinquent Foreclosure Inventory Monthly Frequency 0 500 1000 1500 Date (April - October ) REO 3-Month Moving Average Actual REO NOD 3-Month Moving Average Actual NOD Source: RealtyTrac Notices of Default and Repossessions 70 80 90 100 Percent 10 20 30 40 50 60 53.2 Equity Measures as of Quarter 3, (Home Value - Mortgage Balance) 48.8 24.9 18.1 11.2 Monthly Frequency 0 200 400 600 800 1000 Residential Home Auctions 0 Positive Equity Negative Equity Date (April - October ) Notice of Trustee Sales 3-Month Moving Average Source: RealtyTrac Page 13
Nevada s Housing Market October Southern Trends Population: 2,069,681 in Housing Units: 863,010 in Source: U.S. Census Bureau: State and County QuickFacts (Clark County) Page 14
Nevada s Housing Market October Southern Trends After an extraordinarily large amount of new homes sales in September, new home sales decreased nearly 6 percent in October. Southern Nevada was the only region in Nevada where new home sales decreased in October. New home sales were up 20 percent year over year. Humboldt Elko Both REO and short sales saw significant decreases. October REO Sales (191) were the lowest they had been since. Washoe Pershing Southern Nevada was the only region in Nevada where new home prices increased in October. Southern Nevada also saw the smallest month to month decrease in existing home prices. The price gap between new and existing homes in Southern Nevada was over $127,000 in October. Storey Carson City Douglas Lyon Churchill Mineral Lander Eureka White Pine Single Family Home Sales* September M2M Change Y2Y Change New 539 5.9% +20% Existing 3,230 7.7% 2.8% Distress Share 13.2% 1.0% 29.8% Residential Construction Total Starts 947 +379 +67 Single Family 571 +3 +38 Multifamily 376 +376 +29 Average Single Family Sales Price* New $350,049 +0.3% +10.1% Existing $222,512 0.3% +8.5% Distress $170,365 2.9% +7.7% Esmeralda Nye Clark Lincoln Source: Lied Institute calculations using CoreLogic Data 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 October Page 16 Average Price in Thousands 100 200 300 400 0 4000 6000 8000 Monthly Number of Sales Single-Family Home Prices Date (January - October ) Existing New Single-Family Home Sales Date (January - October ) Existing New Share of Distress Single-Family Home Sales 0 20 40 60 80 Share of Distress Sales Date (January - October ) 0 1000 3000 4000 Monthly Number of Sales Single-Family Distress Sales Date (January - October ) REO Sales Short Sales
Nevada s Housing Market October Southern Trends Count in Thousands 0 20 40 60 80 Foreclosure Trends Date (January - October ) 90+ Days Delinquent Foreclosure Inventory Monthly Frequency 0 4000 6000 8000 10000 Date (April - October ) REO 3-Month Moving Average Actual REO NOD 3-Month Moving Average Actual NOD Source: RealtyTrac Notices of Default and Repossessions 70 80 90 100 Percent 10 20 30 40 50 60 64.7 Equity Measures as of Quarter 3, (Home Value - Mortgage Balance) 60.6 34.5 28.0 21.7 Monthly Frequency 0 4000 6000 8000 Residential Home Auctions 0 Positive Equity Negative Equity Date (April - October ) Notice of Trustee Sales 3-Month Moving Average Source: RealtyTrac Page 17
Nevada s Housing Market October Rural Trends Population: 147,592 in Housing Units: 66,445 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 October Rural Trends October was the eighth consecutive month where new home sales increased month over month in Rural Nevada. However, it was only the second consecutive month where new home sales increased year over year. Humboldt Elko The distress share decreased over 2 percentage points in Rural Nevada the largest decrease of any region in Nevada. Both REO sales and short sales decreased in October. Distress home prices decreased by $10,000 in October. Rural Nevada was the only region in Nevada where distress home prices were down year over year. Distress home prices were down $13,000 on a year over year basis. Washoe Storey Carson City Lyon Douglas Pershing Churchill Mineral Lander Eureka White Pine Single Family Home Sales* October M2M Change Y2Y Change New 15 +12.8% +76.0% Existing 146 12.4% 5.6% Distress Share 12.4% 15.6% 32.1% Residential Construction Total Starts 17 42 32 Single Family 17 10 8 Multifamily 0 32 24 Average Single Family Sales Price* New $239,128 1.9% +7.0% Existing $129,088 2.8% 6.1% Distress $97,682 9.1% 11.1% Esmeralda Nye Clark Lincoln Source: Lied Institute calculations using CoreLogic Data 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 October 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 - October ) Existing New Single-Family Home Sales Date (January - October ) Existing New Share of Distress Single-Family Home Sales 0 10 20 30 40 Share of Distress Sales Date (January - October ) 0 20 40 60 80 Monthly Number of Sales Single-Family Distress Sales Date (January - October ) REO Sales Short Sales
Nevada s Housing Market October Rural Trends Count in Thousands 0.5 1 1.5 Foreclosure Trends Date (January - October ) 90+ Days Delinquent Foreclosure Inventory Monthly Frequency 0 50 100 150 200 Date (April - October ) REO 3-Month Moving Average Actual REO NOD 3-Month Moving Average Actual NOD Source: RealtyTrac Notices of Default and Repossessions 70 80 90 100 Percent 10 20 30 40 50 60 39.6 Equity Measures as of Quarter 3, (Home Value - Mortgage Balance) 39.0 23.7 20.2 14.2 Monthly Frequency 0 50 100 150 200 Residential Home Auctions 0 Positive Equity Negative Equity Date (April - October ) Notice of Trustee Sales 3-Month Moving Average Source: RealtyTrac Page 21
Nevada s Housing Market October 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 5998 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