SalesTraq | FastFacts | December 2016



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Pace of New Home Sales Rises and Resale Mix Improves

THE BOTTOM LINE...The southern Nevada housing market closed out 2016 on a positive note. Clark County released official population estimates for 2016, which indicate the resident count reached 2.2 million (up 2.7 percent from the prior year). The gain translated into 57,570 new residents and an estimated 21,250 new households, contributing to incremental demand in the housing market. The job market was also stronger, reporting a similar 2.7 percent increase. New home closings were on the rise for the second year in a row with 7,934 sales (+14.2 percent). With new home sales rates rising faster than resales (+6.6 percent), new homes accounted for about one in seven overall home sales. While limited inventory in the resale market is likely contributing to the latest market dynamics, builders have managed to more effectively demonstrate the value of new versus resale homes for comparable property types and locations. On the resale side of the equation, price points are well aligned with overall incomes, but the quality of available inventory remains a challenge. As of year-end, the Multiple Listing Services (MLS) posted approximately 2.1 months of effective availability. Perhaps most notable, is the shift from distressed sales activity to a non-distressed market. In December 2016, approximately 88 percent of sales were considered non-distressed, while the balance were comprised of short sales, REO sales and auction sales. This is in sharp contrast to the sales mix reported a few years ago. Additionally, the number of borrowers underwater on their mortgage has reached a new low (16.2 percent in Las Vegas). While pockets of challenge remain in the local housing market, the trajectory and underlying fundamentals are encouraging and point toward continued improvement in 2017.


Closings are from the Las Vegas Valley only  and do not include Laughlin, Mesquite, Boulder City, Bunkerville, Moapa, Mt. Charleston, Indian Springs, or Pahrump. This newsletter is copyrighted. No material may be reproduced in whole or in part without prior written permission from the publisher. For those who wish to distribute this in whole or in part to client lists, discounts are available.