January 2015 national picture on home sales, according to HousingWire, collapsed to its lowest in 9 months with the Northwest & West taking the brunt of the drop in numbers. Expectations were disappointing in spite of the low mortgage rates, speculation of the lull rests with seasonal influences, low housing supply and rising home prices outpacing inflation. Inventory is at about 4.7 months supply at its current sales pace. Year over Year growth is solid according to the National Association of REALTORS, Lawrence Yun. Freddie Mac is reporting the lowest level interest rate since 2013 on a 30 year Fixed Conventional loan at 3.67%. Distressed sale properties remain steady but low and the all cash sale takes a slight uptick. The recent news imparts an overall improvement in the economy and labor markets, which supports strong buyer demand.
Las Vegas housing is experiencing a baby builder boom in residential, apartment and commercial markets. While activity seems abuzz, delays are impending and not optimal. New construction noted a 12% drop in new home sales for January, according to Home Builders Research, with builders pulling 407 permits, a decline of 9.7% from the previous year. Vegas, INC, touts the average new home sales price at $318, 160, a 6% YOY increase and good news. Builders report selling 1 home per subdivision weekly in mid January, keeping pace double of December’s sales. Though not stellar sales and significant improvements, most builders will tell you they’re happy to see buyer demands raising Vegas from the depths she has seen in the recent past.