Report on Nevada s Housing Market · 2019-11-11 · Page |3 Nevada Statewide Trends Nevada’s Housing Market | July 2014 Nye Elko Clark Lincoln Humboldt Washoe White Pine Lander

ReportonNevada’sHousingMarket

July2014

FundingprovidedbytheHousingDataandIndexProject,ajointinitiativeof:

ThisseriesofreportsonNevada’sHousingMarketisco‐presentedbytheLiedInstituteforRealEstateStudiesattheUniversityofNevada,LasVegasandtheStateofNevadaDepartmentofBusiness&Industry.ThesereportsprovidemonthlyupdatesonhousingmarkettrendsforstakeholdersthroughoutNevada.

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Nevada’sHousingMarket |July2014

TableofContents

NevadaStatewideTrends…….................................... 2

NorthernTrends………………………………………….. 10

SouthernTrends………………………………………….. 14

RuralTrends…………………………………………........... 18

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NevadaStatewideTrends

Population:2,790,136 in2013 HousingUnits:1,186,879 in2013

Source:U.S.CensusBureau:StateandCountyQuickFacts

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Nye

Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity

Single‐FamilyHomeSales* July2014 M2MChange Y2YChangeNew 509 +2.3% ‐38.8%Existing 4853 +0.8% ‐17.5%DistressShare 18.1% ‐0.2% ‐33.2%

ResidentialConstructionTotalStarts 1486 +419 +775Single‐Family 1006 +45 +299Multifamily 480 +375 +476

AverageSingle‐FamilySalesPrice*New $307,281 +1.8% +10.2%Existing $214,671 +1.6% +7.4%Distress $164,630 +0.9% +4.9%

Source:LiedInstitutecalculationsusingCoreLogic DataandtheStateoftheCitiesDataSystems byU.S.DepartmentofHousingandUrbanDevelopment.*FiguresportrayThree‐MonthMovingWeightedAverages

ThestateofNevadasawstrengthinthenewandexistinghomemarketthismonth.Asdetailedbelow,theexistinghomemarketwasdrivenbythenorthandthenewhomemarketwasdrivenbythesouth.Neitherregionsawanysignificantchangesinthemarketforhomessoldunderdistress.

Totalresidentialconstructionstartssawalargeincreasethismonthoverlastmonth.ThisisunusualasstartstypicallypeakinJune.ThislargechangewasduetoasubstantialincreaseinmultifamilystartsinSouthernNevada.Nonetheless,single‐familystartscontinuetoseeconsistentmonthtomonthgrowthandJulysingle‐familystartswerethehighesttheyhadbeensince2008.


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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 byreal estate agents, owners, and lenders. New homes are single family homes that were exchanged from a builder to a privateowner. The other figure, Single‐Family Homes Sales, illustrates the number of those transactions for both existing and newhomes. A seasonal pattern is obvious in the Single‐Family Home Sales graph, with, more home sales during the summer thanduring the winter.


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Existing New

Source: CoreLogicNote: Series are 3-month weighted moving averages.

Single-Family Home Prices

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The Housing Affordability figure shows the proportion of home sales that could have been bought by borrowers earning atleast the local median income, with a conventional loan. This an index was developed by the National Association of HomeBuilders (NAHB), to provide a benchmark of affordability. The other figure, Nevada Single‐Family Homes for Sale, shows thenumber of homes available for sale at the end of the month. These numbers include new listings that are awaiting a purchasingcontract. As well as homes that are under contract and about to sell.


EquilibriumEquilibrium

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Las Vegas Reno Nation

Source: National Association of Home BuildersNote: Series denote the proportion of home sales affordable at median income.

Housing Affordability

Equilibrium

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Clark Washoe

Source: Greater Las Vegas Association of Realtors and UNR's Center for Regional Studies

Nevada Single-Family Homes for Sale


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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, onthe other hand, are homes that were sold for an amount below the owner’s outstanding mortgage balance. Both numbers arethree‐month weighted moving averages. The other figure, Share of Distress Single‐Family Home Sales, tracks the proportion ofhome sales (including new home sales) that were REO sales or short sales. The long term decline in that share continues, evenas the number of such sales remains roughly level, indicating an increasing number of “normal” sales.


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Date (January 2000 - July 2014)Source: CoreLogic

Share of Distress Single-Family Home Sales

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REO Sales Short Sales


Single-Family Distress Sales


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The Foreclosure Trends figure includes two series: the 90+ Days Delinquent series and the Foreclosure Inventory series. The90+ Days Delinquent series consists of the number of homes that are secured by a loan in default for 90 days or more. Thisincludes homes that are in the process of being foreclosed. The Foreclosure Inventory series consists of homes that have begunthe foreclosure process or are in some stage of foreclosure. The other figure depicts what proportion of homes secured by amortgage have positive equity or negative equity. When a home has a market value at or above its outstanding mortgagebalance, it is consider to have positive equity. Otherwise, the house has negative equity.


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90+ Days Delinquent Foreclosure Inventory

Source: CoreLogic

Foreclosure Trends

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Source: CoreLogic

(Home Value - Mortgage Balance)Equity Measures as of Quarter 2, 2014

Positive Equity Negative Equity


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These two figures are based on numbers gathered from County records by RealtyTrac. The first figure shows the monthlynumber of Notices of Default and Repossessions. The Notice of Default (NOD) is the initial stage of foreclosure that starts atleast 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 andunderwent a public auction. It includes both the successful and unsuccessful auctions. Those that were unsuccessful revertback to the lender.


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REO 3-Month Moving Average Actual REONOD 3-Month Moving Average Actual NOD

Source: RealtyTrac

Notices of Default and Repossessions

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Notice of Trustee Sales 3-Month Moving Average

Source: RealtyTrac

Residential Home Auctions


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These figures rank Nevada nationally on the basis of data provided by The Mortgage Bankers Association’s NationalDelinquency Survey. The Top 20 States in Foreclosure Inventory uses the proportion of outstanding loans that are in theforeclosure inventory ‐ that is, the number of home loans reported to be in some stage of foreclosure divided by the totalnumber of home loans serviced. The Top 20 States in Foreclosure Starts is a ranking that uses mortgage foreclosure starts as apercent of stock. In other words, this is the number of initiated foreclosures divided by the total number of home loansserviced.


121086420Percent of Loans in the Foreclosure Inventory

KentuckyOklahoma

South CarolinaIndianaOregon

Rhode IslandPennsylvania

OhioNew Mexico

DelawareVermont

MarylandNevada

IllinoisHawaii

ConnecticutMaine

New YorkFlorida

New Jersey

Source: Mortgage Bankers Association's National Delinquency Survey

2nd Quarter 2014Top 20 States in Foreclosure Inventory

1.251.75.5.250Mortgage Foreclosure Starts as Percent of Stock

South CarolinaArkansas

North CarolinaKentuckyVermontNevada

New YorkPennsylvaniaRhode Island

IndianaGeorgia

MaineMississippi

IllinoisDelaware

OhioConnecticut

FloridaMaryland

New Jersey

Source: Mortgage Bankers Association's National Delinquency Survey

2nd Quarter 2014Top 20 States in Foreclosure Starts

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NorthernTrends

Population:614,491in2013 HousingUnits:267,161in2013

Source:U.S.CensusBureau:StateandCountyQuickFacts (CarsonCity,Churchill,Douglas,Lyon,Storey,andWashoeCounty)

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NorthernTrends Theexistinghomemarkethadmorerobustgrowththanthenew

homemarketinNorthernNevada.Newhomesalesandsinglefamilystartsdecreasedthismonth,whilenewhomepriceonlyincreasedmodestly.However,NorthernNevadanewhomesalesandnewhomepriceshaveshownstrongergainsthanSouthernNevadaonayeartoyearbasis.

NorthernNevadasawaslightincreaseinthenumberofREOsalesandshortsalesthismonth.However,therewassuchalargeincreaseinexistingtraditionalhomesalesthismonththattheproportionofhomessoldunderdistressdecreased.

The average price gap between new homes and existing homes inNorthern Nevada is $70,000 , $5,000 less than last month.

Nye

Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity


Single‐FamilyHomeSales* July2014 M2MChange Y2YChange

New 97 ‐3.0% ‐16.2%Existing 1065 +3.0% ‐9.5%DistressShare 14.0% ‐2.0% ‐42.3%

ResidentialConstructionTotalStarts 257 ‐4 +132Single‐Family 169 ‐26 +44Multifamily 88 +22 +88

AverageSingle‐FamilySalesPrice*New $328,057 +0.7% +16.7%Existing $258,055 +2.9% +7.0%Distress $194,426 +2.5% +10.6%


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NorthernTrends


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NorthernTrends

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Source: CoreLogic

Foreclosure Trends

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Notices of Default and Repossessions10

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SouthernTrends

Population:2,027,868 in2013 HousingUnits:854,089 in2013

Source:U.S.CensusBureau:StateandCountyQuickFacts (ClarkCounty)

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Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

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Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity

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SouthernTrends


Single‐FamilyHomeSales* July2014 M2MChange Y2YChangeNew 397 +4.5% ‐41.9%Existing 3600 +0.5% ‐18.7%DistressShare 19.5% +0.0% ‐32.3%

ResidentialConstructionTotalStarts 1,211 +425 +678Single‐Family 819 +72 +286Multifamily 392 +353 +392

AverageSingle‐FamilySalesPrice*New $306,088 +2.0% +9.4%Existing $206,115 +1.0.% +6.6%Distress $161,416 ‐0.7% +4.3%


SouthernNevadaisshowingthemostimprovementinthenewhomemarket.ClarkCountyistheonlyregioninNevadathatsawincreasesinnewhomesales,newhomestartups,andnewhomeprices,fromthepreviousmonth.

TotalresidentialconstructionstartscontinuestoseelargeandconsistentgrowthinSouthernNevada.SouthernNevadawastheonlyregiontoseeanincreaseinsinglefamilystartupsthismonth.Over80percentofNevada’stotalresidentialconstructionstartscamefromSouthernNevadathismonth.

Newhomepricesaregrowingfasterthanexistinghomeprices.TheaveragepricedifferencebetweenanewhomeandanexistinghomeinSouthernNevadaisabout$100,000.

SouthernTrends

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SouthernTrends


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Foreclosure Trends

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RuralTrends

Population:147,777 in2013 HousingUnits:65,629in2012

Source:U.S.CensusBureau:StateandCountyQuickFacts (Elko,Esmeralda,Eureka,Humboldt,Lander,Lincoln,Mineral,Nye,Pershing,andWhitePineCounty)

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RuralTrends RuralNevadaistheonlyregioninNevadathatsawadecreasein

newandexistinghomesales.ThenewhomemarketcontinuestostruggleinRuralNevadaassalesaredownover50percentyearoveryearandpriceisdownover11percentyearoveryear.

TheshareofhomessoldunderdistresscontinuestofluctuateeachmonthinRuralNevada.TheselargechangesareduetovolatilityinthesmallnumberofREOsalesvaryingeachmonth,asshortsalesarefairlyconstantandrelativelylowinruralNevada.RuralNevadaistheonlyregioninNevadawherethedistresssharehasincreasedyearoveryear,andisnow27percenthigherthanthistimelastyear.

Nye

Elko

Clark

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Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity


Single‐FamilyHomeSales* July2014 M2MChange Y2YChangeNew 14 ‐12.2% ‐53.8%Existing 161 ‐9.0% ‐33.7%DistressShare 17.2% +39.6.% +27.3%

ResidentialConstructionTotalStarts 18 ‐4 ‐35Single‐Family 18 ‐4 ‐31Multifamily 0 +0 ‐4

AverageSingle‐FamilySalesPrice*New $219,174 +4.6% ‐11.7%Existing $127,663 ‐3.1% +7.1%Distress $83,822 +1.2% ‐13.3%


RuralTrends

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RuralTrends


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Foreclosure Trends

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About the Lied Institute

The Lied Institute was established in 1989 by the LeeBusiness School at the University of Nevada, Las Vegasto foster excellence in real estate education andresearch. Through partnerships with business andcommunity leaders, the Lied Institute strives toimprove the real estate business and effective publicpolicy practices in Southern Nevada. The instituteproduces relevant and timely real estate research,supports educational programs in real estateeconomics and finance for students and professionals,and provides community outreach and continuingeducation.

About the Department of Business & Industry

The Department of Business and Industry is a cabinetlevel agency in the Nevada State government. TheDepartment’s objective is to encourage and promotethe development and growth of business and to ensurethe legal operation of business in order to protectconsumers by maintaining a fair and competitiveregulatory environment. The Director’s office atBusiness and Industry manages a number of programsand initiatives to address the needs of smallbusinesses, homeowners and consumers includingsmall business advocacy, bond programs, access tocapital, housing retention programs, constituentservices and fraud prevention and education.

LiedInstituteforRealEstateStudies4505S.MarylandParkway,Box456025

LasVegas,NV89154‐6025

EdwardCoulsonDirector

(702)895‐[email protected]

BettyCampbellProgramCoordinator(702)895‐4492

[email protected]

PeterCountsGraduateAssistant

[email protected]

DepartmentofBusiness&Industry555E.WashingtonAve#4900

LasVegas,NV89101

BruceBreslowDirector

(775)684‐[email protected]

AshokMirchandaniDeputyDirector(702)486‐4492

[email protected]

©Copyright2013ReportonNevada’sHousingMarketReadersmayreproducethepublication’sitemsiftheycitethepublicationnameanddate,andnotethecopyrightofLiedInstituteforRealEstateStudies,UniversityofNevada,LasVegasandtheStateofNevadaDepartmentofBusiness&Industry


Documents

Report on Nevada s Housing Market · 2019-11-11 · Page |3 Nevada Statewide Trends Nevada’s Housing Market | July 2014 Nye Elko Clark Lincoln Humboldt Washoe White Pine Lander