In the Las Vegas, NV market, new home closings dropped year-over-year in March, and the market seemed to be worsening in light of the percentage decline steeper than February 2016. Closings fell 18.1% from a year earlier to 460. In comparison, new home closings in the same month last year saw a 9.9% drop year-over-year in February.
A total of 6,709 new homes were sold during the 12 months that ended in March, down from 6,811 for the year that ended in February.
Of the total number of closings, new home closings made up 11.7%. They accounted for 10.7% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes slid year-over-year in March.
Pricing and Mortgage Trends
In March, the average price of newly sold homes gained 9.3% year-over-year to $363,353 per unit. This gain is better than the 3.4% bump in February year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. The average mortgage size saw a 6.8% rise year-over-year to $306,554 in March. Average mortgage size gained 6.7% in February 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 96.3% of new home closings to 95.7% of closings while attached units have gone from 3.7% of closings to 4.3% of closings.
For all new homes sold, the average unit size rose 1.4% year-over-year to 2,467 square feet in March 2016. In February, the average size of new homes sold went from 2,467 square feet a year earlier to 2,526 square feet. An increase in both the average size and price of newly sold homes was also seen in February 2016 when the average size grew 2.4% to 2,526 square feet.
Foreclosures and real estate owned (REO) closings increased in March from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 24.8% of existing home closings, above 23.5% a year earlier. The percentage of existing home closings involving foreclosures went from 10.1% in March 2015 to 11.0% in March 2016 and REO closings moved from 13.5% of existing home closings in March 2015 to 13.9% in March 2016.