The Las Vegas, NV market saw a drop in new home closings year-over-year in May, but the percentage drop was an improvement from April 2016, suggesting the market may be stabilizing. Closings slumped 2.4% from a year earlier to 525. In comparison, new home closings in the same month last year saw a 19.9% drop year-over-year in April.
A total of 6,651 new homes were sold during the 12 months that ended in May, down from 6,664 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 12.4%. This is better than the 9.8% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also declined year-over-year in May.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 7.2% in May to $378,931 per unit. This gain follows a move from $362,789 per unit in April 2015 to $359,520 in April 2016.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. Average mortgage size gained 7.9% to $316,884 in May from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 3.1% lift year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 97.4% of new home closings to 97.7% of closings while attached units have gone from 2.6% of closings to 2.3% of closings.
There was a 9.5% hike year-over-year in the average unit size of newly sold homes to 2,708 square feet in May 2016. The average size of newly sold homes moved from 2,476 square feet in April 2015 to 2,398 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 19.5% of closings, below 26.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.5% in May from 14.5% a year earlier while REO closings as a percentage of existing home closings declined to 10.0% from 11.8% a year earlier.