In January, there was an increase in closings of new homes in the Las Vegas, NV market year-over-year, and with a stronger surge than December 2012, there are suggestions the market may be bolstering. There was a more than twofold climb in new home closings from a year earlier. This came on the heels of a 43.9% jump year-over-year in December.
A total of 5,442 new homes were sold during the 12 months that ended in January, up from 5,153 for the year that ended in December.
Out of all housing closings, new home closings represented 11.5%. This is a rise from 3.4% of closings a year earlier. Closings of new and existing homes dropped year-over-year in January after also falling in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 2.3% in January to $246,826 per unit. This rise is smaller than the 7.8% rise in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In January 2013, there was a 4.7% rise in the average mortgage size, reaching $217,629. In December 2012, average mortgage size rose 5.6% from a year earlier. Of the overall sale price, the percentage that was being financed increased 2.1 percentage points year-over-year to 88.2% in January 2013. This came after a 1.8 percentage point decline in December from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 89.0% in January 2012 to 96.2% of closings in January 2013. At the same time, the share of new home closings belonging to attached units sank to 3.8% of closings from 11.0% of closings.
There was a 4.5% decline year-over-year in the average unit size of newly sold homes to 2,145 square feet in January 2013. This decline was opposite the price rise, a pattern also seen in December 2012 when the average size of newly sold homes dipped 5.5% to 2,119 square feet.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings made up 36.9% of existing home closings, below 74.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 20.7% in January from 38.9% a year earlier while REO closings as a percentage of existing home closings fell to 16.2% from 35.8% a year earlier.
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