Las Vegas Housing Returning to Normality.
In order for the Las Vegas housing market to return to
a stable equilibrium there has to be less product
available that competes with the new home segment.
This was the situation throughout most of the 1990s
and from 2000 to 2003. But the situation changed in
2004 with oversupply of homes hitting the housing
market and prices took a tumble. Through the first
quarter of 2005, the situation is changing and the
housing market is recovering and achieving the balance
which is essential for a healthy market.
The supply of existing homes for sale has remained
fairly stable during the last four months, the Greater
Las Vegas Association of Realtors reports. The number
of new listings has declined, and there's been an
increase in pending resales. The quarterly figure for
new-home sales was the second-highest ever recorded.
It's 6 percent less than the fourth quarter of last
year, but 9.6 percent more than the same quarter a
year ago.
New-home permit activity points to how the housing
market has adjusted from last year's oversupply of
homes problem. The 2,714 permits in March bring the
yearly total to 6,669, which is down by 2,480 permits
from that of last year. That's a drop of 27.1 percent,
from what builders pulled during the same period in
2004.
All this points to the recovery and adjustment of Las
Vegas housing market from an oversupply of inventory
during the second half of 2004 and appears to be on
the rebound in the first quarter of 2005 according a
housing analyst.
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