Report on Nevada s Housing Market...Report on Nevada’s Housing Market January 2015 Funding...

ReportonNevada’sHousingMarket

January2015

FundingprovidedbytheHousingDataandIndexProject,ajointinitiativeof:

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

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Nevada’sHousingMarket |January2015

TableofContents

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

NorthernTrends………………………………………….. 10

SouthernTrends………………………………………….. 14

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

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Nevada’sHousingMarket | January2015

NevadaStatewideTrends

Population:2,839,099 in2014 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* January2015 M2MChange Y2YChangeNew 565 ‐4.9% +2.9%Existing 3629 ‐9.7% ‐11.6%DistressShare 18.1% +13.9% ‐19.5%

ResidentialConstructionTotalStarts 640 ‐241 ‐78Single‐Family 570 ‐97 ‐36Multifamily 70 ‐144 ‐42

AverageSingle‐FamilySalesPrice*New $336,607 +2.7% +8.9%Existing $215,507 ‐0.8% +7.8%Distress $159,658 ‐2.8% +0.9%

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

AllthreeregionsinNevadasawdecreasesinbothnewandexistinghomesales.ExistinghomesalesinNevadadecreasedbynearly10percentandwerethelowesttheyhadbeensince2008.Newhomesalesdecreasedbynearly5percent,butarestillup3percentyearoveryear.

TheshareofhomessoldunderdistressinNevadaincreasedby2percentagepointsthismonth.However,thislargeincreasewasaresultofthedecreasednumberofhomesales,notanincreaseinREOorshortsales.ThetotalnumberofREOsalesremainedunchangedthismonthandshortsalessawa24percentdecreasethismonth.

AveragenewhomepricesinNevadacontinuetoincreaseasSouthernNevadacontinuestoseeconsistentgrowthinaveragenewhomeprices.At$336,607,averagenewhomepricesinNevadaarethehighesttheyhavebeensinceJune2008.


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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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Date (January 2000 - January 2015)

Existing New

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

Single-Family Home Prices

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Single-Family Home Sales

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Date (1 Quarter 2000 - 4 Quarter 2014)

Las Vegas Reno Nation

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

Housing Affordability


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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 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.


Equilibrium

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2007 2009 2011 2013 2015Date (January 2007 - January 2015)

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 - January 2015)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 4, 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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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Date (April 2005 - January 2015)

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

Source: RealtyTrac

Notices of Default and Repossessions

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Date (April 2005 - January 2015)

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.


Ranked15in2014Q2

121086420Percent of Loans in the Foreclosure Inventory

OregonWashington

MassachusettsKentucky

IndianaDelaware

14. NevadaNew Mexico

OhioPennsylvaniaRhode Island

VermontMaryland

IllinoisMaine

HawaiiConnecticut

FloridaNew York

New Jersey

Source: Mortgage Bankers Association's National Delinquency Survey

4th Quarter 2014Top 20 States in Foreclosure Inventory

Ranked9 in2014Q3

1.251.75.5.250Mortgage Foreclosure Starts as Percent of Stock

KentuckyWest Virginia

DelawareLouisiana

16. NevadaNew Mexico

PennsylvaniaAlabamaArkansas

OhioOklahoma

GeorgiaIndiana

ConnecticutNew York

FloridaIllinois

MississippiMaryland

New Jersey

Source: Mortgage Bankers Association's National Delinquency Survey

4th Quarter 2014Top 20 States in Foreclosure Starts

Ranked18in2014Q3

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NorthernTrends

Population:621,826in2014 HousingUnits:267,161in2013

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

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NorthernTrends BothnewandexistinghomesalesdecreasedmoreinNorthern

NevadathanSouthernNevadathismonth.ExistinghomesalesinNorthernNevadathismonthwerethelowesttheyhadbeensinceMay2009.ExistinghomesalesareupmoreyearoveryearinNorthernNevadathaninSouthernNevada,butarestilldown.

Bothsingle‐familyandmultifamilystartsdecreasedthismonthinNorthernNevada,whichtypicallyhappensinJanuary.NorthernNevadawastheonlyregioninNevadatoseeyearoveryearincreasesinbothsingle‐familyandmultifamilystarts.

NorthernNevadasawtheleastamountofchangeinaveragehomepricesthismonth.Still,existinghomepricessawmorerobustgrowththannewhomepricesinNorthernNevadathismonth.

Nye

Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity


Single‐FamilyHomeSales* January2015 M2MChange Y2YChange

New 95 ‐6.6% ‐4.4%Existing 792 ‐11.2% ‐3.9%DistressShare 15.4% +21.1% ‐22.7%

ResidentialConstructionTotalStarts 200 ‐36 +46Single‐Family 130 ‐34 +8Multifamily 70 ‐70 +38

AverageSingle‐FamilySalesPrice*New $345,232 ‐0.2% +4.6%Existing $257,588 +0.2% +7.2%Distress $180,819 ‐5.4% +3.4%


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NorthernTrends


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NorthernTrends

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Foreclosure Trends10

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SouthernTrends

Population:2,069,681 in2014 HousingUnits:854,089 in2013

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

Nye

Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity

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SouthernTrends


Single‐FamilyHomeSales* January2015 M2MChange Y2YChangeNew 466 ‐4.2% +8.4%Existing 2715 ‐9.1% ‐12.5%DistressShare 18.8% +10.7% ‐20.0%

ResidentialConstructionTotalStarts 424 ‐206 ‐132Single‐Family 424 ‐64 ‐52Multifamily 0 ‐142 ‐80

AverageSingle‐FamilySalesPrice*New $335,922 +3.3% +9.6%Existing $206,760 ‐0.9% +7.0%Distress $156,469 ‐2.7% ‐0.1%


Afternineconsecutivemonthsofincreasesinnewhomesales,newhomesalesfell4.2percentthismonthinSouthernNevada.SouthernNevadaistheonlyregioninNevadawherenewhomesalesareupyearoveryear.

Afterseeinganextraordinarilyhighamountofmultifamilystartsin2014,SouthernNevadasawnomultifamilyconstructionstartsinJanuary2015.ThiswasthefirsttimeSouthernNevadahadnomultifamilystartsinamonthsinceJuly2013.

SouthernNevadacontinuestoseemorerobustgrowthinaveragenewhomepricesthaninexistinghomeprices.At$335,992,averagenewhomesarenow$129,000moreexpensivethanaverageexistinghomesinSouthernNevada.

SouthernTrends

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SouthernTrends


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Foreclosure Trends

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RuralTrends

Population:147,592 in2014 HousingUnits:65,629in2013

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

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RuralTrends NewhomesalesinRuralNevadahavenotseenamonthlyincrease

sinceJune2014.Therewereonly3newhomessalesthismonthinRuralNevada– thelowestmonthlyamountsince2000.

ExistinghomesalesinRuralNevadahavedeclinedforthepastthreemonths.At101monthlysales,existinghomesaleswerealsothelowesttheyhadbeensince2000.

TheshareofhomessoldunderdistressnearlydoubledthismonthinRuralNevada.However,December2014sawanextraordinarilylowdistressshareandthedistressshareisnowsimilartowhatitwasthroughoutmostof2014.At17percent,thedistressshareisstill1.3percentagepointslowerthanwhatitwasthistimelastyearinRuralNevada.

Nye

Elko

Clark

Lincoln

Humboldt

Washoe

WhitePine

Lander

Pershing

Eureka

Churchill

Mineral

Lyon

Esmeralda

Douglas

Storey

CarsonCity


Single‐FamilyHomeSales* January2015 M2MChange Y2YChangeNew 3 ‐37.5% ‐82.1%Existing 101 ‐16.1% ‐34.7%DistressShare 17% +93.4% ‐7.2%

ResidentialConstructionTotalStarts 16 +1 +8Single‐Family 16 +1 +8Multifamily 0 +0 +0

AverageSingle‐FamilySalesPrice*New $233,702 ‐4.7% +1.0%Existing $132,308 ‐7.0% +7.3%Distress $113,570 +4.4% +8.9%


RuralTrends

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RuralTrends


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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]

PeterCountsDataAnalyst


DepartmentofBusiness&Industry555E.WashingtonAve#4900

LasVegas,NV89101

BruceBreslowDirector


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


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