Mortgage rates drop again

The Primary Mortgage Market Survey slipped lower again for 30-year fixed, recording 4.85% for the week. This Freddie Mac's index averaged 5.85% at the same time last year. Federal Reserve's recent announcement that it'll keep buying Treasury paper for the foreseeable future pushed bond yields down, causing mortgage rates to follow suit.

Southern Nevada resales a bright spot in February housing update

Despite the traditionally slow stretch of the real estate season Las Vegas existing homes sales showed the same workmanlike consistency they have been doing for months. Namely that the stats are way better from the same month one year ago, as was reported by the Greater Las Vegas Association of Realtors, or GLVAR.

2,288 homes were sold last month, which adds up to a 108% jump from February of 2008. And to stay on the positive track, it amounts to a 2.9% increase from January. These are the types of figures that eventually will lift the real estate market here in Las Vegas up from the dark place. Specifically, when the month-to-month improvement turns into a more or less permanent trend, then there is reason to say “I’m a believer.”

The other positive development comes from the inventory sector. It slipped to 22,142, down 1.6% from January. If it can tiptoe along this downward slope, although not breath-taking by any means, that would start changing the supply-demand dynamics in the right direction.

And last, but not least. The median home price again took it to the mid section, this time by 2.7%, dropping to $155,603 from January’s $160,000. Even though sales are gradually picking up values continue to suffer under the tremendous pressure from bank REOs entering the Las Vegas real estate market. The price is off about 37% from last year and if this goes on unabated through the next twelve months, that comes to another 30% drop. Now, that can only happen if this exact pattern repeats itself.

For comparison's sake, the median price in Sin City reached $315,000 in June 2006, an all-time peak, according to GLVAR, and now it settled at $155,603. That makes any market observer take several deep breaths for proper digestion of this data.

The direction of foreclosure filings in Southern Nevada will play, at least in the near future, a key role in the price movement.

LV housing market ready for a recovery?

That would be great. But will it actually happen any time soon? Difficult to say.

Lawrence Yun, the chief economist for NAR, or the National Association for Realtors, thinks it is just around the corner. In his opinion it could kick off in the latter half of this year. He was in town to speak to the group's Rocky Mountain Regional Conference and said that Las Vegas will be in the forefront of the upcoming turnaround.

Prices here have plunged to levels that make home buying very affordable again, like it was way back when. Mortgage interest rates remain low, drawing borrowers to fill home loan applications and buying homes. These are the two principal reasons to the currently strong resale market in Southern Nevada, and have obviously favorably impressed Mr. Yun.

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