VEGAS INC ran a story last week reporting on the growing number of traditional deals between private buyers and sellers; see Sign of recovery: Traditional home sales now dominate foreclosures and short sales
The piece reports that traditional (non-distressed) sales now make up 70 percent of used-home sales in Southern Nevada. Compare that number to 51 percent a year ago and 26 percent two years ago, according to the Greater Las Vegas Association of Realtors.
Conversely, distressed sales (bank-owned and short sales), which dominated the Greater Las Vegas market two years ago, now account for less than a third of sales.
Similar trends can be observed here in the Reno-Sparks market. The table below shows the percentage of sales by type (traditional, bank-owned, and short sale) for the last three years.
As can be seen in the table, the proportion of traditional sales has more than doubled from 2011 to 2013; climbing from 32 percent to 67 percent. And distressed sales (bank-owned and short sales) experiencing the converse; falling from 67 percent to 32 percent.
|Year||Traditional Sales||Short Sales||REO (Bank-Owned) Sales||Homes Sold|
And this trend only looks to continue in 2014. A quick look at the homes currently available for sale on our MLS show 82 percent as traditional, non distressed sales.
As the story above points out, the plunge in foreclosure sales can be attributed to Nevada’s Assembly Bill 284 which took effect in fall 2011 and resulted in drastically reducing the number of bank-owned properties entering the market for sale.
This reduction in available inventory for sale, coupled with greater buyer demand resulted in the rising home prices we’ve been experiencing over the last two years — the median sales price for Reno-Sparks is up 48 percent from December 2011 to December 2013.
Such increases in home sale prices has enabled home owners, who were once underwater, to now sell their homes in a traditional “equity” sale, rather than as a “short sale”.
Related posts: http://renorealtyblog.com/?s=ab284