The prices of foreclosed houses for sale and non-foreclosure homes dropped in Las Vegas and in California in May, compared to prices in May 2008, based on real estate price studies in California and Nevada.
Due to large inventories of foreclosed houses for sale, the median sales price for a previously owned single-family house in California dropped to $267,570, a decrease of 30 percent from the median in May 2008. In Las Vegas, the median sales price for condo units and single-family houses decreased to $135,000, a drop of 44 percent compared to the median in May 2008.
Foreclosed houses for sale accounted for a staggering 73 percent of total sales of pre-owned homes and condos in the area covered by Las Vegas and Paradise in May. In California, 51 percent of all pre-owned home sales were foreclosed houses for sale.
Real estate analysts say that California and other states in the West will suffer more foreclosures in the coming months and years, as the unemployment problem worsens and as adjustable rate mortgage loans readjust to higher rates.
Sales of foreclosed houses for sale and non-foreclosed pre-owned homes in California in May reached an adjusted yearly rate of 556,590 units, a 35.2 percent increase from the 411,770 adjusted yearly rate in May 2008 and nearly 3 percent increase from the April adjusted yearly rate.
In California, it would take 53.5 days to sell a house in May based on median computations, representing an increase from the 49.2 median in May 2008. Using the May sales pace, it would take 4.2 months to deplete California’s inventory, a decrease from the 8.7-month estimate in May 2008.
The median sales price for a condo unit in California dropped in May to $236,660, a decrease of 34 percent from the median in May 2008. The number of condo units sold increased by 35 percent compared to May 2008 sales and increased by 5.2 percent compared to April sales.
Meanwhile in Las Vegas, the median home price decreased for 25 straight months using year-over-year comparison. In May, the metro area’s median home price of $135,000 was 57 percent lower than the record $312,000 reached in November 2006.
Because California and Nevada were on top of the charts of foreclosure filings in May and many borrowers in these states took out ARMs, prices of foreclosed houses for sale and non-foreclosure houses in these states are expected to fall further.
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