There is no point in glossing over the fact that Vegas was not one of those 17 cities that showed gains. Our prices dropped 0.6% from May and 5.2% from last year. None of this is a surprise to Friday Figures readers.

One thing that might help communities long term is that banks are giving government and non-profit groups an opportunity to buy properties before they hit the open market, giving them the means to renovate and replenish the supply of decent, affordable housing. The complaint is that these properties get bid up by speculators. I’d just like to remind people that banks are in the business of making money — or in this case, minimizing their losses. I suspect that these groups will end up paying inflated prices or get stuck with the least desirable properties, perhaps both. It is in any event a clever way to hide what some consider “shadow inventory.”

I do have one more thing I would like to talk about: what the RJ considers “inefficiencies” in the short sale process. The example they cite is someone who has been trying to get a short sale approved for almost a year. Two appraisals were done shortly after they first got the purchase offer last October; now the bank wants a third. They promise to have an answer soon. Here’s what will probably happen: the bank will approve the sale, the buyer will tell their mortgage company, and a 4th appraisal will be ordered so they can finalize the new mortgage; this last appraisal will come in roughly 5% under the purchase price (remember, prices have dropped 5.2% over the last year?); the deal will die and the house will end up being foreclosed upon. The bank will end up losing even more money on the deal because they dragged their feet.

Some people have said that with the reduced demand, prices must fall. Followers of Friday Figures know that they already have locally.

No, I am not worried about reduced home sales “sinking the economy into another recession.” With unemployment where it is, I think that the current recovery is little more than smoke and mirrors from government economists.

Thanks for dropping for Friday Figures! All information from the GLVAR MLS system. Here’s you and your Realtor need to know before touring, listing, or making a purchase offer in the Las Vegas Valley this weekend.

Summary: Once again available units jumped, this time to 14057. While the number of short sale and non distressed available properties is up, there was no rise in the number of bank owned properties. Contingent and pending listings were down, but remain over 14,000. The number of contingent short sales does continue to decline, but some of those units have returned to the market as available. Median time on market for homes that are closing has finally reached 30 days — half of homes selling are on the market less than a month. This slow rise is partly due to institutional sellers insisting on longer periods before considering offers, or only considering investor offers after 2-4 weeks on the market. Our rental market for houses and condominiums is still healthy and stable despite the fact that apartment rents are at a 6 year low.

Other Information: Nationally, more construction is starting on more properties, but permits for the future are down. I don’t cover commercial real estate, but the Commercial Real Estate Price Index is down (great news for business owners looking for new space). Home buyers need to be aware that the FHA rules are tightening up; please consult your mortgage professional for details. Mortgage applications are up as rates are low. Some experts think the government must slash tax breaks for homeowners (please contact your Congressman and Senators if you feel strongly one way or the other). Remember that buying a short sale or foreclosure adds complications to the buying process (see here and here for more). More good news, mortgage delinquencies are down. Thanks to Steve for pointing out that in the second quarter, we had over 3000 cash transactions, and fewer than 1000 closings with a mortgage (FHA, VA, conventional, and owner financed combined! Yes, there were a handful of owner financed transactions). Cash is King in our market right now. And one last thing, the Hoover Dam Bypass should finish on schedule this fall.

Available Listings: There are 11442 single family homes (up), with a median price of $155,900 (down), $82 per square foot (down), with median time on market of 78 days (unchanged). In addition, there are 2615 condominiums and townhomes (down), with a median price of $70,000 (down), $65 per square foot (unchanged), and median time on market of 73 days (up). Last August 11 we had 9423 single family homes with a median price of $180,000 and 2836 condominiums and townhomes with a median price of $115,000.

Distressed Properties: Of available listings, there are 6398 short sales (up) and 2815 bank-owned properties (down). Median price for a short sale is $124,997 (down $3); median price on a bank-owned home is $120,150 (down). All short sale listings must be considered at risk of becoming bank owned properties whether they are available or contingent. The 4818 non-distressed properties for sale (up) had a median price of $200,000 (down). While many of the non-distressed properties are traditional sellers, many others were purchased fairly recently as short sale or bank owned, and then renovated by investors. Last year we had 4895 short sales with a median price of $135,888 and 2628 bank-owned properties with a median price of $116,000.

Single Family Home Prices: Of available listings, 182 under $50,000; 2065 between $50,000-$100,000; 5713 between $100,000-$200,000; 2308 between $200,000-$400,000; 627 between $400,000-$700,000; 252 between $700,000-$1,000,000; and 472 over $1,000,000. In August of 2009 we had 245 under $50,000; 1432 between $50,000-$100,000; 3743 between $100,000-$200,000; 2677 between $200,000-$500,000; 818 between $500,000-$1,000,000; and 667 over $1,000,000.

Condo and Townhome Prices: Of available listings, 616 under $50,000; 1366 between $50,000-$100,000; 550 between $100,000-$200,000; 105 between $200,000-$400,000; 21 between $400,000-$700,000; 5 between $700,000-$1,000,000; and 3 over $1,000,000. These figures exclude high-rise communities for technical reasons. Last years figures were 418 under $50,000; 901 between $50,000-$100,000; 793 between $100,000-$200,000; 455 between $200,000-$500,000; 194 between $500,000-$1,000,000; 130 over $1,000,000.

Contingent and Pending listings: Of the 14046 properties in the process of being purchased (down), 11322 are single family homes with median price of $135,000 (unchanged); 2724 are condominiums or townhomes with median price of $65,000 (unchanged). Final negotiated sales prices are confidential until closing. Of the total, 9822 were short sale (down), 2720 were bank owned (up), and 1491 were non-distressed sales (up). This time last year we had 13815 pending and contingent: 11196 are single family homes with median price of $143,476 and 2619 are condominiums or townhomes with median price of $69,900.

Recently sold: 647 properties closed in the last week, 3550 in the last 30 days, and 27026 so far this year. For properties closed in the last 30 days, median time on market was 30 days (up, time on market including the contingent period was 104 days). Median sales price was $124,000 (unchanged); median list price was $125,000 (up). Short sales accounted for 1098 of them, there were 1555 bank owned properties, and 890 non-distressed sales. This time last year we had a similar number of properties closing and we were just starting to get stable prices; median sales price was $125,000 and median list price was $124,900.

Rentals: 4018 homes, townhomes, and condos were available for rent in the Valley in the MLS system (up). Median square footage of these units is 1379 and median rent is $1100. There are 819 contingent leases waiting to be signed and 2203 leases signed in the last 30 days (up) with median rent of $1150 and median square footage of 1536. Last year we had 5164 available, 610 contingent, and 1933 recent leases.

Need more information or help with your real estate needs? Call me today at 702-727-7842 or email bmagnus@bridgetmagnus.com. Based on information from the Greater Las Vegas Association of REALTORS Multiple Listing Service for the date specified above. This article was written and copyright by Bridget Magnus, and is her sole property.

As a bit of background, remember that in addition to the ongoing foreclosure and real estate valuation crisis, homebuilder confidence is sinking and mortgage backed bonds are slumping. The latter means that there are fewer buyers for the mortgages written by your local banks and mortgage brokers and that in turn means there may be less money available for them to lend. But back to Washington D.C..

In one corner, Bill Gross, the man who runs one of the biggest bond funds out there — not just mortgage based bonds, but all kinds of bonds — says that the current housing finance system just can’t be maintained. The only hope, he says, is to nationalize the whole thing, making a single Fannie Mae/Freddie Mac hybrid the sole purchaser of mortgages and mortgage backed securities. He also pushed for automatic refinancing of all mortgages currently in Fannie and Freddie’s portfolios (presumably at today’s super low interest rates, with forgiveness of principal so those homes are no longer underwater, preventing thousands if not millions of foreclosures and short sales).

In the other corner, Treasury Secretary Tim Geithner says the government must reduce it’s role in Freddie, Fannie, and the whole mortgage system as soon as systems are in place to make sure another crisis doesn’t happen. Or, as CNN put it, “Geithner says stop crying over Fannie’s spilled milk.”

I’m no fan of Timmy Geithner, but I suspect that the real solution going forward must lie somewhere between Mr. Gross’s “nationalize and refinance it all” idea and Mr. Geithner’s “shore it up and leave it alone” strategy.

Cross-posted at The Moderate Voice.

Summary: It’s no surprise that available units are up, yet again, to 13,832. Nor is it surprising that median price on those units is slipping just a little, mostly on non-distressed properties. Pending and contingent properties stopped dropping, and now sit a little over 14,000. The number of contingent short sales continues to ever so slowly go down, and that is a very good thing for the long term. Closings have settled into their mid-month lull (Pro-tip: if you can close on your home mid-month, it will make your mortgage and title people happy and things are likely to run more smoothly). List price and final sales price on closed units remain very close to one another; this is not a time for low-ball offers if you really want the property.

Other Information: Last week Fannie wanted more money from the Feds? This week it was Freddie’s turn. The NAR assures us that home prices are “firming” nationally, but even NAR’s Chief Economist Lawrence Yun “urged caution on interpreting price data.” And remember that locally, there are several communities with problematic Kitec plumbing fittings. It’s an estimated 30,000 homes effected, so be sure to ask your home inspector about it. This is a far bigger deal locally than the tainted drywall issues in some parts of the country. I thankfully haven’t encountered any of that drywall (experts tell me it’s unlikely here), but I sure do know some developments with Kitec issues!

Available Listings: There are 11212 single family homes (up), with a median price of $157,945 (down), $83 per square foot (unchanged), with median time on market of 78 days (up). In addition, there are 2621 condominiums and townhomes (up), with a median price of $72,000 (down), $65 per square foot (down), and median time on market of 70 days (unchanged).

Distressed Properties: Of available listings, there are 6254 short sales (up) and 2817 bank-owned properties (up). Median price for a short sale is $125,000 (unchanged); median price on a bank-owned home is $122,900 (up). All short sale listings must be considered at risk of becoming bank owned properties whether they are available or contingent. The 4727 non-distressed properties for sale (up) had a median price of $204,335 (down). While many of the non-distressed properties are traditional sellers, many others were purchased fairly recently as short sale or bank owned, and then renovated by investors. Ask your mortgage professional, as some lenders are hesitant to finance such properties.

Single Family Home Prices: Of available listings, 182 under $50,000; 1965 between $50,000-$100,000; 5627 between $100,000-$200,000; 2274 between $200,000-$400,000; 596 between $400,000-$700,000; 256 between $700,000-$1,000,000; and 470 over $1,000,000. The fact that the number of units under $100,000 is rising significantly despite a stable median price for distressed properties suggests that banks are also taking back lots of high end homes.

Condo and Townhome Prices: Of available listings, 622 under $50,000; 1348 between $50,000-$100,000; 579 between $100,000-$200,000; 101 between $200,000-$400,000; 20 between $400,000-$700,000; 6 between $700,000-$1,000,000; and 3 over $1,000,000. These figures exclude high-rise communities for technical reasons. The slide in median condo prices is clearly related to the huge jump in properties under $50,000 now available.

Contingent and Pending listings: Of the 14083 properties in the process of being purchased (up), 11353 are single family homes with median price of $135,000 (up); 2731 are condominiums or townhomes with median price of $65,000 (unchanged). Final negotiated sales prices are confidential until closing. Of the total, 9933 were short sale (down), 2679 were bank owned (up), and 1457 were non-distressed sales (up).

Recently sold: 573 properties closed in the last week, 3663 in the last 30 days, and 26262 so far this year. For properties closed in the last 30 days, median time on market was 29 days (up, time on market including the contingent period was 103 days). Median sales price was $124,000 (up); median list price was $124,900 (unchanged). Short sales accounted for 1091 of them, there were 1552 bank owned properties, and 915 non-distressed sales.

Rentals: 4012 homes, townhomes, and condos were available for rent in the Valley in the MLS system (up). Median square footage of these units is 1376 and median rent is $1100. There are 784 contingent leases waiting to be signed and 2149 leases signed in the last 30 days (up) with median rent of $1150 and median square footage of 1534.

Need more information or help with your real estate needs? Call me today at 702-727-7842 or email bmagnus@bridgetmagnus.com. Based on information from the Greater Las Vegas Association of REALTORS Multiple Listing Service for the date specified above. This article was written and copyright by Bridget Magnus, and is her sole property.

Filings were down in Nevada by 30% from last year, but we’re still the top state for foreclosure filings for the 43rd straight month. One in 81 homes statewide and 1 in 78 Clark County homes were somewhere in the foreclosure process. Remember, that’s everything from Notice of Default through in the MLS as a bank-owned property, not just foreclosures on the courthouse steps.

One last thing: the FHA has a new program for underwater homeowners who are up to date on their payments, but do not currently have an FHA loan. If that describes you, it’s worth talking to a mortgage expert. However, I suspect that few people will qualify and few banks will want to participate.

Many economists believe that a significant number of workers will have to move before the employment picture substantially improves.

But workers have proved unwilling — or unable — to relocate. The biggest factor seems to be the large number of unemployed homeowners who have little or no home equity.

This graph should put things in perspective: just about anybody who bought in the last 10 years is underwater, and things may get worse — which some economists think will put us back in a recession (if you in fact believe we really ever got out of one). This is another argument in favor of allowing bankruptcy judges to “cramdown” mortgages.

But here’s a fellow who sees potential good in our underwater home trap:

Out of nothing more than self-preservation, those people will come up with something—maybe the next Zappos or something equally huge?—to get us out of this jam. More important, though, is the part that will come: recovery. And, yes, there will be one someday.

Finding a way out of this mess, he argues, is likely to form a greater sense of community.

Be sure to come back tomorrow afternoon for Friday Figures!