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IN BUSINESS FOR-SALE INVENTORY IS AT ITS LOWEST HERE SINCE 2006 HOME BUILDERS, FROM PAGE 7 "Some of ey in hand for 30 years of payments? Generally speaking, the builders are selling one or more new homes a week," said Kolleen Kelley, president of the Great- er Las Vegas Association of Realtors. "That's up considerably from last year." There's always a market for new houses. Certain buyers prefer new resi- dences so they can choose layouts and customize finishes. They don't want to worry about inheriting previous own- ers' problems. But the demographic is growing most- ly out of necessity. A shrinking inventory of existing homes in the valley is forcing buyers who might typically prefer older homes to buy new. There are 20 percent fewer single- family homes available on the Multiple Listing Service today than last year. There are 30 percent fewer condos and townhouses. Properties that a year ago would have sat on the market for weeks or months are now getting as many as 15 offers, Kelley said. List prices have become minimums. Most existing homes are selling for thousands more. That's if buyers can get them. A little more than 5,000 units are available for sale right now, the fewest since 2006 and an almost 60 percent drop from last year. Market conditions have combined to make it difficult for most buyers to purchase older homes. Inventory began to shrink rapidly at the end of last year when a new state law took effect requiring lenders to prove they have the legal right to foreclose on properties. Legislators intended to curb fraud with the bill and hoped it would reduce robo-signings. Instead, it scared banks into limiting foreclosures rather than risk breaking new, stricter rules and facing potential prosecution. Last month, there were only 258 bank repossessions in the valley, the fewest on record in two decades, according to SalesTraq. At the same time, banks are approving short sales at a brisker pace. Investors unable to find foreclosed properties are snatching them up. Home Builders Re- search reports that 90 percent of avail- able short-sale homes have contingency offers pending. Combine that with the fact that 54 per- cent of today's buyers are cash investors, and it's nearly impossible for a conven- tional buyer with a small down payment and mortgage to find a house to buy. When banks or sellers have multiple of- fers on a home, they most often choose the cash investor over a buyer with a mortgage. Who would turn down mon- | 4 JUNE 2012 | I prospect. I learn. I watch. I send. I respond. I email. I track. I order. I expand. I attach. I connect with Cox Business. BECAUSE EVERY CONNECTION MATTERS. At Cox Business, we're there for you with advanced and reliable communications that contribute to your productivity and success. Connect today for voice, data and video. 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Services not available in all areas. Other restrictions may apply. Telephone services are provided by Cox Nevada Telcom, LLC. ©2012 CoxCom, LLC., d/b/a Cox Communications Las Vegas, Inc. All rights reserved. 9 I answer. I call. I research. I network. interested in buying new homes. They can't make the same kind of profit rent- homes. Drive down Horizon Ridge Parkway in Henderson, and it's easy to forget this is the last ones. Beville said Harmony much. The problem is getting appraisals to match those prices," Kelley said. Homes had increased prices from 1 per- For the first time in five years, home- builders are raising prices as develop- ing them as they can with older, cheaper ments sell out. Typically, the first homes built in a neighborhood sell for less than 2012. It feels more like 2006. New houses are popping up left and right. investors aren't cent to 10 percent in its developments. Even so, don't expect to see prices peak to 2006 levels. Even if demand could justify it, developers have to work with lenders in mind. "They can only raise their prices so I lead.