Great Balls of Fire! Pending sales blast past the 5500 mark in this week’s Las Vegas Real Estate Market Snapshot. That’s an increase of more than 250 units in 7 days. This is more than a 100% increase since January. The market is well past the bottom in terms of transactions. Prices are still coming down. They will for a few months more. I submit the transactions are far more important to the overall economy than the price of any one home. The value of a single home is critical most when one needs to sell. For those who do not need to sell, an income to afford their home is paramount. Therefore, it is transactions in the marketplace that make a bigger impact on the overall local economy. More home sales mean more appraisals, more loans, more home inspections, sales commissions, more escrows, handyman needs, and with all these bank repos a little money going to the home improvement stores. Don’t forget transfer taxes and recording fees for local governments. Sure prices are still soft but the real recovery, the one that reaches way beyond just you and me, is well on its way.
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May 2, 2008 at 12:52 am
Evidence still shows that purchasing activity has certainly increased. These are good signs for right now as we still have a huge supply to eat up and a rationing of more loans being recasted. The big player lenders are taking necessary moves to brace for more adjusting loans and more foreclosures. The idea with homes is no different than stocks. Buy on bad news and sell on good.