by Calculated Risk on 5/08/2012 06:55:00 PM

This is a key distressed market to follow since Las Vegas has seen the largest price decline of any of the Case-Shiller composite 20 cities. Prices, as of the February Case-Shiller report, were off 61.7% from the peak according, and off 8.6% over the last year.

Sales in 2011 were at record levels - even more than during the bubble - and it looks like 2012 will be an even stronger year, even with some new rules that slow the foreclosure process.

From the GLVAR: GLVAR reports local home prices increased for third straight month, as supply of homes for sale continues to shrink

Even with fewer homes to sell,[ GLVAR President Kolleen] Kelley said existing home sales remain ahead of the record pace set in 2011, when GLVAR reported that 48,186 existing properties were sold in Southern Nevada.
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According to GLVAR, the total number of local homes, condominiums and townhomes sold in April was 3,924. That’s down from 4,388 in March, but still up from 3,902 total sales in April 2011.
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The local housing inventory, which was already tightening throughout 2011, began to contract more rapidly after Oct. 1, 2011, when a new state law known as AB284 took effect, requiring lenders to prove they have all the necessary documents in place before proceeding with a foreclosure. Since Oct. 1, Kelley said there has been a dramatic drop in the notices of default lenders file to begin the foreclosure process and in the number of bank-owned homes put on the market in Southern Nevada.
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The total number of homes listed for sale on GLVAR’s Multiple Listing Service again decreased from March to April, with a total of 17,884 single-family homes listed for sale at the end of the month. That’s down 1.7 percent from 18,200 single-family homes listed for sale at the end of March and down 20.3 percent from one year ago ... GLVAR reported a total of 3,836 condos and townhomes listed for sale on its MLS at the end of April. That’s down 1.7 percent from 3,901 condos and townhomes listed at the end of March, and down 27.8 percent from one year ago. As in past months, the number of available homes listed for sale without any sort of pending or contingent offer also dropped sharply compared to the previous month and year. By the end of April, GLVAR reported 4,162 single-family homes listed without any sort of offer. That’s down 15.1 percent from 4,901 such homes listed in March and down 63.4 percent from one year ago.

Some of the decline in inventory is related to the new rules, but the decline in active listing (not pending or contingent) is down 63.4% year-over-year for single family homes!