HOUSING AND LABOR MARKET TRENDS: NEVADA January 2014 Community Development Research Federal Reserve Bank of San Francisco
National Trends
Composition of distressed sales by geography Proportion of Distressed Property Transactions—October 2013 3 Month Moving Average
40%
Percent of Total Transactions
35% 30%
Short Sale 13%
25%
Move-In Ready REO
20% 15%
11%
12%
0%
4% 15%
6% 9%
11%
11%
11%
8% 4%
11%
3%
8%
10% 9%
10% 5%
Damaged REO
7%
12% 7%
11%
7%
5%
4%
5%
6%
6%
Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013
7% 5% 4%
Neighborhood stabilization: concerns over investor purchases of distressed properties Who Is Buying Properties?─October 2013 U.S. 3 Month Moving Average 100%
Percent of Property Type
33%
80% 70%
12%
14%
90%
58%
34% 44%
60%
Investor First-Time Homebuyer
32%
50%
Current Homeowner
40% 30%
24% 43%
20% 10% 0%
54% 35%
17% Damaged REO
Move-In Ready REO
Short Sale
Non-Distressed
Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013
Financing for home purchases Financing for Homebuyers─October 2013 U.S. 3 Month Moving Average
Percent of Buyer-Side Transactions
100% 90% 80% 70%
31%
5%
60% 50%
25% 7%
8% 2%
19%
Fannie/Freddie
23%
FHA Cash
16%
73% 39%
20% 10% 0%
All Other Financing VA
40% 30%
17%
26% 10% Current Homeowners
First-Time Homebuyers
Investors
Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013
Nevada Trends
Unemployment rate in Nevada coming down, but still higher than U.S. 16
Source: Federal Housing Finance Agency (formerly OFHEO)
Mortgage delinquencies and number of loans in foreclosure continues to decline
Number of Mortgages
120,000
80,000
40,000
0
2005
2006 2007 2008 Loans in Foreclosure
2009
Source: Mortgage Bankers Association, National Delinquency Survey
2010 2011 2012 All Mortgages Past Due
2013
Nevada’s consumer debt delinquency rate is falling, but still well above national average Consumer Debt Delinquency Rate
20%
15%
Nevada
10% U.S.
5%
0%
2006
2007
2008
2009
2010
2011
2012
Note: Delinquency status of 90+ days past due or worse. Excludes first mortgage. Source: FRBNY Consumer Credit Panel
2013
Las Vegas rents up: $824 for Q3 2013, vacancy rate at 6.8% Asking Rent and Vacancy Rate in Las Vegas Quarterly Asking Rent Vacancy Rate
18%
$840
12%
$800
6%
$760
0%
2008
2009
2010
2011
2012
Source: Reis, Inc. Asking rent is calculated by first determining the average rent for each unit size, and then calculating a weighted average based on the number of units in each size category.
Vacancy Rate
Asking Rent
$880
Reno rents up: $867 for Q3 2013, vacancy rate down to 5.7% Asking Rent and Vacancy Rate in Reno Quarterly
$875
Asking Rent
12%
Vacancy Rate
$850 4%
$825
2008
2009
2010
2011
2012
Source: Reis, Inc. Asking rent is calculated by first determining the average rent for each unit size, and then calculating a weighted average based on the number of units in each size category.
0%
Vacancy Rate
Asking Rent
8%
Maps
Nevada Data Maps
Areas Affected by Concentrated Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Nevada Data Maps
Areas at Risk of Additional Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Las Vegas Data Maps
Areas Affected by Concentrated Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Las Vegas Data Maps
Areas at Risk of Additional Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Reno Data Maps
Areas Affected by Concentrated Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Reno Data Maps
Areas at Risk of Additional Foreclosures October 2013
Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations
Conclusions
For More Information: FRBSF Community Development Website
www.frbsf.org/community
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