HOUSINGNEWS REPORT
NEVADA HOUSING SPOTLIGHT
RENO LEADS NEVADA HOME PRICE REBOUND PRE-RECESSION PEAK JANUARY 2012 BOTTOM AUG-17
“I think the opportunity exists but for a lot less margins, so you’re okay if you’re able to do a volume of properties.”
$340,000
$325,000
$294,000
$235,000
$125,000
TRAVIS SCHURR REAL ESTATE INVESTOR AND OWNER OF WEBUYHOUSES. COM OFFICE FOR CLARK COUNTY, NEVADA
$100,000
LAS VEGAS, NV
RENO, NV
percent in Reno. The high share of seriously underwater homeowners (LTV of 125 percent or higher) in Las Vegas is pushing the statewide numbers to 17.4 percent, the highest in the nation. In its 2017 Midyear Economic Outlook, the Center for Business and Economic Research (CBER) at the University of Nevada, Las Vegas, reports that the state’s housing market is improving although the state “still faces a substantial issue with underwater mortgages, leading the nation in the percentage of mortgages with negative equity as well as the percentage of mortgages with negative or near negative equity.” Underwater rates are decreasing statewide, down 20 percent from a year ago, but the stubbornly high rates in Las Vegas translate into an above-average share of distressed sales still lingering there even as the share of distressed
quarter of 2017 at 8.9 percent of total home sales for the quarter, according to ATTOM. The median purchase price by home flippers was $155,400 and the average days to flip were 160 days for the quarter. “I think the opportunity exists but for a lot less margins, so you’re okay if you’re able to do a volume of properties,” said Investor Travis Schurr, owner of the WeBuyHouses.com office for all of Clark County. “There’s definitely opportunities to purchase property but the profit is not there.” Schurr, who said he has been flipping homes in Las Vegas since 2008, estimated his company is on track to do 70 flips in 2017. “Because we have a lot of investment money we’re one of the larger buyers in town so we do get a lot of property
sales in Reno has dropped to one of the lowest in the nation.
In the third quarter of 2017, 14.7 percent of all home sales in Las Vegas were distressed sales — short sales, bank-owned sales or foreclosure auction sales — above the nationwide average of 12.5 percent. Meanwhile distressed sales accounted for 6.4 percent of all Reno home sales in the third quarter, 11th lowest among 146 metro areas analyzed by ATTOM in its Q3 2017 U.S. Home Sales Report. Silver Lining for Speculators The higher share of distress sales still lingering in Las Vegas does come with a silver lining for real estate speculators looking for discount buying opportunities. The Las Vegas-Henderson-Paradise metro area had the fourth highest flipping rate in the nation in the second
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NOVEMBER 2017 | ATTOM DATA SOLUTIONS
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