This week brought not just the International Builders’ Show to Las Vegas but some more pieces of good news (good data) for the housing industry.
In its December Housing Index, CoreLogic reports a 11% increase in home prices across the country, with Nevada leading the way at 23.9%. Even with the rapid rise over the December 2012 to December 2013 period, Silver State home prices still have the farthest to go to reach their pre-recession levels. Prices are still more than 40% below their peak in Nevada.
Prices in Houston and Dallas each increased around 10%. The differences between the Nevada and Texas numbers are consistent with the general trend that the areas hardest-hit by the collapse of the market have seen the largest increases. Prices in Nevada have increased more rapidly lately than in Texas but the Silver State’s decline was much more severe than the Lone Star State’s.
The National Association of Homebuilder’s Eye on Housing report earlier this week shows that residential construction spending grew by 18.3% in 2013. Not only was the overall level up but each category (single-family, multi-family and remodeling) improved as well. Again, however, even with these increases, levels are well below their pre-recession peaks.
Prices per square foot are also increasing, rising 10.9% from January 2013 to January 2014, according to Movoto, a real estate website. Las Vegas had the 10th-highest increase in price per square foot (16.1%) of the 38 cities in the report.
Movoto also reports that Las Vegas led the nation in the change in the number of homes on the market. Home inventory nearly doubled in Las Vegas, increasing by 92.9% (from 3,237 to 6,245) during the year ended January 2014. Overall inventory increased 5.9% across the country.
The news in housing this week seems to indicate improvement in the housing industry but still a long way to go.