Las Vegas Homes Decline in Pending Home Sales

There is a slip this year in pending home sales, including
those of Las Vegas homes, demonstrating
varied regional performance. However, this is actually an improvement compared
to statistics of last year, according to data gathered by National Association
of REALTORS. The Sales Index on Pending Homes, which is considered as a
reliable indicator based primarily on signed contract, declined quite a bit,
but was a welcome fare compared to the decline in pending home sales of 2010.

Experts at National Association of Realtors
explained that the current decline is a reflection of the prevailing uneven
market. Actually, the biggest decline happened in August this year, but was
disrupted by Hurricane Irene during the last weekend of the month. Generally
speaking, activities focusing on contract signing have been on hold for many
months this year.

The sales index for pending homes fell noticeably
in the Northeastern region. In the Midwest part of the US, the sale index
likewise declined, but is much better compared to the decline from last year.
Pending home sales index in the Southern region, on the other hand, rose up to
2.6 percent to arrive to a 96.9 index. In the Western region, the sales index
declined by as much as 2.4 percent to arrive at a 108.1 index this August;
still it is 10.5 % above the index of last year.

The national market, including the market for Las Vegas homes, is not
performing up to par given the existing demand. There has been a current prevailing
pattern in which home owners, despite being finally qualified, are denied
credit. This has been a major factor that causes failure of contracts.

If improving population growth, increase in
employment opportunities, increase in rent and improved stock market wealth
will occur, home sales might reach close to 5.5 million. However, expected
figure is just around 4.9 million for the current year. The restrictive
standards on mortgage underwriting are weakening the chances of housing
recovery.

Despite the economic growth in terms of Gross Domestic
Product is most likely to remain positive, there are uncertainties that cause
major consumer hesitation. There are factors that act as hindrances to housing
recovery for consumers who simply want to benefit from current affordability
situations. Unfortunately, there are home buyers, even those who are
considering Las Vegas homes, who will have
to contend with current high rates on jumbo loans.