Las Vegas home sales fell 15% in September from a year ago but held flatter than normal on a monthly basis, according San Diego-based real estate data provider MDA DataQuick. There were 4,276 new and resold home sales in Las Vegas for September, down 0.2% from August. Monthly sales did fall nearly as far as the 22.2% drop from June to July as investor demand, low mortgage rates and late-closing Summer transactions leveled countered the expiration of the homebuyer tax credit. Sales of newly built homes increased 4% from a year ago, while existing home sales dropped 19.3%. “Beyond the lost tax credits, the housing market has been undermined by a weak economic recovery, a lack of significant job growth and potential homebuyers’ concerns about job security,” according to DataQuick. Workouts on prevalent developments in the area are being sought. MGM Resorts International and Dubai World, an investment bank backed by the Dubai government, are trying to refinance the $1.8 billion loan on the CityCenter development they own located on the Vegas Strip, Bloomberg reported Thursday. “Moreover, without the tax credit deadlines, only super-low mortgage rates are pressuring would-be buyers to purchase sooner rather than later.” The median price on for a new or resale home in Las Vegas stood at $130,000, flat from a year ago and the month before. But it’s a 58.3% drop from the $312,000 median peak in November 2006. Vegas, which holds the highest foreclosure rate of any metro area in the country, according to RealtyTrac, had 2,687 homes lost to foreclosure in September, down 15% from last year but up 9% from August. The peak came in February 2009, when lenders foreclosed on 3,718 homes. Write to Jon Prior.
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The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations. “When income fails to keep pace with home prices, the latter must fall back,” the post said. “Falling home prices, in turn, drive down household spending.”
Vision Property Management has already run into trouble in Wisconsin and New York, with each state claiming that the company’s rent-to-own business model is actually a scam designed to prey on low-income individuals who want to buy a home. And now, the company has another state to deal with: Pennsylvania.