Las Vegas, NV - June 20, 2013
Department of Business and Industry has released its inaugural Nevada Housing
Stability Index report for the first quarter of 2013. The index is intended to
monitor the overall health of the statewide Nevada housing market and provide a
barometer of market stability.
index, developed by Applied Analysis, will be published quarterly and is funded
by the Housing and Data Index Project, a joint initiative of the Department of
Business and Industry and the Lied Institute for Real Estate Studies at UNLV.
index is comprised of 12 independent components such as underwater loan
percentages, housing turnover rates, affordability ratios and foreclosure
volumes. Each measure is weighted based
on relevance and importance to the overall market’s performance. The individual components and composite index
is assigned a grade based on a 4.0 grade point average (GPA), with a “C” grade
representing average quality.
First quarter findings:
Stability in the market continued to
improve from the prior year trending from a D grade in 2012 to a D+.
Concerns about stability remain given
that the state leads the nation in both price appreciation and mortgage holder
Areas experiencing the greatest level of
improvement on a year-over-year basis include foreclosure volumes, distressed
sales volumes and differential between new and resale closing prices.
With only 1.3 months of effective
inventory, general availability in the market is trending negatively. Combined with elevated foreclosure inventory,
upward pressure on pricing may be unsustainable.
Nearly 6 in 10 closings are taking place
with cash buyers.
The Nevada Housing Stability Index can be downloaded
from the Department’s website at business.nv.gov/News_Media/Publications.
About the Housing and Data Index
Nevada has led the nation in residential
foreclosure filings and negative net equity since the beginning of the housing
market collapse. Researchers agree the absence of systematic housing data has
been prohibitive in the development of meaningful policy and programs that
would aid in the recovery of the housing market. The project, a joint
initiative of the Department of Business and Industry and the Lied Institute
for Real Estate Studies at UNLV, provides a mechanism for extensive collection
of data and analysis of current and future Nevada housing market trends. This data will aid policy makers in
establishing public policy, legislation and programs as well informing the
general public. Project initiatives include the publication of a monthly
Housing Market Report, quarterly Nevada Housing Stability Index and convening a
biannual Housing Market Forum.
About the Department of Business
Nevada State Department of Business and Industry is a cabinet level agency in
Nevada State government. Our objective is to encourage and promote the
development and growth of business and to ensure the legal operation of
business in order to protect consumers by maintaining a fair and competitive
regulatory environment. The Director’s office at B&I manages a number of
programs and initiatives to address the needs of small businesses, homeowners
and consumers including small business advocacy, bond programs, access to
capital, housing retention programs, constituent services and fraud prevention