Las Vegas, NV - May 13, 2014
Nevada Housing Stability Index (NHSI) in the first quarter of 2014 gave
Nevada’s residential housing market a “C” grade for the third consecutive
index composite score remained flat from the previous quarter at 2.14, with
improvements and declines reported in a number of individual index
components. Compared to the same period
of the prior year, the index is up significantly from a value of 1.48 and a D+
index is intended to monitor the overall health of the statewide housing market
by taking into account twelve weighted ratios and performance metrics to
develop a measurement of stability. An aggregate grade of a “C” represents an
average quality housing market.
Q1 2014 findings:
A modest price increase in resale values
offset by a slight decline in new home values maintained the median sales price
at $175,000 quarter-to-quarter. In
northern Nevada, median price increased from $208,000 to $220,000; southern,
$173,995 to $175,000.
The share of distressed property sales
improved sufficiently to earn a higher grade.
As a percentage of total sales, 22.2% were distressed, down from 27.45%
the preceding period.
A decline in the community borrowing
ratio and increased share of investor purchases suggest either reluctance or
difficulty for potential homeowners entering the market.
In the Reno-Sparks area, investor
purchases rose 7 percentage points to 29.7%, a significant increase.
A relatively high delinquency rate of 7%
was reported statewide. Southern Nevada
continues to struggle more in this area than the north at 7.8% and 4.9%,
The Nevada Housing Stability Index can be downloaded
from the Department’s website at business.nv.gov/News_Media/Publications.
About the Nevada Housing Stability Index
The index is
intended to monitor the overall health of the statewide Nevada housing market
and provide a barometer of market stability. The 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. Note: Data from prior reports are subject to
revision based on latest information available.
About the Housing
and Data Index Project
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.
Department of Business and Industry
The 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 and education.