Las Vegas, NV - November 05, 2013
Department of Business and Industry today released the Nevada Housing Stability
Index (NHSI) report for the third quarter of 2013. The index reveals marked improvement in a
number of areas, leading to the highest NHSI performance since January 2007.
index jumped from a composite score of 1.59 at the close of the second quarter
to 2.04. On a four-point grading scale,
the market earned a C grade, up from the D+ posted the previous quarter. A “C” grade represents average quality.
a number of measures are trending positively, concerns remain given ongoing
significant mortgage delinquencies and unknown impact of recent legislative
Third quarter findings:
Nine of 12 indices posted improvement
during the third quarter, with six of the 12 scoring average or above average on
the grading scale.
Share of purchases by investors were
down to 44.6%, down from 54.2% in prior quarter.
Distressed home sales are decreasing as
a percentage of the overall total at 33.2%.
The Housing Affordability Ratio, which
represents mortgage costs as a percentage of average wages, earned an A- in the
third quarter, compared to a D in the same period last year.
The percentage of underwater homes decreased
Areas that did not see significant
improvements during the quarter include the pace of sales and a delinquency
rate of 8.4% of borrowers being 90-plus-days delinquent.
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 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
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