Las Vegas, NV - September 12, 2013
Department of Business and Industry today released the Nevada Housing Stability
Index report for the second 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.
quarterly index continues to evolve as additional sets and sources of data are
included to provide a more comprehensive overview of the housing market on a
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.
Second quarter findings:
The aggregate index value increase from
1.4 in 1Q 2013 to 1.67, but maintained a D+ on the grading scale.
Seven of the 12 individual index
components showed improvement over the previous quarter.
While conditions appear to be trending
in the right direction, concerns about stability remain given mortgage holder
Home price appreciation continued which
led to the percentage of underwater homes falling to 39.3%, significantly down from
59.4 % from the same period last year.
Resale housing inventory continues to
remain well below historical averages with 4.4 months of effective inventory.
Measures indicate that new home supply
levels may now be trending ahead of incremental demand.
Nevada Housing Stability Index can be downloaded from the Department’s website
About the Housing and
Data Index Project
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 and Industry
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
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