Las Vegas, NV - September 15, 2014
second quarter 2014 Nevada Housing Stability Index posted relatively flat
performance compared to the previous quarter, but saw considerable improvement
over the same period in 2013.
index composite score saw an insignificant increase to 2.18 from 2.17 the prior
period, maintaining a C grade, with no notable change in 7 of twelve individual
index components. Compared to the same
period of the prior year, the index is up significantly from a value of 1.68
and a D+ grade.
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.
Q2 2014 highlights:
Statewide median home prices increased
3.4 percent from $174,000 to $180,000, the highest value reported since
Foreclosure volumes and delinquency
rates continue to fall, at 2.3 percent and 6.3 percent respectively.
Investor purchases decreased to 37.3
percent of all sales, earning the indicator a full grade increase from D+ to
Resale housing inventory fell from 6.4
to 4.7 months of effective inventory, leading to the loss of a full grade
point, now earning a D.
The indicator earning the lowest grade,
an F, was the community borrowing ratio at 40.4 percent which indicates that
new home loans originated are not keeping pace with the improvement in job growth.
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.