HOUSING AND LABOR MARKET TRENDS: NEVADA

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1 HOUSING AND LABOR MARKET TRENDS: NEVADA June 2013 Community Development Research Federal Reserve Bank of San Francisco

2 National Trends

3 Composition of distressed sales by geography 45% Proportion of Distressed Property Transactions April Month Moving Average 40% 35% 8% Percent of Total Transactions 30% 25% 20% 15% 10% 5% 0% 22% 12% 7% 19% 10% 11% 15% 16% 19% 9% 8% 7% 10% 15% 6% 12% 5% 13% 8% 15% 13% 8% 3% 7% 8% 8% 8% 8% 8% Short Sale Move-In Ready REO Damaged REO Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013

4 Neighborhood stabilization: concerns over investor purchases of distressed properties Percent of Property Type 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 63% 19% 18% Damaged REO Who Is Buying Properties? April Month Moving Average Current Homeowner First-Time Homebuyer Investor 18% 48% 35% 35% 33% 29% Move-In Ready REO Short Sale 13% 37% 50% Non-Distressed Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013

5 Financing for home purchases Financing for Homebuyers April Month Moving Average 100% Percent of Buyer-Side Transactions 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 29% 15% 21% 6% 7% 2% 5% 14% 22% 18% 47% 76% 26% 11% Current Homeowners First-Time Homebuyers Investors All Other Financing VA Fannie/Freddie FHA Cash Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2013

6 Nevada Trends

7 Unemployment rate in Nevada coming down, but still higher than U.S Nevada Unemployment Rate 8 United States Recession Source: Bureau of Labor Statistics

8 Nevada house prices trending up 250 FHFA House Price Index (formerly OFHEO) (2000 = 100, quarterly) FHFA House Price Index 2000= United States Nevada Source: Federal Housing Finance Agency (formerly OFHEO)

9 Las Vegas and Reno prices trending up 240 FHFA House Price Index (formerly OFHEO) (2000 = 100, quarterly) 220 FHFA House Price Index 2000= Carson City Source: Federal Housing Finance Agency (formerly OFHEO) Las Vegas Reno

10 Mortgage delinquencies and number of loans in foreclosure remain stable 120,000 Number of Mortgages 80,000 40, Loans in Foreclosure All Mortgages Past Due Source: Mortgage Bankers Association, National Delinquency Survey

11 Nevada s consumer debt delinquency rate is falling, but still well above national average 20% Consumer Debt Delinquency Rate 15% Nevada 10% U.S. 5% 0% Note: Delinquency status of 90+ days past due or worse. Excludes first mortgage. Source: FRBNY Consumer Credit Panel

12 Rents continue to rise as vacancies fall in Las Vegas $880 Asking Rent and Vacancy Rate in Las Vegas Quarterly Asking Rent Vacancy Rate 18% $840 12% Asking Rent $800 6% Vacancy Rate $ % Source: Reis, Inc. Asking rent is calculated by first determining the average rent for each unit size, and then calculating a weighted average based on the number of units in each size category.

13 Reno rents increase as vacancy rate continues to decline $875 Asking Rent and Vacancy Rate in Reno Quarterly Asking Rent Vacancy Rate 12% 8% Asking Rent $850 4% Vacancy Rate $ % Source: Reis, Inc. Asking rent is calculated by first determining the average rent for each unit size, and then calculating a weighted average based on the number of units in each size category.

14 Maps

15 Nevada Data Maps Areas Affected by Concentrated Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

16 Nevada Data Maps Areas at Risk of Additional Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

17 Las Vegas Data Maps Areas Affected by Concentrated Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

18 Las Vegas Data Maps Areas at Risk of Additional Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

19 Reno Data Maps Areas Affected by Concentrated Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

20 Reno Data Maps Areas at Risk of Additional Foreclosures April 2013 Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

21 Conclusions

22 For More Information: FRBSF Community Development Website Links to other resources and research on foreclosure trends and mitigation strategies All publications, presentations available on our website Conference materials also posted shortly after events