A tightening in the inventory of existing and bank-owned properties in Las Vegas has created an increase in sales for new properties. The number of foreclosures in Las Vegas has drastically decreased since the big banks settled with the government and promised to stop “robo-signing” foreclosure documents. Investors have been quick to purchase what little foreclosures are left on the market, because, thanks to the robo-signing bill, the number of foreclosures is expected to continue to decline. For the first few months prior to the robo-signing bill there were almost 6000 notice of defaults filed in Las Vegas; in the months to following the signing of the bill, there were only 1200. In the past year, a median-priced new home cost around $200,000 while a foreclosure cost around $115,000.

With such little difference in price, new homes are more appealing to many people in the Las Vegas area for a number of reasons. New homes usually come with a warranty, they are built better, and contain more energy efficient features. Some new home builders are taking advantage of this decrease in supply and offering incentives on a new home purchase to attract more customers. With the foreclosure market tightening and the supply quickly dwindling, it’s sometimes hard to come across a foreclosure that’s worth the money. This makes purchasing a new home that much more appealing.

In February there were 310 new homes sold in Las Vegas; this is a little more than a 30% increase year-over-year. The number was only 237 last February. Besides the decrease in existing and bank-owned inventory, the increase in new home sales can also be credited to a few other reasons. Many buyers don’t want to wait around for a short sale transaction to get approved by the bank or they may be getting fed up with being outbid on foreclosures.