Inventory of county homes for sale grows

If you think you're seeing more "For Sale" signs around Clark County, you're right.

The inventory of homes for sale here is the highest in at least five years, according to new figures. A year of sluggish sales contributed to a 12-month inventory of new and pre-owned homes on the market in September, the biggest backlog since records started being kept in 2002, according to RMLS, the regional listing service.

It would take 12 months to sell an estimated 4,595 homes for sale countywide in September if no new listings were added. In August, the supply was 7.7 months; it was 6.4 months in September 2006.

The figures reflect a standoff between sellers and buyers, according to local real estate agents.

"Buyers are in no hurry," said Mike Lamb, an associate broker with Windermere Real Estate/Stellar Group in Vancouver. "Their expectation is that prices will go down."

So far it hasn't happened. The median sale price in September increased to $267,500, compared with $266,000 during the same month last year.

Sellers are waiting it out as well, and some are "holding onto a false sense of appreciation that may not be justified in this market," said Kathy Rylander, also a Windermere associate broker.

New homes account for much of the excess inventory, a situation that has caused a dramatic slowdown in new home building. Locally, the county has issued 1,024 permits for construction of single-family homes through September, a 20.3 percent decline from last year.

"Builders are having a rational reaction to the marketplace," Lamb said. "As things slow down, they're building fewer homes. We're going to have to work the inventory down."

Home construction represents a $350 million piece of the local economy and supports several thousand jobs in construction and related services.

The situation locally mirrors nationwide trends. In September, housing starts fell to the lowest level since 1993, dropping by 7.3 percent to 1.2 million units, according to the U.S. Commerce Department.

New home sales are projected to fall to 805,000 nationally this year, down 23 percent from 1.05 million last year, the National Association of Realtors said last week.

Lamb predicted the Clark County market would stabilize, driven by the area's high rate of employment. Countywide unemployment rates have hovered between 4 percent and 6 percent for the year, near the target of 5 percent considered full employment by economists.

"People have jobs," Lamb said. "There aren't reasons for a really big real estate bust here."
In the meantime, local builders are focusing more than ever before on sales and marketing, said Matt Lewis, acquisition and planning manager for Vancouver-based Pacific Lifestyle Homes.

The sector barely kept up with demand two years ago.

"Now, we're fighting for every sale out there," Lewis said. "It means you need to be at the top of your game. That's what we're trying to do with attractive, well-priced homes in good areas."