HECM endorsements were up 29% in October, higher than each of the last two years for that month and even October 2011. This month we’ll dive into the state of Nevada to look behind the 25% increase in endorsements Jan-Oct and see how the state is shaping up.
Of the 96 zip codes with volume in NV Jan-Oct, 89134 is the leader with 23 loans. That’s an increase of 77% from 2013 when it ranked number 3. 89134 is part of Summerlin, on the western edge of the metro area and just before you get to Red Rock canyon. Beyond having a median household age of 62 (vs. 37 for NV overall), the zip code is also notable for having more than double the average income of the state.
But when we go beyond this top zip code to look at the top 5 growing zips statewide (average increase of 8.6 loans per zip YTD), the broader trend is moving toward zip codes with lower home values and incomes compared to the top 5 decliners this year (average decline of 5.3 loans per zip YTD).
The zip codes declining most this year in volume average 75% above state median home value compared to just 28% for the top growing zips this year. The same story exists on the income side, with the declining zips averaging 34% higher median household income than the state compared with 9% for the growers.
Put it together and you have a shifting market in Nevada as the industry lends to borrowers still above the statewide averages but much closer than last year.
Check out all the top states, cities and zip codes nationwide in the full report below by clicking the image below.