The housing market correction continues, but the land market correction is kicking into high gear.

This marks the third consecutive quarter that land prices have fallen since the peak of $939,400 an acre in 2007's fourth quarter, according to Applied Analysis Principal Brian Gordon.

The 422 acres of non-Strip property sold in the third quarter easily surpassed the 156 acres sold in the second quarter. The price per acre was $459,798, which was more than $110,000 an acre lower than in the second quarter.

A year ago, 411 acres sold for a price per acre of $677,295.

The land sales along the Strip dried up in the third quarter with only one transaction, 4.93 acres between McCarran International Airport and Bali Hai Golf Club. The lot on the east side of Las Vegas Boulevard sold for $30.1 million or $6.1 million an acre, Gordon said.

The land market is a reflection of higher vacancies in the commercial market and a struggling housing market, said Gordon, who added the price drops will continue.

"The land market is strongly divided between those with the ability to weather the storm and those with no choice but to sell," Applied Analysis Principal Jeremy Aguero said.

Investors with capital are looking for deep discounts and some aggressive ones are seeking vacant property for the value of infrastructure improvements, he said.

Luxury closings

Windermere Real Estate broke down closings of luxury homes in five Southern Nevada communities through the end of October and found there were 103 closings this year compared to 180 last year. That's a decline of 43 percent.

Summerlin had the most luxury closings this year at 29, but that's well below the 76 a year ago. The average sales price, however, was $2.14 million this year, slightly above the $2.09 million a year ago. The average listing price for Summerlin was $2.36 million, about $80,000 higher than a year ago. Homes were on the market for an average of 116 days, 21 more than a year ago.

Red Rock Country Club was No. 2 on the list with 26 sales this year at an average price of $1.42 million. The average sales price last year was $1.59 million.

Southern Highlands was No. 3 with 19 sales, 12 more than a year ago. The average sales price was $2.02 million, well below the $2.77 million a year ago.

Anthem was No. 4 with 16 sales averaging $1.72 million. Last year there were 40 sales averaging $1.65 million.

MacDonald Ranch was fifth with 13 sales averaging $1.95 million compared with last year's 16 sales averaging $1.99 million.

Home inventory increases

The number of resale homes on the market increased by 48 units, the sixth consecutive weekly increase, according to Applied Analysis. The inventory jumped by 915 units in that time span. The number of vacant listings increased by 1,417, but was offset by a decline in owner-occupied and tenant-occupied homes, the firm reported. The 7,192 owner-occupied homes listed are 4,334 or nearly 38 percent lower than a year ago. Vacant properties for sales are getting closer to their all-time highs in October 2007 by reaching nearly 60 percent of the market. There were 13,646 vacant homes, nearly 2,00 more than in early August.

Home sales during presidency

John Burns Real Estate Consulting made an interesting note in its newsletter. The firm said that since 1965, new-home sales have been higher when Republicans were control of Congress and the presidency. But it's not always clear-cut. Lisa Marquis Jackson, the firm's vice president, said the most influential factor for the housing industry is the party that holds the congressional majority.

"Now that Democrats have strengthened their majorities in both houses of Congress and appear close to a level of domination in the Senate that would enable them to push through major legislation, we can anticipate a degree of carte blanche to accompany complete control," Jackson said. "In a nutshell, anything is possible."

The industry wants stimulus measures such as a home buyer tax credit and interest rate subsidy plan.

Building permits

The value of building permits issued in Las Vegas in October fell 79 percent when compared with October 2007.

There were only $40.9 million in permits issued, down from $189 million a year ago. For the first 10 months of the year, the value of permits issued has fallen 37 percent, from $998 million to $629 million.

Drop-offs in residential and commercial construction are blamed for the declining numbers in October. The construction of single-family homes fell from $31.4 million in October 2007 to $6.9 million this year. Multifamily-home construction, which could include apartments or condos, fell to zero after recording $19.9 million a year ago.

New commercial construction fell sharply from $109 million a year ago to $7.1 million this year. There was a slight increase in commercial remodeling work from $12.3 million last year to $14.5 million this year.

Overall for the year, the $110 million in new-home construction are down from $262 million last year. New commercial construction fell from $454 million last year to $127 million through the first 10 months of 2008.