Consumers, investors and even other Realtors have been debating this issue for many months. When or will banks release a huge “tidal wave” of foreclosures in to the market? But, what if this does not occur? We are not so certain that it will – perspective on our market as of early Fall of 2009.
Las Vegas Foreclosures May Stay at High Levels
One possibility is that Las Vegas Foreclosures may stay at high levels for the next 12-24 months, but we don’t think our market will get hit with a massive amount of foreclosures all at once. This is against the best interest of many banks – they are smart enough to know that releasing large amounts could have a negative impact on pricing and their back end return on investment.
We have a large amount of foreclosure inventory in our market at present, but in spite of this, we have multiple offers on homes at price points in the $50-200K range (roughly) and a shortage of inventory. We are also seeing offers coming in at some of the same price points above the asking price from the bank, this tells us that there is more demand than supply.
Federal Government Intervention is Wild Card
Relief for homeowners being offered by the Federal Government to date does not seem to be having a significant impact on our local market. We think loan modifications are helping some homeowners, but to date the numbers have not been significant.
But, this intervention by the government moving forward if it gains more traction may help to reduce the level of Las Vegas Foreclosures. At the very least, it muddies up the waters a bit, making it harder to assess what is really going on and the typical processes don’t always unfold as they should.
There is more strategy that we could write about that impacts our market, but much of it involves numbers and statistics that can be confusing. We do have a Power Point available we have developed for Investors that will provide more perspective on our market, with emphasis on Las Vegas Foreclosures.
Here is a beautiful Las Vegas Foreclosure in Henderson listed for $247K, with 3 bedrooms 2.5 baths, with over 2,400 square feet:
