Las Vegas Foreclosures Sales are accelerating. Our challenge in this market is shifting from too much inventory to not enough. Please don’t believe what you read in the national media – we are getting multiple bids on Las Vegas Foreclosures priced in the entry level to $150K range, with investors from around the world snapping up our affordable homes and first time homebuyers taking advantage of the $8K tax credit available through December 1, 2009.
Continued Affordability Driving Las Vegas Foreclosures
We’ve arrived at this point by seeing a steady increase in our home sales the last 4-6 months, coupled with levels of affordability not seen in 3-5 years. Prices on average have fallen 57% from the Las Vegas Real Estate Market’s peak, which occurred in June of 2006. The projected average price per square foot of existing home sales in July of 2009 fell to approximately $75. – reflecting the lowest level for this year.
Chicken Little Market Analysis
The mainstream media likes to perpetuate “chicken little the sky is falling” logic when they talk about the Las Vegas Foreclosure Market. We hear over and over about the impending tidal wave of foreclosures that will hit the market, driving down prices and home values even further.
This is not factual in our opinion and we disagree vehemently. Quite the contrary, we looked back at data for the past six months of inventory of foreclosures versus homes sold and we can see that banks are releasing foreclosed homes in a very careful manner – banks do not want to impact the equilibrium in any negative manner!
As we have blogged about in an earlier post this month about Las Vegas Short Sales – we can see that banks are shifting to working with existing homeowners to sell their homes via a Short Sale process – this is good for all parties. The homeowners avoid a foreclosure ding on their credit report, the banks save money by not incurring the costs of carrying foreclosures on their books and buyers get access to more inventory of homes.
Here is a good example of a very affordable Las Vegas Foreclosure for sale at $242K, just under 2,400 square feet, 3 bedrooms, 3 baths, beautiful landscaping and all the amenities one would expect:
