“Las Vegas Real Estate Stabilizing” as a topic is being echoed in headlines across the country – we are pleased to see positive analysis of our local market via local and national media! We’ve taken the position for months, the Las Vegas Real Estate market is stabilizing based on our own informal assessments, so this news is no surprise to us. But, nevertheless, most welcome!
What’s Happening with Las Vegas Foreclosures
For months and months the media, analysts and even other professionals in our industry have been talking about Las Vegas Foreclosure Phantom Inventory with doom and gloom as a mainstay of their analysis. Well we are pleased to report, this impending tidal wave of foreclosures has not occurred.
Yes, the negative is our home prices have dropped precipitously (50%) since 2006; but, they have stabilized the last 3-5 months and don’t appear to be dropping in any appreciable manner.
What’s having the greatest impact on Las Vegas Foreclosures and their potential impact on the market? Banks are simply not able to process the amount of required paperwork to process all Foreclosures in a timely instantaneous manner and they are also not releasing Foreclosures into the market.
As we’ve indicated before, this would not be in the bank’s or the overall market’s best interest -as a deluge of Foreclosures could impact pricing negatively.
Important facts and figures to be aware of impacting Las Vegas Real Estate:
- The median price of 4,254 recorded resales in October was $125,000, down (approximately) just $250 from September.
- Estimates of foreclosed homes in the pipeline ranged from 20,000 to 75,000 locally, with national reports of up to 7.9 million; again, these are just estimates and the economy’s overall impact on Las Vegas could be positive or negative moving forward and this should not be ignored.
- New Home Builders sold just 471 new homes in October, a small drop from 452 in September.
- For the year to date, new-home sales decreased 55 percent to 4,090 closings up until October of this year.
- The median new-home price dropped to $205,000 in October, down a very small amount of 1.4 percent from $208,240 in September and down 17 % from a year ago at this time.
- Of the 4,417 existing-home closings reported by SalesTraq for October, approximately 51 percent were bank-owned homes - with a median closing price of $116,000.
- We had approximately 28,000 Las Vegas Foreclosures in 2008 and most analysts predict a similar number for 2009, as do we.
