 dogmaXYZPremium
join:2002-08-15
Boulder City, NV
kudos:1 | [NEVADA] Las vegas Real Estate Market Conditions 6/2010 Last time I posted, the median price of a free standing resale home in the Las Vegas area was $136,000.00. Guess what? It's now $142,000, up 1.4 percent from the same month a year ago. Las Vegas home prices increased for the second straight month compared with a year ago, while sales declined and inventory increased slightly from 8411 to 9251 as of today.
40% of all of these sales were ALL CASH affairs. No mortgages needed. I don't quite know what to make of that fact.
As of May 31, 2010 (see chat above) 4,620 or 41% of the active listings were conventional residential listings (AKA "Organic" sales) , 4,595 or 40% of active listings were short sales and 2,118 or 19% of active listings were REO or Bank Owned. Think about it, in late 2008 67,223 properties in the area — or 8.89 percent of all properties — faced foreclosure filings. Perhaps 45,000 were foreclosed on. 2 years ago, there were as many as 15,000 bank REO's for sale, Now there are only 2,000 bank REO's on the market.
Still no sign of the double dip, or second wave of foreclosures that some expect. That probably won't happen as now the government has far too many "plans" in place to sloooow the foreclosure rate (HARP/HAMP/2MP/UOP/HAFA: »makinghomeaffordable.gov/borrowe···.html#68 )
Some of this has to do with the expiring tax credit, but I think it's mostly due to the inventory of foreclosed homes dropping dramatically. What we see now is a majority of short sales. Well, the government may have something to do with that as well:
The Home Affordable Foreclosure Alternatives (HAFA) program became effective on April 5, 2010. This program is funded from the federal government's $75 billion stimulus program and is designed for homeowners who are in financial trouble but don't qualify for a mortgage modification. The objective is to speed up the short sale (properties with less value than the mortgage balance) process and prevent lenders from filing deficiency judgments against the home seller. The program could improve or at least minimize the foreclosure crisis. It may provide relief for an estimated 70 percent of Las Vegas homeowners who have mortgage balances larger than the value of their home. Lenders are on board with the HAFA program and are prepared for an expected onslaught of inquires.
Effectively, the government will pay a mortgage owner $3,000 to deed back the title to the lender to help facilitate a short sale. |
