Last Friday Las Vegas foreclosures were once again mentioned in the news and reported as being #1 in foreclosure filings in the country. The report mentioned that Las Vegas real estate showed that one in every 23 homes were in foreclosure. We are at record levels never seen before, and the number of Las Vegas homes for sale should continue to climb or so we think.
Banks are at it again. The same banks that brought Las Vegas from being the entertainment capital of the world to making us known as the foreclosure capital of the world are controlling the market again. I applaud the banks as it seems that they have grown a bit of a conscious. They are also just reaching into their mind for the basic instinct of survival by not flooding the market and destroying Las Vegas real estate market even further. It is estimated that there are as many as 30,000 homes in banks inventories and they are not ready to release them. In fact in some neighborhoods prices are starting to creep up a bit allowing investors to sell some of the Las Vegas real estate they purchase a few months back.
News media is reporting that banks cannot get homes on the market fast enough yet we are at 8738 Las Vegas homes for sale at the time of writing this post, and that is a 50% decline in inventory since last year.
It is not that they cannot keep up with the Las Vegas foreclosures, but more of a case of they don’t want to. In reality neither do the markets affected by it despite the fact that it is contrary to what many frustrated buyers feel. Supply and demand is what is at play, as well as other factors such as bank liquidity. Banks have effective manipulated the rate at which Las Vegas homes enter the market converting a buyers market into a sellers market. A sellers market occurs only when a few month of inventory are left for sale and is calculated by the amount of homes are for sale on the market and the amount of Las Vegas homes being sold, that is the simple formula.
We are definitely in a Sellers market for the time being.
Las Vegas buyers both cash and financed are out looking for homes in record numbers, and many are not locals. We have seen cash buyers from every place on the planet come to Las Vegas, and with the dollar declining as it has been vs other currency we are a bargain. Buyers that are buying homes with any financing are finding themselves in multiple offer situations, and homes at lower prices are being purchased at above asking price, frustrating investors.
Banks have increasing inventories of Las Vegas homes for sale, and they are not going to release them fast. Here is why, if they do, we will see all home prices collapse, and if home owners are felling the pinch now they will feel it even more as their home prices sink even more, investors portfolios will diminish and that will spiral us into an even worse depression.
The quality of the homes being placed on the market will likely decline as abandoned Las Vegas homes become prey to people trying to make a quick buck selling the abandoned appliances. Banks in an effort to make the homes eligible for the FHA buyers will continue buy stoves and other items to brig them back to guidelines. Buyers will have to bring patience with them as they go in search of their home. Buying systems such as the one I’ve developed will have to be put in place if you want to be the winning bid. Having one in place is the only way to win in this market. We will continue to be the wining bid.
Tags: Las Vegas foreclosures, las vegas homes for sale, Las Vegas real estate
