Posted by B H - May 7th, 2011
Nevada’s statewide shadow foreclosure inventory by the banks and lenders was reported to have a seven month supply by the National Association of Realtors USA state level report in March, 2011. Is that trend showing in Las Vegas? You decide for yourself.
As of May 7, 2011, the number of single family homes, townhomes and condos on the market available for sale in Las Vegas and Henderson is 13,919 per the Greater Las Vegas Association of Realtors (GLVAR) MLS system. Historically, that number has been significantly higher. Overall, 26,833 homes and condos are either available or under contract.
The number of homes and condos under contract (contingent or pending) is 12,914, roughly respresenting a most surprising forty-eight percent (48%) of the market. A high percentage of those Las Vegas and Henderson homes and condos are by cash buyers from all over the world. Regardless whether cash or mortgage loan buyers, a trend towards a sellers market may be occurring. On a month over month comparison starting this year, it appears we may be trending towards a four (4) to five (5) month supply of Las Vegas real estate.
Let’s look deeper. Of the total Las Vegas and Henderson homes and condos available for sale as of May 7, 2011, 9,489 are short sales and foreclosures. By foreclosures, we mean REO or bank owned; not just starting the foreclosure process. That’s sixty-eight percent (68%) of the available Las Vegas and Henderson homes and condos for sale are either short sales or foreclosures.
Of the Las Vegas and Henderson homes and condos under contract, 11,091 are short sales and foreclosures. That represents eighty-six percent (86%) of the homes and condos under contract as of May 7, 2011 as being either a short sale or foreclosure.
Challenges to these statistics include items like short sales often take months to complete; however, several banks have been streamlining their short sale and foreclosure processes lately with some closings occuring in weeks than months. Other challenges include the rumors of increased volumes of bank and lender shadow inventory soon to be released in the Las Vegas and Henderson markets. Nonetheless, with what appears to be a trend of less time on market, such shadow inventory would potentially serve to swing the pendulum from a slightly sellers market trend that appears to be occurring to a buyers market for a short while. That assumption is based on continued strong interest by buyers for short sales and foreclosures.
The last point we wish to tell you is about price points in time. We’ve been monitoring certain Las Vegas neighborhoods for our investor clients. It appears in some of these neighborhoods the sale prices are at or below 1996 prices. If there’s continued statistical evidence like this in the months ahead then we believe Las Vegas and Henderson home and condo prices may be in an overcorrected mode. Only time will tell us where all of this is headed but one thing for sure is these are very interesting times in Las Vegas and Henderson for the savvy, ready to act buyer. Is that you?
How can we help you find that great Las Vegas or Henderson home and condo? Please contract Bruce Hiatt at (702) 456-7080 today and let us tell you about our great services for you.
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