Distressed Markets in Las Vegas, Elsewhere
August 2, 2008
(Las Vegas, N.V.) With the real estate market around the country sinking into a downward spiral it seems that no state or city is immune. Property values are down and the number of foreclosures is up. Huge banks are scrambling to cover themselves with a great number of properties that are no longer being paid for and everyone is suffering because of it. Short sales (A short sale is a special transaction that allows a home owner to sell their property for less than they owe on it.) are also up during this period. It seems like this is the prevailing news around the country and the Las Vegas real estate market is no exception.
In 2007 the 89031 zip code in North Las Vegas had more foreclosures on the books than any other zip code in the country with 741 filings as of December. You might ask what zip code had the second most foreclosures? That would be the 89531 zip code, also of Las Vegas. So you can see just from these two simple statistics that even the great city of Las Vegas is not immune to the downturn in the housing market. Through the first 6 months of 2008 Las Vegas is still leading the way in the country when it comes to foreclosures with nine zip codes already in the two hundred plus range. This means that all of those adjustable rate mortgages, combined with falling housing prices, has made for a very sticky situation for many homeowners and investors in and around the Las Vegas area. A main driver of these foreclosures is the fact that housing prices have fallen so much. Many owners got into a home with an interest only loan and adjustable rate mortgage and are now upside down tens of thousands of dollars. Mortgage payments have doubled for some home owners. This situation is not unfamiliar when trading in a car, but can be very disturbing when selling a home.
Homeowners who are upside down on their home loans in the Las Vegas area are also the main class of people who are in line for a possible short sale of their home. A short sale of a home happens when a homeowner can no longer pay their mortgage, so instead of going into foreclosure or defaulting the bank allows them to sell their home for less than they owe and the bank considers the loan as even. Banks, quite understandably, are not real exciting about doing this, but it’s favorable to all of the headaches of foreclosure. Nearly ten percent of the properties listed in the MLS database in 2007 were short sales. For more information on Short Sales in and around Las Vegas visit: http://www.senasellsvegas.com/las-vegas-short-sales.php
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2 Responses to “Distressed Markets in Las Vegas, Elsewhere”
While it may appear sad to the reader and no doubt also the occupant of a property under forclosure why should the honest homeowner care. What individual in their right mind could possibly believe with net imcome of $2,000 per month they might afford a $400,000 home. Answer is no one would. Let the greedy and stupid be tossed out on the street or let them occupy a Extended Stay weekly living arrangement until such time as they face life headon.
Looking back I can’t believe the things some people were buying. Its no wonder the credit markets are in the shape they are in