Archive for January 15th, 2010

Las Vegas Foreclosures in 2010

Friday, January 15th, 2010

It seems inevitable that Las Vegas foreclosures will continue to be the dominant issue facing our market in 2010. Actually, it seems entirely possible that the foreclosure issue will loom even larger this year than it did last year, although that hardly seems possible. Approximately 3.5 million homes are expected to enter some phase of the foreclosure process nationwide this year, and you can expect Nevada, Arizona and Florida to lead the way. Although layoffs and slow economic conditions continue to be the main contributing factors to additional foreclosures, an increasing number of Las Vegas home owners are “strategically defaulting” on properties they could continue to pay for, but just won’t … and who can blame them ??

On a brighter note … this today from Bank of America …

Bank of America expects to release about 6,000 foreclosed properties into the Nevada housing market in 2010, or about 500 a month, an executive with the bank said Wednesday.

Why is this a brighter note? Because the supply vs demand imbalance in the Las Vegas real estate market continues to border on complete insanity. For every desirable foreclosure property for sale in Southern Nevada there are 25-50 hungry buyers trying to kill each other to score the deal. REO inventory in Las Vegas has shrunk to inexplicably paltry levels even though 200 homes a day are going into default. Buyer demand is absolutely HUGE for foreclosure inventory that MUST be stuck in the system somewhere, even though no one can say for sure where it is !?!

At least Bank of America finally said something …