Foreclosed Homes Expected To Flood Las Vegas Residential Market

Those looking to acquire a home in one of America’s best cities to live, Las Vegas, may soon be able to turn that dream into a reality. Experts say that thousands of foreclosed houses are about to hit the local housing market, and thereby significantly increase local inventory.

Both banking and real estate professionals see the Las Vegas market taking another big hit some time in the future, which in turn could substantially postpone its recovery for several years. Previously viewed as a market where sellers reign supreme for the past several months, the new wave of dwellings is going to create a substantial drop in prices, therefore turning the market into a more favorable environment for buyers.

The new law which makes it more difficult for banks to foreclose is a big contributing factor for foreclosed abodes coming to the market. Last September 2011, studies show that banks were foreclosing 3,000 to 4,000 properties in Clark County every month. But when Assembly Bill 284 took effect, these figures dropped down to 800 a month.

With that said, real estate experts who’ve closely followed this situation foresee roughly 70,000 foreclosed properties hitting the market. And with the law prohibiting banks from taking immediate action, Las Vegas’ residential market will finally get the boost it has badly needed.

“It almost feels like it did in the boom years of 2004, 2005 and 2006. People were receiving multiple offers and people were bidding over list price,” says Applied Analysis’ Brian Gordon. “The reality is that a lot of that’s been a function of limited supply on the markets.”

On the other hand, Bill Uffleman, president of the Nevada Bankers Association, says that banks have found various legal methods to speed-up their foreclosure process again. “Foreclosures will ramp up shortly. I would argue, probably in September,” said Uffleman. “If you took 3,000 a month is the norm, I think we will get back to 3,000 a month maybe 4,000 thousand.”
Nevertheless, notable realtors such as Jared Jones still believe that the Las Vegas housing market will see the inventory surge by February or March next year.

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