lasvegasrealestate411

Property Values Set to Fall 43% from Current Depressed Levels

I'm scratching my head on how a national indice can be used to create a title that suggests all property values are set to fall 43% from the current depressed levels.

We have to keep in mind that there were some certain real estate markets where prices were decimated before all of the Making Home Affordable programs came out..... And some markets are currently being propped up because of MHA programs.

The Uncle Sam lending chart is certainly very interesting though and probably worth a little more focus.

My Plan to Repair Housing in America

Quote:

"Admittedly, values are lower today than they were in 2005. However, just as many consider that 2005 values were artificially high, there are many that think that values today are artificially low."

The many that must think that values today are articifially low must be the same ones telling everybody to buy in '06 and everything was Ok.

I certainly have to agree with Belvedere Research's comment above on this one. Easy lending created higher home prices and you also need to account for all of the new inventory that was created during this period by new home builders that were building to meet the artificial demand.

No Investor homes or Second Home owners can qualify for this plan? Interestingly, the neighborhoods in our area that have been hit the hardest with foreclosures are because of investor homes. Those and the subdivisions created by builders that were just thrown up to sell to people that would buy anything -- no matter what it was -- during the boom on the notion that real estate always goes up in price, no matter what you originally paid for it.

We have plenty of buyers now that home prices have gone through major price reductions in Las Vegas... (and from what I hear, so does Phoenix and hard hit segments of California)...

Prices are attractive to buyers that waited out and did not fall victim to "instant gratification" and saved their money all while the term "tenant" was being used as a dirty word.

Your plan would do little if anything for our market but just get in the way of the correction that has already taken place.

Not your fault, just a reminder that real estate is local and a one size fits all plan is not good for everybody.

Let's be completely realistic though on how prices got to where they did in the first place.

John Berry: Homebuying Binge on East Coast, Too

It's no tale that multiple offers are coming in on Bank Owned Las Vegas Homes. Some areas have had prices remain steady for the past 6 months suggesting a bottom. Las Vegas has for the most part, already gone through a major correction through natural forces which IMO is far healthier then delaying it out for areas lagging behind in the correction process.

The biggest help we need is for banks to approve short sales so the homes don't go to foreclosure in the first place.

Bank of America: Bailing Itself Out?

So -- are they going to be more receptive for homeowners with a hardship who need to do a short sale and get out of the homes they are in -- before they go to foreclosure?

Loan modifications really don't help out homeowners who have lost their jobs, divorced, or have been hit with unexpected bills -- all of which seem to be on the rise. We have over 6,000 short sales available for sale on our MLS, another 2,000+ in escrow, yet only 273 homes classified as a short sale closed escrow last month.

Banks could be doing a better job of bailing themselves out by releasing the bad loans (before going to foreclosure in the first place) and doing some good loans on real estate that has had a significant reduction in prices.

Just my thoughts as we deal with all of the short sales we currently have for sale --- who all tried working something out with their respective lenders in the first place.

Las Vegas Real Estate: Cash Is King

Interesting article and just some thoughts about what I see in the field since I'm doing this every day:

I'm getting buyers that have been looking at real estate in Las Vegas for a couple of years but never purchased before because the prices did not make sense to them... now they look at the same homes two years later and are in disbelief how low they are priced.

We also get buyers that are reading articles on how great of a deal Las Vegas real estate is, how much it's gone down from the highs and everybody is here to buy.

Something they all seem to have in common is chasing the same foreclosures that have been underpriced from current market value (my use of that term is just from what actual recent sales prices are) which is being skillfully accomplished by the people in charge of this to get everybody bidding the property up in price...

It's not uncommon to come across a bank owned property priced below market value in a desirable area and have 30 offers on it within a week. You would think that we are running out of land and homes for sale when you see the prices get bid up over market value. :)

It's also very common to hear the "Top Ten Values" being used and using the speculated prices of yesteryear being compared to today's asking prices like this is supposed to be the reason to buy.

Kind of like using the statistic of how many people are moving here every month that is based on how many out of state drivers licenses are turned into the DMV... which does not take into account how many people are leaving and turning their Nevada drivers licenses into other states DMV's. (In other words... the use of "net inflow" of 5,000 to 6,000 people moving into Las Vegas a month may be misleading -- as it was several years ago.)

Something else that everybody seems to fail to mention is how many more foreclosures are in the works and not yet available for sale. I've been tracking foreclosures for sale on just the Las Vegas MLS and it just keeps growing... despite quotes from a Poker Dealer that everybody is here buying everything up.

There are certainly some good deals going on here... but don't get irrational and think that everything is a good deal from sources that may not be entirely thoughtful to begin with.

Just a couple of thoughts because speculators did their damage to Las Vegas once already. We primarily do short sales and actually experience first hand what actual owners feel right now.... many of whom bought for the wrong reasons in the first place.

Please buy everything in Las Vegas that you can... just buy for the right reasons.