Have We Reached the Bottom?

2008-09-25T14:21:00.000-07:00

There are a lot of questions as to whether or not the housing market in Las Vegas has hit bottom. Sales have been up significantly - more than 25 %, and we are seeing mulitple offers come in on our listings. However, most of this business is coming from REO's ( Repos). These homes are purposely priced low by the Banks who own them so they can sell quickly.
Most experts predict another 1-3 years of foreclosed homes coming onto the market. As long as these Repos keep pumping of the inventory of homes, it will continue somewhat of a downward pressure on prices. The credit markets are also very tight right now, which limits the ability of Buyers to obtain financing. This is an issue that also needs to be resolved before we see any upward movement in home prices.
So while we may be close to the bottom, it will probably be prolonged bottom that will take some time to really shake itself out.
If you are in the market to buy a home to live in for a while, this is still a great time to buy. Do not try and time the market, or use your personal residence as an investment. Buyers need to learn that their home is for shelter and pride of ownership. With this in mind, you will not get hurt owning a home.

Foreclosures

2008-04-27T18:18:00.000-07:00

A lot of interest has been generated by the Media lately concerning Foreclosures and Short-Sales.
A short-sale is when the Seller negotiates with the bank to accept less than what is owed on the property ( Short-Pay). This typically is necessary when the value of the home has dropped to the point where the owner is "Upside Down" or owes more than the home is worth in Today's market. The Short-sale process can take 60-90 days just to get a response from the bank. A buyer can negotiate a good deal on a Short-Sale property but will more than likely have to be very patient with the process.
The Seller on a Short-Sale is not responsible for the difference between what the home sells for and what they owe, but a short-sale can adversely affect your credit.
The best advice is to talk to a Real Estate or Bankruptcy attorney as well as a CPA.

Foreclosures are homes that have gone completely through the foreclosure process and are now Bank-owned. Banks can typically afford to take more of a loss than a private party, and they usually price thier homes agressively to get them sold and off their books quickly.
Over the last 4-6 weeks, we have been seeing a sort of Buying Frenzy on foreclosures, especially the ones under $300k. Buyers are now runnign into situations where there are multiple offers coming in on certain properties and they have to compete to get their offers accepted.
The Buyers are recognizing the incredible deals that are currently out there and many believe that we are at or at least near the "Bottom". This has sparked the increase in activity.
In Las Vegas for example, March 2008 sales were up nearly 36% over the previous month.
It almost seems like 2004 all over again.

SBWest Realty Blog

Have We Reached the Bottom?

Foreclosures