If you are a homeowner in Las Vegas looking to sell your home, this current market may be the best opportunity you see for quite some time. Over the last year, home prices in Las Vegas have risen steadily as the lack of foreclosure inventory has continued to put upward pressure on home values. But this lack of supply may soon come to a close, and many experts believe this will send prices falling again in the Las Vegas valley.
In September of 2011, there were 4,684 notices of default issued in Las Vegas. In October, Nevada Assembly Bill 284 went into effect and the number of NOD’s dropped to 80. New regulations aimed at holding banks accountable for the transfer of paperwork and ownership throughout the loan process effectively handcuffed the lending institutions with the threat of stiff fines and criminal culpability if foreclosure agents did not have “personal” knowledge of a property’s document history. Banks have slowly found ways to resume foreclosures in some cases, but foreclosure filings still measure only a fraction of what they should be based on the number of homeowners in default. Last month, November 2012, there were 1,417 notices of default issued in Las Vegas, up considerably from last year, but still well below the 4-5,000 foreclosures per month that were being initiated prior to AB284.
Most analysts believe that AB284 is stalling legitimate foreclosures and creating an artificial boost in housing prices that is likely to collapse once banks begin to foreclose again in earnest. The end to this boom may be drawing very near. Banks are currently in talks with Attorney General Catherine Cortez Masto discussing possible amendments to AB284 that would allow foreclosures to continue in Nevada. Cortez Masto has expressed concern at the results of AB284, stating that the bill was meant to uphold the integrity of the legal process and protect homeowners from wrongful foreclosures, but that it was never meant to prevent legitimate foreclosures. (It is interesting to note that several real estate professionals, including the author, warned Cortez Masto that this is exactly what would occur if AB284 was passed.)
Regardless of how this matter is ultimately resolved, one thing is certain. It may be the best opportunity to sell your home in Las Vegas that is likely to exist for quite some time. It is almost certain that this “shadow inventory” of foreclosures will be released onto the Las Vegas housing market at some point in the next year. It seems logical to assume that once the artificial imbalance of supply vs. demand has been corrected, home prices will drop again in Las Vegas. My recommendation to any homeowner considering selling is to move quickly. Contact Team Plantone if you would like more information on current market conditions or to enlist our help in selling your home quickly.
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