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Oh No! Nevada Appraisers Say the Las Vegas Housing Market Has Fallen and Hurt its Back.

July 30th, 2007 3:14 PM

Oh No! Nevada Appraisers Say the Las Vegas Housing Market Has Fallen and Hurt its Back.

Nevada’s July 2007 foreclosure rate (the highest for the sixth straight month and more than four times the national average) has one foreclosure filing in June for every 175 Nevada Appraisals by Appraisers in Las Vegas, Henderson, North Las Vegas, Nevada households. That's a 10 percent drop from May but three times the year-earlier level. Appraisers of Las Vegas.com provides appraisals for foreclosures in Las Vegas, Henderson, North Las Vegas and Clark County, Nevada.

To place the Las Vegas foreclosure rate into perspective nationally: There are 16 foreclosures for every 10,000 properties in the Washington area, compared with the national average of 37, according to George Mason University’s Center for Regional Analysis. In Detroit, Las Vegas and Atlanta, the rate exceeds 100.

New home sales (measured by closings) in June 2007 are down 48% from the same month last year. Sales Traq reports that June 2007 existing home sales were down 43%. There have been 14,856 resales in the first six months of 2007. There were 8,400 more sales in 2006. For reference, there are currently over 29,900 homes for sale on the MLS.

Larry Murphy of SalesTraq reported that the median new home price was $329,990 in June, Las Vegas Home Prices vs. Appraisals up from $314,100 in May but down 2.2 percent from a year ago. June's resale median price of $277,900 beat May's $275,000 and is off 4.1 percent from a year ago, according to SalesTraq.

Home prices have fallen, but not nearly as much as pundits predicted. California real estate consultant John Burns said housing Las Vegas prices must drop 30 percent to return to a normal market.

"Is it realistic for houses to back off by 30 percent?" Smith asked. "Why are we even talking about it? Come on. I think prices still have a ways to come down in Vegas, but not 30 percent. Eight to 10 percent, maybe."

An illustration of the difficulkties in Las Vegas foreclosure appraisals is a certain southwest Las Vegas neighborhood of 300 homes with 60 for sale and about 35% in some state of foreclosure. About 30 houses in this neighborhood were sold in the past year, and many other homes are vacant.

InBusiness Las Vegas was the source for the following data:

In June, Nevada had one foreclosure filing for every 175 households to lead the nation for the sixth-consecutive month, according to RealtyTrac, the California company that tracks foreclosures. That's a 280 percent increase over June 2006 and well ahead of second-place California, which had one filing for every 315 households.

The Las Vegas metropolitan area ranked sixth in the country in June with one foreclosure filing for every 138 households, according to RealtyTrac.

Nevada is securing its dubious distinction as the foreclosure capital of the nation.

Based on the current trend and its lead over the state with the second-highest foreclosure rate, Nevada may hold its worst-in-the-nation position for a quite a while.

"It's probably going to get worse before it gets better," Sharga said. That's the view by others tracking the Las Vegas market.

Michael Krein, president of Nevada Real Estate Services, said he's carrying 700 properties that have been foreclosed and expects that number to increase.

The Las Vegas zip code 89131, which includes Silverstone Ranch and part of Centennial Hills, ranked 18th in the nation with 488 foreclosure filings. It had 105 bank repossessions, the most of any zip code in the valley.

The most current data available from Standard & Poor’s S&P/Case-Shiller Home Price Indi Foreclosure REO Appraisals in Las Vegas, Nevada ces shows the annual growth rate in prices of existing single family homes across the United States declined again, the 17th The 10-City composite’s annual decline of 2.7% is at levels not seen since late 1991.

Foreclosures and homes repossessed by financial institution can present appraisal complexities. At Appraisers Of Las Vegas.com, we're more than ready and able to help.

For a property in foreclosure, it's important to know the difference between fair market value and "quick disposition" or "liquidation" value, to know your potential liability. At Appraisers Of Las Vegas.com, we have experience in both providing snapshots of fair market value for our mortgage lending and servicing clients as well as "quick sale" forecasts that understand your timeline.

Owners of property in foreclosure, of course, present special challenges. They may be unwilling to allow an inspection of the property. If they have abandoned the property already, they may have neglected care of the home for some time -- or worse, caused damage. We have the experience and training to deal with the special dynamics of a foreclosure appraisal, and you should not hesitate to rely on us.

For a property that has already reverted to Real Estate Owned, you likewise will be interested in a quick disposition. But you may want to know and compare three values: As-is, as repaired, and "quick sale." These represent the value of the property without any work done to it, with the work required to make the property marketable to full market value commensurate with competing properties in the area, and, somewhere in-between, with minimal investment in repairs -- selling the property quickly, probably as a "fixer-upper." Again, we understand your timeline and the unique circumstances of an REO property, as well as the special information you'll need -- competing listings, market trends, and the like.

Please browse our website to learn more about our qualifications, expertise and services offered. Appraisers of Las Vegas.com provides appraisals of homes in foreclosures in Henderson, Las Vegas and Clark County Nevada.

Posted by Loreen Stuhr on July 30th, 2007 3:14 PMPost a Comment (0)

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