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Thursday, Aug. 13, 2009 | 11:03 a.m.
Sun Archives
Three more reports show that the Las Vegas and Nevada real estate markets remain at or near the top of the nationwide lists for foreclosures, lower prices and homeowners being underwater in their mortgages.
RealtyTrac of Irvine, Calif., today said that for the 31st consecutive month, Nevada had the nation's highest foreclosure rate, with one in every 56 housing units receiving a foreclosure filing in July -- more than six times the national average.
Initial default notices in Nevada decreased 18 percent from June, which RealtyTrac said is likely the result of a new state law effective July 1 requiring lenders to offer mediation to homeowners facing foreclosure.
But scheduled auctions and bank repossessions in Nevada both increased more than 20 percent from the previous month, RealtyTrac said.
Foreclosure filings were reported on 16,798 Las Vegas properties in July, one in every 47 housing units, RealtyTrac said. That's more than 7.5 times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000.
The Las Vegas area housing market has been slammed by both the subprime mortgage crisis leaving homeowners unable to afford monthly payments that reset higher; and soaring unemployment that reached 12.3 percent in June.
Nationwide, foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 360,149 U.S. properties during the month, an increase of nearly 7 percent from the previous month and an increase of 32 percent from July 2008, RealtyTrac said.
The company said one in every 355 U.S. housing units received a foreclosure filing in July.
"July marks the third time in the last five months where we've seen a new record set for foreclosure activity," James Saccacio, chief executive officer of RealtyTrac, said in a statement. "Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we're seeing significant growth in both the initial notices of default and in the bank repossessions.''
Separately, the National Association of Realtors this week said existing home sales in the second quarter showed healthy gains in most states as lower prices increased affordability in most metro areas including Las Vegas.
The Realtors said that existing-home sales, including single-family homes and condominiums, rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units in the second quarter from 4.58 million units in the first quarter -- but remain 2.9 percent below the 4.9 million-unit pace in the second quarter of 2008.
The median home price in the Las Vegas area fell from $155,300 in the first quarter to $141,800 in the second quarter, the Realtors said.
For condominiums, Las Vegas leads big metro areas in affordability, the Realtors said. The association report found the local median condominium price fell from $75,200 in the first quarter to $66,400 in the second quarter.
Also this week, Zillow.com of Seattle issued its second quarter 2009 housing report, showing U.S. home prices fell 12.1 percent from 2008's second quarter, marking the 10th consecutive quarter of declines.
Zillow.com said 23 percent of U.S. homeowners now have negative equity, meaning they owe more on their homes than the homes are worth.
The report found Las Vegas was the third worst-performing market in the quarter, with home prices down 34.6 percent year-over-year, falling to a median of $140,500 -- with a staggering 82.5 percent of local home mortgages having negative equity.
"While we are encouraged by the increasing sales in many markets ... and the overall improvement in the rate of decline (of prices), I hesitate to be overly optimistic for the near future," Stan Humphries, Zillow chief economist, said in a statement. "There are still many hurdles to true market recovery. Foreclosure re-sales are buoying overall sales numbers, but their low prices are keeping home values down. Reports of increasing mortgage defaults signal that foreclosures are likely to increase again and peak in mid-2010. With increasing unemployment and high rates of negative equity, we have a fertile breeding ground for even more foreclosures, which add to the already-high level of for-sale inventory that needs to be cleared before values begin to rise.
"While the abundance of affordable foreclosure properties is a boon for many first-time homebuyers, I don't believe we'll see significant recovery until demand-side fundamentals improve, and more move-up and move-across buyers re-enter the market."
These three reports follow Monday's release of July housing statistics by the Greater Las Vegas Association of Realtors.
The Las Vegas Realtors said that with bank-owned foreclosure sales still dominating the market, sales of existing homes, condominiums and townhomes in July totaled 4,602, down just 100 from June's record numbers.
July's local median price of existing single-family homes was $138,800 and the median price of condominiums and townhomes was $67,000. Compared to the previous month, this represents a 0.9 percent decline in the median price of homes and a 1.5 percent increase in the median price of condos and townhomes, the Las Vegas Realtors said.
bottfeld = "we've almost hit bottom" = moron.
"With increasing unemployment and high rates of negative equity, we have a fertile breeding ground for even more foreclosures, which add to the already-high level of for-sale inventory that needs to be cleared before values begin to rise."
"...I don't believe we'll see significant recovery until demand-side fundamentals improve, and more move-up and move-across buyers re-enter the market."
********
Mmmmmm...what's wrong with these two statements?
The "unemployed" must be turned into "employed". Unless people can find decent jobs here - there aren't going to be any "move up and move across buyers".
Round two of the foreclosure crisis is just starting. Five year adjustables to then credit worthy customers allowed LESS than the interest to be paid monthly with the balance due actually increasing for the 5 years. As the resets come with higher interest rates and now a higher balance due monthly payments are increasing by over 50% to the homeowner.
With house values down and income down, more and more are walking away and moving away.
Thank you Mr. President. I am glad no one is wasting money by coming to Las Vegas or going to the Super Bowl. Thanks a lot.
Most - if not all - of the foreclosures will have to be sold before new construction begins. We sorely need those construction jobs.
wait until city center is done. all those construction workers will have to leave las vegas to find work.
The last thing we need are "construction" jobs. Jobs that are based solely on unsustainable growth are exactly what got vegas upside down!
Move on.....
Next article will be about the lack of water for continued growth...of what?, casinos & homes...please, this city is a bust!
The biggest reason we aren't seeing an improvement in the economy is due to the fact that there are still people making a lot of money off the situation as it is today and these folks aren't interested in seeing things change.
There are answers to the problems that we face... but... no one is interested in listening to the people with common sense answers.
But fear not ... when those moneyed interests have amassed enough wealth from the present situation they will turn the constrictions loose and the good times will roll ...again!
Until then we can play the dems..no pubs game... until we are broke.
Further masking the problem is that a fair percentage of home sales in LV were by investors hoping to rent and make a profit.
haha...
i knew it. i KNEW some moron would try to blame realtors for the housing mess...saying we are dishonest...but not providing any evidence to sustain that claim.
maybe i'll get an attorney, find out who that poster was and then sue you for defamation of character.
To Neiman1:
We are home owners that put 51% money down on a fixed rate and a good rate at that. We thought we would be fat city if anything turned upside down. Well we lost our huge downpayment and now are loosing the house cause its worth $130k less than what we owe. How can this improve when the median house is worth $140k in Vegas?
And I agree - THANK YOU MR. OBAMA!! But hey, the democrates AND republicans elected him and his Clinton Cronies thinking the grass was greener. Haven't heard him once say "Its OK to go to Vegas OR Orlando. He shuttered the Government and won't allow them to come. Until we get other jobs besides construction and gambling - things won't change for diversity of income. We are walking away from our beautiful home because we just can't pay for it with no work and the economy in the tank all around - and again, we thought we were way under the value so nothing would happen. As for realtors? I agree with LasVegas2009 - we had 5 realtors we talked to about selling the house and all we got was - oh, just give it away is the way to sell it. Not one of them wanted to "work" at selling the house with the upgrades, etc. Most of them are just used to letting us people come to them and PLEED with them to sell us a house. They dont know how to SELL - only take orders with no effort. We WILL miss our house and hope we can get back into something in the next 5 - 7 years when Obama is gone.
see, lasvegas20009...
you're a liar.
here's why:
explain to me what a realtor would have to gain by NOT putting in an offer in on a home.
oh...i guess it's the old "they were trying to hold out for a higher offer" scam that EVERYONE seems to claim realtors are in on, but never have any proof.
yes...we REALLY want to NOT put in an offer on a home for $250,000 in the hopes you'll put in an offer of $251,000 so we can make an extra $30.00.
so...you found not one, but THREE realtors for the SAME house that chose to turn away a chance to make a few thousand dollars in the hopes they could scam you for a few dollars more?
never happened. i will give you that MAYBE one....never THREE agents for the same house did that to you.
licensed real estate agents are REQUIRED to submit all offers from their buyer clients to the seller agent.
period.
if you REALLY could prove that THREE...much less ONE did that, you'd have their names, the address of the home you wanted them to put offers on, a copy of your "bids", and the date you submitted a complaint to the nevada real estate division.
you don't have that...because what you are saying never happened...and since you can make those allegations while hiding behind a screen name, you think you can say whatever you want.
again...EVERYONE'S got a "story" of how some sneaky realtor somehow did something wrong...but never seems to have any FACTS to back it up.
the very fact that you said "bid" instead of "offer" makes me think you're a liar.
I heard Time Mag will highlight Vegas in their edition this weekend. Yeah, I know there are neighborhoods in this country no one in his right mind would live therein, like Detroit. Let's hope the crack heads, gangbangers, crooked politicians, pimps and their whores, drive by killers, teamster gangsters, etc., of Detroit haven't been eclipsed by those who live in Vegas. Yeah, we all know, Detroit has the worst citizens in America and they fell prey to subprime/liar loans, alcoholism, drug addiction, uncontrolled gambling, and murderous crime. But isn't Vegas different? At least Vegas has homes selling now over 1000 bucks, and unlike Detroit, isn't Vegas in fact gaining some population growth, though it is incremental at best. Vegas is not Detroit, nor is it California. You have citizens who pay their mortgages, who honor their credit card debts, who refuse to trash homes, and who value the education of our children. If Time Mag presents another story, let them hear it from those who live in Vegas. I refuse to believe all the foreclosures, unemployment, and crime numbers presented in your local papers. There is no way this can be true. There is no way a city in America could be worse than Detroit when it comes to honoring American values.
we are not done yet in foreclosure can u said BAKERSFIED as soon when that court appointed mediation fail there will more foreclosure. i going to lawyer to try to get my loan modified it going to be a month will know next month if they yea of nea. i work in construction i don't know if i have a good paying job tomorrow next week or next month if i get layoff b 4 modification i will not paid mortgage
give us the names of the three realtors that someone were dishonest.
if you have the facts...give us the names.
if you stand behind your statements...you'd be more than willing to give the names of the three realtors.
I just returned from house hunting in Las Vegas. I was out there for less than a week in March for my first time seriously looking. The realtor showed me homes primarily in the NW part of town. The first time out was really a learning experience as we do not have SIDS/LIDS, HOAs, MP fees, etc here. I saw some homes where these fees were seriously in arrears. I can see where some people may have gotten in trouble buying more house than they could afford and then discovered how much more they had to pay when all these fees came due. Then the economy tanked. I felt sorry for some of the people when I walked in a house and saw Christmas decorations, child's toys left behind, etc.
As I said before, I just returned from several weeks in the Las Vegas area. I saw a lot of houses, mostly the ones listed by the agency for which the agent worked, and I came home again with no house bought. Have a lot better idea of what I want, what to look for, but still cannot seem to find a realtor who can find me a single story house with a large bedroom. The last realtor who showed me houses in Henderson and Green Valley area (preferred) told me to get a large bedroom I would need to think about looking in "Old Henderson", if I decided to try it again. Where is that? Also, she told me I would have to bid more than the asking price to get a home in the Las Vegas area now.
Anyway, was just reading the comments here and decided to add my most recent experience in your area. I got the impression the housing market has some of the gambling flavor to it if I have to bid (bet I win the house) and fold my cards and leave if I do not win. I don't really want to play games with such an important purchase as a home any more than I would want to horse trade buying a car with the salesman who "has to go back and see if the deal is OK with the boss"...I too old for games like this anymore.
no, lasvegas2009.
i want the names of the realtors that YOU said did something bad to YOU.
once again,
you're full of s**t.
bluebonnet
Go on realtor.com and punch in the 89086 zip code. Several single story homes with large bedrooms. I know this from experience since I lived in one of these homes in that zip code. Pay attention to the ones on these streets: Johnny Love, Kevin Baker, Amanda Michelle, Madaline Nicole, Bob Barney Ct., Donna. This is in the northeast part of the valley around 215 and Losee. All the homes are relatively new, built from 2004 until 2007.
bluebonnet
This part of town is North Las Vegas but it is NOT like other parts of North Las Vegas. It is about 10 minutes from 15 and 25 minutes to the Strip. GOod shpping and close to the beltway. THe house I lived in with the ex had a huge walk in closet, a huge kitchen and walk in pantry. It was about 2262 sq ft. My revenge dream would be to buy the same house across the street from the Ex for 1/3rd of what HE paid!!!
see....
lasvegas2009 is full of it.
makes allegations that THREE realtors risked losing their license to make an extra few dollars...all on the SAME home...yet, he can't give the name of one of them.
i rest my case.
if you can't produce PROOF that a realtor did something bad to YOU...then don't make allegations you can't back up.
losers.
The realtors in the article admitting to some of the scams they pull on people and the banks.
******
I finally read this article and it was awful. That female realtor should be so embarrassed. She gave all realtors a bad name. To openly admit in a NATIONAL MAGAZINE that she tells people not to pay their mortgages and admitting her and her husband did the same thing is really ballsy of her!! She has no shame. She ought to lose her license. ALso - where were they looking at these houses? It made it sound like all the foreclosures are overrun by squators with guns!!
Why is it so hard to purchase property in Las Vegas. I have made multiple offers, all unsuccessful due to higher than listed bids. Is this a manipulation by the banks or realtors or both? The Time Magazine article is scary.
katie,
no, she shouldn't lose her license unless she does something illegal DURING a transaction with a client.
folks, www.realtor.com essentially IS the mls. so please, enough with the "we don't share our info". about the only thing that isn't on the mls is showing info ( is it vacant, daytime showings only, etc. ).
lvnewbie,
what's happening is that there are very few GOOD and clean foreclosures.
so, you DO get multiple offers on a home. if people are working with a buyer agent, they know the comps, so if they get a home above the asking price, but it's below the comps of a similar non-foreclosure, they still got a deal.
realtors can't "weed out" bogus listings. how am i to look at a listing and say "this is bogus" if it's not my listing. and guess what guys...selling a home is JUST like selling something on ebay.
if pricing a home low increases the number of offers...and that results in a higher price the home sells for...
that realtor DID THEIR JOB!
see...when you're SELLING a home...you love it when we get you a higher price, but somehow we are doing something wrong when you're the one buying that home.
if you don't want to pay a certain price for a home...and someone else does...that's capitalism.
you might not want to pay $90,000 for a porsche...but someone else does.
Thank you, stevem.
www.realtor.com doesnt seem to specify foreclosures, nor condo unit #'s, nor HOA fees, nor prior unit history. Or maybe I'm missing...