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Nevada foreclosures increase in June
Foreclosure filings up more than 9 percent from May
Associated Press File
Data released Thursday show more homes are falling into foreclosure in the Las Vegas Valley. The rate of foreclosure filings increased in June compared to May.
Published Thursday, July 16, 2009 | 10 a.m.
Updated Thursday, July 16, 2009 | 1:08 p.m.
Home foreclosure filings accelerated in Las Vegas and Nevada in June, suggesting further trouble for the state's real estate market.
RealtyTrac, an Irvine, Calif., company that tracks foreclosure activity, today reported 8,726 notices of default were filed in Nevada in June. Total filings, including notices of default and notices of intent to auction, reached 18,764 in Nevada in June -- up 9.37 percent from May, RealtyTrac said.
In Clark County, June notices of default totaled 7,335, down from 7,643 in May. But they increased for two rural counties that rank high in RealtyTrac's list, totaling 115 in Nye County in June, up from 87 in May; and 192 in Lyon County, up from 85 in May.
For Clark County, total foreclosure filings -- including notices of intent to auction and properties turned over to banks -- reached 15,885 in June, up from 14,681 in May.
Nevada led the nation in foreclosure filings, on a percentage basis, not only in June but in the first half of 2009 and in the second quarter, RealtyTrac said.
And, illustrating that the foreclosure problem is not limited to the urban Las Vegas area, Nye and Lyon counties joined Clark County in ranking among the top 10 counties nationwide for foreclosure activity in the first six months of the year.
Clark County was No. 1 in the nation on that list, with 1 in 13 Las Vegas-area households receiving a foreclosure filing. Lyon County was tied for third place on that nationwide list with Nye County ranked No. 7.
The problem in Nevada, which started with the subprime mortgage crisis exploding into record foreclosure numbers, has been fed more recently by layoffs and difficulties in the big gaming and construction industries.
The state's unemployment rate of 11.3 percent in May was up from 10.6 percent in April, leaving thousands of residents unable to make their mortgage payments or qualify for home loans.
But the state is not alone in feeling the fallout of the subprime mortgage crisis and high unemployment nationwide.
RealtyTrac said 1.9 million foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported on 1.5 million U.S. properties in the first six months of 2009, a 9 percent increase in total properties from the previous six months.
"In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement. "Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes' are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue."
Despite the increase in June foreclosure filings in Nevada and Clark County, an official with the Greater Las Vegas Association of Realtors said local Realtors expect home sales to stay strong and prices to hold up as buyers emerge to pick up the foreclosed properties.
The Realtors earlier this month reported a record 4,702 home sales locally in June, with the median price of $140,000 remaining steady from May.
"Our sales volume is up and consumer confidence is returning," said Rick Shelton, a RE/MAX broker and president-elect of the GLVAR.
In one sense, foreclosures are helpful to the market, Shelton said.
"We need the inventory," he said. "The demand is exceeding the supply."
Still, Shelton said he's frustrated by the glut of bank-owned homes on the market. These properties don't move quickly as banks frequently are slow to sell them, he said.
And he'd like to see many of the foreclosures avoided. That can happen if banks would more frequently keep people in their homes by extending the length of mortgages and lowering interest rates so their payments are affordable.
And when that's not possible, he said, the lenders should work more with homeowners on short sales in which the banks and the homeowners each take losses for the underwater equity in the homes -- and the selling homeowners can move along with their credit ratings intact so they can buy more affordable properties.
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The Sun
Locally owned and independent for more than 50 years.
inb4 market is recovering and stabilizing!
shocker, huh?
wait about 3 days...steve bottfeld will have a quote in some story saying "we're near the bottom" for the 8th month in a row.
tourism is our heroin. and we gotta get that needle out of our arm.
enough with chasing pro sports teams. we need REAL jobs in this city.
So wierd that I'm reading this article just as we took a ride around our neighborood after going out to breakfast this morning.
On a hunch, we wanted to see how many "for sale" signs and houses were empty like a few months ago.
There was only 3 that we could see!!! Instead of the fifteen signs we saw in our neighborhood in a 5 block area off of Treeline Drive between Charleston and Sahara. we've seen a lot of move-in activity so that is why we decided to drive around and check it out.
Funny, huh?
Stuart & Robert Wyman-Cahall
Las Vegas, NV 89142
"Stemming the tide of foreclosures is a critical component to stabilizing the housing market..."
I agree with you, stevem. JOBS will help stop the foreclosures. WHEN will TPTB learn this in this damn city and state???? It may take a couple of years, but let's get on the ball and get some new industry in this area. Quit coming up with and spending money on slogans and commercials to bring the tourism gambling dollar into town. USE the money constructively and come up with a LONG TERM plan to bring different businesses/industries into the area. Yes, times are tough but start doing research on what can be done to entice other industries to come to Nevada. Start with the environmental industry. You know - a Long-Term plan so the whole of Clark COunty doesn't turn into a Section 8 mecca.
Man and woman cannot live by slot machines alone.....
Why does this article omit the key statistic for local readers: 1 out of 13 homes in Clark County is in some state of default. How can this fact be left out?
Here's the link to the Bloomberg story:
http://www.bloomberg.com/apps/news?pid=2...
"Clark County, Nevada, home to Las Vegas, had the highest rate in the nation with one in 13 households receiving a filing, according to RealtyTrac."
Anyone in favor of banning the Sun from writing stories about the housing market?
It's up, it's down, it's stabilizing, it's volatile...this is like watching Oprah's weight.
i think the banks are holding back A LOT of inventory to keep from crashing the market even more.
i can tell there's A LOT of empty houses in my neighborhood in the southwest with no "for sale" sign in the yard, but nobody living there.
i see the phone books and the menus stuffed 8 deep in the door.
for once I agree with steveM
can i say told you so...lol
the banks have huge levels of properties they are holding back on selling hoping to push prices up or cause a shortage, however if CIT goes bust which is very likely then the will have to offload the properties, as some 300,000 small businesses across USA could go under , this would then cause a huge increase in unemployment and a huge increase in foreclosures with a massive further drop in prices..
I expect at least another 20% down..
Okay, if you don't know about Option-Arms & Alt-A loans then go watch this;
http://www.cbsnews.com/video/watch/?id=4...
The whole country is going to be dealing with foreclosures, short-sells, bankruptcy through 2012. Repeat: 2012. Don't expect anything to change on that front.
The point: Expect articles like this one for the next three years. 2012 people. End of the world and all that fun stuff.
Next item: Build Interstate-11 from Phoenix to Vegas to Reno. That infrastructure will allow different industries to come to Reno and Las Vegas because they can connect to I-80, I-40, and I-10 and avoid California.
Make I-11 parallel to I-5 and watch businesses pop up in Reno and Vegas that aren't gaming related. It will happen. Reid has lots of pull right now, go to his website and e-mail him for this idea. I did.
There are companies that want to be on the West Coast but not in California. I built a plant for one of those companies, but I'm not going to name it here because that wouldn't be good for their business.
Sorry to say it: But California is messed up.
(Yeah, I'm Captain Obvious, I know...)
So, what can Nevada do to take advantage of that? Create an infra-structure for companies to use on the West Coast. Businesses won't move here if they have to back track on the freeways. Build I-11 the way I propose and you don't have any back tracking problems.
Businesses would love the tax benefits Nevada can provide and they would love the shipping advantage of being next to California without being IN that tax-happy place.
Who knows what will happen. The people in power with money and influence will do whatever they want. We all know good ideas when we hear them, but it takes time, paperwork, and getting the right people to build momentum behind any good idea.
wait until the chinese want their money back!!! you'll really see the fur fly then.
lvdjlv, you sound like someone that lived in California and could not make it here. I don't know anyone that want to leave California, let alone move to Nevada.
Life is great in LA!!!! And our home values are going UP.
I think you are a bit jealous.
ya, L.A. is so great it's bankrupt!
LA is NOT bankcrupt you idiot. House values are much more stable due to a diversidied economy and mass transit.
There is definitely something shady going on in LV with bank homes. The inventory has disappeared and prices are higher yet we are seeing HUGE increases in foreclosures.
I would be careful buying right now. When the market is being manipulated, you do not know the true market value.
"lvdjlv, you sound like someone that lived in California and could not make it here. I don't know anyone that want to leave California, let alone move to Nevada.
I'm 44 years young and I'm Californian born and bred. I moved to Las Vegas in 96 and bought a house in 98 and I make more money here than I did in Cali. My family and friends are STILL looking for homes. It was the right move. The only thing I miss is living across the street from the beach.
Well green you didn't earn too much in CA then did you? Glad you found a spot that works for you.
Bottom line is there are no professional jobs in LV and buiding highways wont change it. OIL is dead.
LV should diversify and stop attracting families with kids that want million dollar educations and no taxes.
Nick - Building a freeway that connects three major interstates does nothing but help diversify Nevada's economy in my opinion.
Right now, if a business wanted to transport anything on an 18-wheeler from Las Vegas to San Francisco, Portland, or Seattle then how would you propose they get there?
I-15 north to Salt Lake City and I-80 and back track all the way through northern Nevada? I-15 south to L.A. and take I-5 up? That would not be necessary if you had I-11 from Vegas to Reno. If they expand 95 then that works too.
I'd love to see Nevada diversify it's business base. But it won't all be financial companies, or tech companies. There will have to be SOME manufacturing companies. And they'll want to ship stuff and they will need major freeways.
What if FedEx wanted to build a massive hub out here but said: Well, there isn't enough freeways to ship stuff out of Vegas.
Nick, my idea might not be the best one. If you have a better idea then I'm all ears.
And to whoever posted that I was a failed Californian, I'm not from California or the southwest at all. I don't really see where I am from has anything to do with the fact that I'd like to see Nevada and Vegas succeed. But feel free to tear into this post too and show everyone what a great human being you are.
Why don't you post your ideas to make Nevada better? Try that next. Peace.
I think the best thing LV can do is build the GD train. It is impossible to get to LV on a 3 day weekend anymore. A train will help in many ways. When gas hits $4 a gallon again LV is in trouble.
I think manufacturing in the U.S. is a thing of the past. Attracting tech companies and retirees would be a start.
I work for a company that is in 122 countries and lays off constantly. When jobs leave LA it is not to red states, but out of U.S altogether. Accounting to Phillipines, tech to India, even Poland is getting our jobs (who knew?)
One reason is healthcare is too costly here. When they look to move, USA is not that attractive except for client facing executives.
California bashing is easy but CA built a huge diverse economy and we could learn from that.
ummm...
when the government of california has to send out IOU's instead of paychecks...
that's bankrupt.
Until something is done to guarantee water for the future, most talk of diversification is moot.
This country is starting to realize that it is manufacturing that garners wealth, not services or trading paper. With the rest of the world rapidly developing, the price of oil, with the willing help of Wall Street speculators, will again skyrocket. Which means the cost of shipping from overseas will go up drastically thus making it cheaper to manufacture in the USA. Chinese goods have been cheap mostly because the Chinese undervalue their currency, not cheap wages. When they are forced to quit playing games with the exchange rate those goods will no longer be so cheap. Plus the Chinese are getting advanced enough that they will no longer settle for slave wages and working conditions.
Many good points are made here.... What good is affordable housing if people cannot find employment?
Comment removed by staff.
WHY ARE PEOPLE ALLOWED TO POST COMMENTS HERE THAT ARE ACTUALLY "ADS" FOR THEIR WEBSITE? THE SUN SHOULD ESTABLISH SOME GUIDELINES FOR THIS.
ya, i'm a realtor as well, and you never see me trolling for clients here.
2012 looks like the golden year for housing recovery....nothing sooner. Obviously the banks are holding back in releasing houses,hoping for a few extra $$'s after taking such a hit.Don't count on those super over inflated pricing you was so used too....you'll not see those until your grandchild is old enough to marry.
I think stevem is hitting it right on the nose. It's gonna take years to get through this mess. Nobody wants to say that maybe we're in a mild Depression. At the very least Las Vegas might be.
1 in 16 and not getting any better with more to come. How much more value will Vegas real estate lose if we have 2 more years of heavy foreclosures..we've(yes I own property here too)lost 40 percent so far what's it going to be at the end of 2011? Maybe I'll just save up some money and buy a really nice place for 40 cents on the dollar.
In the USA 1 out of 8 is upside down 1 out of 4 has less than $25k of equity...It took 14 years for the Japan market to recover.
You won't see a recovery for 5 to 10 years.
I'll be doing cartwheels if we recover in 5 years mred.
Moved here from Detroit. Noticed a disturbing parallel. Auto exec's decided years ago to forsake the small car market. They decided that they could make more on big cars and SUV's and all but abandoned the market that serves most income levels. The resort developers here have made a similar decision, deciding to go after the consumer who would pay $200 a night, with trendy high end boutique shops and expensive eateries and oh yes, gambling. Now gambling is found all over the nation so the ignored part of the market will go to local gambling spots and the resort developers will do to the Las Vegas economy what 30 years of bad decisions by auto exec's has done to the Detroit area economy.
howdydostu - not all houses that are up for sale have signs in front advertising as such. If you see a piece of paper stuck on the window, it's a foreclosure.