Las Vegas, Nevada’s reputation for pushing the limits held true in 2010. In contrast to boasting the biggest casino hotel or the most extravagant entertainment venue, the city’s current claim to fame is due to the most home foreclosures of any US city. Real estate sales might be robust in Las Vegas but the deals come from short sales or auctions.
Las Vegas Short Sale
In simple terms a short sale means that the lender is willing to accept less money for a property than the borrower owes. A Las Vegas short sale allows borrowers some relief by getting rid of an unaffordable home. The lender releases claims to sell the home but does not have to erase the deficient amount. A real estate agent will work with the lender on behalf of the seller.
Lenders like Fannie Mae will allow Las Vegas short sale owners to qualify for homeownership in 2 years while borrowers with a foreclosure can’t own for at least 5 years. Some of the red tape in Las Vegas short sales was erased early in 2010 when federal regulations made it easier for buyers and sellers to complete a transaction with a lender more efficiently. With updates syncing with Fannie Mae and mandates directed to private lenders, Las Vegas short sales jumped in numbers.
2009-2010 Statistics
•CNN Money.com named Las Vegas the #1 city for home foreclosures in 2009.
•CNN cited nearly 70% of all home real estate transactions in Las Vegas consisted of distressed property.
•RealtyTrac reported foreclosure notices were sent to 12% of Las Vegas households-5 times the national average.
•September 2010 numbers showed 8,935 out of 13,406 home sales were short sales in Las Vegas.
•August-October 2010 Trulia reported a 56.3% drop in Vegas home prices over the past 5 years; 38,337 homes were listed in foreclosure stages.
No other city can quite match the profile of Las Vegas. The unique conditions in the once thriving city created the worst odds for the housing market following the sub-prime lending fiasco of 2007. As the national economy slumped, fewer people spent money on gambling and entertainment in Las Vegas creating a ripple affect in related workforce industries like construction and transportation. Most experts point to the Las Vegas entertainment industry getting a big boost as the national economy regains strength.
The forecast remains mixed on housing market indicators. One undeniable fact is that Las Vegas short sales currently reign in most of the action in the housing market. Based on the numbers, that trend will likely continue. For perspective buyers intrigued by the city, real deals on real estate in Las Vegas look like a sure bet through the first half of 2011.
