LAS VEGAS — As fewer houses are foreclosed on, short sales are increasing.
According to a report released Thursday, the increase in short sales could be a sign that Las Vegas’ five-year strong mortgage meltdown is turning around.
Many of the top realtors met Thursday at the Greater Las Vegas Association of Realtors to discuss the Face of Foreclosure report.
Not too long ago, foreclosure yard signs were almost as abundant as palm trees in the Las Vegas valley.
Keith Lynam, legislative chairman for the Nevada Association of Realtors, said that has changed.
“Short sales are now almost half our market,” he said.
Lynam said that four years ago foreclosures made up half the sales for realtors and short sales were rare, because short sales often took more than a year to be approved.
“Anytime you put the combination of a huge financial institution (and) government regulations, you have your answer,” he said. “Nothing happens quickly and nothing happens simply.”
Dave Tina, president of the Greater Las Vegas Association of Realtors, said the federal Mortgage Relief Act has made it easier for homeowners to short sale their homes rather than just walk away and leave them for the bank to foreclose on.
“With all the banks cooperating, an average of 90 days is more the norm (for short sales),” Tina said.
Tina said that as soon as a short sale sign is posted, the home is sold within weeks.
“Let me see 3.5 percent on a house, down 50 percent, down from ’04 and ’05 (prices),” he said. “I think that’s a great opportunity to buy.”
But for many prospective homebuyers, the problem is finding a short sale.
With fewer foreclosures and multiple people bidding on short sales, the demand is outweighing the supply.
“About a third of the recent offers I got on one listing were by owner-occupied homeowners,” Lyman said. “They wanted back in the market or were entering the market for the first time. That’s encouraging.”
Rumors persist that banks such as Bank of America are sitting on thousands of foreclosed homes, or shadow inventory, waiting to sell them at higher prices.
According to the bank, those rumors are false and if it had that many homes ready to sell, it would sell them to investors as soon as they are available.
Source: 8newsnow.com
Foreclosures Down, Short Sales Up
Posted: Jan 24, 2013 8:28 PM EST Updated: Jan 24, 2013 8:28 PM EST
By Tedd Florendo, Weather Anchor – bio | email
By Jonathan Carrera, Photojournalist – email
