Purchase Bank Foreclosures in Southern Nevada as Prices Fall

by Donald Hanz on States

Purchase bank foreclosures in Southern Nevada as home prices continue to fall in the region, based on sales data from the Greater Las Vegas Association of Realtors.

In January this year, home prices fell in Southern Nevada, which encompasses Clark County, where Las Vegas is located. The region also includes the counties of Lincoln and Nye.

The median sales price of houses in January dropped to $134,925, a decrease of one percent from the December 2009 median and a sharp drop of 15.7 percent from the median in January 2009.

Total home sales reached 2,608 units, marking a drop of 24 percent from total sales in December, but an increase of 17 percent from sales in January last year.

The percentage of foreclosure sales continued to decline in January, falling to 57.4 percent from the December percentage of 60.1 percent. According to the realtor association, the percentage of foreclosure sales declined in Southern Nevada in January because the percentage of short sales increased.

More than 21 percent of total home sales in January were short sales, an increase of two percentage points over December. Short sales have been rising since the last months of 2009.

Nevertheless, prospective home buyers in Southern Nevada still have lots of opportunities to purchase bank foreclosures in the region because of continued foreclosures.

Nevada led all other states in foreclosure rate in 2009 with more than 112 foreclosure postings and a 10.2-percent rate. Similarly, Las Vegas also topped all other metro areas, posting almost 95,000 foreclosures and a 12-percent foreclosure rate.

Steve Bottfeld, a top executive at Marketing Solutions, and Larry Murphy, president of SalesTraq, said that homes will continue to be sold off at sheriff auctions or sheriff sales this year because of unemployment, but they added that the pace of foreclosure will not be as stepped up as in the past.

Murphy projected a foreclosure total of 26,000 for Las Vegas this year, an increase of around 2,000 over the total in 2009. There were 25,288 foreclosure filings in 2008.

David Crowe, chief economist of the National Association of Home Builders also contended that foreclosures will continue to batter the market for new homes this year.

According to David Berson, chief economist for California firm PMI Group, home prices will continue to fall in Las Vegas, although the drops will not be as steep as in the past.

With these price declines, investors and owner occupant buyers have good reasons to purchase bank foreclosures in southern Nevada.