Find a Bank Foreclosed Home Priced Around $116,000 in Vegas

by on cities

One can find a bank foreclosed home in Las Vegas priced at around $116,000 this year, according to real estate analyst Larry Murphy who heads Las Vegas-based firm SalesTraq.

In a recent meeting of around 200 real estate market participants, Murphy said that the median sales price for foreclosure homes in the city has dropped to $116,900.

In 2009, Murphy said that the median home sales price could drop below $100,000. For the month of December, however, he reported that the median sales price was $120,000, a 25-percent drop from December 2008. He added that home prices have slightly stabilized since April last year when the price leveled at $125,000.

Murphy also said that analysts cannot really pinpoint the exact time home prices have bottomed out until several months have passed and they can look back and see the month prices have plunged to their lowest point.

He also reported that sales of pre-owned homes rose by 57 percent last year to 48,075 units and that sales of new homes dropped by 48 percent. The median sales price for new homes dropped by 20 percent in December last year to $212,883.

Any diligent prospective buyer can also easily find a bank foreclosed home in Las Vegas this year because about 26,000 new foreclosure properties will hit the market this year, according to Murphy. He said that 23,000 foreclosed homes entered the market last year. Despite other analysts’ predictions of another wave of foreclosures in Las Vegas, he reiterated that he does not expect a big wave.

Murphy also contended that because of the low median sales price, more banks will realize that short sales, with a price median of $150,000, are a better proposition than foreclosures. More homeowners with lis pendens notices are expected to avoid foreclosure through short sales with help from banks. Murphy predicted that short sales will account for about 15 percent of total home sales this year.

The price decline contentions by Murphy are affirmed by the LoanPerformance Home Price Index of First American CoreLogic. Based on price movements in 2009, the index compilers predicted that Las Vegas will reach its true price bottom in the next several months, along with other Sun Belt cities like Reno, Phoenix and Orlando. As home price levels in Las Vegas are projected to drop some more by 6.5 percent this year, buying a bank foreclosed home or a unit from among FHA foreclosures in the city this year is again a viable proposition.