REO Proteams: Las Vegas Real Estate News

After posting steady gains the previous months, the number of homes sales in the Las Vegas area dropped last August. An 11.2 percent decline was registered compared to figures posted the previous month. The drop was mainly due to the dwindling supply of bargain properties in the market.

Foreclosures

The growing number of foreclosures remains to be the culprit for the downward spiral of home prices. Government programs such as the Making Homes Affordable program designed to stop foreclosures are just now kicking into place. “Snail’s pace,” this is how troubled home owners in danger of foreclosure are describing the governments programs.

Las Vegas was the scene of huge construction projects during the housing market boom. Bank and real estate companies were quick to grab every opportunity of investing in housing projects. With the housing markets meltdown, banks and mortgage service companies were left with ever growing inventories of overpriced properties.

The number of foreclosures is forecast to continue well into next year. Foreclosures continue to post alarming numbers with relief nowhere in sight. Disturbing unemployment numbers which has posted better than expected figures this month has also failed to stop foreclosures. With increasing numbers of foreclosures expected within the year, the number of bargain properties is also expected to rise.

Mixed Results

Sentiments were mixed however as August posted the 12^th consecutive month of increased home sales over previous years month to month comparison. Home sales peaked at 73.7 percent last April as mortgage rates reached record lows and the market was filled with bargain properties from spiking foreclosures.

The real estate market remains weak but better than expected numbers has economists optimistic about the future. Some areas of the country are continuing to post good numbers with home sales picking up and steadying home market prices. Home markets in Detroit and Las Vegas remains weak as offshoots of recovery is just taking root.

Market Sentiment

Reflecting home sale figures across the West, Las Vegas registered the biggest month to month drop in home sales.  , Monthly gains were being posted before the huge drop in home sales this August. Market sentiment however remained upbeat as continuing news about a steadying economy and moderate improvements in the real estate sector trickle in.

Numerous government programs designed to stop foreclosures are starting to take its effect and has helped stabilize volatile markets. Average home prices which has seen its values drop by 20 percent across the nation has flooded the market with a huge pool of bargain properties.

Real estate markets in West were particularly hit hard with the housing meltdown. California, Phoenix, Detroit and Las Vegas were one of the hardest hit with foreclosures. Home prices have dropped by as much as half of their original values. Bargain properties and low mortgage rates have been fuelling the recent rounds in home sales and unfavorable changes could slowdown the recovery.

Report by REOProteams

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