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Las Vegas real estate, the effect of foreclosures (bank owned homes) on the Las Vegas homes market

March 4th, 2010 · No Comments · Invest in Las Vegas real estate, Las Vegas homes, Las Vegas Real Estate

4979 homes were sold in Greater Las Vegas (Las Vegas, Henderson, North Las Vegas, Boulder City and Unincorporated Clark County) from January 1st, 2010-Feburay 28th, 2010. Table below shows the Greater Las Vegas homes that have sold by price range and type (foreclosed homes, short sales and regular sales).

The next table shows available inventory in the market as of today and the story is tight inventory in the lower price ranges. The third table shows available inventory of Las Vegas homes for sale and foreclosed (bank owned) inventory per month. As you can see the inventory for the homes that are priced less than $250,000 is less than 4 month and foreclosure inventory is less than 1.3 month.

Las Vegas, North Las Vegas, Henderson and Clark County homes sold January, 1st 2010-February 28th, 2010

Homes Prices in thousand dollars January, 2010-February 2010 Foreclosures Short Sale Regular sale
1-50 294 233 34 27
50-100 1156 786 239 149
100-200 2510 1130 612 768
200-300 705 292 185 228
300-400 195 59 58 78
400-500 79 20 26 33
500-1000 89 21 25 43
1000-2000 13 1 3 9
2000 plus 12 3 1 8
Total 4979 2545 (50%) 1183 (23%) 1343 (27%)

Current inventory of Las Vegas, North Las Vegas and Henderson homes for sale

Homes Prices in thousand dollars Inventory Foreclosures Short Sale Regular sale
1-50 118 39 61 18
50-100 1260 218 807 235
100-200 3911 750 2319 842
200-300 1447 173 574 700
300-400 544 49 154 341
400-500 300 10 56 234
500-1000 486 27 76 383
1000-2000 269 8 17 244
2000 plus 195 5 7 183
Total 8310 1279 (15%) 4071 (48%) 2960 (36%)

 Inventory of Las Vegas, North Las Vegas, Henderson and Clark County homes for sale and foreclosed homes for sale per month

Homes Prices in thousand dollars Inventory per month Foreclosures inventory per month
1-50 .8 .3
50-100 2.1 .55
100-200 3.1 1.3
200-300 4.1 1.2
300-400 5.5 1.6
400-500 7.6 1
500-1000 10.8 2.57
1000-2000 41 8
2000 plus 32 3.3

As you can see, one can’t discuss Las Vegas homes market without paying attention to the price range or type of home.  Additionally now perspective Las Vegas home buyers can understand that the lower the price, the harder it is to get an offer accepted. For example for the price range of $50,000-$100,000 which is attractive to Las Vegas real estate investors, there is about 2 month worth of inventory; however, the foreclosure inventory is about 15 days. This is the reason that these bank owned homes get multiple offers and buying them through Las Vegas MLS will requires multiple offers.

On the other hand for the price range of $1,000,000-$2,000,000 there is 41 month worth of inventory and 8 month worth foreclosure inventory. Buying one of these homes is not difficult and one can lowball the initial offer and hope to get the home.

In conclusion, I hope that you understand that Las Vegas is not awash in foreclosures and about one month worth of bank owned homes in Las Vegas do not exert significant downward pressure on the pricing. Additionally in some cases, bank owned homes are priced higher than regular sales, thus, flat pricing this year.

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