May 29, 2009

Well, Nevada now has the dubious honor of being first in the nation for both loan delinquencies and foreclosures. About one in eight Las Vegas condominiums or house owners in Nevada are behind in their mortgage. People behind in their mortgages increased for the first quarter of this year from 11.12% to 11.75%. This is an increase of .63% from the final quarter of 2008. Homes starting through the foreclosure process also increased during this time frame to 3.35% and homes already in the foreclosure process increased to 7.83%.

These numbers from the first quarter of 2009 foreshadow what a lot of experts have already been saying. The Las Vegas condominiums and housing market is still very weak and more foreclosures are on the horizon.

Although there is a $350 billion dollar federal housing plan in place to help troubled home owners, but some experts say this will bring little relief to the market. Although banks and lenders are being encouraged to change loan payment terms so that people can afford their monthly mortgage payments, nothing can be done to help people who are upside down in their property. If your house is now worth 40% less than what you paid for it 2 years ago, an affordable mortgage is only one of your considerations. It’s almost easier in a lot of ways for buyers to just let their houses go and start over again from scratch.

With home prices already down an incredible 40% from the market highs of two years age, an incredible buyers market has been created. Even though the Las Vegas condominiums and housing market is still in trouble, some signs of life can be found. Over the last 13 consecutive months, housing sales have risen as home prices have plunged. In April, 3,198 single family homes were sold. This is an increase of 78.3% from April of 2008.But most of this increase in sales is being led by bank owned properties, foreclosure sales were about 80% of all sales during this time frame. The amount of homes for sale has decreased about 3.6% from one year ago. But this decrease can in part be ascribed to the moratorium that was placed on foreclosures by the current administration and not on the general overall health of the market. Legally reducing foreclosures by banks is of course going to decrease the amount of homes for sale by lenders and when this moratorium is lifted, look for a glut of houses to appear on the market and a further decline in home prices.

May 6, 2009

 The Las Vegas condominiums project, Streamline Tower, located downtown continues to have problems. When it opened in 5/2008, it was a full year and a half behind its scheduled opening. Two years ago it was worth about 300 million and today it is part of a bankruptcy hearing involving the 3 firms that helped build it. To date, only about 10% of Streamline Tower’s 275 Las Vegas condominiums have been sold.