A heavy number of foreclosure notices are being issued, along with the well-know blue and white notices being pasted on doors. There’s no doubt that many of these notices are for homes being offered as short sales, but no one knows what percentage. Las Vegas REALTOR ® Rob Flitton said in response to a reporter’s question on Friday:
“The 2012 market has been ridiculously brisk and busy because of low inventory, so while the new inventory can help this problem, too much of it would crush the Las Vegas housing market for a while to come – especially the very important new-home sector which is struggling to get re-started.”
If a quick and heavy flood of foreclosures come on the market, this could halt the increase in values that has been building in 2012, and perhaps even drive Las Vegas Home prices down even further than they were – it is hoped that the number of foreclosures won’t flood the market, but come along in a steady, manageable dose.
The inventory of foreclosures had been building up since late 2011 when a new Nevada law (AB 284) took effect making it more difficult for banks to foreclose. This slow down in foreclosures bolstered the Las Vegas housing market – now that this lull seems to be coming to and end, the pending impact is frankly unknown. Home-buyers who are facing multiple offers and extensive competition in bidding on any home these days, may welcome the relief.
The ramp-up of foreclosures is estimated to begin about October 1 2012 – check back for updates.