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Banks May Be Seeing the Light on Short Sales
By Stephen Roberts | November 6, 2009
Larry Murphy, president of SalesTraq, which follows foreclosures says that he is skeptical of many Las Vegas analysts who say there is more doom to come for the Las Vegas and Henderson housing market. He still expects bank repossessions this year to be about 25,000 and match those is 2008, but he expects a lot less foreclosures. Murphy says that he thinks banks are starting to realize that it may make better financial sense to allow owners to sell homes through short sales rather than repossess them.
Through the first three quarters of the year, 75 percent of closings were foreclosures and only 10 percent were short sales, but Murphy believes the percentage is going to pick up. The median price of a home sold through foreclosure is $116,900 and homes sold through short sales have a median price of $150,000. And with all of the lost mortgage revenue when banks go through several months process of taking over a home, and the damage sometimes caused by the person foreclosed upon, it makes more financial sense to allow the owner to short sale the property.
There is a good chance that since Las Vegas hasn’t been hit by this “second tsunami” of foreclosures, the rest of the nation may not either. Murphy believes that banks will soon be allowing more short sales, and hopefully increasing the health of the housing market here in Las Vegas and Henderson.
For all your Real Estate needs contact Steve Roberts at 702-739-4392.
Topics: Henderson Nevada Homes, Las Vegas Nevada Real Estate, Southern Nevada Monthly Economic Update, foreclosures | No Comments »