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The Impact of Short Sales
By Stephen Roberts | February 9, 2010
The Las Vegas and Henderson real estate market seems to be changing from a market dominated by foreclosures, to a housing market dominated by short sales. Short sales are transactions where the banks allow homes to be sold for less than the owner owes on the mortgage. This often times gives the banks a higher return of money at a faster rate, a lot less hassle than going through with a foreclosure. The trend began several months into 2009, in a market flooded with foreclosures.
In the first four months of 2009 there was reported fewer than three-hundred short sales per month. In May the numbers slowly began to increase. According to the research firm Applied Analysis, the last two months of 2009 short sales have brought their way up to averaging seven-hundred homes per month. January had similar numbers and it looks like this trend is going to continue into 2010.
In 2009 foreclosures accounted for fifty percent of existing-home sales compared with sixty-seven percent to seventy percent in 2008. The reason being is that short sales made up a larger margin of the sales in 2009. This sudden change from foreclosures to short sales could have a very positive impact on the Las Vegas and Henderson real estate market.
Analysts say that short sales will get a boost in 2010 due to the federal government. The Treasury Department of the United States is offering incentives on short sales by providing a $2,500 subsidy. The program will be available by April 5, 2010 but servicers can implement it earlier. This steady increase in short sales should have a positive impact on prices of homes in the housing market today. We have seen prices stabilize over the last five to six months because we have seen a decrease in foreclosures in the Las Vegas and Henderson area. It is likely that the increase in short sales will allow the median average price for an existing home to rise.
For all your real estate needs contact Steve Roberts at 702-739-4392 or visit my website at www.hendersonrealestateonline.com.
Topics: Henderson Nevada Homes, Las Vegas Nevada Real Estate, Southern Nevada Monthly Economic Update, Summerlin Nevada Real Estate, foreclosures | No Comments »