Las Vegas Foreclosures Rate is Increasing – Good or Bad Sign?
Just a few years ago, there were so many homes in active foreclosure that many were sure that Las Vegas would never be able to bounce back, but today that number is less than 300. Market trends are seeing some change in the downward trajectory, however, as foreclosures have went up in the area recently. Is this a sign of bad things to come?
Uptick in Foreclosures Could be Misleading
The increase in foreclosures in Clark County could be a little misleading, says Fafie Moore, the owner of Realty Executives. “The banks control that now. They may be deciding that they need to notice these people now because its getting close to the end of the year and they want to get some houses off their books,” she said. This trend can help increase home values, because it cleans up the neighborhoods. “It’s really a good thing when banks are processing on these properties that people aren’t paying on because those are the properties people aren’t maintaining,” she continued.
The Las Vegas area needs some help in home values, as they have not returned to normal since the Great Recession. While it may sound like a bad thing to have more homes in foreclosure, it could actually end up being a very good thing to stabilize the housing market in the area. In fact, some think that the increase in foreclosures is a sign that the market has regained health enough to handle it. The median home price has went up 10 percent from a year ago and taking care of these homes that are not being maintained can help it to increase even more.
New Home Sales Up
The number of new homes selling has gone up and this is a sign of increased health as well. “We’ve seen new home builders come back into the market. They are big business people and they don’t come into the market if they think they won’t make money,” said Moore.
While it may sound as if the Las Vegas foreclosure rate is going up, it may actually be a good thing to help our real estate market to finally stabilize and regain some ground.