Las Vegas Foreclosure and Seizure Rates See Jump in January
While the foreclosure rate had seemed to decrease for a while in Las Vegas, January saw a big jump in the number of homes that were seized and the number of foreclosure proceeding starts. This may not be good news for the real estate market as a whole, as most real estate professionals thought that this trend was finally over. It is important to look at this surge in foreclosure in seizures as part of the whole, however, to be sure that you are able to make the most rational judgment on it.
Las Vegas and Nevada One of Highest Rates Nationally
Nevada was 2nd in the nation for foreclosure filings last month with one in every 495 homes in the state being foreclosed upon in January. This includes any type of foreclosure filing, including notices of default, bank repossessions, and scheduled auctions. Nevada saw more seizures than has been the norm last month as well. Almost 700 homes were seized last month, which is an increase of 125% over December and a 29% increase over the same time period just a year ago. While this sounds ominous, the good news is that it was down from the highs that were seen in 2013 and 2012, which is still quite positive.
Foreclosure rates jumped in Las Vegas in January – is this a sign of trouble?
Worry or Natural Balancing?
While it may seem worrisome, it may just be the market finally finding some type of balance. Foreclosure rates and seizure rates are typically lower during December, which leads to a higher number in January. Additionally, the New Year may have brought increased pressure from investors to recover some of their money, which led to more foreclosures and seizures. While it is something to watch, it is not a sign of the market crashing. It may just be part of the ebb and flow of real estate that has been a part of the market for years.
Foreclosures are a natural part of the market. Things happen and people are unable to pay for their homes, whether it is due to job loss, sickness, or a myriad of other reasons. As a real estate professional, it is our responsibility to be sure that we put buyers in homes that they can afford. Then it is up to them to keep their payments current to prevent foreclosure and the seizure of their home.
Some experts say that this high rate is just that because of the artificial low rates that were seen in 2014, which would explain the natural balancing that many believe that this higher rate is. No matter what it is, Las Vegas real estate has seen some extreme highs and lows over the last decade, and this increase in foreclosures may just be a small blip on the screen to restore some sort of balance to the market in its entirety. It looks like it is something to watch, but not anything to worry about or to indicate major problems in the real estate market.