Sunday, September 16, 2007

Foreclosures in Las Vegas

This morning, my husband and I did something we haven't done for quite some time. We went to iHop for breakfast as our schedule finally permitted it. Today is sunny but the wind is pretty breezy or we'd already be out on the lake.

As we drove through our neighborhood, we saw homes that were once adorned by lush landscaping that are now brown and dead. The unfortunate result of foreclosure.

But that is not surprising given the trend of ARM loans reaching the end of their term, home values didn't increase as projected to justify refinancing, borrowers who were qualified years ago due to shady practices of loan officers out to make a buck and dishonest customer who now can't get qualified, and increasing interest rates are some of the many factors which forced homeowners to either sell their homes or default on their mortgages because the payments skyrocketed. Those with mortgage payment protection were spared.

The flood of homes for sale in the market was not met by the demand and so home prices dropped. In Las Vegas, the median home price for single family residence is $295,000, dropping from $310,000 just a couple years ago according to the Greater Las Vegas Association of Realtors (GLVAR). Meanwhile, there are more and more homes listed on the market as each month goes buy. The last figure reported in August was 24,087 (GLVAR) and I am sure the numbers are around 27,000 by now.

This is an ideal market for home buyers. Even those with bad credits can probably afford a home right now. There are many lenders out there who offer creative products and even bad credit remortgage (refinance).

We are lucky that we fixed our loan rate for 30 years before the hike. Our neighborhood is still a place we enjoy living in and don't plan to be moving anytime soon.

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