real estate:

More ugly news for Nevada on foreclosures, home prices

The grim reality of real estate in Southern Nevada.

Two more real estate reports, another blast of bad news for the Nevada market.

Foreclosure tracker RealtyTrac, of Irvine, Calif., issued national statistics for October and, as usual, Nevada had the nation’s highest foreclosure rate.

RealtyTrac said foreclosures were filed on one of every 180 Nevada housing units in October, while the national rate was one in every 563 units.

Nevada led the nation despite a 34 percent month-to-month decline in filings in the state, a situation analysts called temporary. They attributed it to banks adjusting to a new state law requiring foreclosing lenders to sign and record in public records an affidavit with key information about each foreclosure, RealtyTrac said.

The 1,201 new defaults in Nevada in October was the lowest since June 2006, RealtyTrac said.

Las Vegas, after 22 consecutive months posting the nation’s highest foreclosure rate among cities with populations of 200,000 or more, came in at No. 5 in October. Analysts chalked up the fall in the rankings to a temporary decline in foreclosure filings stemming from the new law.

One in every 162 housing units in Las Vegas received a filing in October, still more than three times the national average.

Leading the nation in foreclosure filings in October among the larger metro areas was Stockton, Calif., with a filing for every 143 housing units.

RealtyTrac said that despite the Nevada slowdown, foreclosure activity had picked up nationwide as banks started coming “out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems.”

“However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery,” RealtyTrac CEO James Saccacio said in a statement.

Separately, the Fiserv Case-Shiller Indexes were released Wednesday on home price trends in Las Vegas and hundreds more metro areas.

The latest Case-Shiller numbers for the Las Vegas metro area show that after local home prices fell on average 6.2 percent from the second quarter of 2010 to the second quarter of 2011, they’re expected to fall 15.9 percent between the second quarter of 2011 and the second quarter of 2012.

That compares with a national projected price decline of 3.6 percent between the second quarters of 2011 and 2012.

The problems in the Las Vegas housing market have been well documented.

In a nutshell, the nation’s most overheated housing market became its hardest hit during the recession due to a confluence of factors, including many homeowners becoming unable to pay mortgages they never should have qualified for and unemployment soaring to unheard of levels locally, currently 13.6 percent.

Unemployment jumped when Las Vegas was hit with the triple whammy of tourism and convention travel to the city declining during the recession, residential construction grinding to a near standstill and commercial construction similarly declining with the halting of work on big projects, including the Echelon and Fontainebleau resorts.

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  1. Meanwhile, CNN Money today posted a positive article about Las Vegas real estate, and how the flood of all-cash investor money and the (slight) drop in unemployment are the first signs of a market poised for rebound. Interesting.

  2. Reza:

    Keep dreaming. However, your positive thinking is admirable. And what is so good about investors coming in and buying properties? That was the start of a lot of the problems in the first place. There are not enough people coming to Vegas to live in these homes, whether they buy a home or rent one. Maybe, just maybe, when jobs are available, maybe then people will come. A restaurant opening here and there and hiring 100 people isn't going to cut it. Jobs are hard to find ANYWHERE!

    Things are tough all over the country. When things do start to improve, Vegas will take the longest to bounce back.

  3. Keep dreaming about what? The article on CNN Money exists.

    Your lack of understanding about markets is your problem, as is your willingness to make an assessment of something you haven't read. The CNN story clearly states that 200,000 people have moved to Las Vegas since the recession began.

    My optimism is admirable? It's not my optimism; it's the CNN Money reporter's. Why not go troll anonymously over there? As I recall, you don't even live here.

  4. Thanks Dean Heller - Thanks Brian Sandoval - Thanks Joe Heck - Thanks Mark Amodei - glad to see you idiots lived up to your campaign promises to turn things around here in Nevada - NOT!

  5. "It's hard to attract buyers when the homes are built with cheap materials ..... This city did it to itself."

    TheSerfAttack -- I lived in one near Lone Mountain most of last year, biggest and nicest house I'd ever lived in. Cheap and flimsy only begins to describe it, falling apart after only two years. Yet it must be assumed in spite of the cardboard doors and frames, etc., it passed all required city/county/state inspections.

    "And what is so good about investors coming in and buying properties? That was the start of a lot of the problems in the first place."

    Det_Munch -- actually, the start of the problems is one of those big feces sandwiches where investors are in line with a lot of other players. Like Congress, the White House, the banks and all their evil minions, they're all due to take a bite.

    "If we really wanted to get out of the housing 'crisis' uncle sugar could...Prop up any bank who agreed to.."

    pmart -- a lot of the problem is government propping up the banks. As a case in Utah illustrated, the foreclosure frenzy is fueled largely by that quasi-government agency, FHA, insuring the banks will be paid in full when taking possession, and it doesn't matter they don't even own the Notes! Check that out @ http://www.ksl.com/?nid=322&sid=1464...

    "...I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." -- Thomas Jefferson in his May 28, 1816, letter to John Taylor

  6. Reza

    I'm not saying the CNN article doesn't exist; it does. And yes I read it and my assessment hasn't changed. The alleged facts fly in the face of what really has been happening.

    But you are dreaming if you totally believe in the whole article!!

    These 200,000 people that have allegedly moved to Vegas since the recession began - where are they now? Do you believe all 200,000 are STILL in Vegas?? I got a kick out of the paragraph about job growth!!

    I was wondering about something: Since this is such a positive article (finally) about Las Vegas - why hasn't the Sun picked up on it???? They've published articles before and gave credit where credit was due. Why haven't the people of Las Vegas been able to read something positive about their City? Not everyone thinks of reading CNN Money online.

    It means nothing that I don't live in Vegas. What's your point? Did for 7 years during the boom to bust period. I still have many friends there that I keep in touch with regularly so nothing I read on CNN is going to change the truth of how it really is. Hell, just read comments from the regulars here who are locals!

  7. Killer, look at it as a future business opportunity for folks to redo all the flimsy construction.