Las Vegas Sun NewsPrice discount disappears for foreclosed homes in Las Vegas
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Foreclosed homes for sale line the 9800 block of Fast Elk Street in northwest Las Vegas in 2007.
Thursday
8 November 2012
9:01 p.m.
Most people would expect to get a discount when buying a foreclosed home.
But not in the Las Vegas Valley.
Las Vegas home buyers on average received no discount at all in September when buying a seized home from a bank as compared to a traditional sale, according to a report out today from Seattle-based research firm Zillow. That’s down from a 3 percent discount in September 2011 and a 24 percent price break at its peak in October 2004.
Phoenix was the only other metro area tracked by Zillow with no discount in September, while home buyers nationwide could expect a 7.7 percent price break.
The largest discounts were in Pittsburgh (27.4 percent), Cleveland (25.8 percent) and Cincinnati (20.2 percent).
Regions with the smallest price breaks have competitive housing markets, with many people willing to pay the same price for a foreclosed home as a nondistressed one “simply to take advantage of historic affordability,” Zillow chief economist Stan Humphries said in the report.
Buying foreclosed homes in areas like Phoenix and Las Vegas, he added, “is no longer just for investors.”
Prices are inching higher, as well. In Las Vegas, the median price of bank-owned single-family homes sold in October was $132,575, up 2 percent from September, according to the Greater Las Vegas Association of Realtors.
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The banks are trying to push prices higher. Sadly for them there are so many short sales that they cannot control the market. Now that Obama has won house prices are going to crash badly.
Scouser your comment makes no sense at all. Banks approve the short sale price. So in a way banks are controlling the market.
thebanks need money before the regs kick in on jan.1 2013
thats because according to the las vegas review journal of this past sunday there are 58,500 vacant bank owned properties in the LV valley. They stopped releasing the flow of foreclosures bout a year ago which might be why prices have gone up 15% year over year. How long do you think they can keep holding on to those 58,500 foreclosed homes still on their books? with the jobs market being what it is might be sooner than later
Zillow? Zillow is not reputed to be accurate in its estmates of property worth. That's the site that can list two very similar homes, located on similarly large lots, right next door to each other with a $100,000+ discrepancy in their prices. That's just wrong and does the whole market a disservice.
BANKS NEVER LOSE!!!