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Old 06-27-2010, 08:27 AM
 
Location: Nebuchadnezzar
968 posts, read 2,063,083 times
Reputation: 348

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Quote:
Originally Posted by olecapt View Post
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Excess housing threatens economic recovery in LV - Las Vegas Sun

Well something is going on. Pricing appears stable. Same as last month and little changed from last year.

Inventory however is going up fast. Up 20% in the last 60 days. Available REO inventory up from 1100 to 1800 over the similar period.

Sales appear ahead of last month but not by huge margins. Contracts opened is up substantially (20%) over last month and 10% over April.

Gonna be an interesting summer.

Do you know why REO inventory rising? Is it banks now releasing foreclosures that they have been holding? Could it be for other reasons such as more more prime mortgages being foreclosed, or more strategic mortgage defaults, or possibly investors who purchased within the past couple of years.
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Old 06-27-2010, 01:15 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,215,465 times
Reputation: 2661
Quote:
Originally Posted by Swigchow View Post
Do you know why REO inventory rising? Is it banks now releasing foreclosures that they have been holding? Could it be for other reasons such as more more prime mortgages being foreclosed, or more strategic mortgage defaults, or possibly investors who purchased within the past couple of years.
I updated the REO chart on my blog so all can see how this is going.

http://www.city-data.com/blogs/blog6...las-vegas.html

Most of the REO inventory climb is due to a drop off in REO sales. While shorts and classic sales rates have been stable or increasing the REO rate has fallen at least 250 per month if not more.

Why the drop in REO sales rates? Got me. Investors losing interest? A mix shift - the REO product getting larger and more expensive?

I may be able to test these. A shift away from cash buyers for the former or a difference in size/price for the latter.

Note that the overall available inventory is up about 11%. Less than half of this is the REOs...so there is some mechanism driving inventory overall as well. Maybe the end of the rebate.

An other interesting thing is that the volatility in price by zip code is driven almost entirely by the high quintile. All other quintiles appear to show straight lines. Really a stable market except for the upper end.
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Old 06-27-2010, 07:02 PM
 
89 posts, read 232,878 times
Reputation: 83
In my neighborhood, three of the houses for sale right now were purchased last year as REOs by investors. They were all bought with cash for about 130K and are now listed (and selling) in the 175K range. Some updating and repairs were done to the houses. Just wondering if that could explain why the ratio of classic vs. REOs is shifting. Are these classic sales just last year's REOs being flipped?
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Old 07-01-2010, 11:22 AM
 
57 posts, read 127,546 times
Reputation: 39
Cool Finally got a house

Well I actually got a house... A bit further out than I wanted, in Henderson. The area is pretty nice and the house is very nice. The seller had to drop price by $11K (down the $94,000 which is what it appraised at) and do some minor work on small stuff that the VA Appraiser came up with, worst expense was replacing the Circuit breaker panel for $2500. So looking forward to getting moved in there. It took Bank of America forever to get the loan paperwork done though.
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Old 07-01-2010, 11:28 AM
 
Location: Las Vegas
3,728 posts, read 9,477,101 times
Reputation: 1323
Quote:
Originally Posted by Gomezy3k View Post
Well I actually got a house... A bit further out than I wanted, in Henderson. The area is pretty nice and the house is very nice. The seller had to drop price by $11K (down the $94,000 which is what it appraised at) and do some minor work on small stuff that the VA Appraiser came up with, worst expense was replacing the Circuit breaker panel for $2500. So looking forward to getting moved in there. It took Bank of America forever to get the loan paperwork done though.
Congratulations to you gomezy! Enjoy your home!
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Old 07-01-2010, 02:57 PM
 
57 posts, read 127,546 times
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Quote:
Originally Posted by MomMom View Post
Congratulations to you gomezy! Enjoy your home!

Thanks..looking forward to moving there and having more than two rooms to live in LOL
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Old 07-01-2010, 08:14 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,215,465 times
Reputation: 2661
Quote:
Originally Posted by Gomezy3k View Post
Thanks..looking forward to moving there and having more than two rooms to live in LOL
\

Congratulations Gomez..

YOu hung in there and made it stick...

Congratulations..

Good job...even for an R**.
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Old 07-01-2010, 08:35 PM
 
57 posts, read 127,546 times
Reputation: 39
Quote:
Originally Posted by olecapt View Post
\

Congratulations Gomez..

YOu hung in there and made it stick...

Congratulations..

Good job...even for an R**.

Thanks..man it too long enough and was a rough fight LOL
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Old 07-02-2010, 11:49 PM
 
1,148 posts, read 2,781,477 times
Reputation: 639
Quote:
Originally Posted by Swigchow View Post
Do you know why REO inventory rising? Is it banks now releasing foreclosures that they have been holding? Could it be for other reasons such as more more prime mortgages being foreclosed, or more strategic mortgage defaults, or possibly investors who purchased within the past couple of years.
A government program that took homes off the market for months as part of an evaluation period to determine if the loans could be reworked just put 450,000 homes back on the market.
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Old 07-03-2010, 08:37 PM
 
Location: Santa Fe, NM/Phoenix/Puerto Vallarta
424 posts, read 953,500 times
Reputation: 217
[quote=olecapt;14797935] Why the drop in REO sales rates? Got me. Investors losing interest?/quote]

I know I lost interest. I made probably 40-50 cash offers (up to 10% below asking price) and got rejected EVERY time. I ended up buying in San Diego and the Phoenix area (very close to buying a second Phoenix property). Cash flow in Phoenix is better than in Vegas and there are more jobs and a larger population which, you need if you are going to be in the renting business.

In any case, Vegas and Phoenix are years away from any kind of recovery. An investor buying real estate today needs to realize they have to be in it for at least 7-10 years before seeing any kind of reasonable financial growth. Long time to wait but in my opinion purchasing real estate is always a very good investment over time.
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