[lvoc]

Originally Posted by tbill618

I think your right but we are going to get the AB 284 fix sometime soon. I wonder if that will bring a pause to this? I certainly don't think interest rates are going too much higher with the economy growing at 0.1%.

At this point it is irrelevant. Even if they double or triple they still will have little impact.

In fact if they take their units primarily from the short sales they will make prices go up. REOs are now a good bit more expensive than short sales...

And don't ask me why...I only work here.

[VegasVicsezhowdy]

Las Vegas is worse off than the rest of the nation...

The average unpaid principal balance on Fannie Mae and Freddie Mac loans is $173,088, which is higher than the national average of $154,183.

The average Fannie Mae and Freddie Mac loan is worth 129 percent of the value of the home. That's much deeper underwater than the national average loan, which is worth 74 percent of the home value.

Las Vegas also has a disproportionate share of ARM mortgages. When interest rates inevitably rise this will cause a further wave of defaults just as the market shows signs of genuine recovery stimulated by economic growth.

[Tall Traveler]

Originally Posted by VegasVicsezhowdy

Las Vegas is worse off than the rest of the nation...

The average unpaid principal balance on Fannie Mae and Freddie Mac loans is $173,088, which is higher than the national average of $154,183.

The average Fannie Mae and Freddie Mac loan is worth 129 percent of the value of the home. That's much deeper underwater than the national average loan, which is worth 74 percent of the home value.

Las Vegas also has a disproportionate share of ARM mortgages. When interest rates inevitably rise this will cause a further wave of defaults just as the market shows signs of genuine recovery stimulated by economic growth.

Those are all valid and cautionary points but the reason I don't think you'll see a replay of 2007 is that Vegas prices are now about the best value in the nation (which wasn't the case in 2007), there are a lot of investors that would love to buy more in Vegas if that opportunity presents itself, and you don't have a lot of new constrution homes to sell.

While I agree there will be more homes foreclosed if ARM interest rates rise in Vegas, you'll see much more in the California market where a rise in interest rates for those $500K loans will kill those folks.

[tbill618]

Las Vegas Housing Market Update - February 2013 - YouTube

Interesting part, Fannie Mae is asking for more than fair market value for its short sales.

[logline]

S&P/Case-Shiller numbers out today. Las Vegas is the 3rd fastest growing market in the country at a 12.9% annual rate:

Home Prices Post Largest Gain Since 2006 « CBS Las Vegas

Did you buy at the bottom?

[logline]

[Clarkcty]

Originally Posted by von949

It's either wait for the bottom to hit while prices drop or hurry up before prices continue to rise.

By the way, anyone know what area this is? Looking towards the strip?







Posted from Nokia 8210

Perhaps Spring Valley area, I have a similar view on the outside of my gate at home.

[aardogfsu]

Spring Valley

[airics]

What makes anyone think all the arms are going up? Mine are based on the Libor and dropped. My rates are 2.75 and 3%

[VegasVicsezhowdy]

Viewing this chart is disturbing. See the pattern of shorter and shorter intervals? Exponential escalation is the unsustainable road to collapse. Personally, I would be hesitant to put my faith in this current economic dogma of endless bailouts and money printing. I'm not trying to make predictions, forecasts or prognostications, just pointing out disturbing trends.

Do the math yourself.