[lvoc]

Originally Posted by Kevin_nlv

What about AB 204 that excludes comps from foreclosure sales?

Bill Text: NV AB204 | 2013 | 77th Legislature | Introduced | LegiScan

The sole purpose of it is to artificially increase property values by excluding distressed sales as comps.
Making everyone feel warm and fuzzy with price increases when we are holding back inventory is not a true solution to the problem at hand. It has sparked a high demand in buyers but we need to let that demand buy up the existing inventory now and not allow new home builder lobbyist to push bills through that will continue to hold up this inventory and allow new homes to be built and add to the inventory problem. There are currently an estimated 75,000 homeowners in default in the valley and bills like these will hold that inventory back and let it bubble more. Eventually, they have to release these homes. Do they really want vacant homes or default homes sitting forever? No, they will eventually hit the market. And when they do the market will soften. It is better to let them hit the market now while prices are still relatively low and demand is high. This will allow the market to absorb majority of these homes and minimize the softening of the market. If they continue to let the untouchable inventory grow and prices to go up, then whenever they finally decide to release it the demand will be lower due to higher prices and the supply that needs to be absorbed will also be much greater. Not to mention all the new homes builders will have built in the meantime to take advantage of the temporary and artificial inventory shortage.

Does not compute. No indication at this point there are 75,000 in default. Total underwater is perhaps 100,000 and dropping swiftly. I doubt most of these are in default. Shadow inventory is not held by the lenders. What there is will be occupied homes not paying their mortgage. Overall those homes are probably good for the valley.

AB204 is long dead is it not? That is a technical appraiser issue...what are fair comps. The real rub is that appraisers value the home for owner occupancy rather than investor use...thus locking the first time buyer out of the market.

Note that the baseline from which we are recovering is a construct almost solely of the lenders who drove prices down to absurdly low levels for no obvious reason.

[Kevin_nlv]

I'm a real estate broker/agent and this new bill 321 is only good for new home builders.
I'm not a fan of manipulated markets that has favors certain groups.

[lvoc]

Originally Posted by Kevin_nlv

I'm a real estate broker/agent and this new bill 321 is only good for new home builders.
I'm not a fan of manipulated markets that has favors certain groups.

How do you reach that conclusion?

It would obviously prolong or complicate the foreclosure process. But that would certainly favor those being foreclosed.

Are you holding that delaying foreclosures helps new build?

I suppose that may be true but a minor effect. particularly as the price of REOs appears headed swiftly to the same level as non-distressed.

If REOs Shorts and non-distressed sold for the same price would any of this be relevant?

[Scott456]

Who would have thought a year ago that the Vegas real estate market will jump back up so fast like this now.
I predict the average home price in Vegas will climb back and stablizes at a price range around $250K to $300K, which is just about the replacement cost.

[Tarara Boomdea]

Happy Days are Here Again - Mitch Miller
https://www.youtube.com/watch?v=2KIsa8-aXpk

[Scott456]

Originally Posted by Kevin_nlv

We don't need more new homes. We need the ability to sell the existing default homes.

I disagree. The default homes eventually become the banks lost. These banks have been making so much profit even in the economic downturn. Our government used tax payer money to bail out these banks. It is time for these bank to take their lost because of their own mistake in lending out easy money. Let them write it off or work out a deal with the owners on these default homes.
In the mean time, the new construction will surely improve the employment and the economy.

[icarian]

Actually Scott, the resells (REOs / shorts / etc) do need to start making it to the resell market. The overly quick runup in prices is because of a shortage of homes (stated VERY clearly in all the current-this week-news articles about Nevada leading the Nation in home price increases from this time last year...primary reason is a housing shortage). Everyones experiences on here generally equate to the same with the offers over and above the list price?! The market can not sustain this indefinitely and needs to moderate itself (STEADY growth would be preferred by most with a economic background~rarely happens, though). Perhaps certain people consider it healthy...although I think the correct term is beneficial to them and their current situation. Something that is so disparate that it is making it on all the national news outlets probably isn't making it on them because of its long term viability or health.

[ddrhazy]

The banks would love to foreclose so they can get a non working asset off their books. It's not happening and it won't happen to the degree which will help plateau the market. Housing prices are where they were in 2003. I don't see RE reaching 2006 prices in the next 15 years, but reaching 2005 values is not a stretch.

[VegasVicsezhowdy]

Originally Posted by lvoc

No indication at this point there are 75,000 in default.

Such mendacity.

It has already been established that there are @45K vacant homes, no phones, no lights, no motor car, not a single luxury (there's a 60's sitcom reference for ya!) and that figure is dwarfed by the number of folks who are currently freeloading. Not to mention the upper-tier market (homes above $500K) which banks don't even want to touch. This Pinocchio shtick is becoming a bit long-in-the-tooth.

Let's stick to the truth. We currently have minimal inventory in Las Vegas, why is that? Is it because Private Equity has entered the single family residential market and is paying cash for anything below $250K with a plan to rent them until they can sell them at INFLATED prices that they themselves produced? I don't care what anyone says, in my world that's called "pump n' dump" and it leads to a bubble with an even shorter fuse than the sub-prime loan market created.

It is no longer a question of "IF" but rather "WHEN".

[ddrhazy]

Post your sources on vacancies.