[lvoc]

Originally Posted by Kevin_nlv

Dirty Secret Of Improved Housing Market

Home prices rising. Inventories falling. Glory days are here again.

But there’s a dirty little secret behind this recovery – big banks see an opportunity to get some of their money back.

The Mortgage Bankers Association says foreclosures are back on the rise. In fact, bank repossessions of homes rose 11-percent in May compared to the month earlier. Default notices were also higher.

And researchers explain this is happening for the very same reason that you’ve been feeling good about things – rising prices.

In this case, we need to think of banks as homeowners. Really big ones. And they want to unload troubled properties in a strong market after sitting on them for years.

Rising prices give them a chance to do that without losing as much money.

But of course foreclosures hurt home prices. And that could slow the housing recovery.

And the wheel goes ‘round.

Unfortunately this trend is not the only storm cloud hanging over the market.

Just look at mortgage rates. They’re already on the rise, topping 4-percent in the latest week for the first time in more than a year.

And economists fear they could keep rising.

Foreclosures hurt housing prices because the banks elected to sell them at absurdly low prices. If the banks elect to sell them at what the market will bear there would be no appreciable damage from more foreclosure...though perhaps more inventory which might slow the rise.

And the banks still own relatively few houses.

[VegasVicsezhowdy]

Originally Posted by lvoc

Foreclosures hurt housing prices because the banks elected to sell them at absurdly low prices. If the banks elect to sell them at what the market will bear there would be no appreciable damage from more foreclosure...though perhaps more inventory which might slow the rise.

And the banks still own relatively few houses.

There are no foreclosures coming, the new legislation basically cancels itself out as the other new legislation makes it very easy for a defaulting homeowner to delay foreclosure for a very long time. Banks and new home builders will benefit. Big losers are the real estate agents who will be resigned to door-to-door soliciting for listings.

In the effort to save Nevadan homeownership, the devil has once more taken refuge in his most secure redoubt - the details.

Meanwhile, JAWS is circling Bernanke and QE kablooey.

[Kevin_nlv]

Originally Posted by VegasVicsezhowdy

There are no foreclosures coming, the new legislation basically cancels itself out as the other new legislation makes it very easy for a defaulting homeowner to delay foreclosure for a very long time. Banks and new home builders will benefit. Big losers are the real estate agents who will be resigned to door-to-door soliciting for listings.

In the effort to save Nevadan homeownership, the devil has once more taken refuge in his most secure redoubt - the details.

Meanwhile, JAWS is circling Bernanke and QE kablooey.

I think Bernanake will be forced to stop buying mortgage backed securities and stop supporting housing market not because our economy is improving, but because he is creating another dangerous monster in housing that can take the entire country down again.

We haven't fixed anything since 2008 except igniting another round of rampant speculation in the stock market and now again in the housing market.

[logline]

Originally Posted by Kevin_nlv

I think Bernanake will be forced to stop buying mortgage backed securities and stop supporting housing market not because our economy is improving, but because he is creating another dangerous monster in housing that can take the entire country down again.

We haven't fixed anything since 2008 except igniting another round of rampant speculation in the stock market and now again in the housing market.

...or you could be completely and entirely WRONG. Have you considered that as even a remote possibility?

Analysis: The Myth of the US Housing Bubble - WORLD PROPERTY CHANNEL Global News Center

[ddrhazy]

Originally Posted by logline

...or you could be completely and entirely WRONG. Have you considered that as even a remote possibility?

Analysis: The Myth of the US Housing Bubble - WORLD PROPERTY CHANNEL Global News Center

I think the caution is warranted but the risk is minimal for those buying a property for their own occupancy.

[VegasVicsezhowdy]

Originally Posted by ddrhazy

I think the caution is warranted but the risk is minimal for those buying a property for their own occupancy.

Unfortunately, that percentage constitutes the minority.

[ddrhazy]

Originally Posted by VegasVicsezhowdy

Unfortunately, that percentage constitutes the minority.

I didn't know 50% was a minority.

[VegasVicsezhowdy]

Originally Posted by ddrhazy

I didn't know 50% was a minority.

No point arguing any more, if you want to buy a house NOW then by all means have at it. Personally, I don't think it is a prudent idea unless it is sitting on agriculturally viable soil and has a private water supply.

[ddrhazy]

Originally Posted by VegasVicsezhowdy

No point arguing any more, if you want to buy a house NOW then by all means have at it. Personally, I don't think it is a prudent idea unless it is sitting on agriculturally viable soil and has a private water supply.

What's to argue about? You made a statement saying owner occupant purchasers are in the minority and that's not what I'm seeing in the LV market.

As far as people buying a house, it all depends on their own situation. If they are going to live in LV for over 3 years it's generally viewed better to purchase than to rent. Now if you are able to live in LV and live with parents or friends or some other abnormal situation, that is an exception.

[Kevin_nlv]

Las Vegas Home Sales Activity for 2002
Median Price of a new Las Vegas home $186,827
Median Price of a resale Las Vegas home $157,000

May 2013
Median Price of a new Las Vegas home $240,000
Median Price of a resale Las Vegas home $170,000

When did the housing bubble begin in Las Vegas, 2001, 2002, 2003 ????!