LAS VEGAS Housing Inventory Breaks 20,000 Mark
According to Housing Tracker, Las Vegas Inventory has been steadily building for many months, and has now surpassed the 20K mark--while prices have been declining slowly. I can attest to the fact the market is slowing and Inventory is building, as there are 12 homes for sale on my street alone. Some of these homes have gone through 3 separate realtors and are still sitting at reduced prices in a FSBO status.
With this said, I imagine foreclosures will become a significant issue in the future. Already, industry is reporting that rates of foreclosure in LV have greater than doubled YoY:
"In Las Vegas, this appears to be already happening. Foreclosure activity jumped to 3,246 in Q1 of 2006 from 1,480 in Q4 of 2005. Speculators who came late to the party are being washed out of the market."
There is widespread concern over the number of interest only and high negative amortization loans that had been issued by lenders in recent years as homebuyers sought to qualify for ever more expensive homes during the coastal markets' price boom of the last half decade.
Another issue I'd like to point out in this post: The 50 year mortgage has debut in California. Could this be a last ditch effort to keep the bubble alive?
Get Ready LAS VEGAS--the party may be over! (Vegas a house of cards bound to fall!)