Single family residential (SFR) closings for September were down 12.5% from August but up 15.5% from September 2010. Total year-to-date closed units are up just over 10% from this time last year. Short sale closings picked up momentum over Bank Owned (REO) closing and over traditional closings. Available REO listings declined in September as the number of available REO listings now hovers around the 2800. Notice the trend chart below!
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Available REO listings continue to decline even though we hear – almost on a daily basis – that Southern Nevada foreclosures are climbing. That strongly suggests that banks, Fannie Mae, and Freddie Mac are taking those properties back in foreclosure proceedings and holding them off the market. In fact, we know of quite a few instances now where Fannie Mae is renting back to the foreclosed owner for at least a year. These institutions are using rent back and other mechanisms as an inventory management tool. Look for this trend to continue!
Must Watch Video on Foreclosures
” As more and more Americans face mortgage foreclosure, banks’ crucial ownership documents for the properties are often unclear and are sometimes even bogus . . . ” as reported by Scott Pelley. Click here to watch this shocking video clip from 60 MINUTES!
Market Price Changes
While the median and average prices remain soft with the median closed price of an SFR increased 2.8% to $123,400. There were noticeable increases in closed sales prices in both Summerlin and the Southwest that contributed to this overall median price increase, even as other areas experiences market value declines.
What About the Phoenix/Scottsdale Market?
I’ve included two pages of statistics specific to the Greater Phoenix/Scottsdale area to highlight similarities and differences. There are similarities in some price points, but Phoenix/Scottsdale enjoys a much different mix of REO vs Short Sale vs Classic closings. For example, only 33% of the Greater Phoenix/Scottsdale closings for September were REO compared to 50% for Greater Las Vegas. What does it all mean? Perhaps Phoenix/Scottsdale is poised for an earlier market rebound than Las Vegas! We will just have to wait and see!
New Property Management Permit Course!
Finally, I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course that was recently approved by the Nevada Real Estate Division. Registration is now open. Just click here to view the course and/or register.