As of today, there are just over 6,400 homes that are not under contract and available for sale in the Las Vegas real estate market. Back in late November, we had over 12,000.
That drop is significant and is causing a lot of frustrations for buyers looking for properties. They are encountering multiple offer situations on all the best homes and are having to run out immediately when a property comes on the market to have the best chance of getting the home they want.
Reviewing the market conditions, there are two situations that I see that are causing this drop in available homes:
- Nevada legislators passed AB 284 that went into effect in October, 2011, forcing banks to produce original documents before they could file notices of default and foreclose on properties in Nevada. Banks have taken a few months to figure out how to work through this, and are just now getting back up to speed. Bank filings during the last few months have decreased well over 90%, reducing the number of available bank-owned homes on the market.
- As bank properties became less available, Las Vegas short sale homes became the focus. However, since the properties can take time to actually sell, buyers have been placing offers on more than one and ‘locking up’ several properties per buyer. I believe this has caused a temporary reduction in inventory that will change as the time to process short sales with banks decreases.
In the meantime, inventory is low and buyers are panicking. In my opinion, this will change over the next several months and we will see more inventory. Educating Las Vegas home buyers is essential to ensure they understand how to buy in this market.
If you or someone you know is interested in purchasing a home in Las Vegas, it is a great time to buy, a little patience is necessary, and I’m here to help.
Visit my real estate site to search for homes.