In A Rising Market, Foreclosures Go Up

Up Arrom

In 2008, the housing crisis reached a point in Las Vegas where thousands of homes were being foreclosed and were off the market. It took almost a decade for the crisis to recover, but last year a mere 300 or so houses were now under threat of foreclosure.

This year, foreclosures appear to be moving up– while banks and county officials are predicting that this is in fact a good thing.

Because of the heavy effects of the recession on the region, an upturn was to be expected once the negatives had hit bottom. With the bottom hit and purchases going off, the new spate of foreclosures might not portend another spiral into a real estate depression. What is more likely is that this year’s slight uptick in foreclosures might simply be new buyers who are unable to meet their payments, with the banks taking stock and returning to the normal foreclosure and sale procedure.

Further indicators that this is the case is that home sales are averaging at $280,000, with home sales varying anywhere between $200,000 and $400,000. This means that the homes are sustainably being bought at market value, even if a few buyers can’t afford them– a normal part of any real estate ecosystem.

Ultimately an uptick in foreclosures could be a positive sign–rising foreclosures indicating rising purchases.

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