Las Vegas Foreclosures Drop
Nevada’s foreclosure inventory of homes has dropped in the last year and currently makes up just 2.3% of homes marketed for sale, according to real estate data firm CoreLogic. The figure represents a 1.1% drop from one year ago through October. Las Vegas led the foreclosure crisis with the number of homes foreclosed in the U.S. for five straight years.
Home foreclosures in the U.S. dropped 30.9% in the past year, CoreLogic data indicates. The figure represents three straight years of consecutive year over year declines in foreclosures since the housing bubble burst in 2005.
About 605,000 U.S. homes were in some stage of foreclosure in October across the nation, down from 875,000 in October 2013. Foreclosures made up a slim 1.6% of all homes with a mortgage in October compared to 2.2% a year ago. The drop in Las Vegas foreclosures represents a major turn for the local housing market as the government prepares to unload thousands of additional foreclosures on the resale market in the coming year.
Higher employment rates have triggered a new home building revival as the local economy makes major inroads in its housing market recovery. More workers collecting paychecks eventually translate to more home buyers entering the market.
The current foreclosure rate in the U.S. is at the lowest level since May 2008, CoreLogic data indicates. Foreclosures have shown a steady decline recently, with 41,000 completed in the U.S. in October compared to 55,000 for the same month a year ago. The overall drop represents a 65% decline from the peak of completed foreclosures in September 2010.
Before the housing market bust, completed foreclosures averaged 21,000 a month nationwide between 2000 and 2006. The bubble was produced from a variety of efforts provided by the U.S. government to stimulate the housing market, banks and Wall Street, which are constantly looking for new ways to make more money.
Las Vegas Foreclosures are typically sold at prices substantially under other home prices and are expected to remain a major component of the housing market for several years.
“The foreclosure inventory is less than 2% and seriously delinquent loans are trending lower right now,” said Anand Nallathambi, president and CEO of CoreLogic. “At current rates, we can expect the foreclosure inventory to slip below 500,000 units during 2015.”