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May. 13, 2008
Copyright © Las Vegas Review-Journal

HOUSING MARKET: Foreclosure wave loses steam

Preforeclosure filings, bank repossessions drop in U.S.

By HUBBLE SMITH
REVIEW-JOURNAL
More Info
OTHER APRIL STATISTICS FROM FORECLOSURES.COM

• States with the highest number of REO filings year to date: California, 70,863 filings (6.2 per 1,000 households); Florida, 24,764 (4 per 1,000); Arizona, 23,841 (12.6 per 1,000); Texas, 22,521 (3.8 per 1,000), and Michigan, 20,069 (6.7 per 1,000).

• States with the most preforeclosure filings per household year to date: Nevada, 31.5 per 1,000 households (23,264 filings); Arizona, 28.7 per 1,000 (54,059 filings); Florida, 25.6 per 1,000 (162,316 filings); California, 13.9 per 1,000 (160,044 filings), and New Jersey, 9.6 per 1,000 (28,825 filings).

• REO filings by region: Southwest, 5.4 filings per 1,000 households; Midwest, 3.9 filings per 1,000 households; Southeast, 3.8 filings per 1,000 households; and Northeast, 0.8 filings per 1,000 households.


This property at 2404 Whirlaway St., shown Monday, is not in foreclosure but did not sell at an April auction. An offer was made on the house, but the owner rejected it.
Photo by Marlene Karas/Review-Journal



Click image for enalrgement.

The nation's foreclosure hemorrhage slowed in April as both preforeclosure filings and bank repossessions declined from the previous month, Foreclosures.com reported Monday.

Lenders took possession of 74,570 homes in April, down more than 5 percent from March, the California-based online foreclosure service found. Preforeclosures dropped 7.5 percent from March.

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    • Nevada remains the No. 1 state in the nation with 3.15 percent of households in preforeclosure, followed by Arizona (2.87 percent) and Florida (2.56 percent). Nevada was seventh with 23,264 total preforeclosure filings through the first four months of the year.

    "The sky isn't falling, and the bottom of the housing market is in sight," Foreclosures.com President Alexis McGee said. "The problem with foreclosures is they go up and they go down, so it takes two or three months to see where they're going, but for now, it looks like April is headed in the right direction."

    Clark County had 4,426 preforeclosures in April, more than double the 2,029 preforeclosures in the same month a year ago. The number is down from a record 6,152 preforeclosures in March.

    REOs, or real estate owned by the lender through foreclosure, declined to 1,911 in April, compared with 1,937 in March.

    The monthly report is based on formal notices filed against a property during the foreclosure process, which can include notice of default, notice of foreclosure auction, trustee's deeds and REOs.

    The good news, McGee said, is that 17 states had fewer REO filings in April than March. The bad news is that 3.8 of every 1,000 households nationwide (288,497 REO filings) have been lost to foreclosure so far this year. Another 696,925 filings, or 9.4 of every 1,000 households, have been recorded year-to-date with 179,046 filings in April.

    "The numbers tell us the economy isn't dead," McGee said.

    U.S. gross domestic product was not negative as many had speculated and grew 0.6 percent in the first quarter, she noted. Positive moves by government and industry, including the evolving Federal Housing Administration reform and tax credits along with federal tax rebates, are making a difference, she said.

    "We're still seeing price concessions," McGee said. "Sellers are paying a lot of things that they wouldn't normally pay and it doesn't show up in the sales price. We're seeing down payment assistance, sellers paying closing costs and points for the bank."

    Thomas Love, broker and branch manager for Realty Executives in Las Vegas, said he put about a half-dozen foreclosed properties in escrow in April after closing none in March.

    "We can't get them to close," Love said. "The banks are so slow to act that buyers go down the street to another bank-owned home that's a better deal, all because of the lack of action that banks take."

    The inventory of bank-owned properties in Las Vegas came about by investors hoping to jump on the "appreciation train," which has virtually stopped in the lower- to middle-housing market, Love said.

    Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

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    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    ajberk wrote on May 27, 2008 08:15 AM: what does it cost to go to work!

    are people in las vegas going to stop commuting from places like mountains edge or past ann road.

    when are you all going to wake-up and live close to where you work!!!!

    there are plenty of homes 15 minutes from the strip!


    GetReal wrote on May 20, 2008 10:07 PM: Wrong numbers being reported. Banks (attorneys) are backed up from filing and behind causing a slow down in the reported numbers. There is some speculation that they are backing off of filing due to the numbers until they sell off the ones they already have.

    Also, speculation that they are backing off so they don't have the massive write offs from taking losses when they sell them a couple of hundred thousand less then what is owed on them.

    But hey... go ahead and "buy now" because the stupid realtors need a commission..


    Tomaso wrote on May 13, 2008 10:41 PM: Property values will settle 50% lower than what they were before this whole mess started. GREED fueled the fire. Lenders are to blame for the fiasco.


    jttri wrote on May 13, 2008 06:06 PM: STOP THE INVASION NOW<<< BUILD THE WALL> DEPORT THEM ALL


    RE Dave wrote on May 13, 2008 03:49 PM: It's slowed down because there are hardly any more houses left to foreclose on. Now let's see that idiot banks try to sell off their REO's. Let the bloodbath begin!


    O'Sal wrote on May 13, 2008 12:39 PM: Now that most of the 'questionable status' labor people have left the city, wait for the higher prices for labor construction! Then we will ALL know the TRUE costs residential construction.


    SOUTHSEA TULLIP wrote on May 13, 2008 12:17 PM: OIL will kill Las Vegas & the Airlines that feed it fresh suckers

    OIL will drop from it's highs after the global recession takes hold, but the respite will be tempoary as the developing world figures out how to disconnect from it's vendor financing schemes

    ghost towns - nothing new under the sun


    Henry wrote on May 13, 2008 11:12 AM: Old Tom as it right...'mexican constructed cracker box in the middle of hell on 1/10 acre lot is met' bit it's a 3 story, near the highway, at $50 sq ft and sold for $100 sq ft!!! hahaha Yeh, people, go get some of THAT!


    ths wrote on May 13, 2008 10:57 AM: One thing that you need to look at is who is buying the foreclosurers. The ones near me are being purchased by investors all over again.

    Short term memory will bring a repeat of history.


    Bob Jack wrote on May 13, 2008 10:47 AM: This is more good news about the housing market. Activity in the Las Vegas valley has picked up. I am not a real eastate agent,but am in touch with several who have experienced a very significant pick up in their business activity in recent months.

    A turn around begins with turnover increases--it will be a buyer's market for some time--the ony change is that buyers are now perceiving it this way, and are actually buying. Also, sellers are , I am told, getting more realistic is their asking prices. The result is a pick up in turnover rates, and a reduction in inventory.
    I know there are many people out there who seriously doubt that market activity is improving,but it is.
    We still have a long way to go before we will begin to see any appreciation in home prices, and there is no way that I will attempt to predict when that will occur. But that day will come at which time the believers will return to this scene.


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