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Aug. 03, 2007
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HOUSING MARKET: LV homes head to auction block

Some 100 properties slated to go up for bid

By HUBBLE SMITH
REVIEW-JOURNAL
ON THE WEB:
www.hudson andmarshall.com


A home at 604 Princeton St. is one of about 100 in Las Vegas that will be auctioned off Sunday.
Photo by Craig L. Moran.

Nearly 100 Las Vegas homes will be sold at auction Sunday, but don't expect to get some kind of unreal deal just because banks are anxious to rid their balance sheets of carrying costs.

Los Angeles recently had an auction of 400 real estate-owned properties and the auction house boasted a 95 percent delivery of the broker's price opinion, Alexis McGee of Sacramento, Calif.-based Foreclosures.com said.

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    • "That just means the auction company got a broker to say what they would list it at. That's kind of a streamlined appraisal," she said. "Broker price opinions are typically at or above market value. They're rarely lower."

    Dallas-based Hudson & Marshall will auction the Las Vegas homes Sunday at noon at JW Marriott, 221 N. Rampart Blvd.

    List prices range from $75,000 for a two-bedroom, 770-square-foot condo on West Bonanza Road to $993,000 for a five-bedroom, 4,500-square-foot home at 2780 Botticelli Drive in Henderson. Most homes are in the mid-$100,000s to $300,000s.

    It's the largest Las Vegas home auction ever conducted in Hudson & Marshall's 40-year history, principal Dave Webb said.

    Declining home sales have ripened the real estate market for buyers, he said, giving them plentiful choices at reduced prices. Robust foreclosure rates nationwide continue to fuel the buyer's market.

    "Real estate markets have their ups and downs, but eventually rebound, making them good investments," Webb said. "Whether you're an investor or first-time home buyer, consumers should ride the wave of opportunity today's market offers."

    McGee said Nevada ranks No. 1 in the nation in preforeclosure filings per capita and No. 2 in real estate-owned (bank-owned) properties.

    Nevada had 3,173 preforeclosure filings in July, up from 2,867 in June, bringing the year-to-date total to 19,044, according to Foreclosures.com. With 746,973 households, that's a per capita rate of 2.55 percent. Florida is second at 1.76 percent and Colorado is third at 1.49 percent.

    Rather than listing homes with a broker on the Multiple Listing Service and waiting months for them to sell, banks can clear their books in one weekend with an auction, McGee said.

    "You're going to see more of these," she said. "They get 1,000 people to show up and that pushes prices up. They're doing a better job of selling than the agents."

    Stephen Boyle, appraiser for Boyle & Drake in Vero Beach, Fla., said buyers and sellers have ended the stand-off in Florida's residential market.

    "The buyers realize that the market is not going to crash, and the sellers realize that their asking price is inflated," Boyle said. "Our market has returned to the late 2004 price levels. Sales activity is just under the 2003 pace. Both are not bad."

    The subprime mortgage meltdown continues to play a significant role in rising foreclosures.

    In a recent New York Times story, Countrywide Financial said it was finding more borrowers with good credit falling behind on their loans and that the housing market might not begin recovering until 2009 because of a decline in prices that goes beyond anything experienced in decades.

    Countrywide Chairman and Chief Executive Officer Angelo Mozilo said home prices were falling "almost like never before, with the exception of the Great Depression." With a large number of homes on the market, the housing sector would continue to suffer until sometime in 2008 and would not begin recovering until 2009, Mozilo said in the article.

    Frank Nason, president and broker of Residential Resources in Las Vegas, said MLS listings are up nearly 2 percent in July to 29,325. At an average of 60 closings a day, current listings represent 489 days of inventory, or about a year and four months.

    Listings categorized as "repo" totaled 1,107, an 18 percent increase from the end of June. The category is not a "required" field in the listings, Nason said.

    "I receive some lender lists of preforeclosure and foreclosure units and the MLS seemingly understates the number of units that are distressed," he said.

    Vacant listings make up 44 percent of single-family dwellings, 56 percent of condos and 48 percent of townhomes, Nason said.

    TOP 10 PREFORECLOSURE STATES
    State Filings Per Capita
     
    Nevada 19,044 2.55 percent
    Florida 111,250 1.76 percent
    Colorado 24,045 1.49 percent
    Illinois 52,984 1.35 percent
    New Jersey 37,250 1.22 percent
    California 132,101 1.15 percent
    Arizona 20,669 1.09 percent
    Utah 5,773 0.90 percent
    Texas 46,595 0.81 percent
    Georgia 19,382 0.75 percent
    SOURCE: Foreclosures.com


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    Troy J. Kearns wrote on November 20, 2007 10:27 PM: Lets see, 4 months almost by and the article seems dated. The market is not getting better any time soon more than likely at least 2009/10. Two things need to happen for Las Vegas to rebound, new home builders need to stop building....not happening and the economy needs an influx of tech/highend jobs to move us from a dominated sub prime market.

    Troy


    Darth Vader wrote on August 26, 2007 10:05 AM: Positive, We are now convinced beyond doubt that you are a shill for the Real Estate or Lending establishment. But your most recent comment reveals you to be a totally out of it when it comes to the reality of the current market conditions in Las Vegas! Get back into your leased Bimmer or is it a Prius? and head back to California where all these speculator lice orignated. You will then be amongst your kind, "Girlee-Men"


    Positive Outlook wrote on August 19, 2007 12:39 PM: Darth, Thanks for the response...finally we see your true colors...


    Darth Vader wrote on August 18, 2007 11:11 AM: Positive, you are a shill for either the Realtor Estate or Lender Community. In either case your BS wont sell anymore! Look at the financial and real estate markets, they are in melt down! Dont beleive me? Then look out your rose colored window and take a peek at your local banker who is sweating out the credit crunch or land developer holding on by a thread hoping he has the capital to ride out this downturn! You my friend are an idiot or I think a very naive person who really does not have any skin in the game and just is living day by day on what you can rip off guible consumers!


    Financial Advisor wrote on August 18, 2007 11:04 AM: Listen very carefully folks, the screams you are hearing from Wall Street have come to main street. If you think we are not just barely balancing on the edge of a total financial meltdown, then you have not been reading/seeing the news of the last week. My God, Countrywide, the No. 1 lender in the Country is nearing bankrupcy! The Fed is acting to head off financial disaster and if you are sitting in your overpriced home you bought in the last two or more years, watch its value go down over the next 24 to 36 months! God forbid if you have to refi into a Jumbo Loan at 8% plus points! Get real, the party's over!


    alan berk wrote on August 09, 2007 02:45 AM: Las Vegas was one of the most over-hyped markets i have ever seen!

    Buy a housenin the west side and just print money!

    Congestion and traffic - who cares another sucker will come and buy my over priced summerlin home!

    Gee ann road is not to far away!- people bought out to lake mead and Cheyenne - Even further out!

    When are they going to Stop building tracts!?We don`t need another house built for the next 2 years!

    wha does it take for people to Wake- up and buy houses to live in and not for investing-

    think about the liveabilty of a house near your job and shopping

    Not being in Debt beyond what you can afford

    There is a huge housing sector bordered by Sunset to the south the strip on the west -Charleston on the north and boulder highway on the east!

    Anyone who isn`t buying in that Area is a moron!

    It has Mansions and lower income housing!- if you want an estate or just a rancher that area has it all!

    oh well i amsure no one will listen to that advice.

    let the meltdown continue!


    Brandy White Elk wrote on August 07, 2007 08:39 AM: Due to the lack of information that our community is not recieving regarding foreclosure options...this is one of the biggest reason for so many going to full foreclosure....SHORT SALE ..... SHORT SALE...... SHORT SALE....Someone needs to step up...... Please contact me to explain. 702-303-9628


    Positive Outlook wrote on August 06, 2007 01:44 PM: Darth...Vadar? On vaction? VegasDoom and all you doomsdayers should move back to Europe and try to make it there! Crybabies...You want the truth? You cant handle the truth! but here it is...The housing industry itself is in a deep recession; But a housing slump, by itself, doesn’t necessarily drag the rest of the economy with it. The housing industry represents a relatively small piece of the U.S. economy: about $1.5 trillion of the $13.8 trillion in GDP. Government spending at $2.7 trillion makes up a bigger piece of the pie, for example. Let's try looking at the big picture and not focus on your feebile little world...The sky is not falling and if it really mattered why not impeach the idiot you re-elected!


    AMP wrote on August 04, 2007 10:59 AM: Beytovin - Dunno, too tough to answer without knowing what sort of investments and risks you're comfortable with. I think much of the smart money is on the sidelines waiting to pounce.

    Personally, I'm only buying now at huge discounts or with little/no risk (which really isn't "buying" in the conventional sense). If you do decide to liberate some equity to invest, I'd leave a nice cushion (e.g. 20% equity or more) so it's not an issue if you decide to sell in the next few years.

    Big Picture - BINGO! And now there's pressure in the prime markets and especially Jumbo loans... the credit squeeze is on. Loose credit created the boom and tight credit will bring it back to reality. Not sure why more people don't get it. BTW, still think we've got a ways to go before REOs are really good deals.


    No Sale wrote on August 04, 2007 05:53 AM: Folks, you have only seen the tip of the iceberg! Las Vegas home prices have a lot further to fall. Don't buy now! Don't buy now!


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