Archive for the 'Nevada Articles' Category

Finding commercial auctions in Las Vegas, Nevada in the past three months was easier compared with the 2010 fourth quarter when vacancy rates were lower. According to real estate analysts, the improvement in the commercial real estate sector during the third quarter of last year seemed to be just a temporary surge.

With more commercial spaces remaining vacant in the metro region and more still on offer at foreclosure auctions in Las Vegas, prices of industrial and office spaces are expected to continue to plummet. In the first quarter of the current year, vacancy rate for the metro region's retail property market jumped to 11.5% from the fourth quarter rate of 10.6%. Compared with the 2010 first quarter when the vacancy rate was at 9.7%, the rise was almost 20%.

According to real estate experts, the surge in foreclosure Nevada home auctions also affected the commercial market as residents who lost their houses to foreclosure move out of the state, resulting in fewer people and more vacant commercial real estate. Along with the retail market, the office property sector also lost tenants during the January-March 2011 period, with vacancy rate in the office market rising to 24.8% from the 24.1% rate recorded in the 2010 fourth quarter.

The latest vacancy figure is also higher compared with the first three months of last year when the rate was at 22.7%. Analysts reported that a number of investors are finding commercial auctions in the metro area a profitable venture, with prices low and choices available in big numbers. They also reported that the downturn in the hospitality industry of the region has contributed to the rise in the number of vacant office and retail spaces.

Real estate analysts also stated that the slump in the commercial property sector is likely to continue for the rest of the year, much like what is expected for the residential market which has been hammered by high levels of home foreclosure auctions for sale. And just like the housing industry, the commercial property industry will not recover until jobs are created and the employment sector stabilizes.

Analysts have reported that during the start of the real estate crisis, most realtors hoped that investors finding commercial auctions will arrive in droves in Las Vegas because of the low prices. However, a big number of them reportedly chose California, Utah and Arizona instead. They claimed that businesses were lured by other regions because they were perceived to have better community image and better market access than Las Vegas.

As foreclosure condo auction and foreclosed houses increase in number in Las Vegas, Nevada, vacancy rates in apartments decline. More people are reportedly forced to rent, while others made a conscious decision to stay away from homeownership while the housing market is still on a decline.

While buyers at Las Vegas home auctions continue to decrease, apartments are benefiting as vacancy rates in various categories diminish. The vacancy rate in the city's apartment market has fallen to 9.91% last month compared with the 10.51% rate recorded in December 2010. All apartment class categories recorded a month-over-month vacancy decline in January 2011.

Despite the fact that low-priced homes are offered at Nevada foreclosure auctions in huge numbers, most residents reportedly opted to rent apartments last month. Vacancy rates among the highest class of apartment units, or the so-called Class A category, declined to 7.23% in January 2011, representing a little over 37,200 units that have remained vacant. In the Class B category, the rate of vacancy was at 9.65% in January 2011, representing a total of 46,188 empty units.

For Class C apartments, more than 29,500 units remained unoccupied, representing a 13.71% vacancy rate for the category. Although there are affordable foreclosure condo auction units available in the market, majority of residents seem to have forsaken property buying for now, according to realtors. Market analysts stated that it is likely that apartments will remain a hot commodity for the rest of 2011.

Apartment developers and owners are hoping that despite the presence of thousands of cheap auctions homes for sale, city dwellers will continue to fill apartment units for the rest of the year. They stated that the monthly decline in vacancy rates is a significant development for the apartment property market and they are hoping that the segment will strengthen further in the coming few months.

Housing market analysts explain that the decline in apartment vacancy rates in the metro area is largely due to the rise in the number of single family foreclosed homes and foreclosure condo auction properties. They stated that homeowners who have lost their properties to foreclosures were forced to move to apartments, thereby lowering vacancy rates.

Foreclosure-mitigation programs like tax credits, loan modifications, and mediation between lenders and borrowers all have areas that needed ironing out. In Nevada, both lenders and homeowners have found that out as they continuously make suggestions on how to improve the state's mediation initiative for the better.

The Foreclosure Mediation Program administered by the Nevada Supreme Court was meant to prevent homes from getting sold at Las Vegas foreclosure auctions before a discussion was held between lenders and borrowers. And just like any other foreclosure program, complaints have remained and authorities constantly make changes to adopt the concerns expressed by both parties.

Among the concerns expressed by borrowers was the need for the program to keep tabs of lenders who do not bother to negotiate before foreclosing and selling borrowers' properties at home auctions in Nevada. They suggested that the state should give such lenders financial sanctions that will be based on how often these lenders have refused to enter a negotiation with their borrowers. Another complaint was that some banks allegedly charge homeowners the full mediation fee when the rule states that the $400 should be divided evenly between lenders and borrowers.

Just like in loan modifications and tax credits programs, documentation is a big part of Nevada's mediation program. In some cases, lawyers representing homeowners have complained that a number of judges allegedly grant foreclosure authority despite lenders not having enough documents to prove their case during court proceedings, declaring that there is sufficient evidence that a foreclosure is justified.

In this regard, lawyers representing homeowners who had their houses sold at foreclosure auctions have asked the courts to clarify what the concept of good faith entails in a mediation negotiation. They also asked the Supreme Court to explain the level of significance given by the high court to deliberations conducted in district courts during appeals. Terminologies, authorities' roles and sanctions are also some of the issues that require clarification, homeowners and their lawyers have stated.

With the government tax credits program already behind the housing market, homeowners are hoping that lenders will be more amenable to negotiations since banks will likely lose more in selling properties through foreclosures than if they willingly modify a loan or reduce mortgage principals.

More repo houses will enter the housing market soon in Las Vegas, according to mortgage and foreclosure studies in the city, so prospective home buyers failed by KO clauses in purchase contracts need not worry about missing the low prices of repo houses.