Nevada Ranks Second in Corelogic® Report
Corelogic® just recently released their latest Market Pulse Report dated 10/12/12 based on August sales numbers with all kinds of interesting information and analysis. Reading over it there are many positive projections concerning distressed home sales, homes in distress, the reduction in foreclosure notice filings, etc., etc.
Last year the promising trends in the report showing these positive signs about these declines and sale price trends going up would have certainly interested me. Problem is that Nevada passed a new law addressing the Robo-Signing issues called Assembly Bill 284 in October 1st, 2011 that dramatically dropped the number of foreclosure filings the month it went into effect. Throw in the big settlement with the Big 5 banks and the new “Standards of Service” rules that can delay out filing foreclosure notices until who knows when and all of the positive trends being reported may not be telling the whole story of why distressed inventory is down and home prices are trending up. There’s all kinds of speculation and conspiracy theories going on but all that it is… is speculation and conspiracy theories and nobody really knows what’s going to happen.
What did interest me and numbers that are certainly worth something with the current beneath the surface things going on are the numbers for the “Seriously Delinquent” Home Loans out there that are 90+ days late. Regardless if a Foreclosure Notice is filed or not (Foreclosure Notices are not automatically filed when somebody stops paying their mortgage), the number of homeowners NOT paying their mortgage is pretty darn accurate with the credit reporting bureaus.
States with the Highest Percentage of Home Loans 90+ days late
- Florida = 16.2%
- Nevada = 11.8%
- New Jersey = 11.2%
- Illinois = 8.8%
- New York = 8.2%
- Maryland = 8.2%
- Connecticut = 7.4%
- Rhode Island = 7.4%
- Mississippi = 7.1%
- Maine = 7.1%
If you notice something, there are a lot of states in this top 10 list that you don’t hear about too much in the Foreclosure filing notices. Every state has their own Foreclosure Process that the Banks have to follow. Nevada and specifically Las Vegas used to dominate the percentage of homes with foreclosure notices but as of recently has dropped out of the top 5 primarily due to Nevada AB 284.
Corelogic® chart showing the top 25 states with the highest percentage of home loans 90+ days late
Big Improvements for States that Cleared out Foreclosures, No Improvements for States that kicked the Can down the road
The black lines in the chart above are the high. Red dots are the current % numbers as of August of 2012. Nevada, California and Louisiana and a state that used to compete with Nevada for the top spot, Arizona. Arizona is not even listed in the top 25. HUGE Improvements with Arizona since they took the road of just clearing out their foreclosures for a sustainable real estate recovery and the results of their home appreciation rates this year have been remarkable.
As for the rest of the information in the report, there’s a lot of analysis in it that’s not telling the whole story. While I certainly think the worst of the foreclosure fiasco is behind us in the state of Nevada and prices bottomed out last year, there are still plenty of distressed Las Vegas homeowners out there. What will eventually happen with these properties is beyond what anybody can predict with what I mention above but one thing is certain: There are FAR MORE Buyers then Las Vegas Homes For Sale. Keep in mind all of those people that short sold or were foreclosed on when the foreclosure fiasco started in 2007, are now qualified to buy again. Record low interest rates with low prices and there are buyers all over Las Vegas looking to buy something.
Take a look at some of my Las Vegas Market Reports that I recently did for some specific zip codes I specialize in:
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Paul Francis, Realtor
Prudential Americana Group, Realtors
Las Vegas Real Estate