An interesting article on The Real Estate Channel that you can read here:
"With the expiration of the first-time buyer tax credit on April 30, there are now two main props keeping the housing market afloat. One is the growing percentage of home sales financed by Federal Housing Administration (FHA) loan guarantees. The other is the refusal of banks to put on the market foreclosed homes over $300,000."
The author goes on to provide some interesting foreclosure statistics from Four areas:
1) Chicago - Cook County,Il - This year, banks in the Chicago area have foreclosed on a huge number of expensive homes. RealtyTrac lists 2,650 repossessed homes for more than $300,000 and 169 for more than $1 million. A mere 29 homes over $300,000 were for sale.
2) Miami - Dade County, FL - According to RealtyTrac, on July 16 there were 10,858 repossessed properties in Miami-Dade County. More than 2,100 have been held by the banks for more than a year without having been placed on the market and 600 for more than two years. Over 1,400 of these foreclosed properties not put on the market were listed at more than $300,000.
3) Orange County, CA - As of July 16, RealtyTrac listed 6,270 repossessed properties. Although 3,200 of them have been taken back by banks within the last six months, 650 have been in the inventory of banks for more than two years without having been placed on the market. As with Cook County and Miami-Dade County, very few foreclosed homes in Orange County are listed for sale - 227.
More than 3,800 of these repossessed homes are priced above $300,000 and 650 for more than $1 million. Yet not a single home over $1 million is currently on the market. Only 85 of the 3800 bank-owned properties priced at more than $300,000 have been listed for sale.
4) Bergen County, NJ - RealtyTrac listed 615 repossessed properties as of July 16. Roughly 120 have been owned by the banks for more than a year without having been placed on the market. Two-thirds have been repossessed since the beginning of 2010.
According to research performed by the author, there appears to be a clear distinction that banks are holding back from putting higher end homes back up on the market to sell hoping to keep a market inflated. I would say that the majority of real estate agents out there know that there is a shadow inventory of bank owned homes in places such as Las Vegas, Arizona, California, Florida and Illinois but the numbers of homes in the $300,000+ range owned by the banks and not being put on the market seems absolutely staggering.
I would love to hear from real estate agents in the above markets to see if there is any truth to those numbers.
For Las Vegas Real Estate...
We do have several Bank Owned Homes available for sale for well over $300,000 including one bank owned luxury home in Summerlin that has been bank owned since 2006. They have dropped the price down $5,000,000 to finally get serious in selling it. (It's a Fantastic Deal by the way.)
In fact, a quick search on my site for Bank Owned Homes listed for over $300,000 shows several available for sale including nine bank owned homes priced over $1,000,000. So it's quite interesting when somebody is claiming that markets such as Orange County and Cook County (two areas I'm much more familiar with then Miami and Bergen County, NJ) with median home prices far higher then Las Vegas have less higher end Bank Owned Homes available for sale. Especially with the claim of how many homes in the upper price ranges have been taken back by the banks.
I'll have to do some research on just how many higher end homes have been taken back by the banks for Las Vegas / Clark County that are still sitting around and have not been put back up for sale which will take some time and I'll follow up to this post.
Notice that the information the author is basing his research on is coming from RealtyTrac...
What say you?
Is Bad Information being Provided that could possibly be scaring off potential higher end buyers from making a move?
Prudential Americana Group - REALTORS
Las Vegas Real Estate