In Part 2 of this series, we looked at the Las Vegas foreclosure market and found that over 80% were priced under $400,000. (The median sale price for a single-family home in August was $296,338.) Today we will look at short sales in Las Vegas to see which price ranges have the greatest activity.
Before looking at the numbers, it is important to understand exactly what a short sale is. When a seller nets less than the balance of their mortgage and the lender agrees to take a loss, that is a short sale. The key issue is not whether the seller needs to come out of pocket at closing, but that the lender agrees to accept less than the balance of the mortgage.
Currently in the Las Vegas valley resale market, nearly 12 out of 100 homes listed (11.78%) are in short sale status. Today we'll examine this more closely to determine if certain price points are affected more than others. Here are the details:
| Single Family | Condominium | Townhouse | Totals | |
| Active Listings | 21,574 | 4,069 | 1,639 | 27,282 |
| Short Sales | 2,888 | 212 | 114 | 3,214 |
| 13.39% | 5.21% | 6.96% | 11.78% | |
Number and percentage of short sales within each price range: | ||||
| Under $200,000 | 134 | 150 | 51 | 335 |
| 4.64% | 70.75% | 44.74% | 10.42% | |
| $200,000 - $299,999 | 1405 | 43 | 58 | 1506 |
| 48.65% | 20.28% | 50.88% | 46.86% | |
| $300,000 - $399,999 | 770 | 8 | 4 | 782 |
| 26.66% | 3.77% | 3.51% | 24.33% | |
| $400,000 - $499,999 | 312 | 3 | 0 | 315 |
| 10.80% | 1.42% | 0.00% | 9.80% | |
| $500,000 - $749,999 | 201 | 5 | 1 | 207 |
| 6.96% | 2.36% | 0.88% | 6.44% | |
| $750,000 - $999,999 | 48 | 2 | 0 | 50 |
| 1.66% | 0.94% | 0.00% | 1.56% | |
| Over $1 million | 18 | 1 | 0 | 19 |
| 0.62% | 0.47% | 0.00% | 0.59% | |
Just as we found with foreclosures, over 80% of the short sales are with homes listed under $400,000. Because of less stringent lending criteria that allowed so many 97-100% loans, homeowner equity in this sector is particularly vulnerable to market corrections.
How will the volume of foreclosures and short sales affect values in the Las Vegas real estate market? What steps can homeowners facing potential foreclosures or short sales take to resolve their situation and minimize their losses?
In Part 4, we'll start to answer those questions. To be sure that you don't miss a part to this series, subscribe to this blog.
Read more:
Part 1 - Overview of Las Vegas Foreclosures and Short Sales
Part 2 - Las Vegas Foreclosures by Price Range
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