Consider It Sold Las Vegas: Are the housing inventory restrictions due to banks hoarding inventory. It is a possibility, especially in Vegas
— Consider it Sold (@Itssoldlasvegas) July 16, 2012
Las Vegas has a problem that seems to be part of a short term solution. There is a massive shortage of property for sale. The demand to purchase real estate in Las Vegas is far out reaching the supply. However, we are not seeing the prices increase in the same fashion. There are too many wild card homes that are short sales or bank owned homes that are keeping pricing more stagnant than one would hope.
A few years ago a home would appraise at just about anything as long as there was a willing buyer and willing seller. Currently there is an abundance of comparable properties that have sold in most areas that are far less than what people are willing to pay. So as we have seen demand increase and supply decrease, appraisers still have to consider the lower priced sales in their methodology. This is not good for home sellers. Often we are seeing deals get cancelled if the appraisal comes in too far below the listing price.
There seems to be some sort of market manipulation going on at this point. It is likely to be in part due to banks trying to avoid getting burned again and in part due to appraisers wanting to keep their jobs. The reality is that property value is dictated by the lenders. There are not enough cash buyers to push up prices.
We have seen a slight up trend in pricing in Henderson, NV and a few other pockets of Las Vegas, NV but the trend is slow. We can hope it continues and within a few years those who have purchased at the rock bottom will start to want to move again. The will be able to use their equity to buy up.
For this to happen we need to see prices continue to move up in a slow but steady fashion for the new couple of years. The banks are likely to dictate the increases just by controlling the back log of REO homes they put back into the market place.
Chris LaHaie Realtor
List with Chris
Prudential Americana Group, Las Vegas and Henderson NV