Nevada Mortgage Refinance

With Nevada being noted as the state with record vacancies and the highest foreclosure rate in the nation, it’s encouraging to finally see the state experiencing some good fortune. Home sales hiked in Nevada in March 2010. The bulk of the robust numbers appears to be coming from the state’s southern section; although, notable numbers are evident in other cities in the state.

Home inventories declined by 9.9 percent from March of 2009. Those are encouraging numbers; although, median home prices were down to $136,000, an 8.7 percent drop from a year ago.

As foreclosures infiltrate more upscale neighborhoods, it is possible that the median price will rise, said Brian Kaiser, real estate industry analyst with the University of Nevada Center for Regional Studies. Watching the median price as a gauge for market stability is too limited, he said.

Kaiser is encouraged to see existing home sales in Nevada exceed figures from a year ago. He notes that there are buyers, but the numbers are dramatically less than during the boom years.

Rick Shelton, Realtors president, credits the home sales spike to a combination of speculation that southern Nevada home prices will increase soon, and a last ditch effort for buyers to take advantage of the first time homebuyer tax credit set to expire May 1, 2010. Qualified homebuyers must have a contract in place by April 30 and close on the home by June 30, 2010. Investors are another contributing factor for the higher home sales in the state.

Trend lines are evident that appear to indicate a level of stability in southern Nevada. Shelton believes that the market is right where it should be and that the area is experiencing a phase of healing in regards to the resale market.

To continue recovering, sales volume needs to consistently rise, showing prolonged interest in home buying. According to Amundson, national and local sales indicate a potential for increased demand and depletion of homes available on the market, conditions that usually cause an uptick in price, regardless of the product.

Passed into law on April 5, 2010, housing industry experts agree that the Home Affordable Foreclosure Alternative program will significantly increase short sales. Short sales typically sell for more than foreclosures, which now make up 50 percent of the Nevada housing market, instead of the previous 80 percent.

National experts predict a double-dip in home sales prices, but based on all the current figures, Dennis Smith disagrees. He believes the trend will remain stable and upward.