This week the Las Vegas Review Journal reported that foreclosure filings in Las Vegas had dropped from 6,565 in Sept. to 6,420 in October a reduction of 145 homes (down -.022%).  This doesn’t seem statistically significant.  What is statistically significant was the number of homes the Banks took back which were down from 3,563 in Sept. to 2,653 in October a reduction of 910 homes (down -25.5%).  This begs the question why such a small reduction in filings but a huge reduction in actual repossessions?  Could it have something to do with the banks not foreclosing? Could it be that they are finally desperately trying to find a way for people to stay in their homes?  I and every other Las Vegas real estate agent know of people that are up to 10 months past due on their loans and still haven’t been foreclosed on. 

I have been saying for many months that between 12,000 and 15,000 R.E.O.’s (Bank owned homes) are not being offered on the Las Vegas real estate market.  This is an effort to artificially hold prices higher and stop the downward spiral of the median sales price of a home and thus additional foreclosures.

If the Las Vegas real estate market is stabilizing then why did the lenders raise interest rates from 5.78% on 11/2/08 to 6.13% on 11/9/08 ( 6.12% increase).  Of the 17 states that have the most mortgages written in the United States, Nevada was the only state in which mortgage rates increased. The other 16 states decreased their mortgage rates according to Marketwatch.com.  This is a clear visible sign by the banking industry that they know Las Vegas real estate is NOT stabilizing. 

 Basic banking strategy marks risk into rates. Just as people with poor credit must pay a higher interest rate so to must areas where repossessions are thought to be at higher risk in the future must pay higher rates. Las Vegas, Nevada is paying those higher rates than anywhere else in the country.

The bottom line is that repossessions in Las Vegas are not slowing down. With many employers cutting back workers hours and laying off others the repossession market here in Las Vegas will continue for the near future.