Las Vegas Area Sales by Type - The History of the Last Year!
This report is a special request from a lender collegue. I am going to include it in my regular Las Vegas Area Listings & Sales by Type Monthly Report HOWEVER I think the first one deserves special attention and it's own post.
REO - Real Estate Owned and is commonly known as "Bank Owned" Property.
REO sales are down for a myriad of reasons and the main reason is due to the lack of inventory. It isn't because people don't want to buy them - in fact that is quite the opposite - buyers WANT THEM :)
REO inventory has been a shell game. First of all look at the chart and see that "standard sales" and "short sale" sold units have increased dramatically.
Short Sales are mainly pre-foreclosure sales and most of them are in default and the pre-foreclosure stage. REO inventory gobbled up there.
Another way REO inventory is getting gobbled up BEFORE it goes REO is investors purchasing at trustee sales (the actual foreclosure sale.) Read "Las Vegas Area Trends: The Trustee Sale Flip is the New REO." I wrote that in February. Trustee Sales by private investors was reaching a fury with the tax credit first time buyers out there seeking to purchase a property. Since the tax credit has expired, we are seeing more foreclosures going to REO rather than the private investors. Some of these trustee sale purchases by private investors get immediately relisted in the "standard" sale category as flips, some are being held and some are being rented and some are being occupied by their new owners.
Unfortunately Las Vegas Area Foreclosures & REO weren't dead, nor will they be for a long time. It's just playing a little shell game (selling via different sale types) and the inventory will continue to shift under these categories over the next several years!