Well kind of, the economist's at the National Association of Realtors are reporting that existing home sales for 2011 were up by 1.7% and the inventory of existing homes on the market is the lowest since March of 2005. Consumers are gathering confidence from the low interest rates, great prices and job growth. Here in Nevada we have to keep this in perspective, we will always trail behind any sort of national statistics. But also thanks to the new law AB 284 that went into effect in Nevada on October first, the number of NOD'S, (notice of defaults) that were filed have been cut by about 95%.
The reason why is the law states that before a bank can foreclose on you, they must be able to prove that they have the right to foreclose on the property. They will have to produce the original note that is secured by the trust deed, and the problem is that note could be in the office of a defunct bank, making it nearly impossible to produce the note.
The positive side effect to this law is that banks are much more willing to do a short sale rather than going down the road of trying to locate the original note. Also it is about $50,000 cheaper for a bank to do short sale as opposed to foreclosing and they are starting to realize that.
But back to the recovery, it is our strong belief that throughout 2012 we will be bouncing along the bottom. There is still a large number of short sales and foreclosures that have to get through the system. But make not mistake right now there is a shortage of homes on the market in our area and we are seeing multiple offers on the quality homes that come on the market.
Stay tuned we working on the year end statistics for 2011 for each neighborhood.
Posted by David Hughes on