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Nevada foreclosure homes - A Hopeful Lot

As the housing market of Nevada takes early steps towards recovery, the $300 billion housing bill signed by President Bush leaves many analysts and builders hopeful of seeing acceleration in an up-swing.

Part of the bill deals with homeowners being able to refinance their existing loans into fixed rate loans backed with FHA insurance. For foreclosure homes in Nevada that comes as a relief.

In excess of 11,000 loans have been repossessed by lenders in 2008’s first 6 months, thereby affecting house prices negatively. Since the boom in the housing industry started, prices of homes are at their lowest in Nevada.

According to the Standard & Poor/Case-Shiller-index that came out last week, the highest drop in prices in Nevada was in May, with there being a decline of 28.4% in comparison with May 2007. That is higher than the approximate 20% drop that housing analyst locally reported.

The drop in prices is seen to have been ignited by the Nevada foreclosure homes where homeowners ask for the banks consent ii selling the home for what is lesser than the money remaining to be paid off on the mortgage. Out of 2,979 existing property sales for the month of June, around 60% were bank owned.

With the bill also making provisions for first time homeowners to receive up-to $7,500 as tax credits, builders in the state are also hopeful of better times ahead.

Marketing Solutions’ executive V.P, Steve Bottfield, a housing analyst in Las Vegas, has praised the housing bill, saying that it would improve the housing market. He said that he expects the market to recover by 2009 with the sales of homes exceeding the number of foreclosure homes in Nevada.

Restrepo Consulting Group’s John Restrepo, predicts that it could take around a year and a half or two years for a constant recovery to take place because the economy on the whole is weak, with growth of population and job growth both holding back for now.

He also sees a shift in pattern with there being more renters than homeowners after the recovery of the housing market.

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• Maryland Foreclosure Homes Sales on a High