2016 Nevada Real Estate and Housing Market Predictions
Last year the United States housing market saw default numbers fall to the lowest levels since 2006. However, this was not the case for Nevada real estate. The housing market in Nevada had its housing distress statistics actually increase in 2015, and real estate market agents in the state expect more of the same for 2016. This is nothing new for the Silver State. For the past ten years Nevada has been in the top five nationally for default activity, with the only Florida, Maryland, and New Jersey ranking higher. But this is not to say that it’s all doom and gloom for Nevada.
Compare and contrast this year’s report to our 2015 Nevada Housing Market predictions
One positive note is that lenders in the state made significant progress in completing foreclosures in 2015. While those homes that began foreclosure proceedings increased 14%, or about 10,300 filings, home sales for bank owned properties rose 52% to nearly 6,200 closings. This means that although homes are entering foreclosure, a majority of them are being sold shortly after the bank takes over the distressed property resulting in fewer vacancies. Realtor Tim Kelly Kiernan expects the 2016 housing market to be about the same as last year. “The banks still are in no rush to foreclose on the thousands of homes that are in delinquent and foreclosure status,” he says. While foreclosures went up last year the overall trend is that lenders are more willing to work with homeowners of distressed properties.
A rise in short sales will also aid in cutting into the state’s default rate. When lenders permit homeowners to sell their homes for less than they owe on their mortgage, foreclosure rates will drop. Short sales decreased after 2014 when the Mortgage Forgiveness Debt Relief Act expired, leaving homeowners on the hook for income taxes on forgiven home loans. In September of last year short sales made up 6.8% of the Nevada market, a drastic drop from the 10.4% reported in September of 2014. Luckily at the end of last year President Obama extended the Mortgage Debt Relief Act through December 31, 2016. The extension also retroactively covers mortgage debt cancelled last year. This is a huge boost to owners of distressed properties who are already facing financial burdens and will help those who have been forced to foreclose have an opportunity to get back on the path to homeownership faster.
The market for Nevada Real Estate is not leading the nation in terms of growth but there is progress being made. “It’s a solid market, a normal market. This is not a sexy, staggering market. Basically, the stability of the market is the story,” says David Tina of the Nevada Association of Realtors. One concern that realtors have more than foreclosures is inventory. There’s a small supply of homes on the market and a high demand. As a result the market is seeing year over year price increases. And some sellers are beginning to take advantage. Overpricing is now one of the major problems for Nevada. Sellers seem to think that their homes are worth much more than they are. But the minute the home is priced right it sells.
Read on to find out key factors for the Nevada’s housing market predictions, and for a look at some of the state’s more desirable places for homeownership and investment.