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Loading ...This year, many states are facing foreclosures rise and Nevada foreclosures were one with a high conversion rate. In the month of February, 15,783 properties in Nevada were foreclosed and there was a 156% increase in foreclosures for sale from the year 2008. Every month, there is an increase of more than 10% (around 30,000 new foreclosures were available as per last recorded on April 14 2009) in foreclosures and the real estate market in Nevada is having a tough time this year.
What caused more foreclosures in Nevada?
Though all states in the United States are now experiencing increase in foreclosure rates, something is more special about Nevada. Nevada saw a rapid increase in economy and population in the past few years. While Texas also had increasing population, growth was more robust in that state. Nevada on the other hand, developed rapidly with many more houses built after 2005.
These new homeowners felt that their income would be sufficient for the mortgage. However, the calculation was incorrect. Many of them were already in debts and increased the risk of losing their homes. Moreover, speculators performed wrong mathematics and increased the price of homes in Nevada. Due to this increase in equity, sub prime loans were popular in Nevada. After the crisis, when the real estate market fell down, people lost equity in homes and hence, they accumulated more debts. The state, which experienced rapid growth in the previous years, has become the home for increasing foreclosures.
Rapid decrease in the price of homes
Between 2005 and 2008, the price of homes in Nevada increased rapidly and went up by 100%. In the present year, the fall of price was so sudden and now, the price of homes was slashed to 50%. This means that you can now buy homes in Nevada at a price, which was found four years before. If you have a stable financial condition and if you are able to pay a few dollars every month for mortgage loan, then go ahead and buy homes from foreclosures. You can find great deals and bargains as banks want to finish of Nevada foreclosures as soon as possible before prices slash down even lower than those existing currently.
