Nevada homes highest in negative equity as market continues recovery
LAS VEGAS (KSNV News3LV) —
The real estate market has been recovering since the most recent housing crash, according to Applied Analysis. A real estate research firm estimates that 20 percent of valley homeowners owe more on their homes than their value. Brian Gordon with Applied Analysis said the numbers have changed dramatically from 2010 when almost 70 percent of homes were underwater.
"We have made up a lot of ground, we have come a long way and prices have continued to rise,” said Gordon.
Homeowner and developer Michael Hutchings said his home is still underwater even though he has paid to stay in his home for the past decade. After he decided to sell and got an offer much lower than the value of his home, he is questioning the banks’ process when it comes to selling homes negative in equity. Hutchings said his bank, Bank of America, immediately accepted an offer instead of negotiating better options.
"You need to re-appraise the home or counteroffer so that we can get a little closer and they said: no we are willing to let it go," said Hutchings.
Gordon says the current market is attracting buyers who want to live in their homes, a different picture than during the last cycle when more investors were on the path to home buying causing the market to inflate dramatically. Gordon said home vacancy rates are coming down, distressed homes in the market have softened, fewer people are underwater, and housing market dynamics are much stronger than before.