Nevada foreclosures lead nation

Nevada's housing industry continues to limp along with the highest residential foreclosure starts in the country at 3.7 percent for the second quarter, the Mortgage Bankers Association said Thursday.

Nevada followed Mississippi in delinquency rates and was second behind Florida in foreclosed inventory.

Yet, real estate agent Don Wiemer of Sellstate NRES considers it a seller's market for many single-family homes.

Wiemer said the prices on many typical homes have plummeted by 40 percent to 45 percent since the boom days of 2006.

However, much of the foreclosed single-family housing inventory is not for sale yet, and sellers of houses on the market often get more than list price, he said.

He mentioned a 1,800-square-foot home that was priced at $278,000 in late 2005. The asking price is $108,000 but it will sell for more than asking price, he said.

The winning bids for houses like these often come from investors offering cash, he said.

Wiemer counted 3,200 bank-owned homes that were sold last month for $200,000 or less. However, he estimated that 25,000 houses repossessed by banks are not on the market.

One reason: "The administration by the hour is changing the equation on how much they are going to subsidize the banks on these (home mortgage) losses," he said.

In some areas, the government neighborhood stabilization program is renting out houses for as long as five years, Wiemer said.

The White House fears what will happen if the housing inventory is put up for sale all at once, he said. Wiemer believes the government should step aside and allow the market to work through problems.

Despite double-digit unemployment rates and the depressed local economy, "it's a seller's market," Wiemer said. "This is the biggest paradox in the history of the market."

During the quarter ending June 30, the percentage of residential mortgage loans in Nevada on which foreclosure was started rose 0.35 percent to 3.7 percent, according to the Mortgage Bankers Association.

Nevada led the nation in foreclosure starts for the second quarter, followed by Florida at 2.64 percent and Arizona at 2.51 percent, the association reported.

Nevada's 12.14 percent mortgage delinquency rate came in second behind Mississippi. The Silver State's foreclosure inventory of 9.13 percent ranked second to Florida but ahead of Arizona.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.