Today my real estate travels took me to the southern part of Henderson, up near Mission Hills and Black Mountain. Turning a corner, I quickly spotted a half dozen ‘For Sale’ signs — on a street with only sixteen homes.
This particular neighborhood is smal, less than 100 homes built in 2006 at the height of what many agents refer to as “the frenzy.” During that time prices of $180 – $200 per square foot were quite common; 23 homes in this development originally sold for over $400,000.
As of Sept. 23, there are ten homes listed from $139,000 to $219,777. Nine are short sales and the tenth is bank owned. The graph below compares the latest tax value with the current listing price.
These ten homes are listed for sale at prices that are 48% less than what was paid for them just four short years ago. Total tax value — $3.6 million; total list price — $1.8 million; potential shortfall — $1.8 million. These sales will negatively affect every home in the neighborhood for years to come. And there are dozens and dozens of pockets of homes just like this throughout Henderson and the Las Vegas valley.
Short sales were never intended to be a mass market solution. But somehow we find ourselves in a market where more than half the available homes are distressed properties. Out of 1,934 single family homes in the Henderson real estate market, 869 (44.9%) are short sales and 327 (16.9%) are bank owned. The ‘regular’ or ‘equity’ seller is a rare breed, and one we miss dearly.
My former team leader used to say “the market is neither good nor bad, it just is.” Despite the challenges and uncertainties, there have been more than 1,300 Henderson homes sold in 2010. There are many good agents with the knowledge and skills to guide buyers and sellers through this everchanging market. If you want to buy or need to sell, call me at (702) 339-9700 or email me at JohnNovak@kw.com, and we’ll build a strategy to help you meet your goals.