Las Vegas Real Estate Predictions for 2013
Las Vegas Real Estate Predictions for 2013
Are we going to see an increase in the number of foreclosures after the first of the year? What effect will the expiration of the Tax Relief Act have on the market after this year? What changes are we going to see in short sales in the coming year? These are many of the questions on consumer’s minds these days when it comes to the Las Vegas real estate market.
2013 is likely to see a small increase in foreclosures as there has been a slight bump in the number of Notice of Defaults and Trustee Sales filed in the past couple of months. For example, in August, 1,267 Notice of Trustee Sales were filed compared to 911 the previous month. That same month, 781 Trustee’s Deeds were filed compared to 706 in July. It’s not enough of an increase to cause a glut of homes coming the market in 2013, but likely a small increase.
And what about shadow inventory?
The president of Bank of Nevada
John Guedry says they do not have
any shadow inventory.
Wells Fargo bank gives the same
reply.
As for the Tax Relief Act, if it is not extended, it could have a definite impact on the Las Vegas market. For one, many people who have a true financial hardship will no longer be able to do a short sale, as they will not be able to afford the tax on the 1099 for the forgiven debt on the home. This will result in fewer homes coming on the market. If those same people do sell and can't afford the tax, then they would be forced to file bankruptcy. On the flip side, if they can prove insolvency, then the tax on the 1099 would not apply to them as they would be exempt. They could then proceed with the short sale and not have to worry about paying a tax on a deficiency.
Just as 2012 has been a year full of changes in the real estate market, that trend is likely to continue well into 2013.
