The local Las Vegas Market has had some positive air time from GLVAR and local news channels about the number of homes being sold and the rise in prices of nearly 2%! Prices rising for the first time in many months. The buyers seem to be primarily new/first time buyers and investment groups and the moving of inventory from Builders for New Homes. There are many “traditional” listings on the market without the dreaded Short Sale and or REO label..All good signs, and yet…

Many homeowners are waiting for the next Libor release soon to come before the end of the year. Should the interest rates rise the reset of their Interest Only and ARM loans may eclipse what they can afford to pay for the first six months of 2010. Even a $300.00 bump could send many of them packing and looking for rentals before their families are uprooted. If an upward trend of the interest rate should happen..then the 2nd increase house payments.. due July 2010..we might see the local housing market shudder and stumble again.

There is no doom and gloom here or running screaming..”the sky is falling”, but there needs to be a reality check and a reminder to agents and lenders alike..about being ethical in how they present opotions for the homeowner and buyers.. when taking Listings and making offers..

On a continued observation of the banking system and their requirements for borrowers, they have not lessended and in many cases have become obstructive. Also, appraisers are fearful of making less than very conservative appraisals as they have become a target for investigation as the cause and effect of the last “bubble” is reviewed by those seeking deficiency. Which is a whole other topic.. as the Deficiency laws that have been engaged do not cover the loans that were made prior to October 1st 2009. Also the Lenders will utilize the deficiency and promissory notes to recoup the difference between the loan amount and the sale amount..So..with all the new positive spin on the local market we are not out of the woods and that light at the end of the tunnel might just be the next train coming with more Foreclosures aboard!