Market on Life Support

Mesquite Nevada Real Estate Market Still on Life Support

If the Mesquite, Nevada real estate market were a patient in the hospital, it is still in ICU. The market remains on life support, plagued by high vacancy, defaults, foreclosures, existing, and new home supply. Builders continue to put downward price pressure on existing home sales with lower pricing and incentives.

Then there is the shadow inventory. The picture is clouded by the bank owned REO properties as the banks fumble with unrealized losses, those toxic assets. Clearing of this segment of the market will be a pivotal point, but it remains unclear as to how many are out there and at what price will they be liquidated. As the banks push these properties into the market prices continue to fall.

The main support in the market is coming from your tax dollars in the form of first time home buyers tax credit, and high loan to value government backed loans. Cash buyers and investors are nibbling around the edges, but remain tight fisted and cautious.

The next few quarters will bring more competitive pressure to the market from banks, builders, distressed sellers, and short sales. Prices should get even better for buyers willing to be patient.

Recovery will be hampered by new tighter lending regulations being developed and implemented at this time. It appears excessive leverage of debt will not be allowed.

Clearly there has been a shift within the consumers and the world as to how they view leverage and debt. Affordability will be high on the radar screen of all.

Remember the market cheer leaders have their own motives and agenda.

Buyer beware continues to be the smart buyers maxim.

Chris W. Miller

ERA Brokers Consolidated

Mesquite NV 89027

702- 346-7200

435-862-5951

Mesquite Market

chris@mesquitemarket.com

Lincoln County Land Market

Nevada Ranch Properties