The numbers are still too high. Southern Nevada existing home inventory, according to the local MLS, continues to hover up there where no one wants to see it. It has been over 20,000 for months. Much of it has to do with the high mortgage foreclosure rates here that seem to be marching along unabated, month after month.
Bottom line is, demand is still too weak. Low home loan interest rates have been a big help and the various government incentives are also weighing positively in. But that's not enough. To change the real estate market dynamics in Las Vegas more qualified buyers are needed.
Call in the vulture funds. The name actually is a bit harsh, for these are just investors, or groups of them, who are taking advantage of favorable business conditions. Anyhow, more of them are coming to Las Vegas now to scout opportunities and providing additional purchasing power.
In most cases they close deals with cash, so no long waits to get mortgage applications processed. And they often scoop up a nice package of residences, not just one or two, making serious dents into the inventory in a short period of time. Many of them are set to rent out the acquired properties for multiple years and then sell them ideally for handsome profit. This way vacant homes in distressed neighborhoods get new occupants and are then generally looked after properly.
Of course, these real estate investors are in the habit of tendering rock bottom offers that can yank down community price structures, at least initially. Still, it's better to have real ownership with long-term interest than a bank REO status, as lenders have the reputation of being weak in maintaining foreclosed homes. And most of all, they do create demand and that's what Southern Nevada's housing right now sorely needs.