Great question. Difficult to answer and here is why.
On one hand NOD's are on the rise (Las Vegas is currently second in the nation) and some say the REO/foreclosure supply to increase.
The last numbers I heard, there were around 80,000+ homeowners that are currently not paying their payments.
Also, some hedge funds/investors have started to pull away from the Las Vegas market as rising prices and decreasing rental rates are diminishing cash flow and CAP rates. This will decrease demand, however, there are a lot of people that are looking for primary residences that could not buy before due to the investor buzz so now will be a better time for those people.
Prices are still relatively low compared to the national average. So this and low rates, and low taxes will continue to attract buyers from elsewhere.
You also have to factor in that new homes sales are on the rise and builders are building again.
There is not only AB300 that needs to be considered but SB321 which is going to drag out the foreclosure process for lien holders some say.
There is also another new law that passed that will allow underwater home owners to short sale their homes back to themselves allowing them to remain in the home. An "arms-length" transaction disclosure will no longer be required. This will decrease the short sale inventory hitting the market.
These are just a few of the factors our local market is currently facing. So to answer your question, AB300 being amended will help inventory but due to several other factors it is hard to predict the market going out further than then next 6 months. I would expect prices to rise over the next 6 months. After 6 months it gets tricky as there are so many factors that will come into play. It will be interesting to see how it all plays out.
If you would like to discuss the market further please feel free to contact me directly anytime!
The Adams Team at
Rothwell Gornt Companies