Thanks to new laws that keep banks from foreclosing on homes, the Las Vegas short sale market is growing and there are indications that home prices may stabilize for the first time in five years. A short sale is when a bank allows the homeowner to sell the property for less than what they owe. The bank typically forgives the difference. Quite frequently, a homeowner will turn to short selling their home to avoid foreclosure because the credit impact could be less severe and there are currently less tax ramifications due to the Mortgage Debt Forgiveness Relief Act that expires at the end of the year. Homeowners that are interested in purchasing a short sale property better be on their toes because with the number of foreclosures decreasing and low property values, short sales are sure to be the next target for investors.

Las Vegas is currently the leading city in the nation when it comes to price-to-rent ratio. Property values in Las Vegas have decreased by almost 70% when compared to home values from five years ago, and because of this investors in the area are going to profit a great deal on their rental properties if they can get a good deal on a short sale now. Over the last year, the average price paid for a foreclosure or short sale was $115,000. Over half of all home sales in the last five years have been on distressed properties and there are currently over 5000 short sale listings on the market in Las Vegas; half of these properties are being sold to cash buyers because, as of late, homes are so affordable.

Home prices could possibly change in the near future, however. There are almost 30% fewer homes on the market than there were last year. Supply and demand leads many homeowners and realtors to believe that home prices will start to rise soon and competition for homes will get tougher.