With an increasing number of REOs coming on the market in the past 90 days, it’s still too soon to predict when prices will stabilize. Sales are down a bit for February, but should rise in March. Having broken the law of Supply & Demand, the Las Vegas real estate market is attracting frontier-type investors -- men and women who aren't afraid to brave the risks inherent in the new REO gold rush.

I continue to hear how bad the economy is, but my phones continue to ring off the hook. It seems some days that everyone and his cousin is looking at homes. Quite a few clients are making offers, but those who insist on trying to lowball the banks are walking away empty handed. Out of 1,731 sales of single family homes in February, the banks got less than 90% of list price on only 211 homes. Conversely, the banks got 100% or more of asking price on nearly one-third of REOs sold.

If the home is old or in disrepair, you may be more likely to pick the home up for less than asking price; the same holds true if you are paying cash. But then again, you may have to pay more than asking price; it depends on numerous factors. Since every deal is a unique transaction, I discuss these factors with my client as we structure an offer likely to be accepted.

Sales of existing homes for February were 2,187 as compared to 982 for February 2008. At this rate, I’m confident that sales will remain brisk into the fall. With all the REOs hitting the market, expect to see some more great deals through the next few months, at least.

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