If Senate bill passes, prices may drop even more - at least in Vegas...


“For 2006, 2007, and 2008 losses, the “net operating loss (NOL) carryback” would be extended to five years from the two years currently in law. By extending the NOL carryback provision from two years to five years the bill simply accelerates the tax benefit of current losses from future years and gives struggling companies cash infusions they need to stay afloat.”

My gut tells me that the new home builders here in Vegas are just itching for this to pass. They had such tremendous profits from 2003-2006 that they really need to have NOLs go back further. If the “Foreclosure Prevention Act of 2008” passes with this in it, I see new home inventory plummeting in Vegas, which will continue to erode home values.

On one hand, I’m excited because I love buying super cheap new home builder inventory to rent out - especially in Vegas. On the other hand, many more homeowners will be much more upside down than they are now, which will prolong the value slump and add to rising foreclosures.