LAS VEGAS -- For five consecutive years, Nevada ranked number one in the nation for foreclosures but last month it dropped to seventh.
A new report shows the number of foreclosures coming down. According, to Realtytrac, one in every 731 homes in the Silver State had some sort of foreclosure filing in July. That's a small drop in foreclosures from June, but a 44-percent drop from July of last year.
Housing market analysts caution the plunge in the rate of foreclosures may be in part artificial. A number of foreclosure laws passed recently could have caused banks to slow the process down. They say once banks have figured out how to proceed legally, the rate of foreclosures could rise again.
Marcus Conklin, a former Nevada Assemblyman and Associate Director of the Lied Institute of Real Estate Studies said while that's true, there are still many positive indicators keeping people from losing their homes.
Unemployment has slowly lowered, more people are moving to town, and home prices have risen for 18 months.
"Those things all add to the demand for housing, which is creating upward trend and the more upward trend you have then -- of course you have fewer homes underwater," Conklin said. "So the number of underwater homes, which peaked around 80 percent, is now down to 44 percent."
Conklin said with nearly half of mortgages in Clark County underwater, we have a long way to go before we can call our housing market healthy.
"It's positive news, but experts also say the housing market depends on a wide range of factors, like employment, tourism, interest rates. So things can change quickly," Conklin said.