Las Vegas Real Estate Career

In March 2008, as a result of the Economic Stimulus Package, FHA, Fannie Mae and Freddie Mac raised their loan limits.   These increases had a deadline of December 31, 2008.

The new limits were just announced for 2009.

Effective January 1, 2009:

• CLARK COUNTY FHA - $287,500 (down from $400,000)
• CLARK COUNTY FANNIE / FREDDIE - $417,000 (no change)
• NYE COUNTY FHA - $271,050 (down from $325,000)
• NYE COUNTY FANNIE / FREDDIE - $417,000 (no change)

If you have buyers looking to put down less than 10% and they are looking for a home priced over $296,000, they need to find a home quickly. 

Loans must be locked by 12/13/2008 and fund by 12/31/2008.   No exceptions.

Also, as a reminder, the minimum down payment on FHA loans will go up to 3.5% from its current 3% on January 1, 2009 as well.

Now you can subscribe to Mark Stark’s weekly conference call via a Podcast. You can select from a variety of podcatchers - the most popular is iTunes. Once you subscribe (by adding it to your iTunes, for example), all the new audios will be automatically downloaded when available and loaded on your iPod everytime you connect to iTunes. You can (re)listen to Mark’s conference call at your convenience. Just click on the Subscribe to the Podcast feed and select your favorite podcatcher.

This editorial opinion by Cyril Moulle-Berteaux, “The Housing Crisis is Over” appeared in the Wall Street Journal on May 6, 2008 and has been getting a lot of attention in the blogosphere.

The author quotes historical real estate cycles and claims the national housing market is approaching the bottom now based on a variety of facts and economic trends:

• Home sales peaked in July 2005
• New Home sales are down 63% from peak levels
• Housing starts have fallen more than 50%
• Affordability - prices have declined while, generally, incomes have grown

Brett Arends asserts in his article “Is Housing Slump at a Bottom” that we may be at the bottom of the housing market because housing starts dropped below the One Million mark in March.  “Every time that has happened in the last 50 years, it proved to be the bottom of a recession.”

Indications in Las Vegas are that prices may continue to fall further, yet NOW is definitely a great time to buy - here’s why:

• Over 60% of sales are REO or Short Sales - there are tremendous bargains out there right now!
• From 4/1/08 to 4/30/08, Las Vegas had 1927 closed resale single family, condos & townhome: Download the Full Report for April 2008 REO stats
  • REO - 1224 (63.5%)
  • Short Sales - 144 (7.5%)
  • Traditional resales were 19% of the market for the month
• Total number of contracts written is increasing dramatically.  GLVAR statistics show that 770 listings went into Pending or Contingent status in a one week period between April 21-28.   Notice the dramatic trend upward on written contracts since January 2008: GLVAR Under Contract Graph
  
•  Banks are pricing their REO listings to sell - sometimes below the market  - thus generating activity and multiple offers.
• Motivated sellers are finally shifting their list prices into the “Showing Zone”.  For more on this trend, check out Forrest Barbee’s Las Vegas Real Estate Market 2008 post.
• Interest rates remain at historically low rates.  Even with the tightening of the mortgage market, there are a variety of loan programs to choose from.  FHA loans are now a realistic option in Las Vegas due to the new loan limit of $400,000.
• Market Condition Report for April 2008 from Equity Title:
  • The report indicates a shift and positive change in closing numbers which, if the pattern continues, will surpass 2007 numbers in about 60 days.
  • Percent Selling and Absorption Rate demonstrated substantial increases after a series of declines and pendings indicate that trend may continue.

The bottom line … the market continues to adjust and there are great opportunities in the market now… what are you doing to adjust and take advantage of this market?

ATTENTION ALL AGENTS!!  Are Short Sales taking all your time with No Return?

Sort Sale Seminar…Space is Limited
April 24th - 3:00 pm - Red Rock Casino

Educate yourself. We can help!

BRING YOUR CLIENTS Cost: FREE but you must RSVP to attend!
Please RSVP to Candace Dochtermann at 702-796-7777 x5623 or via email @ candaced@americangrp.com

Sponsored by Prudential Americana Group, Countrywide Home Loans and Equity Title of Nevada.

Prudential Americana launched it’s newest division recently to facilitate the smooth handling of Short Sales.  If you are a licensed real estate agent and want to earn a 25% referral fee, let our experienced agents and staff handle your short sale listing. 

Do You:

• Come across properties where the homeowner owes more than the property can be sold for, especially after real estate commissions and closing costs?
• Know homeowner’s that overprice their property simply to attempt to break even on the sale?
• Try to manage short sales to closing, but find them to be too time consuming?
• Walk away from listing opportunities due to them being a short sale?

Let Us:

• Help you earn more commission dollars and Save you valuable time and money!
• Submit the offer, the financial information, and other supporting documents to the homeowner’s mortgage servicer.
• Use our established contacts to negotiate on the clients’ behalf with banks and investors to consummate a sale and closing.
• Coordinate with title companies, mortgage companies, etc. to ensure a smooth transaction.

Just call our Short Sale Division at 702.318.4042 or via email: shortsales@americanagrp.com.

Forrest Barbee, our Corporate Broker, recently posted some great information and a downloadable investment analysis tool on his blog:  Real Estate as an Investment: Price Reduction Tools.

Forrest created a spreadsheet that contains two Investment Calculators.  The first let’s you put in the original purchase date, purchase price, expected sale date . . . and then calculated an anticipated sale price base on a 6% annual return.  The second one asks for original purchase date, anticipated sale date, original purchase price, and expected sale price.  In turn it calculates the actual annual return as if this property had been an investment.

Here are some valuable resources and websites to bookmark for the latest information concerning Las Vegas and the state of Nevada economy, work force, business, housing market, tourism, etc.

 The Center for Business and Economic Research - University of Nevada, Las Vegas
http://cber.unlv.edu/snecon.html
You can obtain a myriad of data, charts, graphs and commentary on the latest Nevada business conditions, Clark County economic data, Las Vegas housing market conditions, population data, information on tourism, economic outlook (mid-year and annual)

Nevada Economy in Brief - is a monthly publication from the State of Nevada, Department of Employmnet, Training & Rehabilitation.  These publications are available for download at: http://www.nevadaworkforce.com/ along with a wealth of information on job growth, unemployment statistics and the Nevada economy.

For demographic, population and some housing information:
http://www.co.clark.nv.us/comprehensive_planning/05/Demographics.htm

Las Vegas Chamber of Commerce  (http://www.lvchamber.com/home.html) - great for business-building and networking; relocation information and more.

Official Las Vegas Tourism site - for all things Las Vegas - from the Las Vegas Convention and Visitors Authority.
http://www.visitlasvegas.com/vegas/index.jsp

HUD’s Federal Housing Administration (FHA) is temporarily increasing its loan limits (until December 31, 2008) in Clark County, NV to $400,000 (from $304,000) as part of an economic stimulus plan that will enable more families to qualify for a safe, affordable mortgage.

FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about past bankruptcies and/or foreclosures, job requirements, use of alternative credit, and debt-to-income ratios.

FHA Loans have several advantages over conventional loans, including lower down payments and more relaxed credit-qualifying guidelines. The federal government created FHA loan programs to encourage homeownership throughout the country. The FHA does not supply the loan; it simply insures the loan to limit the risk to the lender.

Benefits of an FHA loan include:

• A 3% down payment, as opposed to a 5% down payment on traditional loans
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• No credit score requirements
• Qualify for a loan two years after a bankruptcy
• Qualify for a loan three years after a foreclosure
• A non-occupant co-borrower can help buyer qualify for purchase
• Buyer can receive 100% gifted funds for down payment and closing costs from family member
• Seller can contribute up to 6% toward closing costs

For more information, visit these websites:

• HUD.gov
• FHA.com

It’s a basic yet often overlooked ingredient for success in the real estate business…previewing and knowing the inventory. In this fast-paced, immediate gratification world, many real estate agents have simply gotten away from previewing available listings and really knowing what’s happening in the market.  Excuses abound, “There’s not enough time in the day”; “It’s not the best use of my time”; “Isn’t that what MLXchange, pictures and Virtual Tours are for?”

The bottom line is you can’t afford to not know the inventory. It is after all the product you are selling - take the time to be the expert in your niche market, farm area, price range, and/or geographical area of town you choose to work.

Major benefits to previewing and knowing what’s available right now:

• You convey confidence, knowledge and expertise with prospective clients when you can talk about properties you have recently shown or previewed.
• You will be able to convert more ad and sign calls when you can discuss the details of a property the prospect called about and elaborate on other properties that may fit their needs better.
• It is the quickest way to learn a new target market or become an expert in an area you intend to farm.

Make Previewing an Ongoing Success Tactic- Try These Ideas:

• When holding an open house, preview all the available listings in the neighborhood
• Schedule at least an hour a week to preview listings, new homes, high-rise projects of interest
• Prior to a listing appointment, take the time to preview the competition
• Attend broker Open Houses and support office caravans or car tours

Understanding the Las Vegas Real Estate Market and being able to present it clearly to your perspective clients is a critical component to your success.  There are numerous local sources for market data and we recommend subscribing to these resources to stay informed and educated:

• Forrest Barbee’s Blog - Our Corporate Broker, Forrest Barbee, maintains a blog on Education, Training and Career Development. He posts a very informative monthly market update - Check out Las Vegas Market Update March 2008.
• Equity Title Market Condition Report - is available every month and tracks key market indicators, trends and statistics.
  • Las Vegas Market Condition Report March 2008
• Equity Title recently produced a graph that defines past peaks and valleys in terms of pendings and contingents. The graph suggests the market is entering a time of great potential for those who are prepared. Pending and Contingent graph