Forrest’s Blog

‘Twas the week before Christmas, when all through the Valley

REO portals are buzzing with a bank-owned rally;

Addendums were signed and listings were pended,

In hopes that the deal would not be rescinded;

The agents were counting their points and commission,

While buyers move in - and without permission!

When outside the house there arose such a clatter

As the listing agent is investigating the matter.

Now no one knows how the client got a key

Or why they’ve put up their own Christmas tree.

But the clients are stating as a matter of course

That it was their agent and they have no remorse.

Now the REO agent is red in the face,

Cause that other damn agent is such a disgrace.

But every attempt to contact this culprit

Renews the desire to serve him a writ!

Didn’t they know that the 113 waiver

Was never meant to justify this behavior?

Where is his office; where is his broker?

“I just want my hands on the throat of this joker”.

Away to his cell phone - a few friends to text,

Now the whole REO world knows what is next.

He assembles his team and draws up a plan

To right the wrong of the buyer agent man.

We’re at Starbucks and what should appear,

But eight REO teams and a plan that is clear.

They must seek out the evil wrong-doer,

And purge our ranks of this shameless member!

Then as they approach we see agents of fame,

And everyone here knows them by name;

Now Carvers! Then Woolstons! Now Hastings and Humeston!

Now Rucci and Krein!  Then Pellican and Fenn! 

They scatter and search for the agent - the rogue,

So the rest of his peers will know he’s a pogue.

When he is caught - will he confess

To the crime committed at this bank-owned address?

Text messages are sent - cell phones are ringing,

They know they will find him so everyone is singing.

The network is up - it’s an email alarm,

The agent is spotted working his farm.

Now surrounded and cornered like a rat in a trap,

Tis time to admit what was done - not beat the rap.

But when he was asked; “Why the hell…

He said; “I don’t know . . . I’m just here to sell”!

Then he proclaimed “What’s the big deal?”

I’m now working on my next REO steal.

The house was vacant and very inviting,

I just let them in without anything in writing!

The team now assembled gave out with a sigh

They weren’t quite sure this rogue wasn’t high!

They wanted to know how his license was attained,

One thing’s certain it shouldn’t be retained.

His broker was called out of bed late at night,

To discuss what eventually would be his plight.

Where was this agent during CE training?

Maybe he needs an old fashioned braining!

Now the clients were moved - locksets were changed

And a few agent brain cells were then rearranged.

His new pitch is “Would you like that with cheese”?

Yes, Mam - may I supersize that please!

November 2008 closed sales units remained high despite the fact we have begun to experience some seasonal downturn! The Las Vegas market continues to exhibit high volatility with closed sales prices.  The Standard and Poor’s Case-Shiller index of home prices for twenty (20) cities demonstrates most clearly that Las Vegas and Phoenix are more volatile than any other market areas in the U.S. - and that includes Tampa and Miami. Darren Welsh sent me this interactive link to the Case-Shiller index.  It is an excellent visual of the various markets!  Las Vegas - much like some stocks on Wall Street - has seen higher highs and lower lows than most any other area.  So - does that mean we are currently “over correcting” home prices and values in Greater Las Vegas at this time?  It also suggests that when things turnaround that we are likely to enjoy higher runups in sales prices - and they could come rather quickly when they begin.  I’m not looking for anything but a flat market in 2009, but it would be great to see prices stabilize during that time and allow the area to prepare for a much improved 2010.

The overall numbers are still amazing for this time of year. So, lets first download and take a look at: November 2008 Resale Market Snapshot.

Listing prices and closed sales prices have now dropped 30% in the past year. Closed sales prices dropped nearly 3.25% this past month. The average Cumulative Days on Market remains at 157 days and 30-day absorbtion rate dipped to 13.2%, but compare that to 4.9% just a year ago.

Bank owned REO sales rose to seventy-five percent (75%) of all residential closings. The number of available listings continues to rise slightly for single family residences. The current Greater Las Vegas stats related to financing - and they are a dramatic shift from just a few, short months ago - are:

• Cash 22% of all closings in November
• Conv 34%
• FHA 35%
• VA 7%

The cash buyers are out in earnest and making the presence felt!  This represents and increase from 15% only three months ago.  It is consistent with the buyer activity that many of our sales executives have reported to me. 

So - there is still plenty of time left this month to attract some of those buyers and “kick-start” your 2009!

If you are not aware the HUD is set to lower the threshold amount for FHA loans in the Las Vegas Valley. This would make it more difficult to gain FHA loans for homes in excess of approximately $250,000. There is a call to action from the National Association of REALTORS® to contact your Senators and Representatives of Congress to support a plan that would render FHA loans at an amount closer to their current limits permanently, approximately $400,000.

At this TAKE ACTION WEB SITE you can find more information and a very easy way to send a letter to your representatives.

I encourage you to take the time to visit the above site Contact Congress today and ask them to include National Association of REALTORS®’s Four-Points in the next stimulus package.

National Association of REALTORS® Four Point Plan

The most recent economic stimulus bill, the Emergency Economic Stabilization Act, was a good first step towards stabilizing our nation’s economy. Unfortunately, a number of the Act’s provisions have not proven to be as useful at stabilizing the nation’s housing markets as was first thought.

Congress may consider second economic stimulus bill this month. If they do, there are a number of changes that could help to provide more stability to the nation’s real estate markets which most agree is a necessary step towards recovery.

NAR has urged Congress to include the following provisions in any future legislation:

• Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement. The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers. As a result, the credit has not been widely used or proven effective at stimulating sales.
• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages.
• Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures. Don’t just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
• Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply properly manage their current lines of business. Do we really want them to manage on the home buying process? Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.

Sahara Palin

Was the last month crazy - or what?  The Phillies win the World Series, more banks collapsed and we made political history. We won’t even talk about Kathryn Bovard’s remarkable impersonation of Sahara Palin - but she get’s my vote!  

October 2008 closed sales units finally surpassed 2004-2005 levels for this time of year! That means that October numbers rivaled September closing numbers as well. So let’s start by checking out the October 2008 SFR Closings as reported by GLVAR. October 2008 SFR Closings  

The overall numbers are looking fabulous for this time of year. So, lets first download and take a look at: October 2008 Resale Market Snapshot.

Listing prices and closed sales prices have now dropped 30% in the past year. Closed sales prices dropped nearly 4% this past month. The average Cumulative Days on Market remains at 157 days and 30-day absorbtion rate dipped to 16.6%; compare that to 4.9% just a year ago.

Bank owned REO sales remain at seventy-one percent (71%) of all residential closings. The number of available listings has started to rise again for single family residences. The currennt Greater Las Vegas stats related to financing - and they are a dramatic shift from the beginning of 2008 - are:

• Cash 18% of all closings in October
• Conv 36%
• FHA 39%
• VA 5%

This Just In - Courtesy of Roberta Jenkins!

2009 FHA AND FANNIE / FREDDIE LOAN LIMITS

The 2009 loan limits were announced Friday for Fannie Mae, Freddie Mac, and FHA.

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.

First, I hope your team is in the post season! But if not (and that certainly includes Cubs and Yankees fans), just adopt another team and enjoy the games! Oh, and think about how Hank Steinbrenner must feel about the LA Dodgers advancing under Joe Torre!

BREAKING NEWS: On October 6th the Nevada Attorney General announced a settlement with Countrywide that will help borrowers facing foreclosure.  (Announcement)

What if I told you that September 2008 closed sales reached 2004-2005 levels for this time of year!  That is exactly what happened this past month and that certainly goes contrary to the normal seasonal decline that one might expect.  Well let’s start by checking out the September 2008 SFR Closings as reported by GLVAR.  September 2008 SFR Closings   Let’s be honest here - you have to love what’s happening compared to last year’s numbers! Then consider the financial and banking crisis and put these results into that perspective and you have something to really cheer about! God bless the momentum in the Las Vegas market!

Bank owned REO sales still accounted for seventy-one percent (71%) of all residential closings. The number of available listings remained level and still hovers around around that 15,000 number for single family residences. But here are some new Greater Las Vegas stats related to financing - and they are a dramatic shift from the beginning of 2008:

• Cash 15% of all closings in September
• Conv 34%
• FHA 46%
• VA 4%

These percentages are very good for the Las Vegas real estate market! Keep in mind that conventional loans end up on the secondary market through Fannie Mae or Freddie Mac.  These entities have experienced a severe liquidity problem and we have all seen how difficult it has been to obtain conventional financing even for very qualified borrowers with good FICO scores.  However, FHA and VA loans are sold on the secondary market via Ginnie Mae which has good liquidity at a time we really need it.  So the shift from conventional loans to FHA loans is exactly what the mortgage doctor ordered for our market at just the right time.  But of course good news never makes the news because good news doesn’t sell.  And be honest - you would rather read or hear about a good scandal than about something pleasant or happy!  You certainly did not pay attention to the OJ trail . . . right?

The overall numbers are looking fabulous for this time of year. So, lets first download and take a look at: September 2008 Resale Market Snapshot.

Listing prices have now dropped 27% since October 2007 while closed sales are now staying well above 2006 numbers for the same period. This is the fifth consecutive month that we have had more than 2000 single family home closings. Closed sales prices dropped nearly 7% this past month and 27% for the past year. The average Cumulative Days on Market dipped to 157 days and this market continues to carry a high number of overpriced listings in inventory. But the 30-day absorbtion rate jumped to 17.5%; compare that to 4.6% just a year ago.

So - despite all the bad news and press - you have to love the direction and course of our local Las Vegas market! Recently I saw a cartoon that read: “Due to budget cuts, the light at the end of the tunnel has been turned off”!  However, there is still plently of light ahead in the Las Vegas market.  The real question is: “are you catching your share of closings?” If not, why not?  The buyers are out there. There is plenty of available, good inventory.  Just roll up your sleeves and work this market.

But let’s stay Focused on Price Reductions and assist even more sellers by getting their listings in “The Selling Zone”!