Forrest’s Blog

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”!