Forrest’s Blog

January 2010 Shows Improvement over January 2009

Single Family Residential closings for January 2010 totaled 2608 which is a 17% increase over January 2009. Additionally, townhomes and condos saw added 594 closings which respresent a 35% increase over the same period in 2009.

The availability of bank-owned listings has declines to under 1900 available listings in the Greater Las Vegas area. Short sale listings now are at account for another 4900 properties while traditional listings total nearly 4500 . REO closings in January accounted for 59% of all single family residential (SFR) sales. Short sales transactions made up 21% of January sales and Traditional sellers accounted for 20% of all residential sales in January.

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in January 2010 with the Classic or Traditional Closings as well as the increasing Short Sales. First here is the price analysis of bank-owned closings:

Next, lets look at the price breakdown of short sales.

By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.

Now let’s download the January 2010 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count increased modestly again this month. Sales activity remains high and resulted in a one month absorption rate of over 41%. The median price of a Single Family Residence (SFR) fell only slightly from $136,000 to $134,925 in January.

January closings sold according to the following terms:

• Cash 45% with an average sales price of $124,763
• Conv 21% with an average sales price of $191,248
• FHA 27% with an average sales price of $147,947
• VA 5% with an average sales price of $174,429

Cash sales increased measurably during January as both conventional and FHA mortgages seem to tighten their credit and underwriting standards.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

2009 Resale Closings Hit Their Mark!

Total Single Family Residential closings for 2009 totaled 38,127 which is a 53% increase over 2008.  Additionally, townhomes and condos saw another 8752 closings which respresent a 137% increase over 2008.  In fact 2009 closings exceeded those of 2005 and this market is poised for a similar year in 2010.

The availability of bank-owned listings has increased slightly to around 2350 available listings in the Greater Las Vegas area.  Short sale listings now are at account for another 4800 properties while traditional listings total nearly 4300 . REO closings in December accounted for 60% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 19% of December sales. But again - let’s not overlook the importance of strength in Classic Closings”! Traditional sellers accounted for 21% of all residential sales in December.

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed during 2009 with the Classic or Traditional Closings as well as the increasing Short Sales. First here is the price analysis of bank-owned closings:

Next, lets look at the price breakdown of short sales.

By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.

Now let’s download the December 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count increased modestly again this month. Sales activity remains high and resulted in a one month absorption rate of over 41%. The median price of a Single Family Residence (SFR) fell from $140,000 to $136,000 in December. 

However, this is one of those times NOT to look at such a stat as representative of Greater Las Vegas. It’s more like election eve where you must examine the exit polls in each precinct to understand what’s going on.  So here’s what you won’t read in the Review Journal!  The downward price pressure resulted from large numbers of bank owned closings in the north, northwest and the southwest where REO activity in the lower prices ranges has been intense the past few months.  Meanwhile December average closing prices in Summerlin shot up 6.5% over the November average ($271,107 vs $254,518).  There were also modest gains in areas 501 and 606.  That said, it’s time to begin examining each subdivision on its own merits and data rather than looking macroscopically at the Greater Las Vegas numbers.

December closings sold according to the following terms:

• Cash 41% with an average sales price of $117,522
• Conv 23% with an average sales price of $192,915
• FHA 30% with an average sales price of $143,515
• VA 5% with an average sales price of $188,113

This market continues to have good momentum going into the new year with a high level of pending transactions coupled with sustainable demand.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

Resale Demand Remains High!

The availability of bank-owned listings increased slightly in November as there are now just over 2200 available listings in the Greater Las Vegas area.  Short sale listings have also increase to nearly 4500.  However, there are nearly 3900 available traditional listings. REO closings in September accounted for 61% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 17% of November sales. But again - let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for 22% of all residential sales in October.

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of November with the Classic or Traditional Closings. First here is the price analysis of bank-owned closings:

By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.

Now let’s download the November 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count increased for the first time in three months.  Sales activity remains high and resulted in a one month absorption rate of over 38%.  Yet again the median price of a Single Family Residence (SFR) which increased to $140,000.  This represents the third monthly increase in the SFR median price in 18 months. So why are appraisers still persisting to conduct appraisals as if we are still in a down market?  Why are appraisers getting away with using available listing prices of bank-owned and short sale listings as viable comparables?  HVCC is NOT working!

October closings sold according to the following terms:

• Cash 41% with an average sales price of $120,676
• Conv 21% with an average sales price of $205,583
• FHA 31% with an average sales price of $149,308
• VA 6% with an average sales price of $175,545

This market has good momentum that should result in a very positive December and hopefully a good start to 2010. Of course the best news is that Congress extended the First Time Homebuyer Tax Credit through April 2010 and expanded the program beyond first time homebuyers.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

A Strong Start to the 4th Quarter of 2009 !

The availability of bank-owned listings has dipped while available short sale listings continue their decline.  Demand remained very strong in the current market for October. REO listings have dropped to around 2100 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to nearly 4400.  However, there are nearly 3900 available traditional listings. REO closings in September accounted for 64% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 16% of August sales. But again - let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for over 19% of all residential sales in October.

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of October with the Classic or Traditional Closings. First here is the price analysis of bank-owned closings:

By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.

Now let’s download the October 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count dropped slightly as the closings remain at very high levels. This inventory drop combined with the increased sales activity resulted in a one month absorption rate of over 45%.  Demand remains very high even as investor and first time buyer confidence grows in Las Vegas. Yet the most positive statistic for October was the modest increase in the median price of a Single Family Residence (SFR) which increased to $139,100. This represents the second monthly increase in the SFR median price in 18 months.  However, the more volatile avegare price declined slightly indicating some short term downward price pressures that cannot be ignored

October closings sold according to the following terms:

• Cash 42% with an average sales price of $115,916
• Conv 24% with an average sales price of $198,888
• FHA 29% with an average sales price of $152,079
• VA 5% with an average sales price of $182,425

Market activity continues to be robust with demand and consumer confidence both soaring.  Of course the best news is that Congress extended the First Time Homebuyer Tax Credit through April 2010 and expanded the program beyond first time homebuyers.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

More Good News for Traditional Sellers

The availability of both bank-owned and short sale listings continue their decline while demand remains strong in the current market. REO listings have dropped to around 2600 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to 4800. REO closings in August accounted for 70% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 12% of August sales. But again - let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers again accounted for over 17& of all residential sales last month. This yielded 700 closings that were NOT a result of a bank owned sale or short sale!

Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of August with the Classic or Traditional Closings.  First here is the price analysis of bank-owned closings:

By contrast here is the price analysis of the Classic or Traditional Closings.  What stands out here is the sales price range of traditional sales and the higher average and median closing prices.

Now let’s download the August 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars.  The “Available Homes” count continues to drop as the closings remain at very high levels. This inventory drop combined with the increased sales activity resulted in a one month absorption rate to 39.5%.  Demand remains very high even as investor and first time buyer confidence grows in Las Vegas.   However, the most significant market change during August was in the Cumulative Days on Market (CDOM) statistics.  It dropped to 145 days from 165 days only one month ago!  This is the lowest that the CDOM has been since I began tracking these numbers in the Fall of 2007!!!

August closings sold according to the following terms:

• Cash 42% with an average sales price of $121,807
• Conv 23% with an average sales price of $200,075
• FHA 28% with an average sales price of $148,658
• VA 5% with an average sales price of $179,900

Market activity continues to be robust with demand and consumer confidence both soaring.   I hope that the market information provided on traditional closings will convince you to seriously consider building up your listing inventory with traditional listings that are priced correctly! Maybe it’s time to go back to farming neighborhoods that have homes with equity that can now compete well in this market.  For example - research communities where the last sales dates were earlier than 2002!  There could be a treasure chest of potential listings just waiting for you there.

For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;

Zan Monroe’s Website

“Classic Closings” Climbing

The availability of both bank-owned and short sale listings continue to decline even as demand remains strong in the market.   REO listings are hovering around 2700 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to 5000.  REO closings in July accounted for 72% of all single family residential (SFR) sales; that is down from 80% a few short months ago.  Short sales transactions made up over 10% of July sales.  But the real story that may get lost in the reporting of July statistics is the significant rise in “Classic Closings”!  Traditional sellers accounted for 17.5% of all SFR sales last month. That means that over 650 closings were NOT a result of a bank owned sale or short sale!

Here is a price breakdown of all currently available properties in Las Vegas, North Las Vegas and Henderson.

Let’s download the July  2009 Greater Las Vegas Market Stats  for Single Family Residences listed under one million dollars. Please note the “Available Homes” count continues to drop as the closing remain high at near record breaking levels.  This inventory drop combined with the increased sales activity sent the one month absorbtion rate to 45%.   The overwhelming demand for homes under $100,000 has generated unusually high levels that activity with buyers coming in from everywhere to pick up a bargain.  The weekend buyer activity in Las Vegas gives me some idea of what the 1849 Gold Rush must have looked like!

Here is a breakdown of by price point as to how the REO properties sold in July: 

July closings sold according to the following terms:

Sold Term Average Sale Price

• Cash  38%
• Conv 24%
• FHA  31%
• VA      6%

Market activity and closed units remain red hot with nearly 20% of all short sale transactions closing; this suggests that these have become more efficient transactions even if they continue to take a long time to close.  However, keep in mind that over 17% of closing are of the ”Classic” variety!  Perhaps it’s time to seriously consider building up your listing inventory with traditional listings that are priced correctly and can generate activity and sales.  Maybe it’s time to go back to farming neighborhoods that have homes with equity that can now compete well in this market - especially given the fact that there is less than a one months supply of available REO inventory!!

Short Sale Closings are on the Rise

Available short sale listings continue to decline with just under 5300 currenly on the market. However short sale closing made up nearly nine percent (9%) of all June closings - up from seven percent (7%) of the closings in May.   Meanwhile, REO listings have dropped under 2800 available listings in the Las Vegas, North Las Vegas, and Henderson areas.  It’s fair to say that new REO listings are coming on the market at the same rate existing REO listings go under contract.

Here is a price breakdown of the currently available REO properties in Las Vegas, North Las Vegas and Henderson.

Let’s download the June  2009 Greater Las Vegas Market Stats  for Single Family Residences listed under one million dollars. Please note the “Available Homes” count; inventory levels dropped significantly in each of the past five months even as the closings have soared. This inventory drop combined with the increased sales activity sent the one month absorbtion rate to 42%. REO sales still accounted for just under seventy-five percent (74.5%) of the June closings.  The overwhelming demand for bank foreclosures has resulted in ghe most competitve multiple offer situation that we have witnessed since the fierce seller’s market in 2005.

Here is a breakdown of by price point as to how the REO properties sold in June: 

June closings sold according to the following terms:

Sold Term Average Sale Price

• Cash  38%…..$108,000
• Conv 24%…..$185,000
• FHA  31%……$155,000
• VA      6%…….$189,000

Market activity and closed units again soared in June as we enjoy one of the hottest summer markets ever.  It’s also worth noting that the number of pended short sales is now about equal to the number of pended REO listings.  It is now more important than ever to learn how to properly work a short sale sellers and buyers.   I strongly suggest you consider taking one of the upcoming short sale CE classes or designation courses in the weeks ahead.  This is expertise you will need in the months ahead.

Click here for the Certified Short Sale Designation Course offerings in July.

So what’s happening with Bank Owned (REO) and Short Sale Listing availability?

These numbers reflect a continual drop in available REO and short sale.  The 3119 available REO listings is a long way from the more than 10,000 that were on the market a few months ago

Now we can download the May 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. Please note the “Available Homes” count; inventory levels dropped significantly in each of the past four months even as the closings have soared. This inventory drop combined with the increased sales activity sent the one month absorbtion rate to 33%.  REO sales still accounted for seventy-eighty percent (78%) of the May closings with another seven percent (7%) attributed to short sales. The raw market forces of supply and demand for bank foreclosures has intensified the number of multiple offers being presented on these properties. Here is a breakdown of by price points as to how the REO properties sold in May:

Here is a price breakdown of the currently available REO properties in Las Vegas, North Las Vegas and Henderson.

May closings sold according to the following terms:

Sold Term Average Sale Price

• Cash 36%…..$108,000
• Conv 24%….$185,000
• FHA 312……$155,000
• VA 6%………$189,000

Market activity and closed units again soared in May to numbers we haven’t seen since August 2005.  However, despite the fact that the median sales price for single family homes dropped 1.2%, the average closed sales price actually increased 3.8% in May.  One month of numbers does not a trend make, but this could well be a defining moment in the current market.   We know that there are a large number of foreclosures to be released in the Greater Las Vegas Market, but they are being released very slowly even as the inventory continues to drop.  At the same time investor and consumer confidence has clearly returned to our market in a significant way.  This could be one of our most active summer markets in many years!

Are You Stuck in Multiple Offers?

Let’s begin this month by taking a  look at current REO vs Short Sale Listings.

These numbers reflect a drop in available REO listings of nearly 1800 just in the past month while pendings increased by nearly 600.   Similarly available Short Sale listings dropped by nearly 500 while pendings incrased by nearly 1000.

Now we can download the April 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars.  Please note the “Available Homes” count; inventory levels dropped significantly in each of the past three months even as the closings have soared.  However, the April drop in inventory is the most significant in a very long time due to the lack of REO properties coming onto the market.  REO sales still accounted for eighty percent (80%) of the April closings with another eight percent (8%) attributed to short sales.  Keep in mind that the dwindling REO inventory combined with an increasing demand for bank foreclosures has created an increased number of multiple offers on these properties.  Here is a breakdown of by price points as to how the REO properties sold in April:

April closings sold according to the following terms:

Sold Term                                       Average Sale Price

• Cash          39%                                   $107,000
• Conv         23%                                    $196,000
• FHA          31%                                    $151,000
• VA               5%                                    $183,000

Market activity and closed units soared in April to numbers we haven’t seen since August 2005 despite the fact that the average closed sales price has dropped 40% in the past twelve months.  In truth the price drops have fueled a robust resale market.  However, MLS Area Codes 402, 403, 404, 502, 505 and 602 experienced modest increases in closed sales prices.  

Isn’t it interesting that we have more short sale listings than REO listings but end up the month with 80% of GLVAR closings being attributed to REO sales and only 8% due to Short Sale closings?  The inefficiencies in processing and closing short sales continues in this market.  The short sale listing agent is the key to closing any short sale in this market.  Short sale listing agents that routinely close 90% of their short sales are remarkable in their ability to qualify the seller and then work with that client to ensure that all required documentation is provided to the bank or mortgage company in a timely manner. If you have considered becoming a short sale listing agent - you may want to seek out relevant classes such as those taught by Leslie Carver or taking the Certified Short Sale Professional certification course taught by Jan O’Brien and Steven Kitnick.  For more information on these and other courses, check out:

Americana Training Classes.

Real Estate Today is NAR’s new talk radio show hosted by Gil Gross that airs on the Internet at www.retradio.com as well as XM Radio channel 158, Sirius Channel 102 as well as podcasts. You can even receive the broadcast on your cell phone.  Real Estate Today opens doors for buyers and sellers with critical and credible information on the real estate market.  It’s fast paced and fact packed with experts, interviews, call-ins, field reports and timely market conditions.  The website maintains broadcast archives and is a great resource for researching housing market stats.

Let’s start off by downloading the March 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars.  Please note the “Available Homes” count; inventory levels dropped significantly in each of the past two months even as the closings have soared.  REO sales still accounted for eighty percent (80%) of the March closings with another eight percent (8%) attributed to short sales.  March closings sold according to the following sales terms:

     Sold Term                                       Average Sale Price

• Cash          35%                                   $123,000
• Conv         27%                                    $210,000
• FHA          31%                                    $161,000
• VA               7%                                    $191,000

Market activity and closed units soared in March despite the fact that the average closed sales price has dropped 35% in the past twelve months.  In truth the price drops have fueled a robust resale market.  However, parts of Henderson (Area 606 and zipcode 89052 in particular) continue to hold their own on closed sales prices.  Average sales prices in that area remain right at $310,000.  It’s also noteworthy that area 405 saw average sales prices jump nearly $20,000 in March.

Finally, let’s take a brief look at current REO vs Short Sale Listings.

Isn’t it interesting that we have more short sale listings than REO listings but end up the month with 80% of GLVAR closings being attributed to REO sales and only 8% due to Short Sale closings?  This really showcases the terrible inefficiencies in processing and closing short sales in this market.  The short sale transaction process remains in worse shape than the Big 3 automaker’s assembly lines in Detroit!