Have a Happy 4th of July!

June single family residential (SFR) closings improved 14% over May sales with a modest decline in the median price at $140,000.  June witnessed a noticeable shift away from REO and Classic closings in favor of Short Sale closings.

Contemporaneously, available REO and Short Sale listings are up 15% and 13% respectively over May while available Classic listings are down 27%.  A complete Market Update for June 2010 can be downloaded here.  For comparison, the May 2010 Market Update can be downloaded here.

Meanwhile, Congress succeeded in passing the Homebuyer Tax Credit Extension in eleventh hour political maneuvering.  This resulted in a 90 day extension for escrows that were under contract by April 30, 2010 and benefit approximately 180,000 eligible buyers that were anxiously awaiting the outcome of this bill and the future of their tax credit.

 Effective July 1, 2010 the Clark County Recorder began conducting “counter audits” of the Real Property Transfer Tax (RPTT) on all deeds submitted for recordation.  All filings must include supporting documentation to provide the value stated on the Declaration of Value form.  Failure to provide the supporting documentation may result in the recording being rejected.  Depending on the transaction, supporting documentation could include: closing statement, HUD-1 settlement statement, Purchase Agreement, bid instructions, and/or auction receipt.  Additional information is provided on the Clark County Recorder’s site at:  www.clarkcountyNV.gov/recorder .  Or you may contact the Recorder’s Office Audit Division at (702) 455-5587.

Last week I sent our management team a report indicating that the median price of a Single Family Residence (SFR) had seen a significant increase for the first time in a very long time.  Well, 22 days into April both the median and average prices continue to be strong even though they are a bit off last week’s levels.  Much of the rise in median sales prices is tied directly to the fact that the mix of closings is now dominated by short sale and classic closings - compared to previous months.  Let’s hope our Appraiser friends are watching the same numbers!  So here’s a breakdown:

Finally, I have had several calls and inquiries about a Turnover Rate By ZipCode report that we put together recently.  Obviously my explanation of the methodology to John Joseph was somewhat convoluted, so he explained it to his Green Valley agents as follows: 

“Forrest divided the square root of the prime number into the last known equity coefficient of the number of homes not sold prior to 2003 and then multiplied it by the inverse of the probability of sales during the current year and divided that by the average barometric pressure of last Wednesday and finally drank a quart of rum and came up with this….” 

That’s what I get for putting together an analysis while listening to a Jimmy Buffet concert on XM Radio!  However, I have attached the results of that study for anyone who would like to use it.   And in all fairness to John Joseph, he maintains that this report is a valuable tool for researching and taking traditional listings.  Thanks and good luck prospecting!

Finally, take a moment to click on the cheeseburger above!

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

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

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

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

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 2300 available listings in the Las Vegas, North Las Vegas, and Henderson areas while available short sale listings have declined to nearly 4700.  However, there are nearly 4600 available traditional listings.  REO closings in September accounted for 67% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 14 of August sales. But again - let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for over 18& of all residential sales in September.  This yielded 771 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 September 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 September 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 of  over 42%.   The dwindling inventory which only holds about a two to three week supply of bank owned listings is fueling this absorption rate.  Demand remains very high even as investor and first time buyer confidence grows in Las Vegas.  Yet the most positive statistic for September was the 2% increase in the median price of a Single Family Residence (SFR) which increased to $138,000.  This represents the first monthly increase in the SFR median price in 16 months. You can see that several areas in Las Vegas enjoyed average price increases in September as well.

September closings sold according to the following terms:

• Cash 43% with an average sales price of $120,495
• Conv 23% with an average sales price of $201,378
• FHA 28% with an average sales price of $148,917
• VA 5% with an average sales price of $183,332

Market activity continues to be robust with demand and consumer confidence both soaring.  The Las Vegas Area market has increasing segmented itself into three separate and distincts markets; bank owned, short sale, and traditional.   We have observed  the rapid and significant shift from REO to short sales and traditional sales listings over the past several months! Are you making the adjustments in your own business model and plan to adapt to these changes?  If not, it may be time to “move your own cheese” and get ahead of the market shifts!  Have you taken a traditiona listing lately?  It just could be money in the bank right now and well into 2010.

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

Zan Monroe’s Website

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

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!!

New changes to the loan process that could affect borrowers.

New changes in regards to the timing of the Truth in Lending (TIL) statement are effective beginning July 30, 2009 on all new mortgage applications.  A TIL is designed to help borrowers as well as addresses the timing of when fees can be charges.

The goals of these new requirements are to provide a better understanding to borrowers about their mortgage so they can be more confident about their financing options and to prevent deceptive lending practices.

Please download this ShelterMortgage flyer for details of the changes as well as tips on how to best work with your buyers when obtaining a loan in this market.