Let’s start with the long awaited Mortgage Debt Relief Act Extension! Do not expect Congress to discuss or debate an extension until sometime after Labor Day! There is considerable work to be done this year on overall Tax Reform and that will inevitable delay any extension to this Act.
The Current Las Vegas Market
Closed sales for Year-To-Date 2014 are 15.5% behind last year as we enter into March. In fact, Las Vegas Market is experiencing its slowest start since 2007-2008. The median sales price of an SFR increased 1% the past month while the average sales price increased 2.7%. However, February closings are a perfect example of just how efficient the Las Vegas real estate market continues to be. For example, average SFR closed sales prices were only up 1.37% in the Northwest as Henderson enjoyed a 4.19% increase. However, Summerlin prices dipped 1.84%, the Southwest dropped 3.53% and the South dropped 4.46%. This underscores just how local real estate is within Greater Las Vegas.
The Current Phoenix/Scottsdale Market
We can see from the charts above that Phoenix/Scottsdale market continues to trend about six months ahead of Greater Las Vegas. Phoenix has also started the year off sluggishly and we see that short sales are plummeting as a percentage of the closings. The shift away from distressed sales is very dramatic in Phoenix/Scottsdale and that has had a very positive impact on financing as the chart below illustrates.