Mortgages

Las Vegas Real Estate Market Update – September 2016

DSC_0115 - CopyNew Residential Purchase Agreement – Biggest Change in Ten Years!

It was ten years ago that we first introduced a standard Greater Las Vegas Association of REALTORS (GLVAR) Residential Purchase Agreement (RPA) that was generally adopted by most brokerages in Las Vegas. The upcoming version of the RPA introduces the most substantive changes since its adoption.  Personally, I like many of the changes, but not everyone will agree with me.  That’s okay!  Reality is that each legislative session enacts new laws that often require changes to a number of our standard GLVAR forms.  This is why a number of other states have gone to statewide forms for real estate transactions.  State associations such as the California Association of REALTORS (CAR) and the Arizona Association of REALTORS  (AAR) are the authors and keepers of those forms.  That makes so much sense as it is the state associations that tend to monitor federal, state, and local legislation and ordinances.  The attorneys in those associations then update their state forms shortly after their legislative sessions conclude.  Ten years ago we tried and failed to launch a set of statewide real estate forms in Nevada.  However, given how much the business of real estate is impacted each year by federal and state legislation, perhaps it’s time for state and local real estate leadership to review this issue.  I will gladly volunteer some of my own time if there is an interest.

Las Vegas Market Overview

August Single Family Residential (SFR) closed sales are up 9.3% from July and 8.2% higher than at this time last year.  The median closed sales price of a SFR retreated to $235,000 while the average closed sales price of an SFR dropped 2.4%, falling from $275,885 to $269,222.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

We have mentioned in previous blog posts that the Greater Las Vegas Real Estate Market continues to struggle more that many other markets with conventional financed transactions.  The first chart below shows the Las Vegas market for all price points.

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The next charts show the contrast between conventional financing below the $250,000 price point and then for the price range from $250,000 to $750,000.

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So which price points enjoy momentum in this market even as other price points are flat or falling?  Here they are:

 

BlogPicsAug2016_Page_18BlogPicsAug2016_Page_19

So the price ranges from $250,000 to $750,000 are the clear winners.  Have you “Moved Your Cheese” yet and adapted to these market changes?

Have a Safe and Happy Labor Day!

Categories: Market Stats, MLS, Mortgages, political, Pricing | 1 Comment

Las Vegas Market Update – September 2014

moon cakeProperty Management Permit Course!

I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course – again! This course is excellent – even for those who just want to learn more about Landlord Tenant laws in Nevada.  Do you want to learn how to prevent or spot embezzlement – before it becomes a problem?  Would you like to learn foolproof techniques for reconciling your trust accounts? There are lots of “how to” for brokers and licensees who want to become property managers and do it right!  Boring is NOT a word anyone has ever used to describe this course.  Registration is now open.  See you there.

Just click here to view the course and/or register.

Walk-ins are welcome on Thursday beginning at 7:30 am, September 11th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

 The Current Las Vegas Market

Click Here to Download the Current Las Vegas Market Update

Click Here for Additional Las Vegas Market Update Charts

Closed sales for Year-To-Date 2014 remain 13% behind last year as we enter into September. The median sales price of an SFR remains at $200,000 while the average closed sales price increased to $250,313.

SFR-ClosingsByYearAug2014However, the really big news this month is that cash closings did not dominate the market.  For the first time in years Conventional financing enjoyed a slightly larger market share of August closings.

FinancingAug2014This represents a major turn in the Greater Las Vegas market and a trend that we can expect to continue despite the challenges with the Mortgage community’s QM rules and more conservative appraisals.

 

Overpricing Overview – Part 2

It’s again time to address the overpricing issue head on!  The average listing price of an SFR Equity home was nearly $36,000 more than the average closed sales price.  The average listing price of all available equity properties remains at nearly $418,000 compared the the average listing price of approximately $302,000 for new listings.  That means this market is carrying a large number of older, very overpriced listings in inventory that do not have a prayer of selling anytime soon.

OverPricingAug2014Current inventory levels are generally high enough – and growing – so that a seller and listing agent will most likely only get one shot at pricing a new listing correctly.  A year or so ago a seller might be tempted to list their home a few thousand dollars high and then “nibble” the price down over the next few days or weeks.  Do NOT try that today!!  It will most likely result in exposing the home to the correct buyers who will not respond to the over pricing.  Then, once the price drops and corrections have been made – those buyers will probably no longer be available as they will have moved on to competing, but properly priced homes.   Some communities may be better or worse due to supply and demand – which must be taken into consideration.  However, do you really want to play Russian roulette with your listing? Or, is it better to price it to sell from Day One?

Have a very Happy Autumn Moon Festival!

Categories: Market Stats, MLS, Mortgages, Pricing, Property Management | 3 Comments

Las Vegas and Phoenix Market Updates – July 2013

eagleflag Are We Over the Housing Bubble Yet?

My previous post offered charts and an analysis that dispels the notion that Las Vegas is experiencing another housing bubble.  The chart below offers an additional perspective on the notion of a bubble by looking circumspectly at appreciation rates.  Most would consider a 4% per year market value improvement as being reasonable.  We see below that Phoenix  and Las Vegas are at 2.98% and 2.48% respectively.  Both markets have a long way to go just to resume a 4% appreciation rate, let alone be considered in “bubble territory”!  If either market were to suddenly spike much above 6% or 7% – that should get our attention. But for now – let’s just enjoy the recovery! CS-Indices-4pctTrend-4

The Current Las Vegas Market

Single family residential (SFR) closings for June 2013 are off 3.6% from last month.  Meanwhile,  YTD closings continue to lag last year by 12.0%.   The SFR median closed sales price rose another 2.9% during June and is now $175,000.  However, the median price has increased 31.6% during the past twelve months. ClosingsByMonthJune2013

Click Here to Download the Current Market Update

Click Here for Additional Market Update Charts

Las Vegas Market Closings by Sold Terms

Perhaps the Las Vegas has hit a turning point this month?  Cash sales, which have been accounting for 58 – 60% of all closings, dropped to 55% this month and may signal a significant market change ahead.  It’s been a long time since conventional financing was above the 25% mark.

ClosingsBySoldTermJune2013

Las Vegas Closings by Property Type

Distress sales are giving way to traditional, equity sales as the market values recover.  Will this signal the exit of investors in the Las Vegas market?  It’s already happening in Phoenix.

ClosingsByTypeJune2013

How Does Las Vegas Compare to Phoenix/Scottsdale?

Click Here for Phoenix Market Charts

The Phoenix charts show that the Phoenix/Scottsdale market is recovering about six months sooner than Las Vegas. The most notable – and hopeful sign – is that conventional loans now make up 38% of the monthly closed sales in that market compared to 27% in Las Vegas.   Also, 2013 YTD closed sales units in Phoenix are keeping pace with 2012 closed units despite soaring prices and a retreat by investors!

Categories: Market Stats, Mortgages, Pricing, Short Sales | Leave a comment

Las Vegas Market Update – November 2012

Property Management Permit Course!

First, I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course – again! This course is excellent even for those who want to learn more about Landlord Tenant laws in Nevada. Registration is now open.

Just click here to view the course and/or register.

Walk-ins are welcome on Thursday morning beginning at 7:30 am, November 8th in our Pebble office at 2140 E. Pebble Rd., Suite 160!

The Current Las Vegas Market

Single family residential (SFR) closings for October 2012 up 12.3% from September 2012 as well as being down 3.9% from October 2011. Overall inventory continues to hold steady around the 5600 unit mark. Most areas in Greater Las Vegas currently have approximately a 6 week supply of inventory. And again the median price of an SFR remains at $140,000.

Click here to Download the Current Equity Title Market Report

Las Vegas Market  Closings and Momentum

Las Vegas Closings by Property Type

Let’s Compare to Phoenix

A Snapshot of Supply and Demand

Categories: Market Stats, Mortgages, Property Management | Leave a comment

Las Vegas Market Update – May 2011

Happy Mother’s Day Weekend!

Single family residential (SFR) closings for April were down 9%from March but 4.5% better than April 2010. The median sales price of an SFR dipped further to $125,000.  Yet, the average closed sales price increased slightly from last month. Homes in the South, Northwest, and Summerlin enjoyed noticeable higher average closing prices than in March.  Overall inventory continues to slowly shrink; however, available REO inventory reached the 3000 level.  Meanwhile Classic Closings have gained momentum even as REO and Short Sale Closings continue to decline!

Again, keep in mind that based on the 2010 Census—Nevada will gain a fourth Congressional seat.  To keep up with Reapportionment & Redistricting or the current Legislative Session, please visit: http://www.leg.state.nv.us/.

For the complete Equity Title Market Update Report for May 2011 – Click Here.

The Case for Traditional Listings

 This month we want to isolate SFR closings from the Residential Resale market to gain a different perspective on the Greater Las Vegas real estate market.  Of course average sales prices are higher, but note that the traditional sale has an average closing price of just under $200,000.  Some would have us believe that this market segment is dominated by flipped property and that there really are few traditional sellers benefitting from the current market.  Yet the higher average closing prices would suggest otherwise.

First, thirty percent (30%) of all April closings were classic or traditional sales.  We are eliminating condos and townhomes from this view because so many of those properties can only be sold with a cash offer.  By looking only at SFR closings it can be seen that only 37% of traditional SFR sales were cash deals.  Therefore, 63% of all SFR closings were financed with conventional loans leading the way.  Notice too that VA loans make up 9% of this market segment compared to 5% when all property types are included.

Are a substantial number of the traditional listings overpriced? Absolutely! But those that are priced properly and generate good activity are selling in about the same amount of time as an REO listing, but at a closing price that is 56% higher!  Average Classic closing prices are also 20% higher than Short Sale closings * close in  fraction of the time * and do not experience the 60% fallout rate that short sale escrows endure.   It’s important to work in all segments of the market, so I am only suggesting that Traditional listings provide a good place for most agents to focus—without giving up any other REO or Short Sale business they may already be conducting.

Categories: Market Stats, MLS, Mortgages, Pricing | Leave a comment

November Market Update * Shelter Mortgage Updates

NEW Mortgage CE Class!

First, I want to announce a new CE class that was recently approved by Shelter Mortgage!  The new “Mortgage Financing in a New Age” class will be launched Wednesday, November 10, 2010 in the Summerlin office from 1-4PM.  For class details and to RSVP, Click Here.

Shelter Mortgage Newsletter from Jim & Vicki Sheppard

I also want to share a newsletter with everyone that Jim and Vicki Sheppard prepare and distribute to their own clients and agents in the Summerlin office. This newsletter offers tips and advice on “How to Rebuild Credit”.  Click here to download and share with your own clients.  Thank you Jim & Vicki!!!

Las Vegas Market Update for November

Single family residential (SFR) closings declined by 207 units from September sales but were down 936 units or (-26.5%) from October 2009.  The median sales price of an SFR dipped to $133,000.   Available REO properties are nearly 3500 units.  Short sale closings slowed down while bank owned (REO) and Classic sales increased.  Cash was certainly “king” in October as 46% of all closings were cash. The market appears to  be soft, but stable as we close out the fourth quarter of 2010.  For the most current Equity Title Market Update, Click Here!

Categories: Market Stats, MLS, Mortgages | Leave a comment

HERA Amends the Truth in Lending Act

shelter-mortgage-2-color

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.

 

Categories: Contracts, Mortgages | Leave a comment

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