Property Management

Las Vegas Real Estate Market Update * May 2017

Greater Las Vegas Real Estate Market Overview

April 2017 Single Family Residential (SFR) closed sales were down 10.65% from March and 0.3% less than April 2016.  Some of the slippage is likely due to the fact that the last two days of April fell on the weekend.  However, year to date 2017 closed sales remain up 9% over 2016.  The median closed sales price of a SFR improved 2.89% to $249,000 while the average closed sales price of an SFR also increased by 0.77% to $286,365.  Residential resale activity continued to be brisk in April leaving us with less than 2 months of inventory and less than 5700 available SFR listings.

 

Click Here for the Current Market Update

Click Here for Individual Las Vegas Market Charts

Market Shrinkage

The bank owned (REO) segment of the market experienced significant contraction this month, falling from 6% of the closings to just over 4%.  Additionally, homes priced below $250,000 continue to make up an increasingly smaller segment of this market.  Below we can see that closed units below $250,000 have contracted by 6% and that volume shrunk by 5%.

 

 

 Over Pricing Index

The charts below  are an attempt to get a better handle on the current over pricing situation.  The charts look at a rolling 12 month average of original listing prices and compares that to a rolling 12 months of closings.  It only include SFR data for properties that had an original list price between $250K – $1M in an effort to avoid any skewing from the high end listings (over $1M).   The CON/TWN chart includes data for properties has had an original list price below $1M.  The rolling 12 month averages provide a smoother trend line than using actual monthly numbers.  It looks like we were getting the over pricing under control in the latter part of 2013 and early 2014, but since then the over pricing gap has increased with the average amount of over pricing per SFR being nearly $42,000. 

Siena Golf Course Update

There has been a lot of discussion about the future of the Siena Golf Course over the past few weeks.  On May 3, 2017 there was a special Board of Directors meeting devoted to this one issue and it afforded residents to offer comments and have a serious dialog on this subject.  The meeting was well attended and most productive under the proactive leadership of the current Siena HOA Board.  The event was videotaped and uploaded to YouTube in four segments.

 

Categories: Market Stats, MLS, Pricing, Property Management | 1 Comment

Las Vegas Real Estate Market Update – August 2016

IMAG0021Property Management Permit Pre-Licensing Course!

Once again it’s time 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.

The class runs Aug 18th through Aug 20th.  Walk-ins are welcome on Thursday beginning at 7:30 am, Aug 18th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

Las Vegas Market Overview

July closed sales are down 13% from June and 11% lower than at this time last year.  The median closed sales price of a Single Family Residence (SFR) inched up from $235,000 to $236,000 while the average closed sales price of an SFR dipped slightly, falling from $276,482 to $275,885.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

Much of the drop in closed units was in those homes under $500,000.  Sales remained steady strong in the $500,000 – $750,000 price ranges.  The charts below will also show how the Las Vegas market compares to both Southern California and Phoenix/Scottsdale in the sale of Single Family Residence.

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CA-blogpics-july2016_Page_03The good news this month is the reduction in over priced homes:

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Let’s Take a Closer Look at the Market Value trends Phoenix/Scottsdale, Southern CA, and Greater Las Vegas !

CA-blogpics-july2016_Page_02 AZ-blogpics-july2016_Page_2 blogpics-july2016_Page_05

 

Categories: Market Stats, MLS, Pricing, Property Management | 2 Comments

Las Vegas Real Estate Market Update – July 2016

balloonsThe Summer and the Market are Heating Up!

Overall closings for 2016 remain 8.1% ahead of last year’s closings. The median closed sales price of a Single Family Residence (SFR) improved to $235,000 in June resulting in a 2.6% increase while the average closed sales price of an SFR nudged upward again to $276,482 representing a 1.4% increase over May and a 9.2% gain in the past two months.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

June market momentum heated up as SFR closings bettered last month by 6.3% and June 2015 by 6.7%  Similarly,  2016 condo/town-home sales and hi-rise sales are showing strength over last year’s sales.

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blog-pics-nv-june-2016_Page_12So What Has Changed!

The Las Vegas real estate market may be recovering in a slow, but steady manner.  However, financed transactions are being concluded much more smoothly than in the past with conventional, FHA, and VA loans all participating.  The loan success rate is in spite of some frustratingly low appraisals!  Perhaps lenders, title professionals, and REALTORS have adapted to the new, ever changing TRID environment?  Either way, this is very welcome news! Check the charts below!

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Over Pricing Update!

Many homes continue to languish in a market that witnesses over pricing of approximately 60% of the SFR available inventory.  The good news is that there are signs of this market beginning to correct that problem as some of that was squeezed out this past month and over pricing is less.  Newer inventory has been priced much closer to the market and results in opened escrows within a very few days in many cases while the older, over priced inventory simply accumulates more days on the market.  Notice the days on market in some of the communities below.

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Let’s Have a Fantastic July!

 

Categories: Market Stats, MLS, Pricing, Property Management | 1 Comment

Greater Las Vegas Real Estate Market Update – January 2016


elioProperty Management Permit Pre-Licensing Course!

Once again it’s time 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, February 25th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

Las Vegas Market Overview

The number of listings taken dropped sharply this past month, even as closings were up more than 700 units from November. So, for the first time in four years we ended up with more units closed than during the previous year.  In this case 2015 closings were up 6% over 2014.  The median closed sales price of a Single Family Residence (SFR) dipped to $217,000 from $220,000 while the average closed sales price of an SFR dropped by 6% to $252,401.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

Overall closings for 2015 are roughly 6% higher than last year.  In fact, December closings were up 714 units over November closings which represents a 36% increase over last month and a 21% increase over December 2014. It was four years ago in 2011 that this market experienced a higher number of closed units than the previous year!

SFRClosings-Dec-2015

Let’s Take a Closer Look at the December Price Drops!

SFR-Nov-2015

SFR-Dec-2015

We stated earlier that prices dropped roughly 6% just this past month.  Consequently, I’m already getting calls asking me about the possibility of another market crash or bubble bursting!  OMG!  The naysayers – glass half empty folks are already poised for bad news! We also saw that SFR closings were up just over 700 units.  So, let’s compare Southwest closings for November and December.  They were up over 200 units in that area alone, but with an average sales price $36,000 lower per unit than in November.  The point is that the drop in market values for December are not uniformly spread across the entire Greater Las Vegas market area.  In fact, check out the East and there we see a price increase.  All real estate is local, so please do not be distracted by negative articles selling gloom and doom predictions.  It’s good for ratings and sales, but it’s simply not REALITY!

Prices by Price Point by Year!

The next few graphs and charts illustrate the movement of closed sales by price point.  For example, we see that in 2011 over 33% of the closings were under $100,000 – but that has dropped to nearly 3% in 2015.  You may want to click on each item below to see a larger, more readable version.

GLVAR-PricePoint-Closings-2015_Page_1

 

The next two charts below attempts to create a visual of the shift from lower priced closings in 2010 and 2011 to the higher price points in the years following.

GLVAR-PricePoint-Closings-2015_Page_2

GLVAR-PricePoint-Closings-2015_Page_3

 

Finally, here are the median and average closed sales price changes over the past six years.  Have you made your adjustments to these changes?  Forty-seven percent (47%) of all 2015 year to date closings were in the price range of $200,000 – $400,000.  That compares to only 15% in 2011 when over one third of all closings were under $100,000.   Perhaps you may need to consider an adjustment to your 2016 business plan based on these findings?

GLVAR-PricePoint-Closings-2015_Page_4

 

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Las Vegas Real Estate Market Update – September 2015

Last Property Management Permit Course for 2015!

PMPermitFlyer

 Las Vegas Market Overview

Market values improved slightly as buyer confidence and demand continue to be strong in the Greater Las Vegas market. Inventory availability is also up with the SFR inventory hanging around 2.8 months of available inventory.  Over pricing continues to decrease somewhat as both sellers and listing agents begin to deal with the over pricing reality. Those who believe that exiting listings create valid comparable market pricing are finally beginning to understand that only Sold comps are in alignment with market values.

BlogPicsAug2015_Page_1

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

August SFR closings were down 9.8% over July but nearly 12% higher than August 2014.  The median sales price of an SFR improved to $220,000, while the average price inched up to $262,215 for a 1.4% increase over last month.  This is the new “normal” for the Greater Las Vegas market.  It’s slow, steady, but not sexy growth.  That’s just fine!  Embrace the sanity that comes with this market and let’s just hope it continues in this relatively boring manner for several more years!

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Here is a look at inventory, sales, and months supply by geographic area for August 2015 and how is compares to August 2014.

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SFR-ByArea-Aug2014

 

 

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Las Vegas Real Estate Market Update – July 2015

PMPermitFlyer

 Las Vegas Luxury Market MomentumJune-2015_Page_4

 Las Vegas Market Overview

Market values rose sharply as buyers were out in droves despite the summer heat wave. Henderson and the Southwest have about 3 months of inventory while the remainder of the Greater Las Vegas area is down to about 2 months of inventory.  Over pricing of the majority of SFR inventory is generating multiple offers on many of the properly priced listings as the remaining inventory continues to rack up extraordinary “days on market”. Financing has improved, but many sellers are now unwilling to extend close of escrow if the financing is not completed per the COE date in the contract.  This suggests that some number of sellers in escrow are sitting on very good back-up offers.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

June SFR closings were up 10.5% over May and nearly 14% higher than June 2014.  The median sales price of an SFR improved by 4.27% to $220,000, while the average price climbed to $259,819 for a 5.7% gain over last month.

Finally, review the over pricing chart below.  Why?  One can see all the potential tell tale signs of a potential bubble.  But there is no bubble and ignore reports of bubbles!  Why? Because we can thank conservative appraisals and conservative loan underwriting standards for providing a check and balance against such a bubble!  There are no more NINJA loans!  Having said this – appraisals are coming in higher and stronger – a clear sign that distressed sales are having less and less influence on appraisals.

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Just as we are seeing strong momentum in the luxury market, the momentum in high rise and vertical continues as well.

June-2015_Page_3Las Vegas Market Overpricing

The average price of listings taken in June dropped sharply even as the average closing price of an equity SFR sale rose.

June-2015_Page_1

 

 

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Las Vegas Real Estate Market Update – June 2015

NVLegislatureThe 2015 Nevada Legislative Session is Sine Die!

Yes it’s finally over!  As Mark Twain said:

“No man’s life, liberty, or property are safe while the legislature is in session.”

However, progress was made in the areas of construction defect litigation, squatters, HOA foreclosures, miniature horses in the workplace, and more new license plate choices.  I’m not sure about the ethics in government bill after watching some of the heated sessions featuring varying degrees of what could be considered mud slinging.  Will the local paparazzi get their own drones and test the new privacy laws?  Then there’s the historic tax hike. Yikes! Yet, I’m excited that the Assembly Joint Resolution (AJR-4) was passed to pave the way for Nevada to remain on Daylight Time year round beginning 2017 should the U. S. Congress approve it.  Why am I excited?  Because that is “best for business” as it allows more hours of Open House time during the winter months!  Yes! Yes! Yes!

 Las Vegas REO Market Update

First, let’s address the current myth that we are about to be flooded with more REO foreclosures.  The chart below challenges that rhetoric that is running rampant out there.  The Las Vegas market is still seeing about 8 percent of all closings being REO, but I don’t see the banks dumping foreclosure inventory into the Las Vegas market.  It would make more sense for them to continue selling bulk or renting until they are ready to flush that inventory.

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 Las Vegas Market Overview

Market values dipped despite demand remaining constant in May. Some areas were sluggish, but check out the activity in the Northwest where closed units of SFRs was up even though the average price of an SFR dipped approximately $10,000.  There’s only 2.7 months of inventory, but only about 30% of that is priced right – so there’s only about 2-3 weeks of marketable inventory.  Basically a home comes on the market properly priced and is in escrow within 30 days – or it comes on well overpriced and takes 300 days to get into escrow.  Financing remains strong and cash sales are beginning to dwindle.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

May posted solid market performance despite not ending up at last year’s level.  The median sales price of an SFR slipped 0.7% to $211,000, while the average price dropped to $245,758.

Review the charts below and look at the strength in the following market areas:

  • Luxury Sales (Closed sales over $1,000,000)
  • High Rise Sales – which are gaining momentum

Finally, review the over pricing chart below.  Why?  One can see all the potential tell tale signs of a potential bubble.  But there is no bubble and ignore reports of bubbles!  Why? Because we can thank conservative appraisals and conservative loan underwriting standards for providing a check and balance against such a bubble!  There are no more NINJA loans!  In fact, are we ready for even more changes to loan underwriting and reporting that will launch on August 1, 2015 by CFPB?  Well, stay tuned . . .

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BlogPics_Page_4Las Vegas Market Overpricing

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Greater Las Vegas / Phoenix Market Update – January 2015


2015Property Management Permit Pre-Licensing Course!

Once again it’s time 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, January 22nd in our Summerlin office at 10777 W. Twain Ave., Suite 333!

 Overview of Both Markets

Both markets remain generally soft on prices as we begin the last quarter of 2014.  Both markets have made the transition to a “Traditional Equity” market as distressed sales have been relegated to a small segment of both markets.  Both markets have closed fewer units overall in 2014 than in 2013 at this same time, but both markets managed to close more units in December than in November. However, the “fewer” units represent closings at the lower end of the market only. The market above $00,000 or so has actually enjoyed more closings than last year.  Here is how that looks in the Las Vegas market:

z_UnitsComparison_Dec2014_2 z_UnitsComparison_Dec2014

This really means that if your average closed sales price for your 2013 transactions was above $200,000, then it’s a good bet you also closed more units in 2014 than in 2013.

The Current Las Vegas Market

Closed sales for Year-To-Date 2014 remain 11% behind last year as we close out 2014.  The median sales price of an SFR leveled out at $204,250, while the average price settled in at $247,903.  Cash sales gathered momentum in December and accounted for 34% of all closings, but conventional loans remained steady and ended up with 33% of the closings. However, the most interesting stats at year’s end are those for the Hi-Rise resale market closings.  Despite being down noticeably from 2013, the past four (4) months of hi-rise closings have been better than closing for the same period of time in 2013.  Is there something good beginning to happen here?  It’s too soon to tell – but let’s keep an eye on it!

z_Hi-rise_Dec2014

Click Here to Download the Current Las Vegas Market Update

Click Here for Additional Las Vegas Market Update Charts

More than ever – Greater Las Vegas enjoys numerous “micro climates” when it comes to market appreciation or depreciation. This epitomizes the notion that “all real estate is local”! Very local when evaluating Greater Las Vegas market pricing.  Avoid over pricing your next listing!

Update! December enjoyed both a slight rise in the closed sales price of SFR Equity listings even as the average listing price of an SFR Equity listing declined measurably!  This has not been a trend for several months and explains why the newest listings are often selling the fastest!  Many of you are absolutely pricing your new listings correctly!!

z_Overpricing_Dec2014

So What’s Happening in Phoenix/Scottsdale?

z_ARMLS_By_Year_Dec2014

The Phoenix Market is now made up of 90% non-distressed sales – as was stated earlier. In turn, this has greatly improved the financing situation as seen below. Closed sales prices continue to drift sideways with the current median sales price of a single family detached home being $214,000; that’s a 3.4% increase from November and a 7.54% increase since last year.  The average sales price ended 2014 at $279,894 and represents a 4% increase this past year and and 3.6% increase over last month. Closed units for 2014 are running 12% behind 2013 year to date. There is a 3.4 months supply of inventory at present.

Click Here to Download the Current Phoenix/Scottsdale Market Update

Click Here for Additional Phoenix/Scottsdale Market Update Charts

Categories: Market Stats, MLS, Pricing, Property Management | 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 Market Update – July 2014

thomas-jeffersonProperty 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, July 10th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

4th of July Footnote

The Continental Congress formally declared and voted for independence on July2, 1776. John Adams believed that this would be the day of epic celebration for the newly formed Colony. However, the Continental Congress experienced an onslaught of wireless networking problems, causing the original Jefferson draft to endure 86 changes and it took until July 4th, 1776 to finally approve the text.  So much for epMail (express pony Mail)! And of course – like many of our own transactions – they didn’t get the signatures until August 2, 1776.

More remarkably, both John Adams and Thomas Jefferson were alive on July 4, 1826 to observe the 50th anniversary of the Declaration of Independence.  John Adams passed that morning.  His final words were; “Independence Forever.  Jefferson survives”!   However, Thomas Jefferson passed around 1pm that same day!

 

The Current Las Vegas Market

Closed sales for Year-To-Date 2014 remain 13.% behind last year as we enter into July. The median sales price of an SFR is now at $199,900, a 2.5.% increase from last month and a 14% increase from one year ago. Available REO listings continue their decline, and REO closed sales prices dropped precipitously in June.  Short sales closed prices improved with the median sales price of $170,000; that is $20,000 higher than the median price for an REO.

The most discernible change if the Greater Las Vegas has been the accelerated transition from a distressed to non-distressed market.  That in turn has triggered an amazing improvement in financing versus cash sales.  The charts below illustrate the rapid changes in just the past six months.

LV-SoldTermPie-Jun2014LV-SoldTermPie-Dec2013

The supply of SFR homes dropped to 2.6 months while Condos and Town-homes have now dipped to a 3.4 month supply. Most areas within Greater Las Vegas experienced  improvement in the average closed sales prices during June.  A word of caution!  We may have 2.6 months of available inventory, but it’s probably more like 1 month of marketable inventory.  Yes, I said marketable!!  That’s because we continue to see widespread overpricing of homes in this market!

But keep in mind that Greater Las Vegas enjoys numerous “micro climates” when it comes to market appreciation or depreciation. This epitomizes the notion that “all real estate is local”! Very local when evaluating Greater Las Vegas market pricing.

Click Here to Download the Current Las Vegas Market Update

Click Here for Additional Las Vegas Market Update Charts

Here are some New Charts!

We have been following SFR closings by month and year for some time.  Earlier in the year we were nearly 16% behind 2013 in closed units.  This month we are only 13% behind 2013.  So now I want to add separate charts for Condo/Town homes and Hi-Rise closings in order to visualize these closings as well.  Both charts are included in the Additional Charts download – just above.

ClosingsByYearJun2014_CondoClosingsByYearJun2014_Ver

 

Categories: Market Stats, MLS, Pricing, Property Management, Short Sales | 5 Comments

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