RE Practice

Las Vegas Real Estate Market Update * June 2017

Greater Las Vegas Real Estate Market Overview

May 2017 Single Family Residential (SFR) closed sales were up 22.4% from April and 14.5% better than May 2016. Year to date 2017 closed sales are now up 10.5% over 2016.  The median closed sales price of a SFR edged up from $249,000 to $250,000 while the average closed sales price of an SFR increased by 3.5% to $296,503.  Residential resale activity was brisk again in May leaving us with approximately 1.6 months of inventory and only about 5400 available SFR listings.  It was a grand slam for resale closings this month with SFR closings,  Condos/Townhome closings, Hi-Rise sales closings and Luxury Sales closings all making big gains this month as can be seen below.

In fact, activity was so good that some homeowners were “borrowing” open house signs to bring in the traffic and conduct garage sales.  Looks like more REALTORS need to get out there and help the public with those Open Houses and Garage Sales! LOL


Click Here for the Current Market Update

Click Here for Individual Las Vegas Market Charts

 Over Pricing Index

The chart below shows that Over Pricing is steady with 61% of all available Single Family Residential listings being over priced.  That means that only about 2100 of the available 5400 SFR homes are priced correctly.  In short, there are only about 3 weeks of marketable inventory.  Is this leading to multiple offers, especially in the price range below $300,000?  Of course it is!  So consider . . .

Underwritten Pre-Approval

We all know that having our buyers pre-approved is far better than having them just pre-qualified.  However, some lenders are able to have your buyer underwritten pre-approved.  That means they have completed all paperwork and submitted all required documents even before identifying the home they plan to purchase.  The only things they are waiting for at this point is a contract, inspections, appraisal and insurances for the most part. The underwritten pre-approval should be signed by the underwriter and this could save a couple of weeks in the loan process.  Under the theory that sometimes “we need to slow down to speed up”, this just might provide your buyer a solid advantage in a competitive, multiple offer situation!

And just maybe it’s time to break out this great video one again . . .

http://www.youtube.com/watch?v=_NL-nS9Tte0

Categories: Market Stats, MLS, Pricing, RE Practice | 1 Comment

Las Vegas Market Update – June 2012

Navigating the Current Las Vegas Market

Property Management Permit Course!

Again, I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course that was recently approved by the Nevada Real Estate Division. 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.

However, walk-ins are welcome on Monday afternoon beginning at 3:30 pm, June 25th!

The Current Las Vegas Market

Single family residential (SFR) closings for May were up nearly 7% from April and up more than 9% from May 2011. Overall inventory declined another 7.6% during May. That means most areas in Greater Las Vegas have only about a one month’s supply of inventory or less.

Click here for the most current Equity Title Market Update Report

What About Available REO Properties?

What a difference a month makes!  REO sales made up 47% of the closings in December, 38% of last month’s closing, but only 33% of the May closings.  I would expect this trend to continue throughout the remainder of the year.  However, I caution those who would attempt to link this trend to AB-284.  This is simply banks doing what is in their best financial interest at all times.

Market and Price Changes

Both the median and average prices increased again this past month with the median closed price of an SFR increasing to $128,500 for a 7% increase year-to-date and the average price at $160,150 for a 8.6% increase year-to-date.

Single family (SFR) closed sales price increases for the past month were as follows:

  • REO . . . Ave Price – $132,635  – 9.5% increase year-to-date
  • Short Sales . . . Ave Price – $138,085 – 6.6% decrease year-to-date
  • Classic Sales . . . Ave Price – $205,672 – 7.7% increase year-to-date

Market Momentum

Expect this trend to continue as well for the remainder of 2012.  Of course the summer heat and lack of inventory are causing enormous frustration for buyers and agents alike.  Please treat each other with great respect and have a prosperous and productive month of June!

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

Las Vegas Market Update – May 2012

Property Management Permit Course!

First, I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course that was recently approved by the Nevada Real Estate Division. Registration is now open. Just click here to view the course and/or register.  However, walk-ins are welcome this Thursday morning, May 10th!

The Current Las Vegas Market

Single family residential (SFR) closings for April were down nearly 10% from Marth but and up 3% from April 2011. Overall inventory declined another 16% during April. That means there is ony about four to  six weeks of inventory available based on current demand.

Click here for the most current Equity Title Market Update Report

What About Available REO Properties?

Market and Price Changes

Both the median and average prices increased with the median closed price of an SFR increasing to $127,900 for a 4% increase and the average price at $159,466 for a 5% increase.   Single family (SFR) closed sales price increases for the past month were as follows:

  • REO . . . Ave Price – $133,291 – 8% increase
  • Short Sales  . . . Ave Price – $145,067 – 1.6% increase
  • Classic Sales . . . Ave Price – $201,468 – 2.9% increase

Market Momentum

Categories: Market Stats, MLS, Pricing, RE Practice | Leave a comment

Safely Navigating the Las Vegas Real Estate Market

Does it seem like we encounter more “third parties” than first and second parties in today’s transactions? Are they all looking for a piece of your commission? Do banks and many of these “third party” companies hide behind Federal laws or exemptions to Nevada Revised Statutes and laws in order to thrive off our very active local real estate market?  The rhetorical answer is a resounding “Absolutely”!  There are other responses, but I will leave those to your imagination!

We have all adapted our real estate practices to take into account that Banks and Asset Managers generally could care less about what disclosures and forms  that we may be required to submit per Nevada Revised Statutes or local Brokerage practices.  In fact they have often taken refuge from the Nevada Attorney General by citing and hiding behind Federal laws that allow them to patently ignore much of what we have been taught to do in performing our duties with “reasonable skill and care”. 

It has often been said that there is likely more fraud in the local Las Vegas market now than at the peak of the subprime loan years.  We’ve seen short sale transactions fraught with straw buyers, double escrows, and a myriad other schemes that run from legal to dangerous to flat out fraudulent.  And of course, we now have banks outsourcing their short sale negotiation function to third parties that are exempt from the licensing requirements that were set forth by the Mortgage Lending Division.  Often these companies too are asking for a portion of your commission! 

First, let’s look at NRS645.280 regarding commission payments:

NRS 645.280  Association with or compensation of unlicensed broker, broker-salesperson or salesperson unlawful; payment of commission other than through broker or owner-developer unlawful.

      1.  It is unlawful for any licensed real estate broker, or broker-salesperson or salesperson to offer, promise, allow, give or pay, directly or indirectly, any part or share of his or her commission, compensation or finder’s fee arising or accruing from any real estate transaction to any person who is not a licensed real estate broker, broker-salesperson or salesperson, in consideration of services performed or to be performed by the unlicensed person. A licensed real estate broker may pay a commission to a licensed broker of another state.

      2.  A real estate broker-salesperson or salesperson shall not be associated with or accept compensation from any person other than the broker or owner-developer under whom he or she is licensed at the time of the real estate transaction.

      3.  It is unlawful for any licensed real estate broker-salesperson or salesperson to pay a commission to any person except through the broker or owner-developer under whom he or she is licensed at the time of the real estate transaction.

      [26:150:1947; 1943 NCL § 6396.26]—(NRS A 1959, 394; 1975, 1542; 1979, 1538; 1985, 1263; 2005, 1286)

These third parties may be exempt from Nevada Revised Statutes, but when they are not licensed, they may not receive commission payments from agents or brokers!

Our dilemma – in a nutshell – is that there are quite a number of companies and parties that are able to operate outside of Nevada laws and do so legitimately.  And there are others that are skirting laws or outright fraudulent in their business practices, which have led to the creation and maintenance of the following two Nevada websites:

http://fightfraud.nv.gov/

http://foreclosurehelp.nv.gov/

Agents and brokers – on the other hand – remain bound and subject to Nevada Revised Statues and laws, regardless of whether these other parties are or not!  As such we must continue to practice real estate with that always at the forefront of our minds each and every day!  We must commit ourselves to providing the best service possible – while navigating these difficult waters with our clients – and keep our integrity intact at all times. 

As I’ve always said: “There are more sharks in the Las Vegas desert than in all of the Pacific Ocean”!

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