Nevada Real Estate >> Las Vegas Real Estate Specialist: October 2007

Growth in the south end of the valley has outpaced infrastructure development (once again!)  

Blue Diamond separates Mountain's Edge, Southern Highlands, Arlington Ranch and many other fine communities from the "other end of the earth".  It is a two lane highway that is known as a death trap.  Rental and Resale values are lower "on the other side" also. 

So far Blue Diamond has been widened (and it is such a beautiful thing!) from the I-15 to just west of Decatur.  Four, sometimes five, six, seven or eight lanes if you want to count turn lanes!

Then you hit the tracks.  Always running down Blue Diamond, especially if you are on a schedule you are spanning the industrial area and desert to see if a train is coming and if one is you just take a deep breath after you say NOOOOOOOOOOOOoooooooooooooo!  Time to adjust the radio, make a phone call or check your email.  Gotta love technology these days.

So I have been wondering the last couple of months, what are they going to do with the train tracks between Jones & Decatur.  Is Blue Diamond going to go OVER the tracks or will the tracks go OVER Blue Diamond.  I hate when I am forced to think while waiting for a train in traffic.

Here are some resources: 

NDOT 

Clark County Projects 

My answers were easily found doing a google search: in the LVRJ "Road Warrior" column on Sept 5, 2007.  The road will go over the tracks! Now if they could just hurry up a bit!

That is the pressing question of the week!

Here is something I have noticed:

• Las Vegas Rental Inventory Slight Increase
• Resale Inventory Stable to Slight Decrease
• Last Three BPO's have Requested a Rental CMA

Coincidence?

I was talking about this with an LO on Friday and he confirmed that banks are considering a buy/rent/hold strategy to avoid more asset loss with increased inventory.  Ergo foreclosures will become rental property and stay on the bank's books until better times are upon us.

What are thoughts and observations from other markets? 

My thoughts are that this will alleviate some stress from a declining resale market soaked with too much inventory and will help keep quickly rising rental rates in check. 

The strategy (if it is in effect like I suspect) is brilliant. 

There is so much opportunity.  Even in what is considered a "down" residential resale market there is so much out there to do.  BPO's, Rentals, REO bundles, New Construction etc. 

I set my own schedule.  It allows me to be right here in my home office monitoring my high school children's activities.  I am here but I am not here :wink:

Real Estate is a rewarding career where the prevailing attitude from the general public is that we drive our Beemers around all day when we are not on the golf course.  This perception is completely untrue, while I wish it were true!  Getting into the business it takes much persistance with time and money to get off and running.  Goals, a business plan and systems are imperative for a real estate agent to succeed in todays world.  They don't get implemented overnight and they should be living documents where we are constantly changing them in a changing real estate world so we don't get left behind.

My job description includes:

• Receptionist
• Lead generator
• Communicator for searches
• Photographer
• Marketing Guru
• Web Expert
• Search Planner
• Appointment Setter
• Business Manager
• Escrow Coordinator
• Statistician
  
• Professional writer

Just to name a few :) 

This is my response to Mike Mueller's challenge "I love my profession because..." 

This is a time and age where managing a real estate transaction can be tricky.  We are facing challenges from media distortion, mortgage products disappearing, fraud, large amounts of foreclosures.  Reality is, that it is a great time to be a licensed professional if you know your market well and are actively working it.   Opportunity lies around every corner and objections are easy to handle when you know your stuff!  I love the challenge each and every day presents. 

The Providence Master Planned community features 17 builders and 30 neighborhoods.  Plenty of choices from entry level homes to executive living homes to condominiums.

Providence is located north of the 215/North Hualapai exit and there are many fantastic deals to be found there today.  I found two that were incredible bargains: 

• 1700 square feet starting at $203K
• Almost 2000 square feet starting at $210K

These are 2003 prices:  you can really own  your own home now for less than the price of renting!  Call us today so we can set you up on a search so you can see floorplans for homes that fit your search criteria!  

View the Community Map

Read more About Providence 

Last night we watched a glorious sunset  as the smoke started infiltrating the Las Vegas Valley by pouring over the western mountains.

Picture 1:  The first picture I took from our house.  The sunset was so beautiful and pink.

Picture 2:  The wafts of smoke taken from Sunset/215 you can see the streaks slowly making their way through.

Picture 3:  Another one taken from Sunset/215

Picture 4:  Taken this morning (10/26/2007).  Usually we have a glorious view of Red Rock Canyon from our backyard but it is obstructed from the smoke.

I started taking new vitamins this week and woke up in the middle of the night with my throat swollen, my eyes swollen and my ears hurting.  I automatically thought I was allergic to the vitamins but then when I woke up I had a "duh" moment.  I have a pine allergy.

It was literally raining ashes during the Scripps Ranch fire of 2003 (?) here in the valley but my allergies have gotten progressively worse throughout the years.   Undoubtedly I will have to drug myself up on antihistimine the next several days and keep remembering that somewhere else, someone else is having a worse time than me.

As my mother, a devout Catholic always says:  "Offer it up!" 

I hope all of my California friends are well. 

There are currently very slim pickings in the las vegas single family rental home market.  The absorption rate remains very low when you look at the entire rental market in Las Vegas (hovers between 2.7-3.2 months.)  It is definitely a landlord's market.  When you look at some areas in particular, like the Rhodes Ranch area, the absorption rate hovers between 1.2-1.5 months.

One rental sub-market that *is* a renter's market and provides great opportunities for renters is the high rise condo rental market.

There are currently 325 available rental units (10/26/2007) with only 9 under contract (10/26/2007) and only 41 units leased between 9/22-10/22/2007.  This equates to 7.9 months of inventory and a Renter's Market!

Prices for Las Vegas High Rise Condo Rentals range from $1145-19000 a month.  The median rental list price is $2795/month. 

What this all translates to is a more pleasant renting experience as you have more negotiating power and less frustration from having to turn  in multiple applications!

We can help you make your next move whether it is a rental or a purchase. 

For the Las Vegas Rental Home process explained please go to:  www.LasVegasHomeRentals.info 

FYI: Renee Burrows is a founding member and she organizes and writes this material. It is hers, no copyright violations here!

 There is still much standing inventory in the Las Vegas New Construction market.  Some builders are bundling up their standing inventory ~ some as low as 75 cents on the dollar ~ minimums as low as $2-3 million.  While that may seem high, the builders are ahead of the curve with pricing.  Much of the standing inventory is from fall outs and are highly upgraded.

This is a great alternative for a smaller investor to an REO bundle priced on individual BPO's and more than likely in need of major rehab.  Minimums for REO bundles are usually $5-10 million. 

Contact us today if you are interested in making a long term investment in the Las Vegas Valley.  Rents are rising as the demand increases.

When you work with us, we will:

• Work with a builder to get your bundled properties in areas with low rental absorption rates & vacancies
• Take pictures of each individual property during due diligence period 
• Prepare individual rental comparative market analysis for each property
• Direct a conference call with a permitted property manager so you can prepare to have your properties online and ready for rent immediately after close of escrow 

This Rhodes Ranch Area market report was generated on October 23, 2007 (graph on bottom):

• Active Listings: 485
• Under Contract:52
• Sold 9/15-10/15/2007:  28
  
• Months Inventory: 17.3
• Low:  $129,000; High:  $3,490,000; Median:  295,000

Rental Market Report generated on October 22, 2007 (graph on top):

• Active Listings: 81
• Under Contract:  8
  
• Leased 8/1-9/1/2007:63
• Months Inventory:  1.3

Median List Price for an area rental:$1295/month, Low:  $750, High:  $4500

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated October 13, 2007

Click here to view past market reports, current rental and resale listings in the Rhodes Ranch Area

 Includes: Apache Hills, Apache Springs (The Falls), Astoria Homes at Rhodes Ranch
(Independence), Canyon Trail, Huntington, Liberty @ Warm Springs, Maplewood, Rhodes
Ranch, Richmond@ Rhodes Ranch, Sierra Madre, Venezia, Vistana.

For More information on the Rhodes Ranch Area or the most current market reports & market activity graphs: www.LivingAtRhodesRanch.com

I love challenges by Chris Elizabeth Griffin, thank you dahling!

Las Vegas Valley Nevada:  Real Estate Has Never Been a Better Value.  While many people disagreed with me on this one and we are seeing a downturn, this is still appropriately written and applies to today.  Notice how I said the demand for housing still exists whether people buy or rent! Written in December 2006 with a different challenge from our favorite Chris Elizabeth Griffin!

Las Vegas Condotels - Sizzle or Fizzle?  Losing Bet on Immediate Cash Flow, Placing your Wager on a Long Term Investment:  What Joe Doesn't Know!  This one details the obstacles that a condotel or high rise buyer will face buying in this market.  It was written in November of 2006 and some of my predictions are coming to light in the high rise market today. It also shows that Las Vegas tourism is facing some major challenges and this is why casinos, who have the ability to build more rooms for themselves, are transferring the risks of adding more rooms on to individual owners.

Escrow 911:  Subprime Fallout and the Potential Impact on the Las Vegas Valley Rebound.  This was written as mortgage products were beginning to tighten up in February 2007.  Las Vegas was just beginning to see dents in absorption rate and standing new construction inventory disappear in the beginning of 2007, until this event.

And the Las Vegas Trend is:  ::DRUMROLL:: High Density.  High density is the name of the game with new construction in Las Vegas.  While there is issues in the high rise market, other forms of high density solutions are being rolled out and built and are extremely popular.  Patio homes, courtyard homes, townhomes, etc. Written in March 2007.

What Convention, New Resident and Gaming Statistics Really Have in Common with the Real Estate Market in Nevada.  Investors need to know this stuff, real estate agents need to know this stuff, buyers need to know this stuff and sellers need to know this stuff.  Written August 2007. 

The State of the Stated:  Las Vegas Residential Real Estate Winners and Losers.  This was written after subprime fallout #2 in August 2007.  There will be winners and there will be losers.  Check em out in this post! 

So there you have it, my six pack of favorite posts, maybe inspired by others but always drafted and carefully crafted by no one else but me :)  I pull my own statistics and speculate on market winners and losers.  I put myself on the web naked for everyone to see (metophorically, ok?) and open myself up to kudos and scrutiny.  

Las Vegas NV Real Estate hasn't been a total bomb this year.  There are several markets that are moving that need to have their day in the sun.  Just like my subject line touts:  Rentals & New Construction are chugging along fairly well.  Bank Owned Property (REO's or foreclosures) are moving and I do believe are set to see better days VERY soon with prices slowly sliding downward.

New Construction:  New Construction started out with a bang in 2007 when January unit sales outpaced 2003, 2004, 2005 & 2006.  The mortgage meltdown in late Feb/Mar slowed it down but it still was outpacing some recent years.  Mortgage meltdown #2 in July killed sales.  September sales were dismal BUT builders retaliated using guerilla warfare:  SLASHING PRICES in some cases to 2003 levels.  October/November & December will be interesting to watch to see if there is a rebound.  If you need an investor bundle minimum $3 million cash 75 cents on the dollar, call me!  I know 75 cents on the dollar doesn't seem enticing but the prices with several builders have been slashed in the last month.  An abundance of standing inventory that is already highly upgraded and turnkey makes this a great alternative to an REO bundle at 40 or 50 cents on the maybe not so recent BPO dollar that needs rehab.

New Construction Units Sold 2007:

• January:  3079 (outpaced 2003, 2004, 2005 & 2006!)
• February:  3103 (outpaced 2003, 2004 & 2005)
• March:  3496 (outpaced 2003 & 2006)
• April:  3167 (outpaced 2003)
• May:  3414 (outpaced 2003)
• June:  3337 (outpaced 2003)
• July:  3153 <-Mortgage Meltdown #2, all months through September were lowest units sold in that month from 2003 to present
  
• August:  3449
• September:  2669 

Rentals:   The residential market has been gaining ground all year long.  Demand for housing still exists in our market with a strong incoming population.  Fill in the sentence:  If people need housing and aren't buying homes they are going to R**T!  Very good girls and boys :)  Low inventory (listings) coupled with increased amounts of leased units = rapidly rising rental prices. 

Current Rental Statistics: 

• Listings (10/19/2007):  4191
• Under Contract (10/19/2007):  475
• Leased (9/15-10/15/2007):  1448
• Absorption Rate:  2.9 Months Inventory
• Average Monthly Rental Rate:  $1603,  Up $308 since Jan 2007
  

Foreclosures (REO's, Bank Owned Property):  Foreclosure statistics are very hard to track because I do find that this has to be one of the most incorrectly entered listings in the MLS, short sales probably a close second.  Bank owned bundles are going for around 50 cents on the dollar $5 million minimum, not so much pick of the litter but I would call it the pick of the kitty litter.  They will try to unload functionally obsolete properties, properties with much need of rehab and very hard to sell properties.  The price will be weighed on BPO's which may or may not be recent and reflective of the new construction market prices.  Prices are sliding downward on REO property, not quite enough or in large part to be competitive with new construction.  I do think this market does bear watching as the absorption rate is not as pitiful as other parts of the market or the Las Vegas residential real estate resale market as a whole.

• Current Listed Bank Owned Statistics:
• Listings (10/19/2007):  1823
• Under Contract (10/19/2007):  286
• Closed (9/17-10/17/2007:  188
• Absorption Rate:  9.7 Months Inventory

All statistical information I used to create this report was obtained from the Greater Las Vegas Association of Realtors.  Information is deemed reliable but not guaranteed. 

Let me first make a huge statement:  Not all sectors of Las Vegas NV Real Estate are bad.  I am following two markets that are sinking as quick as mortgage products disappeared in July:  the high rise market and the short sale market.  

The short sale market absorption rate has risen from 43 months in July/August to 51 months in August/Sept.  We are currently looking at 77 months of inventory for September/October.  There are many reasons for it and it is outlined in this post.  The major jump this month is the same old story:  inventory (listings) have risen and closings have dropped.

Short Sale Synopsis:

• Listings 10/19/2007:  3708
• Pending 10/19/2007:  262
• Closed 9/17-10/17/2007:  48
  

We have seen the Las Vegas, NV high rise real estate market have a phenomenal (and scary) jump in inventory in the last several months.  For several reasons:

• Too many speculators in that market.  They want to close n flip.  They are not interested in holding, renting or living in them.  Each time a building closes, we see an increase of inventory.
  
• Mortgage market madness has reduced the amount of loan products available to jumbo, second, vacation or investor type property owners. The ones who have very little money down and marginal credit, that is.  So the buyer pool for both resales and new went kaput.  Loud and hard too.

Here are the high rise stats:

Rentals:

• 297 Listed 10/18/2007
• 29 Under Contract 10/18/2007
• 29 Leased in September
• 9.9 Months Inventory
• Monthly Rates:  Low:  $1195; Median:  $2900; High:  $19000
  

Resales:

• 864 Listed 10/18/2007
• 69 Under Contract 10/18/2007
• 12 Closed 9/17-10/17/2007
• 72 Months Inventory

Resale inventory is down from 108 months inventory one month ago. The troubling thing about this is that 72 months of inventory is still a lot of inventory.  The rental inventory is staggering when you compare it to the entire market of rentals that hovers around 3 months of inventory.

I think it is apparent that many purchases are completely speculative = not enough demand for living in.  Some rent prices just barely cover the owner's HOA.

Since July speculators have been bailing from their new construction high rise escrows because of lack of mortgage products for funding.  They are also leaving their steep deposits at the builder and not looking back. 

Unless demand for high rise LIVING increases over speculation, we will be seeing a major correction in this part of our market.  We  have a little over 14000 units under construction with another 50000+ more on the drawing board.  Every time a building closes, we see 20-50% of that building go on the market.

The beautiful part about this is that when you put the pen to the paper for land and development costs, it costs about $1800/square foot.  You can buy right now with the median price being in the mid 500's for a square foot.  Will deflated dollar against foreign currency be able to bail us out?  Is Las Vegas unique enough to attract those foreign investors?  How many licks does it take to get to the center of a tootsie roll tootsie pop? 

Was I right or was I right? Read the bottom where I wrote: "What Joe Needs to Know".  Almost a year ago, unedited.  Even though I wrote it for condotel buyers, the same principle applies to the high rises.  

A great debate has entered the Las Vegas Real Estate landscape over views.

Nevada's laws in regards to views is basically "Caveat Emptor". Which translates to "buyer beware". This means you must do your due diligence in regards to what zoning is going on in and around the property you are purchasing and the landscape in Las Vegas changes daily right in front of our eyes.

High rise purchasers in the resort corridor of Las Vegas are crying foul over Fontainebleau's move to throw up a parking garage within 100 feet of Turnberry's Tower 4. The thoughts on this are that Fontainebleau is not into "smart or sustainable development" but maybe it was Turnberry's quest to throw so many buildings on a small chunk of property right next to property zoned for gaming. Fontainebleau's garage will be located in the same area as many of the other strip casinos garages are: in the back of the property. My thoughts are, I don't think we should bite off the hand that feeds us (sorry, that would be gaming over real estate) just because residential and multi use developments are popping up all over the resort corridor. Read more here

In other news on views: There is buzz that the famous Las Vegas National Golf Course may be sold so the land can be developed for residential use, as it is zoned for. Esko's July 2007 post has a link to the article. If it were for sale and the owners were so upset, why don't they just pool together and buy the land themselves? This is a famous golf course, set close to the strip. It has been the backdrop in many movies, for many celebrity golf tournaments and popular with the tourists. To me that would have been the easy solution.

BUT - and yes there is a big BUT even with my very humble opinion thrown in hither and thither with those two examples.

We cannot promise a view, we may even have view disclosures (like most builders do): We are allowed to promote views, golf course frontage, and other things that may change over time in the MLS. A premium may even be tagged on to the price and the appraiser can even acknowledge and adjust for it. How is that possible with caveat emptor and here today, gone tomorrow views in this town?

Take a look at my picture taken of downtown from Soho lofts in March of 2007. Let's say the unit was appraised with a view of downtown. While the buyer may understand that the view will not be sustained forever, how is the lender funding the loan supposed to know that, unless it is disclosed.

And then I will be done with it :)

There has been several in depth reports in the Las Vegas Review Journal. Y'all know I am not a big fan of the media, but these are some pretty detailed reports outlining many of the problems we are facing right now.

I highly recommend that homeowners and renters in the Las Vegas, NV Valley read the three part series dated from Oct 14-16, 2007.

Some of the highlights talk about (the same things I have been talking about!):

• Renters having to move out quickly because the house they are renting is getting foreclosed on.
• Crimes & Arson in neighborhoods with high incidences of foreclosure could rise but are staying statistically low at the moment.
• Mortgage Meltdown
• Tips for Sellers in this market.
• That now is the time for investors to buy!
  
• Declining values could create an avalanche effect within the foreclosure market
• Predators and Equity Skimmers seeking distressed homeowners.

Not any new stuff than I have been talking about at all. While I was lead to believe this weekend that maybe this stuff isn't widespread, I think the proof is there now that it is. This is a great reference guide for any of the above situations that I mentioned that you may be in. The police department is reportedly doing a ton of investigating on fraud right now.

We cannot ignore these problems or it will just get worse. We need to face them and be proactive.

There, I have closure!

I no longer have to hear two grown men cry from September through December! This is great news for us Husker fans that were bred and born to be! My family has been giving me the updates via phone daily. I am kind of amused by it since I guess I am so far removed from it. Word on the street is that a booster with very deep pockets (hate to mention names but he is known worldwide) bailed NU out of the former athletic director's contract and that Callahan's head may be next even though they just signed a three year extension with him.

No false hope but I hope my boys realize it is going to take years to bail the bugeaters out of their slump!

TOM OSBORNE IS BACK!! GO BIG RED!

Yea, we are sick, that is an actual picture located in my testosterone (IE game) room. Painted by my sister.

We are seeing a slide of foreclosure prices which I really didn't expect until the end of this month or November. They do have stiff competition with the new construction market.

I visited one of these steals out in the heart of old Green Valley today. Three car garage, over 1800 square feet with a pool for $269K. Rental comps suggest a leased rate of $1800-2200 . It did have deferred maintenance issues so it depends on how far the new owner would go to do repairs to what it's rental value would be in the end. Supposedly they have four offers on this property and two other agents were showing it at the same time I was there.

Who says nothing is moving in this market?!?!

Disclaimer: Picture is not of actual house I was showing :)

During some Sunday morning football and me catching up with some blog activities my husband announced that there will be a new TV show called Viva Laughlin.  Of course he couldn't say it without laughter.  I didn't think it was funny at all! 

Laughlin is an hour to an hour and a half from the big city.  Laughlin, NV has the old Vegas attitude and style, cheap buffets and drinks!  The kind people are always looking for when they come here!  My reaction was NOOOOOOOOOO all that will be gone!  Then I thought, what great PR for Laughlin and a possible boost to their economy!

Laughlin is situated on the  Colorado River on the Arizona border.  Bullhead City, Arizona is just right across the river.  According to city-data.com, Laughlin's 2000 population was only 7076 and according to wikipedia, Bullhead City boasts three times as many residents and supplies most of Laughlin's workforce.

Housing median prices run a bit higher (around $290K) than the Nevada average.  Laughlin is well known for it's annual Laughlin River Run, more so than the inexpensive Vegas style lodging, buffets and entertainment. 

View the Laughlin Visitor Profile right here! 

View tidbits about the show right here. It premieres this Thursday, Oct 18 and it's regular night is Sunday.

Congratulations Laughlin, you are now on the map whether you want to be in this light or not!  I just wish I would have known the last time I was there.  I would have soaked up all of the old charm it espoused! I have pictures and can't find them, otherwise they would be posted right here!

If you are seeking old time Vegas, go visit Laughlin soon! 

This Rhodes Ranch Area market report was generated on October 14, 2007:

• Active Listings: 481
• Under Contract: 42
• Sold 9/1-9/30/2007
• Months Inventory: 14.1
• Low:  $149,000; High:  $3,490,000; Median:  299,000

Rental Market Report generated on October 14, 2007:

• Active Listings: 83
  
• Under Contract:  8
  
• Leased 8/1-9/1/2007:66
• Months Inventory:  1.3

Median List Price for an area rental:$1295/month, Low:  $750, High:  $4500

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated October 6, 2007

Click here to view past market reports, rental and resale home listings in the Rhodes Ranch Area
 

 Includes: Apache Hills, Apache Springs (The Falls), Astoria Homes at Rhodes Ranch
(Independence), Canyon Trail, Huntington, Liberty @ Warm Springs, Maplewood, Rhodes
Ranch, Richmond@ Rhodes Ranch, Sierra Madre, Venezia, Vistana.

For More information on the Rhodes Ranch Area or the most current market reports & market activity graphs:

www.LivingAtRhodesRanch.com

All the Best,

Renee Burrows
Realtor®

Nevada Realty Solutions - Your Dream, Your Investment, You\'re Home!
8942 Spanish Ridge Avenue
Las Vegas, NV 89148
direct: 702-580-1783
fax: 702-995-8237
Renee@ReneeBurrows.com
http://www.ReneeBurrows.com

4231 units are currently listed in the MLS up from 4059 from just a week ago. We are also probably going to see a rise in October from September's numbers which are usually seasonally adjusted downward. We already have 617 units leased as of the 14th of October.

The rise is larger than the demand so maybe sellers are heeding the natural call of economics (supply and demand) and becoming landlords, unintentionally. This will place less upward pricing pressure on the rental market if supply increases more than the demand. Kind of good news for renters!

I do think average prices will remain stagnant this month or slightly rise in some areas. I am putting out a Rhodes Ranch area market report in my next post. It will show less supply and higher demand and rising median rates in less than one week!

One thing to note, it is definitely valuable to compare apartments to condo/townhome rentals in some areas. In some areas, it makes more sense to rent a condo, townhome or single family home over an apartment.