Nevada Real Estate >> Las Vegas Real Estate Specialist: January 2008

Purchasing a home for the first time can be a scary process.  What is even more scary is our rental market which has tightened up since the credit crunch!  If you have large dogs, expect a denial just because of them!  How about rental homes getting foreclosed on and the tenants had no clue?

Now, if you don't want the anxiety, now is probably the time for you to start looking at purchasing your own home.   Right now, with interest rates in the mid 5's and home prices sliding downward, there are areas with very little disparity between an FHA house payment and a rental payment.

• Contact a trusted real estate professional 
• Talk to the recommended lender to find out how much you qualify for.  Make sure your lender is knowledgeable about first time buyer programs such as FHA and down payment assistance (DPA) programs associated with FHA.
• Once you are approved, have your agent set you up on an email "drip"
• Make an appointment to look at the homes
• Pick out your home
• Write the contract
  

At Contract time you will need:

• Your preapproval letter from your lender.  
• Your Checkbook for your Earnest Money Deposit (figure between 1-2% of purchase price) 

Multiple offers are happening with homes that are priced right.  Do not try to lowball or lowball and get concessions (closing costs paid) or you could lose the home.  Be prepared to write multiple offers on attractively priced homes.  Avoid short sales because it is a long shot to get closed. 

During the escrow period you will have to make sure you keep up on Due Diligence:

• Keep in touch with your lender, escrow officer and agent to see if you need any more documents
• Receive your "Certificate of Resale" and read the community CCRs, Bylaws, Financials and all other documents provided.  As per Nevada law, you have 5 days after receipt to read and understand those documents.  If you cannot live within the community guidelines you can get out of your contract.
• Hire an inspector (write it in the contract) EVEN IF IT IS NEW CONSTRUCTION!
• Have the seller's deliver the CLUE report (write it in the contract) so you know the property is insurable. 
• Make sure your lender has all required documents INCLUDING APPRAISAL so the loan can be underwritten during your due diligence period.
• Read your PRELIMINARY TITLE REPORT 

In Nevada  you do not get the keys when you sign your loan documents at the title and escrow company.  

• Lending conditions must be met
• Loan Must Fund
• Title Must Record
  

Right now the deals in Las Vegas New Construction & Resale Market are disappearing as soon as they hit the market.  Make sure you interview your agent:

• Are they full time?
• Do they have backup support from a team environment to deal with time sensitive issues?
• Do they actively work the markets so they know where to find the deals?
• Ask them to give some real life examples of deals they have seen in the last week
• Ask them how much negotiating and contract experience they have had.
  
• Ask for customer testimonials and references

Schools (1/27/2007) Zoned are: Sierra Vista High School, Faiss Middle School & Wayne Tenaka Elementary school. With extreme growth in the valley schools change quickly and for no rhyme or reason so it is always best to check online for current zoning with Clark County School District.

There are exactly 189 homes in this neighborhood ranging from 1358-1937 square feet. The builder was Richmond American and these homes were built between 2003-2004.

For More Information/Floorplans/Virtual Tour go to www.RichmondAtRhodesRanch.com. We can help you find rentals, buy or sell in Richmond at Rhodes Ranch! As always: we provide no cost buyer's agency and renter's assistance!

Richmond at Rhodes Ranch is walking distance tp schools, shopping, restaurants and gaming. When minutes matter: Richmond at Rhodes Ranch is located less than one mile from St Rose San Martin Campus Hospital.

Renée has watched this area grow from a desert to a thriving community. She is proud to say she has toured every model in the following subdivisions: Sierra Madre @ Rhodes Ranch (where she resides), Venezia, Liberty @ Warm Springs, The Falls @ Rhodes Ranch, Canyon Trails @ Rhodes Ranch, Vistana & Richmond American @ Rhodes Ranch. Hiring a Realtor who lives in, works in, cares about and KNOWS the neighborhood will give you a
distinct advantage over the rest.

• February 1-2, 2008: Happy Paws & Friends
• February 23, 2008: Petstacular!
• March 1, 2008: Bark in the Park
• March 29, 2008: Celebrity Dog Walk
• April 12, 2007: Pet a Palooza

Great Las Vegas Area Pet Resources:

• LasVegasDogs.net
• Meetup (breed specific and others)
• Visit a local Doggie Park!

This Rhodes Ranch Area resale market report was generated on January 27, 2008 (graph on bottom):

• Active Listings: 501
• Under Contract: 79
• Sold 12/20/2007-1/20/2008:  42
• Months Inventory: 11.9
• Low:  $129,900; High:  $3,490,000; Median:  270,000(listing prices only)

Rental Market Report generated on January 27, 2008 (graph on top):

• Active Listings:  94
• Under Contract:  14
• Leased 12/20/2007-1/20/2008:  38
• Months Inventory: 2.5

Median List Price for an area rental:  $1295/month, Low:  $750, High:  $10000

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated January 20, 2008

Click here to view past market report graphs and active rental, resale and new construction 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

Bank Owned Las Vegas Listings (AKA Foreclosures, REOs) are seeing some absorption!  Inventory has risen slightly (+158 units), Pendings have risen considerably (+174 units) and closings have gone up too (+76 units).  Monthly absorption rate down slightly by almost two months!

This market is swinging into a neutral seller's market and judging by the "multiple offer frenzy" the next month will be very interesting to say the least!! 

Current Listed Bank Owned Statistics:

• Listings (12/26/2007): 2150
• Under Contract (12/26/2007):  572
  
• Closed (11/19-12/19/2007: 240
• Absorption Rate:  9 Months Inventory

View Last Month's Report Here  

If you are considering buying in this submarket, beware that it is moving! 

If you are interested in buying REO bulk packages starting at 30 cents on the dollar, $7 million minimum, do not hesitate to contact me! 

The absorption rate for Las Vegas Short Sales has dipped slightly for January 2008..  Inventory has risen dramatically (+316).  Pending units have risen slightly at +38 Units.  Solds have increased by 10 units.

There are many reasons for the lack of closings in this market and it is outlined in this post. 

Short Sale Synopsis:

• Listings 1/27/2008: 4561
• Pending 1/27/2008: 365
• Closed 12/20/2007-1/20/2008:  64
• Month's Inventory: 71.3 (=5.9 Years Inventory.)
  

One thing you really need to consider when buying or selling short is to make sure the list agent is EXPERIENCED in this niche.  These deals are hard to pull whether it is or is not an experienced agent.  

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:

• 348 Listed 1/27/2008
• 10 Under Contract 1/28/2008
• 23 Leased 12/20/2007-1/20/2008
• 15.1 Months Inventory

Resales:

• 789 Listed 1/27/2008
• 70 Under Contract 1/27/2008
• 17 Closed 12/20/2007-1/20/2008
• 56 Months Inventory (=3.9 years)
  

Resale inventory is down from 72 months inventory two months ago. Sales have not risen dramatically, only three more units from last month. Pendings have gone down by 12 units from last month.  Available inventory is down by one unit.  The rental inventory had a dramatic one month jump of 9.5 to 15.1 months.  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? 

There has been a noticed rise in foreclosures & bank owned listings at Manhattan South.  List prices for those are about 50-65% of what the original owners paid for them!  Manhattan South is located on Las Vegas Blvd South across the street from South Point Hotel & Casino but off strip and is a mid rise community. 

If you are interested in investing in high rise new construction builder bundles ($7 million minimum, 65 cents on the dollar) or would like a referral to work with an agent who understands this market, please do not hesitate to contact me!

Pendings are still rising 6 weeks post Las Vegas Foreclosure auctions!  Six weeks post we are looking at rising closings (+8 Units/one week) and pendings rose at a nice rate when I expected them to start leveling off (+51 Units/one week)!  Yes we are seeing listings rise (+34 units/one week).   With the auction homes starting to close, we should see this swing into a seller's market.  

Here are current REO (bank owned, foreclosure) statistics:

• Listings (1/20/2008):  2295
• Under Contract (1/20/2008):  700
  
• Sold (12/17/2007-1/17/2008):  299
• Month's Inventory: 7.7

View last weeks stats here.

View Monthly stats here. 

This is THE market to watch as it is sparking buyer's interest.

If you are an investor and are interested in bulk REO (Bank Owned) packages, any state, please visit my website.  Unique opportunities are being presented in the current market.  Builder packages too!  $7 Million minimum.

This Rhodes Ranch Area resale market report was generated on January 20, 2008 (graph on bottom):

• Active Listings: 502 (very large one week jump)
• Under Contract: 76
• Sold 12/15/2007-1/15/2008:  44
• Months Inventory: 11.4
• Low:  $114,000; High:  $2,675,000; Median:  269,900(listing prices only)

Rental Market Report generated on January 20, 2008 (graph on top):

• Active Listings:  96
  
• Under Contract:  16
• Leased 12/15/2007-1/15/2008:  38
• Months Inventory: 2.5

Median List Price for an area rental:  $1275/month, Low:  $750, High:  $10000

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated January 13, 2008

Click here to view past market report graphs and active rental, resale and new construction 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.

www.LivingAtRhodesRanch.com

Why because I am registered an independent voter.  I get this nice note:

Caucus Location

Registered Name: RENEE BURROWS

Your Caucus Location is not listed in the voter registration database.

Caucus locations should be verified.

In Nevada, if you are a registered member of the Democratic or Republican Party, the parties have established their respective caucus locations. Caucus locations are subject to change, so be sure to verify your particular caucus location with your respective party prior to the January 19, 2008 date of the caucuses.

If you are a registered voter of another minor political party, please contact your respective party representative for information on the 2008 Election.

A caucus is a meeting of members of a political party to select delegates to a convention or register preferences for candidates running for office. Because nonpartisan voters by definition have no affiliation with a political party, they do not participate in political caucuses. For election dates relevant to nonpartisan voters, please view the 2008 Election Calendar.

I am able to vote in the Democratic caucus, however, no thanks.

It was exciting this morning.  My son who turned 18 was up bright and early this chilly Saturday morning to walk to the nearby elementary school where he was to exersize his right for the first time.  Luckily he went early and I have two sips of my coffee still hanging in my jams and get a phone call.  "It's been changed!"  Super, give me two minutes to put clothes on.

Like many other teenagers, he doesn't drive because of the prohibitive cost of insurance.  We bought him a car in 2004.  A brand new metallic blue Mustang but the deal is that he has to pay for the insurance.  No thanks he says, believe it or not.  Hub now drives the Mustang while Hub's 1990 Convertible gathers dust in the garage and saves the mileage. 

Long story short I pick up Son and drive him 2.5 miles to the new caucus location.  We both wonder out loud how other people who do not drive are going to make it to the caucus location.  When we got there (Son's high school), it was no wonder why the location was changed.  His overcrowded school of over 3500 students had a parking lot chock full where during the week it remains only half full (go back to the paragraph where kids don't normally drive here!)

I could see the excitement in him and almost wanted to participate but then again, I am not a sell out.

My thoughts:  I think Obama is going to surprise everyone and I think Paul will have his best showing yet.  Those are my only predictions.  Obama won many union endorsements and 9 casinos are allowing employees to caucus.  Paul has been the only one working the young crowd and energizing them for their vote.

I am proud of my son today.  He has been living for this day since he became a Bill Clinton supporter at a young age of 3 and I wanted to kick him out in the snow in his diaper :)  His political ideology has changed quite a bit in those 15 years and so has momma's.  She is neutral as Switzerland and hopes for real change in this country!

I got a call late Monday to be interviewed with a major cable news outlet.  Several people are kicking my butt (son included) because I declined the interview.

Why would I do such a thing?

First of all the inital conversation with the outlet did NOT start out well. 

• "We want you to take us to foreclosed homes that will have been on the market for a long time."  Problem is, REO's do NOT stay on the market long.  We are facing a turn into a seller's market in that micro market.  I could have dug out some 6+ month old stagnant REO listings but it would have been a challenge. 
• "We need to talk about the economic conditions and how Las Vegas is in recession."  We are NOT in recession other than our resale real estate market perhaps.  That's one teeny tiny fraction of our entire economic outlook.  Look at how our rental market has BUSTED out!  It is actually scary for those who are not considered prime renters.  When you see what is going on in the rental market, you can actually understand there is a large and very pent up demand for housing here.

Here is the deal.  All eyes are on Nevada tomorrow because of the caucus.  I do NOT need my words twisted to promote a sensational story to generate MORE new clients looking for 50 cents on the dollar deals.  Read the bolded sentence again.  I do have enough clients that do not understand that they are NOT going to get something cheap when there are already multiple offers on that property, repeat:  I don't need more! 

Many could say:  "Well Renee, you could have set the record straight."  No I couldn't, it was apparent during my conversations on what THEY wanted.  It wasn't the truth, my friends.  It was what fit their agenda.  My time was better spent doing real income generating activities for the day which included an offer on a listing and writing a contract for a buyer and executing searches for several more buyers this week.

When I saw the story, no doubt they found the right agent.  She was weeping because she was losing her home.  I really did weep inside for her because she was hurting.  I was also weeping for her because she was used and fit their agenda perfectly.    How many people did they have to sift through to find THEIR story.  Not necessarily the truth.  Sad.  I did not want to be a pawn to the elections or the candidates.  Nuff Said!

With that being told, I am expecting units sold to rise from late winter to spring & summer.  While the resale market still remains pitiful, new construction is moving along.  REO (bank owned, forclosed property) sector is beginning to see movement and absorption.

Las Vegas New Construction Units Sold:

• December 2007: 2261
• November 2007:  2643
• October 2007:  2752
• November 2006:  3006 
• December 2006:  3203

I remain optimistic in this sector with building permits being pulled so high.

Pendings are still rising 5 weeks post Las Vegas Foreclosure auctions!  Five weeks post we are looking at rising closings (+10 Units/one week) and pendings rose at a nice rate when I expected them to start leveling off (+66 Units/one week)!  Yes we are seeing listings rise (+51 units/one week).   I am almost wondering if this market may swing into a seller's market for one or two months early in 2008.  It is definitely the closest thing to a seller's market when you break down all the sub markets here.  

Here are current REO (bank owned, foreclosure) statistics:

• Listings (1/13/2008):  2261
• Under Contract (1/13/2008): 649
  
• Sold (12/5/2007-1/5/2008):  292
• Month's Inventory: 7.7

View last weeks stats here.

View Monthly stats here. 

I was only going to do these stats weekly for 6 weeks but it looks like I will continue to do them as long as the closings and pendings are rising steadily!  This is THE market to watch! 

This Rhodes Ranch Area resale market report was generated on January 13, 2008 (graph on bottom):

• Active Listings: 461
• Under Contract: 70
• Sold 12/5/2007-1/5/2008:  46
• Months Inventory: 10
• Low:  $114,000; High:  $3,490,000; Median:  266,910 (listing prices only)

Rental Market Report generated on January 13, 2008 (graph on top):

• Active Listings: 102
• Under Contract:  13
• Leased 12/5/2007-1/5/2008:  33
• Months Inventory:  3.1
  

Median List Price for an area rental:  $1295/month, Low:  $750, High:  $10000

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated January 6, 2008

Click here to view past market report graphs and active rental, resale and new construction 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.

www.LivingAtRhodesRanch.com

No one told me when I moved to the desert 10 years ago that it gets cold but it does and it pretty much has been since Christmas Eve!  I am sure you have heard the saying "but it's a dry heat."  Well there is a such thing as a dry cold too.  The wind HOWLS here in the winter and even though it can make it up to 50 or 60 degrees, if it is windy, it will go right through you!

Last Friday the storms rolled in and we saw the last of the rain in the middle of the night this past night.  I love storms because they bring snowpack in the mountains which brings water to the Valley in the spring and sustains the aquafers.

The beautiful thing with winter storms is that  you get to see the snow but you don't have to clean up after it like we did in Nebraska!  About once a year it will snow in the foothills (where we live) and we had a snow either in 2003 or 2004 that measured about 5"!!

Here are some pictures, enjoy!

Day after storm rolled in (Sat, Red Rock Canyon from my balcony):

Monday (day before storm subsided Red Rock Canyon from my backyard):

I took that pic at 7 AM.  By noon most had melted.  When I was taking my kids to school that morning I wish I had my camera with me.  Mt Potosi provided a beautiful backdrop to the Rhodes Ranch Community as I sat on Robindale (westbound) at Durango. 

Average rents increased last month, median rents up also.  Inventory has dipped and demand is very high in January traditionally.  Absorption increased slightly but spring demand will bring it back down more than likely.

Units Leased:

• December 2007:  1156 
• November 2007:  1452
• October 2007:  1501
• December 2006:  1052

Average Monthly Rental Rates:

• December 2007:  $1531 
• November 2007:  $1493
• October 2007:  $1511
• January 2007:  $1295

Median Monthly Rental Rates:

• December 2007:  $1295 
• November 2007:  $1200

Last Month's Report 

Obvious anticipation for rental homes, or maybe just housing period is driving the amount of building permits for multi family buildings up for the third month in a row!

Amount of Multi-Family Unit Permits Pulled:

• November 2007:  2106
• October 2007:  2733 
• September 2007:  2296 
• November 2006: 629

I am becoming concerned about speculation with the multi-family units in Las Vegas.  While loss of non-conforming mortgage products has weakened the Las Vegas Area real estate market, prices have slid backwards allowing more people to afford a home.  Will we end up with a glut of multi-family homes in the future?

Source for stats:  Home Builder's Research