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

I feel the need to pinch those cheeks!  My heart is breaking!

THIS is what it is all about, then they grow up :)

Guess who is going to sell real estate with me next week?!?!?!

Do you think she will be a better conversation starter than Vitto and Sal (my Italian Stallions?)

Stay tuned ...

Bank Owned Las Vegas Listings (AKA Foreclosures, REOs) are enjoying a HOT SELLER'S MARKET!  Inventory has risen dramatically (+1033 units), Pendings have dropped DRAMATICALLY  (-2286 units.) <this is not good> Closing data is up up UP at + 246 units.

Multiple offers are streaming in as banks continue to lower to fire and auction sale prices.

Current Listed Bank Owned Statistics:

• Listings (10/5/2007): 5226
• Under Contract (10/5/2007): 3802
• Sold 7/27-8/27/2008:  1958
  
• Absorption Rate:  2.8 Months

View Last Month's Report Here  

If you would like to buy a bank owned property call 702-966-2494, press option 1 and let us know what you are looking for.  We will set you up on a search to have the new listings emailed to you as soon as they hit the market!

All statistical information I used to create this report was obtained from GLVAR MLS.  Information Deemed Reliable but not Guaranteed.

Participating Homes have discounted the price by 5% between the dates of October 10-26!  This is GLVAR's largest home sale EVER!

With historically low interest rates, house prices at 2002 levels, incredible first time buyer down payment assistance incentives (no, they aren't gone,) and tax incentives:  it doesn't hurt to see if you can BUY YOUR OWN HOME FOR LESS THAN THE PRICE OF RENTING the one you are currently in!

Click here to see the homes that are on sale in the Las Vegas, Henderson, North Las Vegas and Boulder City areas.

Call the Burrows Group at 702-966-2494 to see these homes if you are already qualified for a mortgage or an all cash buyer.

If you aren't quite ready yet, not pre-qualified yet or still want to shop just check out our Home Buyer's Scouting Report.  You can view homes on the privacy of your computer with no hassles with complete information such as nearby schools, shopping, hospitals, addresses, maps and directions:

The Las Vegas Valley has seen some major market stabilization in the last half year.  Absorption for September 2008 is a healthy 7.2 months of inventory (compare it to 22.5 months inventory in Nov/Dec!)  Be warned, the market as a whole is considered a "neutral market" ~ not a buyer's market, not a seller's market.  Some micro-markets (ie, Bank Owned, REO) are extreme seller's markets where there is no mercy to the buyers, multiple offers are the norm! 

Here is a snapshot of valley listings:

(Nov/Dec 2007)  All SFR, Townhome, Condo Listings:

• Listings (12/9/2007):  25691
• Under Contract (12/9/2007):  2304
• Sold November:  1137
• Month's Inventory:  22.5

(Jan/Feb 2008)  All SFR, Townhome, Condo Listings:

• Listings (2/10/2008):  23665
• Under Contract (2/10/2008):  3107
• Sold January 2008:  1164
• Month's Inventory:  20.3

(Feb/Mar 2008)  All SFR, Townhome, Condo Listings:

• Listings (3/20/2008):  22,644
• Under Contract (3/20/2008):  4516
• Sold February 2008:  1318
• Month's Inventory:  17.2

(Mar/April 2008)  All SFR, Townhome, Condo Listings:

• Listings (4/16/2008):  21983
• Under Contract (4/16/2008):  5390   
• Sold March 2008:  1747
• Month's Inventory:  12.6 

(April/May 2008)  All SFR, Townhome, Condo Listings:

• Listings (5/13/2008):  21236
• Under Contract (5/13/2008):  6283
• Sold April 2008:  2063
• Month's Inventory:  10.3

(May/June 2008)  All SFR, Townhome, Condo Listings:

• Listings (6/12/2008):  20674
• Under Contract (6/12/2008):  6847
• Sold May 2008:  2418
• Month's Inventory:  8.6

(June/July 2008)  All SFR, Townhome, Condo Listings:

• Listings (7/15/2008):  20744
• Under Contract (7/15/2008):  7092
• Sold June 2008:  2588
• Month's Inventory:  8.0

(July/Aug 2008)  All SFR, Townhome, Condo Listings:

• Listings (8/16/2008):  20559
• Under Contract (8/16/2008):  7070
• Sold July 2008:  3034
• Month's Inventory:  6.8

(August/Sept 2008)  All SFR, Townhome, Condo Listings:

• Listings (10/5/2008):  20795
• Under Contract (10/5/2008):  6793
• Sold August 2008:  2893
• Month's Inventory:  7.2

In a Little Under One Month:  Listings are up 236 units, pendings are down 277 units, closings are down 141 units and absorption is down up slightly.  NOTE:  I was a bit late in pulling these numbers.  Pendings were hovering between 7200-7300 and exceeded 7300 a couple of days in mid September.  I will be pulling numbers around mid month for the next report to get a more accurate read on the market.  September's numbers are exciting as far as sales go but bendings are having a hard time rebounding from the end of the month closing crunch.  Probably more than likely due to economic fear.

Last month I expected the pendings to level off.  They did for a couple of weeks after my report and then seller assisted non profit down payment assistance w/ FHA loans was ended with a deadline:  October 1, 2008.  Since mid-month we have watched pendings to rise and there has been no interruption to the rise with the typical end of month closes.  Several lenders have called that buyers are to be in an accepted contract by August 29, 2008 in order to fund, close and record by September 30, 2008.

I do think September 2008 will be one of the best month's in the Las Vegas Valley for total units closed.  Pendings should decrease slightly with those units closing towards the end of September 2008.  GLVAR will be running a housing sale where participating homes will shave 10% off their listing price in October.  I expect pendings to remain level until this mid October event.  I do expect the pendings to rise slightly until the beginning of December.

Last Month's Report

If you are looking to buy a home in the Las Vegas, Enterprise, Paradise, Henderson Area, please call us for a free buyer's representation consultation today at:  702-966-2494.  Press option 1

I saw it first on Mara Hawks' blog:  A Chicago area sheriff refusing to evict tenants after foreclosure.

While this isn't a complete solution to the problem, the hamsters that run the wheels in my head are turning.  It can be determined MONTHS prior to foreclosure through a process called a BPO (Broker's Price Opinion) that the home is occupied by renters.

Much of this confusion can be taken care of in advance with states creating new (EMERGENCY) laws in regards to homes in default and renters. 

Renters currently MUST STILL pay a landlord who defaults in our state.  We need to demand that the law changes that the servicing company can collect the rents on a property in default and keep it in an escrow account until the trustee's sale just in case they can bring the mortgage current.  We all know there are ways to stall foreclosure so for the stalling landlords wanting to collect a couple of extra checks, this could keep it out of their hands.

After the trustee's sale is held, the money is released to the noteholders.  Instead of throwing another property on the market, they continue to rent the property for 2-3 more months per the lease terms.  After that 2-3 months they must determine fair market value and the tenant can sign a new lease on the noteholder's terms.

Of course the noteholders and banks and servicing companies do NOT want to hold assets so they would have to form relationships with permitted property managers to manage the property.

So, problem solved, money is still going to be coming in to the noteholders for the property, inventory can decrease and the real estate markets can stabilize through this turmoil.  Holding costs will be minimized, asset fire sales which undercuts EVERYONE's property values can slow down and then maybe we can try to solve world peace :)

This Rhodes Ranch Area resale market report was generated on October 5, 2008  (graph on bottom):  

• Active Listings: 410
• Under Contract: 128
• Sold 8/27-9/27/2008:  79
• Months Inventory: 5.2
• Low:  $69900; High:  $3,490,000; Median:  $199900(listing prices only)

Rental Market Report generated on October 5, 2008 (graph on top):

• Active Listings: 93
  Under Contract: 15
• Leased 8/27-9/27/2008:  61
• Months Inventory:  1.5

Median List Price for an area rental:  $1395/month, Low:  $850, High:  $5000

Note:  The resale market is losing steam and swinging back into a balanced market.  The rental market has gained some ground with a lower absorption rate since the last report.

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated August 16, 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:  http://www.livingatrhodesranch.com/

If you would like to buy, rent or sell a home in the Rhodes Ranch Area, please call 702-966-2494.  Press 1 if you would like to buy, press 2 if you would like to rent, press 0 if you would like to sell!

The absorption rate for Las Vegas Valley Area Short Sales had a slight dip in July/August 2008.  Absorption still remains high and just slightly under the 2 year mark.  Inventory has risen at a slower pace than normal (+184 units).  Pending units has also risen dropped by -154 units.    Solds have  increased by +50 units. 

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

Short Sale Synopsis:

• Listings 10/5/2008: 6483
• Pending 10/5/2008: 2088
• Closed 7/27-8/27/2008: 283
• Month's Inventory: 22.9 (=1.9 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.  

Read here for last month's report on Las Vegas Area Short Sales.

August proved to be a disappointing month for Las Vegas Area landlords as the numbers didn't peak as they normally do year over year in August.  Renters are becoming buyers finally as prices drop!

Units Leased:

• August 2008:  1719
• July 2008:  1697
• June 2008 1564
• May 2008:  1554
• April 2008:  1536
• March 2008:  1531 
• February 2008:  1632 
• January 2008:  1500 
• December 2007:  1156 
  November 2007:  1452
  October 2007:  1501
  December 2006:  1052
• January 2007:  1262 

Average Monthly Rental Rates:

• August 2008:  $1464
• July 2008:  $1510
• June 2008:  $1503
• May 2008:  $1483
• April 2008:  $1467
• March 2008:  1342 
• February 2008:  2788 
• January 2008:  $1500 
• December 2007:  $1531 
• November 2007:  $1493
• October 2007:  $1511
• January 2007:  $1295

Median Monthly Rental Rates:

• August 2008:  $1250
• July 2008:  $1250
• June 2008:  $1275
• May 2008:  $1250
• April 2008:  $1250
• March 2008:  1200
• February 2008:  1200 
• January 2008:  $1200 
• December 2007:  $1295 
• November 2007:  $1200

Absorption Rate is stable from last month and remains a Landlord's Market at 2.5 months of inventory in the Rental Sector for the Las Vegas Valley. 

How to check to see if the home you are renting is in default

Last Month's Report 

If you would like to rent a home in the Las Vegas Area please call 702-966-2494 and press option 2 to speak with a rental specialist.

Here is the information for registration:

• October 4 Postmark for Mail in Registrations
• October 14 for in person registrations

If you are already registered to vote, you can view the following information:

• Voting History
• Polling Location
• Elected Officials (this is great if you want to find out who to contact in regards to legislation)

Early Voting Information:  Includes places and schedule of early voting in case you cannot make it to the polls on November 4, 2008!

This election is important.  Even if you reject the Democrat or Republican candidates you can find a host of third party alternatives on the Nevada ballot or voice your opinion as "none of the above".

There are also plenty of ballot initiatives that may have an impact on your personal lives. 

Whatever your political opinion is, make sure you go out to have your voice heard!