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

I think we need to hold the phone in regards to property values falling because of lack of Down Payment Assistance (will be referred to as DPA from now on) for FHA Loans. 

Average sold prices declined June 2007-June 2008:  -37.4% for SFR and -32.8 for Condo/Townhomes.

With ever changing underwriting guidelines and a huge avalanche of foreclosures happening and in the future, I cannot predict that we are at the bottom.  If there isn't money to be lent, then there are no houses to be sold, right?

Let me get back to the story at hand. 

Let me present to you:

Exhibit A Valley Wide:  November 2007, 22.5 months inventory, SFR median at $273,500.  June 2008, 8 month's inventory, SFR median $225,000.  Inventory is a little over 1/3 of what it was.  This is still a buyer's market, barely.

Exhibit B 2008 REO (Foreclosure) Listings:  November 2007, 9.5 months inventory.  June 2008, 2.8 months inventory.  Inventory is down to 1/3 of what it was.  This is a seller's market.

Let's go even more local!

Exhibit C Rhodes Ranch Area:  November 2007, 28.3 months inventory with a median price of $285000.  July 2008, 5.1 month's inventory with a median price of $220,000. Inventory is down to 1/5 of what it was.  This is a neutral (almost seller's) market.

RE 101 with submitting and negotiating offers is all about knowing what your market will and will not bear.  Back in November do you think incentives were being thrown to buyers left and right to reduce inventory?  Heck yea!!  You could ask for a lower price, DPA, Closing Costs (will be referred to as cc's from now on.) What do you think has happened in June?  We have a seller's market in some areas which is resulting in bidding wars (drawing the price 10-20% higher in some cases,) seller's not willing to pay cc's (or dpa for that matter,) etc.

Here is what I am getting at:  the loss of DPA in the LV area will NOT be what hinders values because DPA doesn't EXIST in some of the hotter sub-markets.

Let's take one Rhodes Ranch Area Subdivision.  Nine sales since January 1, 2008:

• Sale 1:  REO; List Price at Sale:  244,900; Sale Price:  220000; Conventional Loan, $8840 Closing Costs; Close Date 1/22/2008
• Sale 2:  REO; List Price at Sale:   249,900; Sale Price: 225000; Conventional Loan, $0 Closing Costs; Close Date:  2/26/2008
• Sale 3:  REO, List Price at Sale:  175,000; Sale Price:  180,000; Conventional Loan; $0 Closing Costs; Close Date 4/4/2008
• Sale 4:  REO; List Price at Sale:  170,000; Sale Price:  176,000; Conventional Loan; $0 Closing Costs; Close Date 6/11/2008
• Sale 5:  REO; List Price at Sale:  209,500; Sale Price:  205000, Conventional Loan; $7000 Closing Costs; Close Date 6/12/2008
• Sale 6:  Non Distressed Seller Sale; List Price at Sale:  265,000; Sale Price:  262,500, Conventional Loan, $0 Closing Costs, Close Date:  6/16/2008
• Sale 7:  REO, List Price at Sale:  186,900; Sale Price:  190000, Conventional Loan; $0 Closing Costs, Close Date 6/30/2008
• Sale 8:  REO; List Price at Sale:  206,900; Sale Price:  221,900; All Cash, $0 Closing Costs, Close Date 6/30/2008
• Sale 9:  Non Distressed Seller Sale; List Price at Sale:  289,000; Sale Price:  255,000, Cash, $0 Closing Costs, Close Date:  7/16/2008

Now I picked this subdivision because it there were a ton of REO (seller's market) in the Rhodes Ranch area (neutral market).  I categorized it by date.  Notice how only ONE loan out of 7 received closing costs and it was conventional?  Notice how the later the dates we have more all cash transactions?  Notice how REO prices are being bid up?  Notice how non distressed sales have increased and they were pressured into lowering their prices to reasonable prices?

Now areas where there is more inventory, yes, buyers are getting some DPA and closing costs.  In areas that are pressured, not so much.

I don't think we need to worry about lack of non-profit DPA killing our market.  If our market moves backwards it will be from careless speculators letting their so called "investments" go back to the bank producing more inventory pressure.  It will be from economic conditions where people cannot afford homes due to energy prices or tourism drops.

That's what we need to get all worked up about.  DPA is just a small factor.

This Rhodes Ranch Area resale market report was generated on July 25, 2008  (graph on bottom):  

• Active Listings: 375
• Under Contract: 196
• Sold 6/24-7/24/2008:  81
• Months Inventory: 4.62
• Low:  $74900; High:  $3,490,000; Median:  219000(listing prices only)

Rental Market Report generated on July 25, 2008 (graph on top):

• Active Listings: 65
  Under Contract: 20
• Leased 6/24-7/24/2008:  35
• Months Inventory:  1.9

Median List Price for an area rental:  $1295/month, Low:  $785, High:  $7000

Note:  THE RESALE MARKET IS NOW A STABLE-SELLER'S MARKET, THE RENTAL MARKET REMAINS HOT WITH BARELY ANY INVENTORY!  Inventory rose slightly in both the rental and resale market and there is plenty of new construction in this area.  Median prices went up in both rental and resale market in two weeks.

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated July 3, 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!

FYI:  I usually do this with graphs but for some reason I am having a hard time uploading them to Active Rain right now!  Maybe l8er!

Rental units leased are still increasing year to year since 2006.  August is the hottest (literally and figuratively) rental month so we shall see if the trend continues the next two months!

Units Leased:

• 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:

• 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:

• 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 2.3 months of inventory in the Rental Sector for the Las Vegas Valley.  Maybe we will see a stabilizing in the rental market coming up.  It seems to be softening every month!

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.

Economic Conditions for the Las Vegas Valley June 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (7/25/2008): Total Listings 20,918; Short Sales: 6087, 29% of all listings; Bank Owned Listings: 4928, 23% of all listings. Short sale and REO listings consume 53% of total listings
• New Home Sales (June 2008, units sold): 777 Year Change -44.7% (excl condo conversions, highrises)
• New Home Sales (June 2008, median price): $258,990 Year Change -17.6% (excl condo conversions, highrises)
• Existing Home Sales (June 2008, units sold): 2731 Year Change +12.8%
• Existing Home Sales (June 2008, median price): $218000 Year Change: -22.1%
• New Home Permits (June 2008): 884 Year Change -34.4%
• Rental Rate (MLS Monthly Average June 2008): $1503/month 

My analysis: Resale listings are stable and pendings (which have been rising at a quick pace) are stabilizing, absorption rate is turning healthy.  REO listings are in a seller's market.  The Rental Market is still a landlord's market and August is traditionally the hottest month (literally and figuratively) for rental property.  Fire sale prices remain attractive to both long term investors and buyers tired of paying rent.  Distressed listings (foreclosures and short sales) are 53% of total listings.

New Residents/Employment Conditions:

• New Residents (June 2008): 5445, Year Change -16.4%
• Total Employment (May 2008): 931,800 Year Change -0.5%
• Unemployment Rate (May 2008) 5.9%, Year Change +40.5%

My analysis: The rising unemployment rate concerns me.  New resident count being down second month in a row so much is alarming.  Should wait to see if this is a trend.  These stats are from the DMV and drivers license counts so  ???

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (May 2008): 3,989,683 Year Change -4.7%
• Gaming Revenue (May 2008): $810,059,378, Year Change -16.4%
• Visitor Volume (May 2008): 3,784,855, Year Change +0.4%
• Convention Attendance (May 2008): 509,482, Year Change  +0.7%
• Hotel/Motel Occupancy (May 2008): 89.7% Year Change -2.6%

My analysis: Only slight yearly changes.  The economic conditions need to be watched carefully as rising gas prices and flight cuts may affect tourism in the valley.

Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation

The Nevada Millenium Scholarship was designed and enacted in 1999 to keep Nevada's brightest students in the Nevada higher learning institutions.  Eligibility requirements are currently defined in the NRS code 316.911-938

For 2008:

• Must attend a Nevada high school for two years or more as defined by NV Board of Regents
• Carry a weighted or unweighted GPA of 3.25 or better
• Must pass ALL areas of High School Proficiency Exam

The Millenium Scholarship is easy to obtain if all criteria in the clickable link above is met.  Your high school passes the information to the treasurer's office.  The treasurer's office mails out the packet mid July.  You follow the instructions in the packed to claim your award.

The Dollar Value of the Millenium Scholarship:

• $40 per credit hour NSHE Community College Lower Division
• $60 per credit hour NSHE Community College Higher Division
• $80 per credit hour University 12 hour enrollment (12 hour max)
• $40 per credit Hour University 9-11 hour enrollment

For More Information or to find eligible schools:  Nevada Treasurer's Office

This scholarship pays for about 3/4 of tuition when enrolled full time and does not cover books.  It sure does help defray the costs though!

Eligibility Maintenance for scholarship:

• 2.6 first semester
• 2.75 each additional semester
• GPA is not cumulative, just semester to semester

Maximum lifetime award:  6 years and $10000

According to the NV Treasurer's office this program has been a success, the amount of NV area student's enrollment has doubled since the inception!

Invest in a condo/townhome or house for your college student:

If you are interested in buying a Kiddie Condo (thanks Jeff) and need assistance to locate that perfect condo or home for your college student in the CSN (College of Southern Nevada) or UNLV (University of Las Vegas Nevada) area please call 702-966-2494 and press 1 to talk to one of our buyer's representatives.  For your Kiddie Condo FHA financing options call:  (888) 835-1663 to speak with Jeff Belonger.

Alright, inquiry after inquiry on probate listings and I am wondering what's up.

Then I am flipping through the channels and I see it plain as day.  Buy probate properties for pennies on the dollar and resell for ginormous profits AND the ancient tbird in the garage for 2K and resell it for 19K.

Ain't happenin for the ones listed in the MLS.  Probate listings in our MLS account for 1.1% of all listings.  All probate listings I have been involved on get bid up to almost market value also!  That way when it gets to the court, no one will bid it up.

Probate Lawyers must submit current appraisals to the court also for approval.

SOOOOOOOOO when something seems to good to be true, it usually is.

If you are a homeowner and want to avoid probate for your heirs, you may want to consider hiring an attorney and talking about creating a living trust.

If you are forced to sell a property in the Las Vegas Area that is an estate, probate or living trust, feel free 702-966-2494 and press option 0.  Renee Burrows is an experienced probate/estate real estate agent (Realtor) who has a proven plan market and sell your inherited Las Vegas area property for top dollar (and quick).

This is a tutorial for renters who are curious about the foreclosure status of the property you are renting.

With the wave of foreclosures in the Las Vegas Area, many renters are concerned if the property they are renting is in good standing or about ready to get foreclosed on.  Even if you have been paying your rent or even have a lease option on the property, it is not a bad idea to make it a habit to check on a monthly basis.

It is also a good idea to check prior to renting a home!

Step 1:  Go to the Clark County Assessor's office and click on search, under real property records click "address".  The reason why you may not want to search by name is that many investors hold title in an LLC.

Step 2:  Fill in street number and street name.  Make sure you check the box next to "show current parcel number record"

Step 3:  Many addresses show up so write down the parcel number next to the address:

Step 4:  Go to the Clark County Recorder Home page for "advanced search". (this info has changed, go to that link and follow the directions from step 4 and on) Enter the Parcel Number WITHOUT the dashes.  Click on "detail data":

Step 5:  Look for the following: 

Breach or Notice of Default:  Owner is in Default of their loan.  Foreclosure may or may not be in the works.  General rule of thumb, if house is going to be foreclosed on, it will happen in the next 3-6 months from recorded date:

Notice of Sale or Notice of Trustee Sale:  Foreclosure is imminent.  Usually 30-60 days from recorded date:

Trustee Deed:  House is foreclosed on:

If your rental home is in default, please consult a real estate attorney prior to breaking a lease or stopping your rental payments!

This Rhodes Ranch Area resale market report was generated on July 15, 2008  (graph on bottom):  

• Active Listings: 373
• Under Contract: 210
• Sold 6/7-7/7/2008:  73
• Months Inventory: 5.1
• Low:  $84900; High:  $3,490,000; Median:  220000(listing prices only)

Rental Market Report generated on July 15, 2008 (graph on top):

• Active Listings: 67
  Under Contract: 14
• Leased 6/7-7/7/2008:  37
• Months Inventory:  1.8

Median List Price for an area rental:  $1300/month, Low:  $795, High:  $7000

Note:  THE RESALE MARKET IS NOW A STABLE-SELLER'S MARKET, THE RENTAL MARKET REMAINS HOT WITH BARELY ANY INVENTORY!  Inventory rose slightly in both the rental and resale market and there is plenty of new construction in this area.  Median prices went up in both rental and resale market in two weeks.

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated July 3, 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 Las Vegas Valley has seen some major market stabilization in the last half year.  Absorption is a healthy 8 months of inventory (compare it to 22.5 months inventory in Nov/Dec!)

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

In a Little Under One Month:  Listings are up 70 units, pendings are up 245 units, closings are up 170 units and absorption is down 0.6 months.  We are only seeing a 37.8% 30 day pending to close ratio right now.  

I expect pendings to level off in the next month after the explosion of the last 6 months.

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

We have seen the Las Vegas, NV high rise real estate market as a challenged market with an abundance of resale inventory.  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:

• 299 Listed 7/3/2008
• 18 Under Contract 7/3/2008
• 68 Leased 5/25-6/25/2008
• 4.4 Months Inventory

Resales:

• 826 Listed 7/3/2008
• 55 Under Contract 7/3/2008
• 12 Closed 5/25-6/25/2008
• 68.8 Months Inventory (=5.7 years)
  

Rental inventory has been slowly decreasing month to month.  Resale inventory has doubled in last month.  Read last month's report here.

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.  It is also involved w/ construction defect litigation lawsuit so expect further financing challenges with this property.

We are also seeing a noticeable rise in foreclosures in Soho as adjustable loans adjust.  Soho is located in the Arts district between the strip and downtown.

If you are thinking about buying or renting a high rise condominimum in the Las Vegas area, please call 702-966-2494.  Press 1 if you are a buyer or press 2 if you are a renter.

Bank Owned Las Vegas Listings (AKA Foreclosures, REOs) are enjoying a HOT SELLER'S MARKET!  Inventory has risen dramatically (+503 units), Pendings have risen DRAMATICALLY  (+199 units.) Closing data is up up UP at + 268 units.

Inventory holding steady.  Absorption rate is 2.8 months. 

Current Listed Bank Owned Statistics:

• Listings (7/3/2007): 4633
• Under Contract (7/3/2007): 3496
• Sold 5/25-6/25/2008:  1680
  
• 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.

The absorption rate for Las Vegas Short Sales has remained stable from April - June 2008.  Inventory has risen dramatically (+272 units).  Pending units has also risen dramatically by +192 units.  This is because the MLS board is REQUIRING agents to change status with an offer and make it contingent on bank approval.  Many under contract are no where near bank approval.  Solds have remained stable and increased by +8 units.  Maybe the banks are finally getting their act together to get these approved!

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

Short Sale Synopsis:

• Listings 7/3/2008: 5789
• Pending 7/3/2008: 2100
• Closed 5/25-6/25/2008: 180
• Month's Inventory: 32.2 (=2.7 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.

• Active Listings: 372
• Under Contract: 204
• Sold 5/25-6/25/2008:  85
• Months Inventory: 4.4
• Low:  $82900; High:  $3,490,000; Median:  219000(listing prices only)

Rental Market Report generated on July 3, 2008 (graph on top):

• Active Listings: 57
  Under Contract: 14
• Leased 5/25-6/25/2008:  41
• Months Inventory:  1.4

Median List Price for an area rental:  $1250/month, Low:  $795, High:  $7000

Note:  THE RESALE MARKET IS NOW A STABLE-SELLER'S MARKET, THE RENTAL MARKET REMAINS HOT WITH BARELY ANY INVENTORY!

Information from GLVAR is deemed reliable but not guaranteed.

Last Market Report Generated June 12, 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!

Economic Conditions for the Las Vegas Valley May 2008

Housing Conditions:

• Foreclosure/Short Sale Listings (7/3/2008): Total Listings 20,606; Short Sales: 5589, 28% of all listings; Bank Owned Listings: 4633, 22% of all listings. Short sale and REO listings consume 50.5% of total listings
• New Home Sales (May 2008, units sold): 734 Year Change -45.7% (excl condo conversions, highrises)
• New Home Sales (May 2008, median price): $258,888 Year Change -16.5% (excl condo conversions, highrises)
• Existing Home Sales (May 2008, units sold): 2606 Year Change +0.7%
• Existing Home Sales (May 2008, median price): $225,000 Year Change: -19.1%
• New Home Permits (May 2008): 740 Year Change -57.1%
• Rental Rate (MLS Monthly Average May 2008): $1483/month 

My analysis: Resale listings are down and pendings are up sharply, absorption rate is turning healthy.  REO listings are in a seller's market.  The Rental Market is turning.  Fire sale prices remain attractive to both long term investors and buyers tired of paying rent.  Distressed listings (foreclosures and short sales) are 47.7% of total listings.

New Residents/Employment Conditions:

• New Residents (May 2008): 4612, Year Change -22.7%
• Total Employment (May 2008): 931,800 Year Change -0.5%
• Unemployment Rate (May 2008) 5.9%, Year Change +40.5%

My analysis: The rising unemployment rate concerns me.  New resident count being down so much is alarming.  Should wait to see if this is a trend.

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (April 2008): 3,777,868 Year Change -5.5%
• Gaming Revenue (April 2008): $849,974,366, Year Change -4.8%
• Visitor Volume (April 2008): 3,668,462, Year Change -1.9%
• Convention Attendance (April 2008): 538,316, Year Change  +3.9%
• Hotel/Motel Occupancy (April 2008): 90% Year Change -4.1%

My analysis: Only slight yearly changes.  The economic conditions need to be watched carefully as rising gas prices and flight cuts may affect tourism in the valley.

Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation