Nevada Real Estate >> Las Vegas Real Estate Specialist: October 2009

For my buyers held up in short sales, there's hope.  Cross your fingers that it passes! 

Mountain's Edge September 2009 Real Estate Resale Market Report:

• Listings (10/15/2009):  159
• Under Contract (10/15/2009):  357
• Sold September 2009:  84
• Month's Inventory:  1.8

Since Last Month:  Listings are DOWN -17, Pendings are DOWN -2, Sales are UP +21

Last Month's Mountain's Edge Real Estate Market Report

Mountain's Edge is a newer community so many of the listings are short sales or bank owned.

Silverado Ranch September 2009 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (10/16/2009):  136
• Under Contract (10/16/2009):  282
• Sold September 2009:  69
• Month's Inventory:  2

Since last month:  Listings are UP +9, Under Contract NO CHANGE, Sales are UP +1

Read Last Month's Report Here

Housing prices have been in a free fall in most sectors of the nation for a long while, much longer than any real estate expert had predicted. When mortgage financing is hard to come by and supply far outpaces demand that's usually what will follow. The weak economy is also a major contributor to this. Lately, though, prices have begun to stabilize across the colorful map.

Southern Nevada - Las Vegas, Henderson, Green Valley, Summerlin, Southern Highlands, Pahrump, Mountains Edge and Mesquite among its communities - is a good example of that. The lower end of the marketplace is rather busy here as investors and first-time home buyers do their thing and pick up bargain properties. The statistics are somewhat slanted because of the proportionally high impact of this particular segment. The mid-range and upper end in Las Vegas are still quite soft due to lack of demand, as expected, and difficulties in securing home loan approvals.

In a housing study Goldman Sachs just published it says that home prices have been nationally steered higher by 5% on average on account of government incentives and interventions.The number can be debated until mouths foam, but the fact right now is that Washington is largely making the housing market what it is. Mortgage money is kept affordable by the Fed buying just about everything that has a mortgage bond stamp on it. Then there are all these home loan modification and rescue plans, with eye-catching acronyms, that most consumers are liable to lose track of. But regardless, they at least slow down the supply of homes being foreclosed and dropped on the already saturated marketplace. The first-time home buyer tax credit has given a nice boost to the demand side. And by the way, it looks as if a similar program will come out of Congress in a little bit to replace it.  

Las Vegas metropolitan area - as are many other markets throughout - is still grappling with many challenges in the mortgage and real estate arenas. It would be in much worse shape, though, without Uncle Sam's charity and efforts. Eventually it has to stand on its own again, and it will. It's already taking some wobbly steps using crutches toward that goal, but obviously needs more time to fully recover.  

Photo by RyanGWU82

 

 

A lot of chatter about the First Time Homebuyers Tax Credit

 

 

Let's start with the basics about the First Time Homebuyer's Tax Credit....

•    Yes, it has helped some that might not have bought.
  

•    It has given people money after buying to help fix up their homes, pay off debt, or save for emergencies.

•    And ___________. ...  wait, I really can't think of anything else.

 

Has the Tax Credit been a mechanism that has artificially stimulated the economy?  Some will say yes and some will say no. I will be one of those yes people.

 

 

People, we are printing money at record paces that our checkbooks will never be able to pay off.  The ATM has crashed…..

 

 

 

From day one, I have been against the tax credit for the most part. I have had my reasons, several of which are starting to show now than later. Yes, it has helped home buyers and it has helped the economy some. But is the damage greater than the good that it was suppose to have done?  Yes and there are now news reports giving startling facts. Here is an excellent article from USA Today.. - Home buyer tax credit fraud called 'disturbing'   Here are 3 disturbing facts mentioned in the article....

 

 

 

 

 

 

**Costing the government $10 billion.  I don't think the government are the ones that write the checks from their own bank accounts. Shouldn't it say, this will cost the American Public $10 billion?***

 

 

 

 

 

 

***Gee, an additional $17 billion.  I thought the first time homebuyers tax credit was suppose to stimulate the economy, not weaken it. People, who pays for this?  We the tax payer.***

 

 

 

 

 

 

***Apparently our kids haven't learned much in school about fraud. Could these be are next wave of harden criminals?  And a 4 year old?  I would have to assume that a parent filed that on behalf of their child.***

 

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Here is another article by Jackie Calmes with similar answers, but that she also shares some more cold facts that seem scary to me. Home tax credit audit shows abuses -

 

 

 

 

 

 

 

***Claimed the tax credit, yet didn't buy a house yet.  I wrote about this in May of 2009. Fraud Alert on the First Time Homebuyer Tax Credit - Do you chance it? - There have been some realtors that basically told me that nobody would commit fraud on this. I even had one realtor tell me that they had a woman that worked for the IRS that got her money before she bought her house. I truly respect this realtor also. But he was very protecting of his buyer, stating that she would never commit fraud because she worked for the IRS. People, I don't care who you work for, greed will get the best of you at times.***

 

 

 

 

 

 

 

 

***Now the government is saying that we still have a weakness in the housing market.  Yet they will go on and get the media to state that the recession is over?  Jim Crawford brought this to our attention in his blog post, I'm so happy the recession is over! Aren't you? - I am tired of misinformation and politics. Will we ever get the truth?  People, I think we don't need to hear it, because the writing is on the wall. Have we forgotten how to read?  Or do we need people to tell us what we want to hear?  hhhhmmmm***

 

 

 

 

 

 

 

 

***Imagine that, a politician needing to be re-elected again and possible trying to push something that might actually hurt our economy instead of helping it.  now, this is based on my opinion, but I didn't see this tax credit getting us out of the mess or even truly helping the housing market for the most part.***

 

 

 

Conclusion : What crawls under my skin is not only do the lawmakers on Capital Hill want to extend the Tax Credit, but that they want to increase it to $15,000.  Why?  What is really wrong with $8,000??? And why can't we go back to the re-payment schedule that was applied in the very first tax credit, when the $7,500 first time homebuyers tax credit was introduced.  Seriously, what is so wrong with this? Free is not free.  One way or another, we will be paying for this anyhow.  Some of you scream about people having skin in the game, when buying a home.  Yet some of those same people don't seem to be screaming about having skin in paying back the tax credit.

What about those politicians that just want to sign bills and pass them, just for the sake of getting votes for when re-election time comes around. Yet these same people don't take the time to do proper studies to see if this is actually working as planned. Is this all smoke and mirrors for the most part?  Do many of you actually pay attention to this? Or do we just go along with the crowd, because it seems better than what we currently have?  We need to think about this and not just roll over in our graves, which could be sooner than later. What say thee?

 

 

 

 

                    

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2009 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Pretty well thought idea that legislators should mull over!  Comments disabled, please see Richard's post to comment!

Las Vegas Area October 15, 2009 Active Listings by Type

• REO:  2144 (21%)
• Short Sale:  4591 (44%)
• All Other:  3636 (35%)

September 2009 Sales by Type:

• REO:  2869 (69%)
• Short Sale:  592 (14%)
• Other:  707 (17%)

This is just a guide for consumers to see what types of properties are closing vs what is listed.  Currently we have the most closes in the REO sector and the least inventory in the REO sector and it is an extreme seller's market.

Click here to see last month's Listing and Sales Type Report

Click here to view the most recent stats (scroll to bottom)

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Siena (Sun Colony, not a true "Sun City" but appropriate age restricted community for this report) is located in the Summerlin Area of Las Vegas, NV (zip 89135).  There are 2029 Homes in Siena ranging from 1034-3875 Square Feet.  Community Amenities Include:  Guard Gated, Gommunity Golf, Pool, Tennis, Gym, Clubhouse.

Siena Sun Colony Market Report:

Listings (10/15/2009):  45

Under Contract (10/15/2009):  26

Sold September 2009:  12

Absorption Rate: 3.8 Months of Inventory

Siena Sun Colony Summerlin is currently enjoying a seller's market.

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience.  If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's Las Vegas - Henderson - North Las Vegas Sun Cities Market Report Please Click Here!

For Most Current Sun Cities Market Report Click Here

This one kind of goes along with "When Can We Close?" from a couple of years ago and another "How Long Does It Take To Close Today?" from a few weeks ago. It is further inspired by feedback from many agents and clients over the last many years.

First it is important to understand the difference between a pre-approval, an approval and a clear-to-close. That explanation is given here at "Pre-Approval, Approval, Conditional, Cleared - What the ____?!" Let me augment that by saying you, the home buyer, have a lot of power over how certain your pre-approval is.

Pre-approvals are generally good for 30 days. This almost always depends on lender guidelines. To make sure you are getting a real pre-approval listen to how long it takes to get your pre-approval and to what you supply to the loan officer before you receive your pre-qualification letter.

Recently I received a call from one of the largest banks in the world and the phone call started by telling me I had been pre-approved for a very low interest rate to refinance my current home. When I asked the phone bank operator to send me the pre-qualification he said he would have to ask just a few questions first. There was probably only a pre-qualification based on my credit score and estimated property value. Worth nothing.

A real pre-qualification can take as little as a couple of hours and a seasoned loan professional can easily guide you through the process. Anyone who gives you a pre-qualification over the phone without having seen any evidence to prove what you have said is giving you a decision based on credit and payment history with your statements only. This type of pre-qualification is what gives loan officers a bad name.

If you are thinking about going shopping for a new home you should get pre-qualified before you even begin. Unless you have significant income, strong credit and payment history and plenty of cash you need to know what the lender is going to offer based on your specific qualifications. The loan officer will also be able to tell you which property types and costs are okay for which loan products.

To sum it up - get qualified first then start shopping. Otherwise you may be wasting your time and the time of others as well.

 

 

Is A Home Inspection Really Worth It?

....You're darn skippy it is!  My friend, Lenn Harley shares valid points regarding the home inspection process in this blog.  She is astutely aware that a home inspection not only protects the buyer but, everyone involved in the transaction.  

 

 

Would you allow your buyers to turn down an inspection?  I certainly do hope not--even new construction properties have issues.  

One recent example of a new construction inspection proving that the cost was worth thousands--the HVAC had been installed erroneously and supposedly, the manner in which it had been installed was sending harmful gases back into the home, rather than to the outdoors.  Had the buyer not had the home inspection, the results could have proven to be quite costly--not only monetarily but, in health/life! 

 

Desert Shores September 2009 Real Estate Resale Market Report (Homes For Sale/Under Contract/Sold):

• Listings (10/15/2009):  71
• Under Contract (10/15/2009):  115
• Sold September 2009:  14
• Month's Inventory:  5.1

Since Last Month:  Listings are DOWN -1, Pendings are UP +18, Sold Units are UP +2

This market has moved from a seller's market to a stable market in the last month!

Last Month's Report

Click here for Most Recent Desert Shores Market Report

Click here for More Information on Desert Shores Lake Living.

Summerlin September 2009 Real Estate Resale Market Report:

• Listings (10/15/2009):  696
• Under Contract (10/15/2009):  613
• Sold September 2009:  170
• Month's Inventory:  4.1

Absorption is slightly higher than Las Vegas Valley.

Since Last Month's Report:

• Listings UP +6
• Pendings UP +6
• Sold Units UP +10 

Last Month's Summerlin Report

Most Current Summerlin Market Report

The home loan and real estate markets we are currently slogging through are unprecedented in their severity. The last time something similar happened was so long ago that few are still here to remember it. As a result millions of people are unable to make their home loan payments and subsequently will have their credit damaged. Three basic events can lead to that.

In short sale the mortgage lender agrees to let the homeowner sell the property for less than the underlying loan balance. Deed in lieu means that the borrower gives the deed, or keys, to the home loan provider before it starts foreclosure action. And then there is the foreclosure itself. All three will slam the homeowner's credit generally up to seven years. By how much depends largely on how many other accounts are in distress.

These guidelines evolved gradually during "normal" housing market conditions. At times when there weren't millions of borrowers in trouble with their mortgage payments. But today things are different. The real estate scene is uniquely clobbered, bringing along with it a historic price adjustment, too. One that was actually badly needed to better reflect a sustainable value structure.

What FICO, the most widely used credit standard, does is use its computer model to predict future borrower behavior, in other words assess risk. FICO score, say, eight years ago was able to lay out a rather representative picture of a mortgage borrower. But from about 2007 onward a totally new class of a credit applicant was introduced to be rated. An unusually large segment of today's homeowners who in some shape have defaulted, or will default, on their mortgage have had a decent to excellent credit rating up until this meltdown. Keeping that in mind, their current FICO score would not be as accurate a predictor employing the standard model. Once the economy improves and most of them will obviously recover financially and become good credit risks once again, they'd still be carrying for years dings to their credit.

Las Vegas valley - with localities like Mountains Edge, Summerlin, Henderson, Southern Highlands, Anthem, North Las Vegas and Green Valley - has its share of homeowners who fall under this category. Real estate upturn here in Southern Nevada - and throughout the nation - will be undeniably delayed because many home loan applicants just can't get approved due to FICO's slow update policy. But there is hope.

The mortgage industry still has those with the spirit of entrepreneurship. Some scattered portfolio lenders are already underwriting mortgages for borrowers with recent foreclosure on their record. They keep the loans in their own books since Fannie Mae and Freddie Mac won't touch them. And it's foreseeable that more will start doing that as they realize what untapped market it is.

Arlington Ranch September 2009 Real Estate Resale Market Report

• Listings (10/15/2009):  13
• Under Contract (10/15/2009):  57
• Sold September 2009:  14
• Month's Inventory:  0.9

Arlington Ranch changes since last month:  Listings DOWN -3, Pendings DOWN -3, Sold NO CHANGE

Click Here for Last Month's Report

For More Las Vegas Communities and Reports Click Here