The Las Vegas Market is abuzz with buyers. We hit 11000 pendings for a short time in a 24 hour period Weds/Thurs. The end of month closes brought us down for the first month since I think December. I think that is a sign that we are topping off (ie pendings are no longer rising at a quick as lightening pace.)
At the beginning of the decline (let's call it the major increase in inventory) which happened from March 2006-July 2006 we watched the inventory units climb by a staggering 10,000 units in just months. The Active Listings hung steady in the 20000+ mark till February 2009.
We also had around 20,000(ish) Realtors in 2006.
Today, 2009, we are shy of 14000 Realtors (something like 13600 and some change.) Active Listings are looking like they will drop below 16000 in the next several days. Pendings, again near the 11,000 mark.
In 2006 a ham sandwich could get a loan.
In 2009 people can get loans but it is harder to qualify. They have to qualify by income, credit, ratios and so on and so forth. Is that a bad thing? Not when prices are rolled back in the 90s. It's easier for tipped workers to qualify. Many couples want to qualify only on one income "just in case".
Prices are low, interest rates are low, there is a nice tax credit for first time buyers. 401K's are hurting so boomers are drawing money out to invest in all cash deals. Buyer interest=all time high.
REO will not look at offers without pre-approval letters or proof of funds (all cash.) You need it anyway to submit an offer in this environment.
Please, no tears when we won't show you the home because you won't show us the money.
Read: Top 10 Reasons Why You Should Get Pre-Approved Before You Go Shopping
I couldn't agree with you more: show me the money! It's unfortunate that so many buyers fail to understand that if they work WITH us, we will work so, so much harder for them.
Greg: OK I will defer to the signing guy. Maybe it was a bologna sandwich ;)
Sandi: When there is committment we are committed!
Renee: I wonder if the ham sandwich had mustard on it, how much would they have given it?
All kidding aside, the market has turned. It is real, it is a bargain, it is a wonderful thing to see!
I love your coverage of Vegas, it really helps my perspective.
Richard
Richard: I am here for you if you ever need insider info. I know you are astute and on top of the markets. I expect us to swing into a complete seller's market in the next week if we don't see a rash of inventory infiltrate our market soon.
Hi Renee! It looks like your market has turned around significantly--are you in a seller's market with only 16,000 actives, and 11,000 recent pendings---isn't that below the 6-month absorption? If so CONGRATULATIONS girl--I am incredibly happy for you! Can't wait for the entire market to turn.
Have a great Sunday...
Renee --- glad to hear your market is stirring. We can all use the good news.
Debe: No signs of getting saturated with inventory either. Freddie & Fannie seem to have rentback programs in place now!
Pacita: Thanks. It's news we can use. Hopefully buyers do not lose interest with lack of inventory!
Renee, you're a top closer and as such, your time is your most valuable asset. You have the right to demand qualification from your clients before investing your time into them.
Regina: And serious buyers will produce the documents necessary for writing an offer ;)
Renee, 11,000 PENDINGS??? That many? I am not questioning the numbers, only that that is an amazing amount in relation to the number of listings. Your market must be going CRAZY. CONGRATS!
Scott: wanna know how insane it is? Right now we are at 15320 listings and 11615 pendings. Only 11 days after that post was written!
Renee,
Those are some AMAZING numbers. As an example of my market(Cincinnati MLS): We currently have 14,077 Active with 3,453 Pendings. We had a total of 1,364 close in April. Last year we had a total of 18,808 sell. How many did your market sell last year?
If your market is that hot, that sounds like good things to come. Get it while it is hot.
Wow, things are really moving in your area. No time for you to take window shoppers around and waste your time!