Las Vegas Luxury Properties Link

Did you hear the housing market is CRASHING!?!?!....  AGAIN!!!!! 

This is the general reaction I'm getting from my current and past clients I've spoken to over the last couple of days.  One thing that I constantly try to instill in my clients, is the fact that real estate is a LOCAL market.  Too often the national news will talk about huge generalities of the whole and my clients tend to think the same statistics apply to Las Vegas and Henderson Homes for sale.   The first thing I do whenever I am working with a new client is to sit down with them and go over local statistics for what they are looking for. "There are thousands of homes on the market" is something I hear often, and while that is true, there might be 30 homes that match your criteria.   Each client is different, and each scenario is unique, but most of the time when I pull up an MLS search clients are shocked to see what is available in the area they want to live in. 

Let's go over some number as of Today, August 26th, 2010:

Total Single Family Homes sold so far:

• 1866 SFR sold this month( This number will definitely go up as many properties aim to close towards the end of the month)
• 2887 SFR sold LAST month
• 3293 SFR sold in June of 2010 (First time home buyer tax credit deadline was June 30th)

The amount of homes has increased over the last couple of months as the tax credit expired.  As of today there are 10,962 homes on the market.  I'm always amazed at how quickly the market can change.  Two months ago, I'd see 5-10 offers on a property if it was in good condition, now I might see none, or possibly one offer.   As always, the homes that are in the best condition sell the fastest.  Las Vegas Short Sales make up  nearly 48% of our market, while Las Vegas Foreclosures make up 18%.   Traditional sellers make up 33% of all sales right now.  Many of those sellers are investors who have rehabbed properties, and some are people who bought way before the boom and still have equity.

What the national news doesn't take into account for Las Vegas is our dramatic depreciation we've already seen.  From the peak of our market in 2005, our prices have depreciated over 65%.  We have seen huge price drops already, to the point where you cannot rebuild properties for the prices they are selling for.  Any time you can buy a home in Las Vegas for less than it costs to rebuild it, you are doing quite well.

Unemployment is a large factor in Las Vegas. We have 14% unemployment right now, which is high.  That number scares a lot of people, but the average price home in Las Vegas has been stable for the last 17 months, holding near $165,000 give or take a couple of thousand.   It's very difficult to find a major metro area with as many attraction as Las Vegas where homes are that affordable.

If you would like to search for Las Vegas Homes for sale, you can begin your search below or give me a call toll free at 1-866-589-1646.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas NV 89117

1-866-589-1646

The trend in firming home prices solidified in the second quarter of 2010. The latest figures from the National Association of REALTORS show more metropolitan areas posted home price increases compared to a year ago. Resales also increased, both from a year ago and from the first quarter of this year.

Home Prices

The national median existing single-family price was $176,900 in the second quarter, up 1.5 percent from $174,200 in the same period of 2009. In the second quarter, 100 of the 155 metropolitan statistical areas tracked by NAR registered higher median existing single-family home prices compared to the second quarter of 2009. Fourteen metros posted double-digit price increases. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009.

The median price is influenced by the mix of homes that were sold and does not reflect pure appreciation or depreciation. The recorded home prices in many markets were significantly depressed last year because of a large percentage of distressed homes sold at discount. As more normal, non-distressed home sales are occurring, the median price in many areas is showing higher values.

State Existing Home Sales

Total state existing-home sales, including single-family and condos, rose 9.1 percent to a seasonally adjusted annual rate of 5.61 million units in the second quarter up from 5.14 million units in the first quarter. Resales were 17.3 percent above the 4.78 million-unit pace in the second quarter of 2009. Distressed homes accounted for 32 percent of second quarter sales, down from 36 percent a year ago.

The District of Columbia and 47 states experienced increases in existing-home sales on a year over year basis, driven in part by the home buyer tax credit as well as continued historic low mortgage rates.

Condos

Metro area condominium and cooperative prices covering changes in 55 metro areas showed the national median existing-condo price was relatively flat at $175,700 in the second quarter, down 0.5 percent from the second quarter of 2009. Twenty-six metros showed increases in the median condo price from a year ago and 29 areas had declines; the first quarter of 2010 showed 24 metros up, while only four metros saw annual price gains in second quarter of 2009.

Regional Differences

Existing-home sales rose in the Northeast, Midwest and the South, while median home prices increased in two of the nation's regions the Midwest and the West while declining in the South and Northeast.

The median existing single-family home price in the Northeast declined 3.2 percent from a year ago to $238,000. Resales in the region jumped 14.9 percent in the second quarter to a level of 980,000 units and were 23.6 percent above the level in the second quarter of 2009.

In the Midwest, the median existing single-family home price increased to $148,500 from the second quarter of 2009 up 1.4 percent. Existing-home sales in the Midwest rose 14.5 percent from the first quarter of this year to 1.30 million units -- 20.9 percent above their level in the second quarter of 2009.

In the South, the median existing single-family home price slipped 2.0 percent to $155,500 in the second quarter from the second quarter of 2009. Existing-home sales in the South increased 10.9 percent in the second quarter to an annual rate of 2.10 million and were 18.8 percent above a year ago.

The median existing single-family home price in the West rose 2.6 percent to $219,700 in the second quarter from a year ago. Existing-home sales in the West fell 2.6 percent in the second quarter to an annual rate of 1.23 million but were 7.6 percent higher than in the second quarter of 2009.

I would like to add to this section for Las Vegas Homes For Sale, because each region is definitely different.  Our market has been the epicenter of the foreclosure crisis, fueled by over building, easy credit, cheap prices, and low inventory.  If you'd like to see a quick video on the Las Vegas Housing Market(click the link). Our prices have dropped over 60% to pre-boom levels which is generating a huge amount of investor and first time home buyer traffic.  July 2010, Las Vegas saw over 2,900 homes sold.  Our current standing inventory is around 10,421 homes. 45% of our inventory are Short Sales.  If you would like to search for homes on the Las Vegas Multiple Listing Service click here or if you would like a tailored search, please call me toll free at 1-866-589-1646.

Going forward

NAR analysts indicate that the correction in home prices appears to have ended in 2009. So far this year the market has seen relatively flat national home prices, which appear to be supported by market fundamentals. But prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes on the market dont expect any consequential movement in home prices for the foreseeable future.

Record low mortgage rates are likely to continue, and so will help cushion a slowdown in sales during the summer months. Those low rates, in addition to stable and affordable home prices in most areas, will provide buyers with opportunities to purchase homes, even in the absence of the tax credit program. But there are still concerns about the job market. Job creation will give home buyers more confidence, but the market over the next few months is likely to be below what we would expect for the size of our growing population. As bank balance sheets improve, credit restrictions should also gradually improve.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

Highlights for July 2010:

The total number of SFR units sold in July 2010 was 2,948. This is a -12.3% change from June 2010 closings, or 412 fewer SFR units.

On a YTD basis, SFR units now total 20,316 units closed. This is a decrease over the same YTD period of 2009 which was 21,468 units (-5.7%), but is significantly higher than  both the 2007 and 2008 YTD SFR volumes of 10,152 and 12,197 SFR units sold, respectively.

The Average SFR Sold Price was $165,332 for July 2010 and still remains within the same narrow range that it has been at since mostly stabilizing in March 2009 (17 months). The record "average" high of $428,817 for SFR was in June of 2007 which was followed by significant monthly price drops until March 2009, and has continue to fluctuate by only a few thousand dollars since.

Total SFR dollar value of Sold SFR units for July was $487,399,987. This reflects a -13.6% change from June 2010, and -20.2% change from July of 2009.

 Total YTD dollar values for the Jan through July period on sold SFR units now stands at $3,419,430,032.

Available SFR inventory at the end of June was 10,126 units (those without offers). When the Contingent and Pending SFR units are added to this the inventory stands at 21,750, a 1.8% increase over June 2010 and a 6.5% increase against July of 2009.

If there is any additional information you would like to have on the Las Vegas Real Estate Market, please don't hesitate to ask.

Start your own home search for FREE below!  All available properties on the market!

Felipe Crook Prudential

Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

When the tax credit deadline hit on April 30th, many real estate professionals thought it would be a huge nose dive in sales. I have to say that I am still busy with buyers looking to capitalize on our incredible market because our prices are so reasonable compared to what they were 5 years ago. Here are some statistics for the housing market in Las Vegas from June 2010:

• 4,184 total properties sold (Single Family, Condo and Townhouses)
• 1,422 were short sale homes
• 1,600 were foreclosures
• 1,157 were traditional sellers

Our currently inventory has been increasing since April making it a little easier for buyers looking to get into a home. The past year, our housing inventory has dropped dramatically, to a low point of less than 8,000 houses on the market. With demand so high and inventory low, multiple offers were common place in our market. In fact, they are continuing to be common in this very competitive market. Here's what our current inventory looks like: July 8th, 2010 Las Vegas Housing Market Inventory:

• 9,812 Single Family Homes on the market
• 4,116 of those homes are short sales
• 1,857 of those homes are foreclosures
• 3,811 of those are traditional sales

More and more traditionally sellers are putting their houses on the market and trying to salvage any of the equity that they still have. Most importantly, for nine consecutive months, the median price of homes has remained stable varying slightly up and down. If there is any indication that we might have hit bottom that is a good sign. Some popular neighborhoods, are seeing increases in price as consumers gain more confidence in the economy. Many of the master planned communities like Summerlin, Anthem, Mountain's Edge, Aliante are continuing to experiencing multiple offers from buyers, even on short sale properties. Here is one good piece of news regarding short sale homes, they are getting faster and easier to do! The average short sale was taking about 120 days to close, and that number has shrunk to about 90 days. My team and I recently got a home owner a full release from the loan with Citibank in 7 weeks! Any time you are thinking of purchasing a short sale home, please make sure you do your due diligence with the listing agent. They can make or break a deal. Make sure you ask the listing agent if they have successfully closed short sales before. Every bank and every transaction is different, but knowing all the information up front can save you a lot of time and heart ache. Las Vegas Home Search is a free tool you can use to see available homes and this site is updated hourly, not like Realtor.com which tends to be very slow to update contingent properties. The market is full of great properties at amazing prices.

Happy House Hunting!

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV

1-866-589-1646

felipe@felipecrook.com

Just read an interesting article on The Financial Fix about Fannie Mae pursuing home owners who strategically default on their mortgages. Here's the full article:

Taxpayer-owned mortgage giant Fannie Mae is targeting families by going after struggling homeowners who strategically default on their mortgage, the firm announced Wednesday.

A default is considered strategic when homeowners have the capacity to pay, yet choose to walk away from their mortgage. The trigger, researchers say, is negative equity: When the value of a home is less than what the lender is owed on it, borrowers are more likely to strategically default.

About 11.3 million homeowners with a mortgage, or 24 percent, owe more on their mortgage than the home is worth, according to real estate research firm CoreLogic. Another 2.3 million have less than 5 percent equity in their homes. All told, about 29 percent of all homeowners with a mortgage are either underwater or very close to it. The firm estimates that the typical underwater homeowner won't return to positive equity until late 2015 or early 2016.

And Fannie Mae, an arm of the federal government and a big part of the Obama administration's housing policy, wants to make sure that if struggling families walk away, they suffer for it.

Homeowners who strategically default or did not work "in good faith" to avert foreclosure through other means will be ineligible for new Fannie Mae-backed mortgages for seven years. The firm said it will also pursue homeowners in court, seeking so-called "deficiency judgments" to recoup outstanding debt by seizing borrowers' other assets. Thirty-nine states do not limit the ability of lenders to recover what they're owed.

Fannie Mae said that next month the firm "will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments."

"Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting," Terence Edwards, Fannie's executive vice president for credit portfolio management, said in a statement.

Strategic defaults among homeowners have been on the rise. More than a million homeowners went that route last year, nearly double the amount in 2008 and more than four times the level in 2007, according to a recent analysis by the credit reporting company Experian and Oliver Wyman, a management consulting firm. A study by a team of academics from the University of Chicago and Northwestern University estimated that nearly a third of home mortgage defaults in March were strategic. The deeper underwater homeowners are, the more likely they are to walk away from their mortgage, the researchers noted.

Earlier this month, the House of Representatives passed a bill barring strategic defaulters from obtaining home mortgages backed by the Federal Housing Administration. The agency guarantees nearly one in four new mortgages.

"I can't help but notice that every group now frantically calling for tough penalties for homeowners who walk away was virulently opposed to judicial modification of mortgages in bankruptcy," Rep. Brad Miller, a North Carolina Democrat, told the Huffington Post.

Bank of America and Citigroup, the nation's largest and third-largest banks by assets, respectively, support changing existing law to give federal judges the power to modify mortgages in bankruptcy, otherwise known as "cramdown." Proponents argue that if homeowners were able to modify their mortgages in bankruptcy, the number of strategic defaults would substantially decrease, if not nosedive.

About 3 million homes will receive foreclosure notices this year, real estate research firm RealtyTrac estimates. More than 1 million will be repossessed by lenders, adding to the nearly 2.2 million homes that lenders took over from 2007 to 2009.

Fannie Mae and its sister firm Freddie Mac guarantee nearly three out of every four new mortgages, according to leading industry publication Inside Mortgage Finance. The two firms control about $5.5 trillion in home mortgages, according to their federal regulator. That's nearly half of all outstanding mortgage debt in the U.S. Their share of the mortgage market is nearly double what it was 20 years ago.

Because Fannie controls such a large portion of new mortgage issuance, the freezing out of homeowners for seven years could prove devastating.

Brent T. White, a law professor at the University of Arizona, recently wrote in an academic paper that most homeowners can recover from a foreclosure within two years. In fact, defaulting on a mortgage is not as bad as most people think, White notes.

"Lenders are unlikely to pursue a deficiency judgment even in recourse states because it is economically inefficient to do so; there is no tax liability on 'forgiven portions' of home mortgages under current federal tax law in effect until 2012; defaulting on one's mortgage does not mean that one's other credit lines will be revoked; and most people can expect to recover from the negative impact of foreclosure on their credit score within two years (and, meanwhile, two years of poor credit need not seriously impact one's life)," he writes.

There is a "huge financial upside" for seriously underwater homeowners to strategically default on their mortgages, White said.

While it's still taboo among most homeowners, it's common behavior among corporations.

In December, Morgan Stanley, the nation's sixth-biggest bank by assets, walked away from five San Francisco office buildings the $820-billion firm purchased as part of a landmark $2.43-billion deal near the height of the real estate boom. A group led by Tishman Speyer Properties gave up a 56-building apartment complex in Manhattan in January after defaulting on some $4.4 billion in debt. A spokesman for the California Public Employees' Retirement System, the nation's biggest municipal pension fund and one of several investors in the venture, told the Huffington Post that they "basically walked away from it."

Fannie was effectively nationalized in September 2008. Taxpayers own 79.9 percent of Fannie and Freddie. The Obama administration announced on Christmas Eve that it would provide unlimited financial assistance to the firms, disregarding what was a $400 billion cap on taxpayer bailouts. Their debt is backed by the U.S. government.

The two firms, facing growing losses on sour mortgages in perhaps a worsening housing market, have already taken $145 billion from taxpayers. Fannie Mae is responsible for $83.6 billion of that bailout.

Freddie Mac did not say it would take a similar position on strategic defaulters.

"Such so-called strategic defaults, once rare, are now common enough to jeopardize the already-weak housing and mortgage markets," wrote economists Celia Chen and Cristian deRitis of Moody's Economy.com in an April 13 note. "If the trend continues, strategic defaults could both accelerate the pace of home foreclosures and also make it harder for new borrowers to obtain mortgages. Both factors would in turn worsen the decline in house prices."

JPMorgan Chase, the nation's second-largest bank by assets with more than $2.1 trillion, warned investors last month that underwater homeowners may not continue to make their payments even when they're able to, according to a May 10 filing with the Securities and Exchange Commission.

A top executive at Freddie Mac posted a note on the firm's website pleading with homeowners to not intentionally walk away from their homes.

"Knowing the costs and factoring in the time horizon, some borrowers have made the calculation that it is better to purposely default on the mortgage. While I understand how that might well be a good decision for certain borrowers, that doesn't make it good social policy," Freddie Executive Vice President Don Bisenius argued in a May 3 note.

The firm warned investors and analysts about the risk of increased strategic defaults in March 2008. Referring to it as "ruthlessness," Dick Syron, Freddie's former chairman and CEO, said the firm was "seeing an increase in ruthlessness" that had "the potential for changing consumer behavior."

Fannie Mae said Wednesday that borrowers who have "extenuating circumstances may be eligible for new loan in a shorter timeframe" than the seven-year period it's warning about.

Republicans in the House recently tried to rein in the twin mortgage giants. Rep. Darrell Issa, the top Republican on the House Committee on Oversight and Government Reform, attempted Wednesday to amend the financial reform bill under consideration by the House and Senate to mandate that the federal government appoint an inspector general to oversee Fannie and Freddie. The mortgage behemoths' federal regulator has been operating without an independent watchdog looking over it and Fannie and Freddie since 2008.

Republicans have also tried to amend the bill to subject Fannie and Freddie to the Freedom of Information Act so members of the public can keep tabs on the firms by compelling the disclosure of documents and records.

Both efforts were thwarted by House Financial Services Committee Chairman Barney Frank (D-Mass.), who ruled that they were not "germane" to the legislation under consideration.

Emails sent after normal business hours to spokesmen for the White House and Treasury Department requesting comment were not returned.

Ryan Grim contributed reporting.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117