Las Vegas Luxury Properties Link

First: Taxes.

It is clear that the discussion on sales tax on services is not over, and that we'll have to continue fighting that battle (expect to see ballot questions on this). However, the transaction tax that was proposed this session did not pass, and neither did the margin tax. There was a last minute attempt -- on the last day of the Session, at the last hour of the Session -- to place both taxes on the ballot. In a dramatic move, the Assembly attempted to convene a meeting on the floor of the Assembly and adopt a measure that would have taken the question of a transaction tax and a margin tax directly to the people. However, the effort failed as the Sine Die hour drew closer. So far, so good, right?

What did pass was an extension of the 2009 taxes that were set to expire on June 30, 2011 - they will now expire on June 30, 2013. As part of the budget discussions, there was an agreement to implement education and collective bargaining reform, and the Modified Business Tax (MBT - aka the payroll tax) was eliminated for businesses with a payroll of less than $250,000 annually. That should be a savings for most of the membership! Hooray!

REALTOR® Issues

As you may remember, NVAR was intimately involved in crafting two pieces of legislation and working with the bill sponsors to accomplish two of the priorities identified by the NVAR Legislative Committee.

The first issue was the prohibition of private transfer fees in the state of Nevada. We are happy to report that this bill passed and was signed into law on May 20, 2011.

The second one was to repeal the change in your licensing period. As you probably know, when you renew your real estate license after June 30, 2011, your license will be renewed for four years instead of two, and the cost of license renewal will be proportionately increased. SB413 would have repealed this change and left your licensing period to two years. Sadly, this bill did not pass, due to the $3 million unsolicited fiscal note that was attached to the bill by the Real Estate Division during the process. A fiscal note is essentially a "price tag" and, as you well know, the Legislature was trying to cut costs; creating a bigger hole was a huge obstacle to overcome. It did not pass out of Senate Finance.

How Much Do You Love Your Phone?

Strictly speaking, this next one is not a real estate bill, but we understand that *some* REALTORS® use cell phones for business so this bill may impact you if, say, you use your phone in your car.

SB140 prohibits the use of cell phone without a hands-free device while driving, and prohibits typing/reading data while driving (any non-voice communication, including texting, email, IM, web browsing, etc.). It will be effective July 1. From July 1 to December 31, you can get pulled over and be given a warning. Starting on January 1, 2012, citations will be issued. So - go get that hands-free gadget if you don't have one already, and no more texting while driving!

Impact on Transactions

Some of the bills we deal with will have a direct impact on real estate transactions themselves. Here are updates on a couple of bills we've discussed before.

If you read nothing else, read this one... Remember that ugly standard for energy consumption form? Well, soon, it will be no more. We've talked about AB432 a lot throughout session. This bill will require energy auditors to be licensed, but more importantly, it will repeal that awful energy consumption form. As soon as the Governor signs this bill, the form will no longer be needed. The Lobbying Team has been reasonably assured that Governor Sandoval will sign this bill soon -- and as soon as he does so, we'll let you know, so stay tuned.

We've also talked about SB403 in previous issues - we're happy to report that it was delivered to the Governor on Monday. This bill will make sure that a demand letter from an HOA is good for 15 days after receipt. A number of lobbyists for various interests worked hard to defeat this important piece of legislation. However, the good guys won another victory for everyone in the real estate industry. It was hard to believe that there were actual special interests that preferred the status quo, but once again, your Lobbying Team worked hard to push through this important piece of legislation.

Foreclosures and Short Sales

Yeah, that was a hot issue this session.

SB414 is now with the Governor for signature - this one makes it a misdemeanor for a bank to unreasonably delay responding to a short sale offer. It spells out that acceptance or rejection of an offer should be received within 90 days. It also prohibits a bank from getting a deficiency judgment if they agreed to a short sale (under certain circumstances).

About those deficiency judgments...AB273 is also with the Governor for signature. This is the bill that will prevent banks from "double-dipping" and going after the borrower for the full amount of the deficiency when they have received compensation from other sources. It will cap the amount a third party can be awarded if they bought the right to the deficiency for pennies on the dollar. Finally, it will reduce the amount of time a junior lien holder has to file for a deficiency from the current six years to six months, to be in line with primary lien holders' timeframes.

Update on SB136, a bill that would change the maximum length of time a state-chartered bank may hold real property that they acquired through foreclosure from 10 years to 5 years - this one in being enrolled and should be delivered to the Governor shortly.

Property Management Issues

AB360 is a bill that would mandate that local governments pass an ordinance to afford property owners at least 30 days to fix a nuisance or dangerous/noxious situation that was caused by the criminal activity of someone other than the owner, as long as the situation is not a immediate danger to public health, safety or welfare. It is being enrolled and should be delivered to the Governor shortly.

AB226 is a landlord-tenant bill that adds "functioning door lock" as part of the definition of essential items and services. It also requires a notification to the tenant that a lockout will happen within 24 hours of the sheriff receiving the order from the court. This bill became law and is effective October 1, 2011.

Real Estate Division Bills

Sadly, SB227, a bill to make the Real Estate Division fee-based, did not pass. This bill would have been useful in ensuring a level of funding for the Division based on the number of licensees rather than on the Executive Budget. The bill did not move out of the Senate until Day 119, and despite a gallant effort by your Lobbying Team, the time grew short for us to get this bill out of the second house. But, if there was a silver lining in the bill's defeat, it was that the Legislature better understood the devastating toll that three cycles of budget cuts has taken on one of the most important industries in the state, and the long-term impact these cuts will have to the Division and the industry as a whole.

SB314 adds a new permit under the umbrella of the Real Estate Division, by requiring the registration and permitting of asset management companies and their employees. More importantly, the bill removes the ability of the purchaser to waive the SRPD, a complaint that the Lobbying Team heard over and over again from the membership. So, consider it done! Your voices were heard, and SB314 should provide all of you some relief soon.

Lake Tahoe

Only one word can describe this issue -- HISTORIC. Attempted by others frustrated with the Tahoe Regional Planning Agency (TRPA), previous attempts had failed, but this Session had a different dynamic to it. With less than five minutes left before the 1 am deadline, SB271 made it out of the Legislature! This bill provides for Nevada to withdraw from the Tahoe Regional Planning Compact. If the Agency does not adopt an updated Regional Plan and the proposed amendments are not approved by October 1, 2015, Nevada's withdrawal from the Compact will become effective on that date unless the Governor issues a proclamation extending the deadline for withdrawal until October 1, 2017. Some of you may know that the Tahoe Regional Planning Agency has been creating some issues with property owners around Lake Tahoe, and the proposed changes to the Compact would hopefully solve those, but the Compact cannot be changed without the approval of the State of California as well as Congress. Your Lobbying Team worked hard to ensure this legislation passed despite a tremendous lobbying effort from opponents of the bill, and some last minute attempts to gut the bill by legislators sympathetic to environmentalists and instead create a study of a potential withdrawal from the Compact and review the existing problems surrounding the Agency. The bill passed the Assembly 28-16, after having passed the Senate by a vote of 19-2. SB271 was literally the second to the last bill approved by the 2011 Legislature just prior to the close of the session. So now what? Much work is left, but a clear message has been sent, despite the opposition's efforts to muddy the message: Nevada's voice needs to be heard, and its opinions need to be considered as the Agency moves forward.

HOAs and Collection Fees

SB174 was one of the complex common-interest communities (CICs) bills this session. Sponsored by Senator Allison Copening, this bill has been contentious from the start, and eventually failed to pass out of Senate Finance. SB174 met a fateful ending, unable to secure enough votes on the floor of the Senate to see the light of day. However, in a last ditch effort by collection companies, the most onerous provisions of SB174, and those provisions which REALTORS objected to (provisions to make collection fees part of the superpriority lien) found their way into SB402 in a conference committee on the last day of Session. Facing sizable odds against them, your Lobbying Team worked tirelessly until 1 am to beat back this effort, and we are happy to report that, similar to the fate of SB174, SB402 could not find its way out of the Senate. In a rarity even for Carson City, the conference report could not obtain a simple majority for adoption and as a result was left as one of the lingering issues as the clock struck 1 am. A huge victory for homeowners across the state, and a huge loss for the greedy collection companies. Talk about your last second of session drama! This issue took the cake this session, and will be a memorable one for those involved.

We hope that you have found our weekly updates informative throughout session, and watch the events calendar at your local association if you would like to hear our wrap-up presentation in person. If you have questions, please do not hesitate to contact our President, Mike Young, our Legislative Chair, Joanne Levy, or our CEO, Rob Wigton.

Have a great summer!

Rocky Finseth, Jenny Reese, Teresa McKee, Isabelle Crawford, Laura Wood and Lauren Parobek

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AB226 - Became Law

Revises various provisions governing landlords and tenants.

The key provisions of AB226 that are of interest to REALTORS® are:

• a landlord will be required to advise a tenant that if a court issues an eviction notice, a lockout will occur within 24 hours of the sheriff or constable receiving the order; and,
• a functioning door lock would be added to the list of essential items and services defined in NRS 118A.380.

The Governor signed this bill into law on May 18, 2011, and it will be effective October 1, 2011.

AB271 - Became Law

Regulates private transfer fee obligations that affect real property.

Last year, NVAR's Legislative Committee identified private transfer fees (aka reconveyance fee, capital recovery fee, private transfer tax) as a concern for REALTORS®, as they may create last-minute closing complications, impact home sales and title and lending problems. PTFs have become a concern to states across the country, and 19 states now have laws addressing PTFs or are in the process of addressing them.

(A PTF is attached to a property as a covenant that requires the payment (typically 1-2% of purchase price) to a private entity every time the property changes hands, for periods up to 99 years.)

Governor Sandoval signed this bill into law on May 20, 2011. It became effective at that time.

AB273 - Delivered to the Governor

Revises provisions governing deficiencies existing after foreclosure sales.

This bill would revise provisions governing deficiencies existing after foreclosure sales. This bill would change current law to:

• provide that the amount of a deficiency judgment must be reduced by the amount of any insurance proceeds received or payable to the creditor;
• cap the maximum amount that can obtained through civil action is the amount paid to the creditor by a third party to acquire the right to enforce the obligation, plus interest and reasonable costs;
• remove the ability to collect on the deficiency under certain circumstances;
• reduce the amount of time a junior lien holder has to obtain a deficiency judgment from the current six years to six months.

Assembly Majority Leader Marcus Conklin has been instrumental in drafting this legislation, and you should know that NVAR's Face of Foreclosure report was critical in convincing him of the importance of finding a solution for this problem.

The bill was delivered to the Governor on June 3, and will be effective upon passage and approval, except for the change from six years to six months provision that will be effective July 1, 2011.

AB360 - In Enrollment

Revises provisions governing city or county ordinances regarding the abatement of certain conditions and nuisances on property within the city or county.

This bill would mandate that local governments pass an ordinance to afford property owners at least 30 days to fix a nuisance or dangerous/noxious situation that was caused by the criminal activity of someone other than the owner, as long as the situation is not a immediate danger to public health, safety or welfare. It would also change the maximum daily fine for nonresidential properties from $500 to $750.

Your Lobbying Team has been working on this issue with the City of Reno throughout the interim and the legislative session.

The bill passed out of both houses and will be on the Governor's desk shortly. This bill will be effective upon passage and approval.

AB432 - Delivered to the Governor

Enacts provisions relating to energy auditors.

This bill would provide for the licensure of energy auditors by the Real Estate Division and establish the minimum training and qualifications requirements to be licensed. It would establish the requirements for conducting an energy audit (including elements to be evaluated, software and tools to be used, and report to be provided).

It would also repeal the section of NRS that mandates the seller to provide an evaluation of energy consumption of the property...what this means is that the seller would no longer be required to fill out the energy consumption evaluation form as soon as the Governor signs the bill.

This bill was delivered to the Governor on June 6. The effective date is upon signature for the repeal of current regulations and for the adoption of new regulations to license energy auditors, and July 1, 2011, for all other purposes.

AB569 - Did Not Pass

Imposes a Nevada Transaction Tax.

It would have established a transaction tax of 1% on services. The tax would have been paid by the consumer based on the purchase price of the services, and would have taken effect on January 1, 2012. This is the tax on services proposal we had expected to see this session.

There were a number of exemptions to this transaction tax... but they did not include real estate related services. Here's the list of exemptions that were included:

• services that may not be taxed under the Constitution;
• services provided by or to a governmental entity;
• services provided by or to a nonprofit organization that has a tax-exempt status;
• day care services provided outside of the home of the child;
• health care services;
• personal care services (i.e. nursing homes, individual resident care);
• funeral services;
• obituaries;
• delivery services for natural gas, electricity, or water;
• basic landline telephone service;
• internet access service;
• garbage services;
• tickets purchased subject to an Excise Tax
• promoters of unarmed combat and unarmed combatants (boxing type sports) subject to an Excise Tax
• sale, storage, use or consumption of tangible personal property which is subject to an Excise Tax

The bill would also have defined the purchase price, and excluded the following from the definition (and therefore the tax):

• amount of any rent charged for the rental or lease of any transient lodging or other real or personal property (i.e. monthly rent for a house or apartment, or car rental);
• amount of any bet or wager made in the course of any lottery, game, or other gaming or gambling activity regulated by the State Gaming Control Board;
• amount of any direct premiums or considerations charged for insurance.

One other important provision of AB569 would have been that the transaction tax on services would have had to be paid by the consumer, and the service provider would have had to collect it and remit it to the Department of Taxation on a set schedule (depending on the amount of taxes collected).

Finally, AB569 would have extended the sunset for the 0.35 percent increase in the Local School Support Tax portion of the state's sales and use tax from June 30, 2011, to June 30, 2012. This increase was originally approved in SB429 of the 2009 legislative session.

SB136 - In Enrollment

Revises provisions governing certain real property held by banks.

This bill will:

• change the maximum length of time a state-chartered bank may hold real property that they acquired through foreclosure from 10 years to 5 years,
• add the ability for a bank to request for an extension to this maximum length of time,
• remove the requirement that a bank annually charge off a certain percentage of the value of such real property.

The bill is being enrolled and should be delivered to the Governor very soon. It will be effective upon passage and approval.

SB140 - Delivered to the Governor

Prohibits the use of a cellular telephone or other handheld wireless communications device while operating a motor vehicle in certain circumstances.

SB140 would prohibit the use of cell phone without a hands-free device while driving. It would also prohibit typing/reading data while driving (any non-voice communication, including texting, email, IM, web browsing, etc.).

Violation is a misdemeanor with fines increasing with each offense, and possible license suspension under certain circumstances. This is considered a "primary" offense, meaning that you can get pulled over and cited for it, as opposed to a "secondary" offense (like the seat belt law) where a law enforcement officer cannot pull you over for failure to wear a seat belt but can give you a citation if he pulled you over for another reason and you're not wearing a seat belt.

This bill was delivered to the Governor on June 9. If signed, it will be effective on July 1, 2011, with citations being issued starting on January 1, 2012.

SB174 - Did Not Pass

Revises provisions relating to common-interest communities.

SB174 was one of the complex common-interest communities (CICs) bills this session. Sponsored by Senator Allison Copening, this bill has been contentious from the start, and eventually failed to pass out of Senate Finance.

The bill included provisions to cap collection fees, but would also have made the collection fees part of the superpriority lien. When SB174 failed to pass out of Senate Finance, those collection fee provisions were snuck in SB402 as an amendment during the conference committee meeting. However, both houses failed to adopt the conference committee report and SB402 died.

Which brings us to this question: are collection fees capped or not? Kinda. The Commission for Common-Interest Communities and Condominium Hotels has adopted a regulation that caps some of the fees involved, and the effective date is May 5, 2011.

SB227 - Did Not Pass

Revises provisions governing the financial administration of the Real Estate Division of the Department of Business and Industry.

The main intent of this bill was to make the Real Estate Division (RED) self-funded, which would have meant that the Division would rely on the fees received from its licensees for funding rather than rely on the Executive Budget allocations.

The Real Estate Administrator made a presentation in late February before a joint subcommittee revealing the Division's budget as proposed by Governor Sandoval. Under the Governor's proposal, some services would need to be eliminated or reduced, including:

• closure of all licensing activities in northern Nevada (i.e. less services to be provided to real estate licensees in both the north and the south);
• reductions in the Las Vegas compliance investigation staffing (i.e. less abilities to investigate violations of NRS 645);
• elimination and reduction of staffing for Real Estate Commission meetings and the elimination of at least one Real Estate Commission meeting (i.e. a greater length of time for approval of continuing education classes and handling of disciplinary matters).

SB227 presented a potential solution to these reductions in services by allowing the RED to keep the fees it collects from licensees to operate, and ensure a certain level of service based on the number of licensees rather than on the Executive Budget. It would have ensured that the RED is no longer subject to the across-the-board cuts we have seen over the past few years.

This bill did pass out of the Senate, but did not pass out of Assembly Ways and Means before the Legislature adjourned.

SB271 - In Enrollment

Provides for withdrawal of the State of Nevada from the Tahoe Regional Planning Compact under certain circumstances.

This bill would provide an option for Nevada to pull out of the Tahoe Regional Planning Compact if California and Congress do not approve the proposed changes to the Compact within a certain timeframe. Some of you may know that the Tahoe Regional Planning Agency has been creating some issues with property owners around Lake Tahoe, and the proposed changes to the Compact would hopefully solve those. The problem is that the Compact cannot be changed without the approval of the State of California as well as Congress, and the changes proposed by the State of Nevada over the years have been essentially ignored by California. This bill would provide a last opportunity for California to approve the changes the State of Nevada feels are necessary, while providing Nevada a way out of the Compact should California decide not to cooperate to fix the problems at the Lake.

The bill passed out of both houses and will be on the Governor's desk shortly. It will be effective upon passage and approval.

SB314 - In Enrollment

Revises various provisions relating to residential property.

This bill would provide for the registration, permitting and regulation of asset management companies and their employees and agents through the Real Estate Division.

Asset management companies provide management services for real property which is in foreclosure and which is owned by a bank, mortgage broker, mortgage banker, credit union, thrift company or savings and loan association, or any subsidiary thereof or a governmental entity. Such companies manage the property, performing services such as securing the property by changing locks, removing trash and debris, cleaning the home and surrounding property, performing maintenance and repairs of homes and disposing of the personal property of homeowners left in homes which are in foreclosure and which the legal owner has deemed abandoned.

Buried deep in this bill is also a provision that removes the ability for the purchaser to waive the SRPD, and spells out that a seller may not require a purchaser to waive the SRPD. It also adds that if an asset manager knows of any defects in the property, he must give written notice of the defect(s) to the purchaser.

The bill passed out of both houses and will be on the Governor's desk shortly. It will be effective upon passage and approval for the purposes of adopting regulations and performing administrative tasks, and October 1, 2011, for all other purposes.

SB403 - Delivered to the Governor

Revises provisions relating to the information which must be provided by a unit's owner in a resale transaction.

This bill would ensure that the demand letter from an HOA must remain effective for a period of no less than 15 working days from the date of delivery to the owner or his/her agent.

The bill was delivered to the Governor on June 6, and if signed will be effective July 1, 2011.

SB413 - Did Not Pass

Repeals certain provisions governing licenses issued by the Real Estate Division of the Department of Business and Industry.

This bill would have repealed the following provisions that are set to take effect on July 1, 2011:

• increase the initial real estate licensing period from 12 to 24 months;
• increase each subsequent licensing period from 24 to 48 months;
• increase (double) the amount of the fee for those licenses.

Had this bill passed, those provisions would have been eliminated from the law and there would have been no change in the licensing period or licensing fees for real estate licensees.

SB414 - Delivered to the Governor

Revises provisions relating to financial institutions.

This bill would do two main things:

• prohibit a banking or other financial institution  from unreasonably delaying its response to an offer for a short sale on real property secured by a residential mortgage loan. The bill defines "unreasonable delay" to be more than 90 days after receipt of the offer.
• prevent a deficiency judgement to be awarded to a banking or financial institution if they have agreed to a short sale and other conditions (currently in law) are met.

This bill was delivered to the Governor on June 6, and will be effective upon passage and approval.

SB491 - Did Not Pass

Makes various changes regarding public revenue and taxation.

A proposed amendment to SB491 would have created a new, broad-based business tax of 1% of the taxable margin of a business (margin tax). The tax would have applied to those businesses whose total revenue exceeds $1 million per year. Sole proprietorships, general partnership directed by natural persons, and non-profit organizations would have been excluded from the tax. It would have been effective July 1, 2012.

A sunset provision was slipped into the amendment as well - to remove the June 30, 2011 sunset for the $100 per year increase in the Business License Fee approved in the 2009 bills SB429 and SB435. This would have meant that starting July 1, 2011, the state Business License Fee would have continued to be $200 per year, but without an "end" date to reduce it back to $100.

http://www.lasvegasluxurypropertieslink.com/00BA91

Existing-home sales slipped in April, although the market has managed six gains in the past nine months, according to the National Association of REALTORS^®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, eased 0.8 percent to a seasonally adjusted annual rate of 5.05 million in April from a downwardly revised 5.09 million in March, and are 12.9 percent below a 5.80 million pace in April 2010; sales surged in April and May of 2010 in response to the home buyer tax credit.

Lawrence Yun, NAR chief economist, said the market is underperforming. "Given the great affordability conditions, job creation, and pent-up demand, home sales should be stronger," he said. "Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations."

Obstacles to Recovery
A parallel NAR practitioner survey shows 11 percent of REALTORS^® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in April, unchanged from March; the rate was 5.10 percent in April 2010.

"Although sales are clearly up from the cyclical lows of last summer, home sales are being held back 15 to 20 percent due to the very restrictive loan underwriting standards," Yun said.

All-cash transactions stood at 31 percent in April, down from a record level of 35 percent in March; they were 26 percent in March 2010. Investors account for the bulk of cash purchases.

NAR President Ron Phipps said the lending community needs to return to sensible standards. "We want to ensure that qualified buyers will be able to own their property on a sustained basis from a sound credit evaluation, but banks needn't be so stingy as to only lend to those with the highest credit scores," he said.

"Very high shares of cash purchases, and high credit score requirements, have led to historically low default rates among home buyers over the past two years. This trend implies a gulf is opening between those who can and cannot have access to the American dream of home ownership," Phipps said. "At the same time, existing guidelines from Freddie Mac and Fannie Mae must be fully implemented so all appraisals are done by valuators with local expertise."

Price Stability
The national median existing-home price for all housing types was $163,700 in April, which is 5.0 percent below April 2010. Distressed homes - typically sold at a discount of about 20 percent - accounted for 37 percent of sales in April, down from 40 percent in March. They were 33 percent in April 2010.

"Home values, despite month-to-month volatility, have been remarkably stable in the range of $160,000 to $170,000 for the past three years," Yun said. "Stable home prices in turn will steadily lower loan default rates, including strategic defaults."

Total housing inventory at the end of April increased 9.9 percent to 3.87 million existing homes available for sale, which represents a 9.2-month supply at the current sales pace, up from an 8.3-month supply in March.

First-time buyers purchased 36 percent of homes in April, up from 33 percent in March; they were 49 percent in April 2010 when the tax credit was in place. Investors slipped to 20 percent in April from 22 percent of purchase activity in March; they were 15 percent in April 2010. The balance of sales was to repeat buyers, which were 44 percent in April.

Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.42 million in April from 4.44 million in March, and are 12.6 percent below the 5.06 million pace in April 2010. The median existing single-family home price was $163,200 in April, which is 5.4 percent below a year ago.

Existing condominium and co-op sales fell 3.1 percent to a seasonally adjusted annual rate of 630,000 in April from 650,000 in March, and are 15.0 percent below the 741,000-unit level one year ago. The median existing condo price was $167,300 in April, down 2.3 percent from April 2010.

Regional Performance
Existing-home sales in the Northeast fell 7.5 percent to an annual pace of 740,000 in April and are 32.1 percent below a year-ago surge. The median price in the Northeast was $225,400, which is 7.3 percent below April 2010.

Existing-home sales in the Midwest rose 5.7 percent in April to a level of 1.12 million but are 16.4 percent below a cyclical peak in April 2010. The median price in the Midwest was $133,200, down 5.1 percent from a year ago.

In the South, existing-home sales declined 4.1 percent to an annual pace of 1.95 million in April and are 9.3 percent below a year ago. The median price in the South was $142,800, which is 4.1 percent lower than April 2010.

Existing-home sales in the West slipped 1.6 percent to an annual level of 1.24 million in April and are 0.8 percent below April 2010. The median price in the West was $203,400, down 6.1 percent from a year ago.

Las Vegas Housing Market:

As of May 19, 2011:

Total inventory of Single Family Homes:

11,476 properties                 

5,554 homes are short sales

2,244 homes are foreclosures

3,678 homes are traditional sellers

3,389 homes SOLD in April which means there is a 3.3 month supply of homes on the market.   Any time you have a 3 month or less supply, it becomes more and more difficult to secure a property for purchase.  40% of those transactions were paid for with CASH.  That is a huge amount of money coming into our market.  In writing offers for my current clients currently, I'm starting to see more and more multiple offers. 

If you would like to search for properties in Las Vegas click here!

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

 

Source: NAR

http://www.lasvegasluxurypropertieslink.com/00B9B6

I'm trying to figure out how to approach this subject without sounding like a rant, but it frustrates me that certain mortgage brokers do such a horrible job!  In a residential real estate transaction, the first thing a buyer should do is get pre-qualified for a mortgage.   Some buyers don't want to do this step of the process because they are "sure" that financing will be no problem.  Other buyers want to find the house first, and then apply for a mortgage because they don't want to hurt their credit from more than one inquiry.  And lastly, there are buyers who run out and arrange all of their financing before they even speak to a real estate agent.  Because of the huge sub-prime lending mess, underwriters have tightened up their lending practices SO much, that it's a bit ridiculous.  The pendulum has swung so far the other direction that financing has become a major hurdle to buying a house. I worked with a client who had no debt, made over $150,000, and was buying a house for $250,000.  He had money and was a prime buyer......who almost didn't get a loan because a lender technicality.  PLEASE, make sure you get pre-qualified so you are certain that there is not an issue with financing.  Many times a solution can be found, which lead me to my next point:

It's so crucial that when you are choosing a Realtor and mortgage broker, that you have a team of people who communicate.  If you have a real estate agent or a banker who doesn't call you back, or who doesn't respond to emails: RUN TO THE NEXT PERSON!  There is absolutely no excuse for a professional to not call someone back.  Granted, I can not always answer my phone when you call, but I will ALWAYS call you back.  I'm currently doing a transaction with a certain mortgage broker and no one is able or willing to communicate the status on this loan.  I was unable to reach this loan officer for a week and a half after phone calls and emails, I decided to text her and then she finally responded.  At this point, we are a week and a half past our close of escrow date with a $50 per day penalty and after repeated phone calls, emails, texts, and a visit to their office, no one is communicating with me, the title officer, or the buyer.   How is the world can a mortgage brokerage do this and stay in business? It baffles me.

    I have been licensed since 2003 and I've had to go through a ton of bad mortgage brokers.  When the market crashed, most of the bad brokers left too, but there are obviously some unprofessional ones left.   I have a team that I work with that I trust, who have a proven track record of closing on time, constant and thorough communication, and great customer service.  I do not make money of the loan.  I have no financial benefit to sending a buyer to a specific mortgage broker.  The ONLY benefit I have, is the assurance that they are professionals who know what they are doing.  If there is a problem, they communicate.  If there is an issue that needs to be addressed, they let me know and we solve the problem together.   It's essential that you work with a team of problem solvers who make the transaction as smooth a process as possible. 

   If you are considering buying a home in Las Vegas and need a referral for a mortgage broker and direct lender, please call me.  I would be happy to help you out, even if you're already working with another Realtor, although I'd love to work with you if you aren't. :)

Felipe Crook

Prudential Americana Group Realtors

1-866-589-1646

http://www.lasvegasluxurypropertieslink.com/00B963

Americans in 39 of the country's 50 largest cities are finding it's cheaper to buy a home than rent one, according to Trulia's second quarter Rent vs. Buy index. In its index, Trulia compared the cost of buying and renting a two-bedroom apartment, condo, or town home in the 50 largest cities in the country.

When compared to the previous quarter, buying a home has become even more affordable than renting. Trulia found last quarter that in 72 percent of the cities it was better to buy than rent, but this quarter the number has grown to 78 percent of the cities studied.

Rising rents, falling home prices, and low mortgage rates have made home ownership make more financial sense in most areas of the country, according to Trulia.

"With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying," said Ken Shuman, Trulia's spokesperson, in a statement.

The cities where renting was a less costly option than home ownership were in New York, Fort Worth, Texas, and Kansas City, Mo.

Where It's Cheapest to Buy vs. Rent

The following is a list of the top 12 cities where it's cheapest to buy a home than rent.

1. Las Vegas
2. Phoenix
3. Arlington, Texas
4. Fresno, Calif.
5. Miami
6. Mesa, Ariz.
7. Jacksonville, Fla.
8. Sacramento, Calif.
9. Detroit
10. Omaha, Neb.
11. San Antonio
12. El Paso, Texas

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Felipe Crook

Prudential Americana Group

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After three straight months of declines, sales of new homes got a boost last month, jumping 11 percent, according to the Commerce Departments latest new-home sales report released Monday.

New-home sales rose in March to a seasonally adjusted rate of 300,000 homes, up from Februarys 250,000. However, the number is still far from what economists view as a healthy 700,000-a-year pace for the sector.

The median price of a new home increased 3 percent from February to $213,800. New-home prices are about 34 percent higher than the median price of existing homes, according to economists.

Regionally, new-home sales saw the biggest boost in the Northeast, jumping nearly 67 percent in March. The West saw an increase in new-home sales last month by nearly 26 percent; the Midwest posted a 13 percent increase; and in the South, new-home sales dipped 0.6 percent.

The new-home market continues to be battered by a high number of foreclosures that continue to dampen home prices across the country. With 1.2 million foreclosures forecast this year, the new-home sales market may not see a major turnaround for years, according to RealtyTrac Inc.

However, while residential construction has decreased considerably in recent years, reports have recently shown building permits have increased 28 percent for apartment and condo buildings.

Source: "The number of people who bought new homes jumped 11 pct., but pace is far below healthy level," Associated Press (April 25, 2011)

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Felipe Crook

Prudential Americana Group Realtors.

Las Vegas, NV 89117

1-866-589-1646

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