BluefoxToday blog : Renee Burrows - Las Vegas NV Valley - Homes For Sale - Real Estate Market News (The Force Realty -Realtor>Estate>Probate>REO>Short Sale)

**ACTIVE Las Vegas Real Estate Inventory Rises for the Third Straight Month!**

Active Las Vegas Residental Resale MLS Inventory has risen for the third straight month.  This is mainly due to first time buyers exhausting the market due to their tax credit expiring - this is not due to the shadow inventory fairy bringing us more inventory!

Read more about Las Vegas Real Estate Inventory Analysis here and consumers may comment on this post.

Las Vegas Area Real Estate Market Watch was created for informational purposes only. 

This is for all the buyers wondering "where is the inventory"?  The inventory is here, this graph shows that buyer interest is extremely high and gobbling up all that new inventory coming online!

This is also for people saying "shadow inventory exists"!  Well I believe it exists but it also exists in short sales which has tripled to quadrupled it's formerly stagnant close ratio since late spring.

These are Listing/Under Contract & Pending/Sold Trends from December 2007-July 2010.

Contracted closings are stalled because of the large amount of short sales that are contracted.  Inventory rise is directly related to the tax credit expiring.

 Summerlin July 2010 Real Estate Resale Market Report:

• Listings (8/15/2010): 803
• Under Contract (8/15/2010):  609
  
• Sold July 2010:  181

Since Last Month's Report:

• Listings UP +83
  
• Pendings DOWN -45
  
• Sold Units UP +6
  

Last Month's Summerlin Report

Most Current & Past Summerlin Market Reports

Learn More About the Master Planned Community of Summerlin.

Summerlin Homes for Sale

Rhodes Ranch Area Resale Market Report (homes for sale, pending and sold):

• Active Listings (7/15/2010):275
• Under Contract (7/15/2010): 379
• Sold June 2010:106
• Low:  $57,000 (Apache Hills Condo)
• Median:  $138,000 (Wineridge)
• High:  $432,000 (Rhodes Ranch)

Rhodes Ranch Area Rental Market Report (homes for rent, contingent, leased)

• Active Listings (7/15/2010):  74
  
• Under Contract (7/15/2010): 26
  
• Leased June 2010:  61
  
• Low:  $595/month (Vistana)
• Median:  $1200/month (Richmond at Rhodes Ranch)
• High:  $2650/month (Rhodes Ranch)

How to read my market reports (definitions and terms!)

Last Month's Market Report

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 & most current market report on the Rhodes Ranch Area:  http://www.livingatrhodesranch.com/

The Lakes June 2010 Real Estate Resale Market Report:

• Listings (7/15/2010):  69
• Under Contract (7/10/2010):  75
• Sold June 2010:  21

Since Last Month's Report:  Listings UP +6, Pendings DOWN -9, Sold Units DOWN -2

Why Las Vegas Pendings Aren't Selling

View Last Month's The Lakes Market Report Right Here!

For More Las Vegas Communities and Reports Click Here

Southern Highlands June 2010 Real Estate Resale Market Report (Homes For Sale/Under Contract/Sold):

• Listings (7/15/2010):  175
  
• Under Contract (7/15/2010):  220
• Sold June 2010:  58

Since Last Month:  Listings are UP +5, Pendings are DOWN -23, Sold Units UP +8. 

Last Month's Report

For More Las Vegas Communities and Reports Click Here

Cash REMAINS KING in the Las Vegas Area Real Estate Market!!!  It is important for every buyer in the Las Vegas Area Real Estate Market to understand who their buyer competition is in this currently competitive seller's market LV is enjoying!  It is important to understand how a seller looks at each financing type:

Cash Offers:  Generally have less contingencies and quicker close times.  A cash offer may be accepted even if it is lower than a financed offer.

Conventional Financing:  Less strict with lender required repairs but larger down payments and more strict credit guidelines.

FHA/VA Financing:  Requires more scrutiny with lender required repairs via appraisal.  In general these take longer to underwrite and close so a cash or conventional offer looks more enticing to the seller.  FHA Requires the deed to be seasoned for several months so some flips bought at trustee's sales are generally out as options when competing with multiple offers!

Other:  Less common and creative financing types such as Lease Options, OWC (Owner Will Carry), etc.  The "other" category INCLUDES auction terms!!

Last Month's Report

Most Current Report (scroll to bottom of page)

Economic Conditions for the Las Vegas Valley June 2010

Housing Conditions:

• Foreclosure/Short Sale Listings (7/15/2010): Total Listings 11716; Short Sales: 5231, 45% of all listings; Bank Owned Listings: 2476, 21% of all listings. Short sale and REO listings consume 63% of total listings
• New Home Sales (June 2010, units sold): 893 Year Change +99.3% (excl condo conversions, highrises)
• New Home Sales (June 2010, median price): $183,213 Year Change -10.6% (excl condo conversions, highrises)
• Existing Home Sales (June 2010, units sold): 4126 Year Change -5.0%
• Existing Home Sales (June 2010, median price): $126,000 Year Change: +0.8%
• New Home Permits (June 2010): 402 Year Change +9.2%
• Rental Rate (MLS Monthly Average June 2010): $1410/month 

My analysis:  Distressed listings (foreclosures and short sales) are 63% of total listings.  This figure is slowly going up after many months of decline HOWEVER REO is emerging as a new life form (investor trustee sale purchase flips.)  Credit markets must be watched as underwriting guidelines continue to tighten.  Condos are barely financeable.  Resale sold units and pendings remain impressive.  New Home Sales & Permits are steadily increasing as inventory in the Las Vegas Valley remains tight. The rental market is softening due to all the investor/first time buyer combination of activity.  This adds more supply and creates less demand.

New Residents/Employment Conditions:

• New Residents (June 2010): 4372, Year Change -4.6%
• Total Employment (June 2010): 801,100 Year Change -2.9%
• Unemployment Rate (June 2010) 14.5%, Year Change -2.9%

My analysis: The tourism, gaming and convention numbers need to improve before these numbers improve.  New Resident Count will continue to plummet if no new jobs are created.  Economists are hoping that City Center brings tens of thousands of new jobs.  The Las Vegas Valley has lost -132,000 jobs since April 2008.  I am not optimistic that City Center can pull us out of this slump.  (see Tourism/Gaming conditions below!)  City Center is expected to draw in anywhere from 10,000-15,000 new jobs.  Unfortunately around 8500 construction workers from the project will be unemployed so that really boils down to only 2500-7500 new jobs.  Unemployment rate is painful yet again.  While these numbers are looking VERY bad, I am seeing some changes in the Tourism/Gaming Sector which will help this sector in the long run if it is sustainable!!

Tourism/Gaming Conditions:

• McCarran Airport Total Passengers (June 2010): 3,400,550 Year Change -1.1%
• Gaming Revenue (May 2010): $714,657,494, Year Change -4.4%
• Visitor Volume (May 2010): 3,543,469, Year Change +1.1%
• Convention Attendance (May 2010): 352,357, Year Change  +3.1% 
• Hotel/Motel Occupancy (April 2010): 82.6% Year Change -1.8%

My analysis:   After rising in double digits for one month, Convention attendance is in the black again. This sector (tourism) needs to see some serious price corrections before we see a comeback.  Corporate credit is not coming back any time soon.  It will be hard to get convention attendance back up without corporate credit.  Glad to see regular tourists are making their way here with the imbalance of the other numbers to replace the convention attendee numbers.  Gaming numbers are back in the negative but thankfully not in the double digits like they have been in the recent past.

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.  Information deemed reliable but not guaranteed.  My analysis is my humble opinion

Our sales are mostly distressed which means pre-foreclosures (short sales) and REO account for almost 74% of our closed sales business.  Even most of those "standard sales" that you see are really disguised as flips that were purchased from trustee sales by private investors.

In order of the most pricey Las Vegas real estate type from highest to lowest:

New Construction -the highest priced sale type!  New Construction is currently giving decent incentives such as closing costs (which is always built into the price).  The beautiful thing about New Construction vs other sale types is that you don't have to worry about an "as-is" transaction and most of the time you also get a home warranty.  No such thing as "deferred maintenance" HOWEVER a home inspection is still recommended protocal as there is a such thing as "faulty construction".

Standard - the second highest price tag.  TRUE standard sales are actually very rare in our market.  As I mentioned above these sales are usually disguised as "trustee sale flips."  For the most part with a real standard sale you will receive a SRPD (seller's real property disclosure) and maybe even get some non-lender required repairs taken care of.

REO (Bank Owned, Foreclosures) - the third on the food chain.  While phenomenal bargains in good shape, can be found in this sector - homes are generally sold "as-is" which means sellers will not fix any aesthetics or small problems like standard sellers.  Deferred maintenance can be looming behind the walls even though it is aesthetically pleasing throughout.

Short Sale - the "bottom of the barrel".  Just because I am calling short sale "the bottom of the barrel" with pricing doesn't mean a fantastic bargain is waiting behind the front door.  The problem with short sales is again, may be sold as-is with deferred maintenance.  ALSO - the "sellability factor" of the short sale is an issue.  Sellers may reject terms and conditions of the short sale approval by the lienholder(s) which would cause the buyer to go back (after patiently waiting for months on end) to square one with their purchase process.

...And There are Even More Variables

Yes, it all depends on where the recent closed comps are at for that specific sales type.  Sometimes homes are purposely underpriced to get foot traffic and generate multiple offers.

You have to be careful out there, you don't want to place your offer too high and overpay for the property or too low and risk losing the home of your dreams!

Has Confusion Set in Yet?

Then you may want to consider working with a professional who can break it all down for you :)  I have extensive BPO experience which makes it easy on the buyer when it gets to be "offer time"!

Cash is the obvious dominator with overall Las Vegas Area REO Purchases.  Cash not only dominates but CRUSHES financed purchases under $75000.  The primary reason is the stuff priced under $75000 is unhabitable and ineligible for financing or is condo ineligible for financing. 

Asset managers for REO also may choose cash offers that may be lower than financed simply because financed offers have exceeded their appraised price on the property or because there are less contingencies and they can close quicker (which takes the asset - or liability - off of their books quicker.)

Condo financing is currently a challenge in the Las Vegas Area.  Lenders want to see low investor concentration, low HOA deliquencies and no construction defect or other litigation against HOA or community.  To determine if a condo is eligible for financing, a condo certification may be ordered from the HOA (this does cost money) and have it run by an underwriter.

Whether you are all cash or a financed buyer, you can search Las Vegas Area (Henderson & North Las Vegas too) homes right here for free and no obligation!

View other REO Stats for the Las Vegas Valley!

Last Month's Las Vegas Area REO Financing Profile Report