By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL
Las Vegas housing prices remained flat in November, while single-family home sales went into their seasonal slump at 3,117 closings, up 42.8 percent from the same month a year ago, the Greater Las Vegas Association of Realtors reported Tuesday.
"Home sales and activity traditionally slow down around the holidays, so we may see similar trends in the next month or two," Realtors association President Sue Naumann said.
With 726 condo and townhouse sales, the number of units sold in November was 3,843, compared with 4,385 in October and 2,757 in November 2008.
The single-family median home price has dropped 24.7 percent from a year ago to $140,000. That's an increase of 0.6 percent from $139,100 in October. Condo prices are down 25 percent from a year ago at $68,000.
The inventory of homes for sale fell 8.4 percent from a year ago to 20,847 in November, though only 8,385 units are available without an offer. The others are in contract, or are contingent or pending on some other action.
Naumann said she has a first-time homebuyer waiting approval of a short sale -- where a home is sold for less than the mortgage balance -- and another short sale in the works. She's also showing condos to a cash buyer, probably in the range of $125,000.
"There are a lot of buyers looking to take advantage of this market," she said. "But there are other buyers out there, and that's their competition."
Naumann said 41 percent of homes are being purchased with cash, about the same as October, an indication that investors have returned to the market. Bank-owned properties accounted for 61 percent of November sales, she said.
Real estate broker Deirdre Felgar of Realty America said she's about at "wits' end" dealing with the banks. They received government bailout money and were allowed to value foreclosure properties on future market values so they won't be out of federal compliance, she said.
Now they don't want to list properties for sale and realize the losses.
"Prices fell so low last year when banks dumped thousands of properties on the market ... they caused prices to tumble to 1997 or 1998 prices," Felgar said. "This caused virtually everyone who purchased in the last 10 years to have a negative value on their property, making it impossible for them to sell because their homes are worth less than the mortgage."
Banks are not putting enough homes on the market to keep up with demand, she said.
Buyers find a home they like at a price they can afford, only to discover they're up against 20 to 25 competing offers. Banks will take up to 30 days to approve the sale, usually selecting a cash buyer over someone who needs financing.
Felgar said she had out-of-town clients fly into Las Vegas, put in 16 offers with $40,000 to $60,000 down and only two were accepted. "That's ridiculous and unfair to the public," she said.
David Brownell of Keller Williams Realty said he's seeing an interesting shift from foreclosures to short sales as a higher percentage of total sales. Also, foreclosures and short sales comprised 80 percent of November sales, compared with 90 percent in January.
"There may be hope for private sellers," Brownell said. "Or perhaps more of them have had their past-prices spirit broken and they have finally awakened to the actual market conditions."
Statistics from the Greater Las Vegas Association of Realtors are based on data collected from the Multiple Listing Service and do not necessarily account for sale by owners, homebuilders and transactions not involving a Realtor.
Thursday, December 10, 2009
Saturday, September 12, 2009
Expand and Extend the Homebuyer Tax Credit!
First and foremost, a thank you. As part of the Fix Housing First coalition, you helped win the $8000 first time homebuyer tax credit in the stimulus bill last February. Without the collective voice of home buyers, homebuilders, realtors, suppliers, manufacturers, etc., this never would have happened. But now we come to you with good news and bad news.
First the good news: The tax credit is working. In addition to some positive numbers on increased sales and decreased inventories there is a bunch of anecdotal information as well. The only provision in the stimulus bill targeted directly at individuals, it is helping people realize the dream of home ownership. And, just as we had predicted, these benefits have spread to everyone connected to the housing sector - designers, manufacturers, realtors, etc.
Now the bad news: Unless Congress acts, the credit will expire on November 30 of this year. In our view, this will stop the housing recovery and slow the economy's momentum just as it is beginning.
And so we will be asking you once again to help us convince Congress that the tax credit needs to be extended to September 30 of 2010 and expanded to include all buyers --not just first timers. We'll be coming back to you with more information and requests for action in the coming weeks.
We are updating the website, www.FixHousingFirst.com, and encourage you to visit the site to view current information on how the tax credit is working.
In the meantime, we have two requests:
1. We want to hear your story. Congressmen and Senators have seen the reports on housing but they need to understand the personal stories of how the credit has helped individual American families. If you or anyone you know has used or benefited from the $8000 homebuyers tax credit, please let us know. Did you buy or sell a home? Did you hire more people as a result? Do you have a picture of yourself or your clients in front of their new home? Email us at itworks@FixHousingFirst.com; tell us your story - buyers, sellers, small businesses, movers, realtors, anyone connected with the housing sector. We will feature them on the website. Please include as many details as you'd like - as well as your zip code, so we can share these stories with your Member of Congress, to let them know it's working.
2. Help get the word out. This coalition grew to almost 50,000 people who took action through the website last time. Please help spread the word about our new effort to friends, family, co-workers, neighbors, customers, suppliers, etc. You can also follow us on Twitter @FixHousingFirst.
Again, thank you. We look forward to working with you again to extend and expand the home buyers' tax credit, and to continue to jumpstart the economy.
First and foremost, a thank you. As part of the Fix Housing First coalition, you helped win the $8000 first time homebuyer tax credit in the stimulus bill last February. Without the collective voice of home buyers, homebuilders, realtors, suppliers, manufacturers, etc., this never would have happened. But now we come to you with good news and bad news.
First the good news: The tax credit is working. In addition to some positive numbers on increased sales and decreased inventories there is a bunch of anecdotal information as well. The only provision in the stimulus bill targeted directly at individuals, it is helping people realize the dream of home ownership. And, just as we had predicted, these benefits have spread to everyone connected to the housing sector - designers, manufacturers, realtors, etc.
Now the bad news: Unless Congress acts, the credit will expire on November 30 of this year. In our view, this will stop the housing recovery and slow the economy's momentum just as it is beginning.
And so we will be asking you once again to help us convince Congress that the tax credit needs to be extended to September 30 of 2010 and expanded to include all buyers --not just first timers. We'll be coming back to you with more information and requests for action in the coming weeks.
We are updating the website, www.FixHousingFirst.com, and encourage you to visit the site to view current information on how the tax credit is working.
In the meantime, we have two requests:
1. We want to hear your story. Congressmen and Senators have seen the reports on housing but they need to understand the personal stories of how the credit has helped individual American families. If you or anyone you know has used or benefited from the $8000 homebuyers tax credit, please let us know. Did you buy or sell a home? Did you hire more people as a result? Do you have a picture of yourself or your clients in front of their new home? Email us at itworks@FixHousingFirst.com; tell us your story - buyers, sellers, small businesses, movers, realtors, anyone connected with the housing sector. We will feature them on the website. Please include as many details as you'd like - as well as your zip code, so we can share these stories with your Member of Congress, to let them know it's working.
2. Help get the word out. This coalition grew to almost 50,000 people who took action through the website last time. Please help spread the word about our new effort to friends, family, co-workers, neighbors, customers, suppliers, etc. You can also follow us on Twitter @FixHousingFirst.
Again, thank you. We look forward to working with you again to extend and expand the home buyers' tax credit, and to continue to jumpstart the economy.
Tuesday, August 11, 2009
Daily Real Estate News | August 7, 2009 | Share
Foreclosure Bargains Are Disappearing
Buyers of foreclosure have to be quick these days. Some houses go under contract fewer than 90 minutes after they are put on the market, says Brad Geisen, founder of Foreclosure.com.
"For every listing that comes out, we have 10 buyers," says Cesar Dias, an associate with Approved Real Estate Group in Stockton, Calif.
Dias had 15 minutes of fame after introducing foreclosure sales tours last year. Now the tours are defunct because there are not enough homes to show.
"We had a lot of inventory last summer. Now we're down to 1,500 listings — from more than 5,000," Dias says.
In Florida, real-estate investment companies, buying in bulk and paying cash, face competition.
Even in the hard-hit Detroit area, bargains are disappearing.
"For a good house that's not too beat up, in a good neighborhood, there's no lack of buyers in this market," says Andy Sakmar, founder of Century 21 Sakmar in Rochester, 20 miles north of the city. "There are a lot fewer of these properties than a year ago, and the super buys get multiple offers."
Source: CNNMoney.com, Les Christie (08/06/2009)
Foreclosure Bargains Are Disappearing
Buyers of foreclosure have to be quick these days. Some houses go under contract fewer than 90 minutes after they are put on the market, says Brad Geisen, founder of Foreclosure.com.
"For every listing that comes out, we have 10 buyers," says Cesar Dias, an associate with Approved Real Estate Group in Stockton, Calif.
Dias had 15 minutes of fame after introducing foreclosure sales tours last year. Now the tours are defunct because there are not enough homes to show.
"We had a lot of inventory last summer. Now we're down to 1,500 listings — from more than 5,000," Dias says.
In Florida, real-estate investment companies, buying in bulk and paying cash, face competition.
Even in the hard-hit Detroit area, bargains are disappearing.
"For a good house that's not too beat up, in a good neighborhood, there's no lack of buyers in this market," says Andy Sakmar, founder of Century 21 Sakmar in Rochester, 20 miles north of the city. "There are a lot fewer of these properties than a year ago, and the super buys get multiple offers."
Source: CNNMoney.com, Les Christie (08/06/2009)
Monday, August 10, 2009
Single-family homes catch investors’ eyes
Buyers focus on rental income more than appreciation potential By Brian Wargo (contact), In Business reporter
Fri, Jul 31, 2009 (3 a.m.)
TIFFANY BROWN
The Meridian condominiums are located near the Las Vegas Strip.
Sun Archives
Las Vegas housing supply hits 3-year low (7-24-2009)
Las Vegas breaks record for monthly home sales (7-8-2009)
Sun Topics
Real Estate in Crisis
Sun Coverage
More stories about business and the economy
Southern California investors have returned to the Las Vegas market in force to look for bargains on single-family homes and helped drive Las Vegas to a record number of sales in June, housing industry experts said.
The number of investors buying new and existing homes in Las Vegas rose 35 percent when June numbers are compared with June 2008, according to San Diego-based DataQuick.
The demand for investors buying existing homes has helped that segment of the market fare the best when it comes to real estate investing over the past year and kept housing prices stable between April and June, analysts said.
“Real estate has always been a good investment, and right now it has never been better from a residential standpoint,” said Steve Bottfeld, executive vice president of Marketing Solutions. “I just wouldn’t invest in commercial (real estate) because it is about to go through what residential already has.”
DataQuick reported that investors made up 37.5 percent of the buyers of both new and existing homes in June. That’s the second highest June this decade when it comes to investor-purchased homes, next to the 39.4 percent in June 2004. It’s also the highest percentage of investors as buyers since it was 37.6 percent in February 2006, said DataQuick spokesman Andrew LePage.
The influx of investors into the market is evident since it hit a low of 25.3 percent in September 2008 in the aftermath of the housing boom. In June 2008, investors comprised 27.8 percent of the sales, below the 30.3 percent average for Las Vegas between January 2000 and June 2009, LePage said.
No one should confuse this class of investors in residential real estate with those during the boom that bought and flipped houses, Bottfeld said. These investors are looking to hold long term and earn money off rental income, he said.
It makes sense because if someone can buy a home for $100,000 in cash and rent it for $1,000 a month, that equates to a 12 percent return before taxes and other expenses are included, Bottfeld said. Even getting an 8 percent return is better than the 2 percent they might get at their bank, he added.
Glenn Plantone, a Realtor and president of the Real Estate Insiders Club in Las Vegas, said investors are taking advantage of a steep drop in prices since they peaked in 2006. In some cases, prices of homes in the northwest fell 70 percent.
Homes that sold for about $300,000 are going for about $110,000 he said.
“They are buying them for cash flow,” Plantone said. “We are not even talking about appreciation potential.”
The market to rent homes remains strong because people understand the value compared to renting an apartment, Plantone said. And for those homeowners who lost their home to foreclosure, they want to stay in a home.
“It is a lot easier to rent houses than condos,” Plantone said. “We are getting people who are walking away from a $2,000 a month home payment and going across the street to rent a home for $1,200 in immaculate shape.”
Despite the interest in Las Vegas, it is not as strong as Phoenix where 39.6 percent of sales were bought by investors, LePage said.
Most of the investor buyers that Plantone said he has dealt with are Southern Californians. Many are small businessmen who have several hundred thousand dollars to invest and have been waiting for an opportunity in real estate.
Plantone said these buyers are savvy because none of his investors has bought a property for more than $121,000. They are looking for homes built in 2003 and later.
Robyn Yates, the broker-owner of Windermere Prestige Properties said not only are investors coming from Southern California but there has also been a lot of interest from foreign buyers, especially in Asia. Some are even buying homes without seeing them in person, she said.
Many investors have been hurt by the decline in the stock market and liquidated some of those assets or took out money from their 401k despite having to pay a penalty, she said. In some cases, there are a group of five people pooling cash to buy 10 homes, but most are individual investors, she said.
“Some of them were just holding onto cash until the opportunity was right,” Yates said. “I think they are going to be around for another couple of years.”
As long as homes can be bought much cheaper than builders can construct them, there will be a market for investors in Las Vegas, Yates said.
Plantone said that many of these buyers will leave the market when prices go up $20,000 to $30,000 because their investments won’t pencil out for rental income as they will now.
“That’s why investors have been so aggressive,” Plantone said. “I am telling people they may not see a better time to buy since the Great Depression.”
Investors are winning out over frustrated first-time buyers for the properties because they are offering more than the list price and because they have the advantage of offering cash, Plantone said. It was only three months ago that buyers could get properties below list price, he said.
Any investors who bought in 2007 or early 2008 wouldn’t have had any luck with appreciation, although buying single-family homes fared the best out of all real estate investment categories over the past year, according to Larry Murphy, president of SalesTraq, a Las Vegas housing research firm.
“The single-family home has always been the preferred house of choice with most people,” Murphy said. “Most people want the picket fence and the back yard and not being attached to someone.”
Between the first six months of 2008 and first six months of 2009, the median price of single-family homes fell 34 percent, Murphy said.
The best performer on price appreciation when it comes to planned communities was Silverstone Ranch in the northwest valley. The Pulte Homes community had a median price of $226,000 in 2008 and that fell 19 percent to $182,500 through the second quarter this year, Murphy said.
Homes performed better than an acre of undeveloped land, whose median price fell 42 percent over that timeframe, he said.
Third on the list were mid-rise condominiums, which fell 49 percent in the past year They were barely ahead of high-rise condos whose values fell 50 percent and other condos and town homes which fell 51 percent, Murphy said.
The worst investment over the past year was apartment conversions with values falling by 56 percent, Murphy said.
The worst of the that segment was the Meridian at Hughes Center on Flamingo Road, east of the Strip that was converted from apartments to condominiums between 2005 and 2007, Murphy said.
The property, which had a failed attempt at trying to convert into a condo-hotel because of Clark County regulations, sold for $604 per square foot when it first entered the market. The average price was $539,000, Murphy said.
Through June, the average resale price has fallen to $87,611 or $121 a square foot, Murphy said. With that drop in price has come rising foreclosures. Murphy reports that 201 of the 680 units or 30 percent have been foreclosed upon, and that number is likely to rise. The foreclosures have been running as high as 25 a month so far in 2009, he said.
Murphy said he’s not surprised apartment conversions have fared the worst because in essence some are 20-year-old buildings that have a new granite countertop.
There was a strong demand for condo conversions during the housing boom because they were the only units available that could be bought for $200,000 or less. With homes more affordable today, that softens the demand for conversions, he said.
Land came in second after single-family homes because despite the meltdown in the market, it remains a precious commodity, Bottfeld said. Even though Las Vegas is overbuilt, there is a limited supply of land because of restrictions by the federal government, he said.
There is not as much movement on buying high-rise condominiums because the inventory is limited and banks have been reluctant to put that inventory on the market at bargain prices, Plantone said.
The high-rise condominium market that has fared poorly is condo-hotels in which buyers put the room in the daily hotel rental pool. Demand for hotel rooms has been weak in the economy and hotels only return about $30 for every $100 in rental income, Plantone said.
Start making 12 % or more Today call Michelle @ 702-525-4113 www.LVRealtor4U.com
Buyers focus on rental income more than appreciation potential By Brian Wargo (contact), In Business reporter
Fri, Jul 31, 2009 (3 a.m.)
TIFFANY BROWN
The Meridian condominiums are located near the Las Vegas Strip.
Sun Archives
Las Vegas housing supply hits 3-year low (7-24-2009)
Las Vegas breaks record for monthly home sales (7-8-2009)
Sun Topics
Real Estate in Crisis
Sun Coverage
More stories about business and the economy
Southern California investors have returned to the Las Vegas market in force to look for bargains on single-family homes and helped drive Las Vegas to a record number of sales in June, housing industry experts said.
The number of investors buying new and existing homes in Las Vegas rose 35 percent when June numbers are compared with June 2008, according to San Diego-based DataQuick.
The demand for investors buying existing homes has helped that segment of the market fare the best when it comes to real estate investing over the past year and kept housing prices stable between April and June, analysts said.
“Real estate has always been a good investment, and right now it has never been better from a residential standpoint,” said Steve Bottfeld, executive vice president of Marketing Solutions. “I just wouldn’t invest in commercial (real estate) because it is about to go through what residential already has.”
DataQuick reported that investors made up 37.5 percent of the buyers of both new and existing homes in June. That’s the second highest June this decade when it comes to investor-purchased homes, next to the 39.4 percent in June 2004. It’s also the highest percentage of investors as buyers since it was 37.6 percent in February 2006, said DataQuick spokesman Andrew LePage.
The influx of investors into the market is evident since it hit a low of 25.3 percent in September 2008 in the aftermath of the housing boom. In June 2008, investors comprised 27.8 percent of the sales, below the 30.3 percent average for Las Vegas between January 2000 and June 2009, LePage said.
No one should confuse this class of investors in residential real estate with those during the boom that bought and flipped houses, Bottfeld said. These investors are looking to hold long term and earn money off rental income, he said.
It makes sense because if someone can buy a home for $100,000 in cash and rent it for $1,000 a month, that equates to a 12 percent return before taxes and other expenses are included, Bottfeld said. Even getting an 8 percent return is better than the 2 percent they might get at their bank, he added.
Glenn Plantone, a Realtor and president of the Real Estate Insiders Club in Las Vegas, said investors are taking advantage of a steep drop in prices since they peaked in 2006. In some cases, prices of homes in the northwest fell 70 percent.
Homes that sold for about $300,000 are going for about $110,000 he said.
“They are buying them for cash flow,” Plantone said. “We are not even talking about appreciation potential.”
The market to rent homes remains strong because people understand the value compared to renting an apartment, Plantone said. And for those homeowners who lost their home to foreclosure, they want to stay in a home.
“It is a lot easier to rent houses than condos,” Plantone said. “We are getting people who are walking away from a $2,000 a month home payment and going across the street to rent a home for $1,200 in immaculate shape.”
Despite the interest in Las Vegas, it is not as strong as Phoenix where 39.6 percent of sales were bought by investors, LePage said.
Most of the investor buyers that Plantone said he has dealt with are Southern Californians. Many are small businessmen who have several hundred thousand dollars to invest and have been waiting for an opportunity in real estate.
Plantone said these buyers are savvy because none of his investors has bought a property for more than $121,000. They are looking for homes built in 2003 and later.
Robyn Yates, the broker-owner of Windermere Prestige Properties said not only are investors coming from Southern California but there has also been a lot of interest from foreign buyers, especially in Asia. Some are even buying homes without seeing them in person, she said.
Many investors have been hurt by the decline in the stock market and liquidated some of those assets or took out money from their 401k despite having to pay a penalty, she said. In some cases, there are a group of five people pooling cash to buy 10 homes, but most are individual investors, she said.
“Some of them were just holding onto cash until the opportunity was right,” Yates said. “I think they are going to be around for another couple of years.”
As long as homes can be bought much cheaper than builders can construct them, there will be a market for investors in Las Vegas, Yates said.
Plantone said that many of these buyers will leave the market when prices go up $20,000 to $30,000 because their investments won’t pencil out for rental income as they will now.
“That’s why investors have been so aggressive,” Plantone said. “I am telling people they may not see a better time to buy since the Great Depression.”
Investors are winning out over frustrated first-time buyers for the properties because they are offering more than the list price and because they have the advantage of offering cash, Plantone said. It was only three months ago that buyers could get properties below list price, he said.
Any investors who bought in 2007 or early 2008 wouldn’t have had any luck with appreciation, although buying single-family homes fared the best out of all real estate investment categories over the past year, according to Larry Murphy, president of SalesTraq, a Las Vegas housing research firm.
“The single-family home has always been the preferred house of choice with most people,” Murphy said. “Most people want the picket fence and the back yard and not being attached to someone.”
Between the first six months of 2008 and first six months of 2009, the median price of single-family homes fell 34 percent, Murphy said.
The best performer on price appreciation when it comes to planned communities was Silverstone Ranch in the northwest valley. The Pulte Homes community had a median price of $226,000 in 2008 and that fell 19 percent to $182,500 through the second quarter this year, Murphy said.
Homes performed better than an acre of undeveloped land, whose median price fell 42 percent over that timeframe, he said.
Third on the list were mid-rise condominiums, which fell 49 percent in the past year They were barely ahead of high-rise condos whose values fell 50 percent and other condos and town homes which fell 51 percent, Murphy said.
The worst investment over the past year was apartment conversions with values falling by 56 percent, Murphy said.
The worst of the that segment was the Meridian at Hughes Center on Flamingo Road, east of the Strip that was converted from apartments to condominiums between 2005 and 2007, Murphy said.
The property, which had a failed attempt at trying to convert into a condo-hotel because of Clark County regulations, sold for $604 per square foot when it first entered the market. The average price was $539,000, Murphy said.
Through June, the average resale price has fallen to $87,611 or $121 a square foot, Murphy said. With that drop in price has come rising foreclosures. Murphy reports that 201 of the 680 units or 30 percent have been foreclosed upon, and that number is likely to rise. The foreclosures have been running as high as 25 a month so far in 2009, he said.
Murphy said he’s not surprised apartment conversions have fared the worst because in essence some are 20-year-old buildings that have a new granite countertop.
There was a strong demand for condo conversions during the housing boom because they were the only units available that could be bought for $200,000 or less. With homes more affordable today, that softens the demand for conversions, he said.
Land came in second after single-family homes because despite the meltdown in the market, it remains a precious commodity, Bottfeld said. Even though Las Vegas is overbuilt, there is a limited supply of land because of restrictions by the federal government, he said.
There is not as much movement on buying high-rise condominiums because the inventory is limited and banks have been reluctant to put that inventory on the market at bargain prices, Plantone said.
The high-rise condominium market that has fared poorly is condo-hotels in which buyers put the room in the daily hotel rental pool. Demand for hotel rooms has been weak in the economy and hotels only return about $30 for every $100 in rental income, Plantone said.
Start making 12 % or more Today call Michelle @ 702-525-4113 www.LVRealtor4U.com
Monday, July 27, 2009
Now's the Time to Buy Your Dream House
If you can afford it, home prices remain at an all-time low and selection an all-time high, writes Marc Roth
By Marc Roth
Wait a second… BusinessWeek just ran a cover story saying home prices won't rebound until 2012, and here it is starting a real estate column?
What gives?
Well, the reason it's a perfect time to launch this column should be clear. There is an opportunity in residential real estate ownership unlike any we've seen in quite a long time, a perfect storm of sorts that is unlikely to last much longer. Home prices are down, interest rates remain near historical lows, and inventory is high. Thus, those with stable jobs and good credit can find their dream home, pay a price lower than any time in the last five or more years, finance it at a very favorable interest rate, and thereby be perfectly positioned for the housing recovery that the magazine wrote about.
Most of us who remember shopping for a home in 2005 and 2006—when national inventories were extremely low—recall how difficult it was to find our dream home in our preferred neighborhood at a price we considered affordable, let alone realistic. With so few houses available, any home in a desirable area sold regardless of its condition or layout—often before it was even officially listed.
According to the National Association of Realtors, the inventory of existing homes for sale peaked in November of 2008 at an 11 months' supply. There was a 9.6 month supply at the end of May and, from what I hear, it has fallen since then.
While you think your dream home will remain on the market forever; the selection is shrinking.
You Can't See the Future
If we all had a crystal ball, we'd time our purchases by buying at the bottom of every pricing cycle. However, we all know that most of us are no better at picking bottoms than we are at selling tops. NAR statistics indicate that the national average for existing home sale prices peaked at $230,200 in July of 2006. In January of 2009, its lowest point, the average fell to $164,800, down 28.3% from its peak.
Since then, despite foreclosures still making up a significant portion of the transactions, the average price has slowly climbed each month. It stood at $173,000 at the end of May.
While mortgage rates have always climbed slightly, they, too, are near historic lows. Freddie Mac (FRE) reported recently that the average 30-year fixed mortgage rate is down to 5.32%. When I bought my first home in 1992, I recall paying around 8.5% and thinking it was a good rate. My sentiment back then was largely driven by my vision of my father getting stuck in a rate around 18% back in the early 1980s.
Given the economy over the last couple of years, we are all rightfully skeptical. When you see your investment portfolio drop dramatically—the Dow fell by more than a third, and the S&P and NASDAQ did even worse last year—and the unemployment rate continue to rise you have to think twice when someone tells you home prices are on sale.
A Great Time to Shop
But the numbers—both current and historic—show it is indeed the case. While the unemployment rate is high, the rate of people losing their jobs is slowing and it appears that inflation has moved up the list as a primary economic concern. And it's reasonable to expect any increase in inflation to also include an increase in home prices.
I do not claim to be Nostradamus, but I am observant enough to understand we are at a unique and opportunistic point in time within the realm of residential real estate. There are some terrific homes on the market today, at prices historically quite low, with attractive interest rates available to those with good credit.
I'm not suggesting everyone run right out and buy a home above their means. But I am suggesting that if you don't yet own a home, or if you own a home and have been considering trading up, now is a great time to go shopping.
If you can afford it, home prices remain at an all-time low and selection an all-time high, writes Marc Roth
By Marc Roth
Wait a second… BusinessWeek just ran a cover story saying home prices won't rebound until 2012, and here it is starting a real estate column?
What gives?
Well, the reason it's a perfect time to launch this column should be clear. There is an opportunity in residential real estate ownership unlike any we've seen in quite a long time, a perfect storm of sorts that is unlikely to last much longer. Home prices are down, interest rates remain near historical lows, and inventory is high. Thus, those with stable jobs and good credit can find their dream home, pay a price lower than any time in the last five or more years, finance it at a very favorable interest rate, and thereby be perfectly positioned for the housing recovery that the magazine wrote about.
Most of us who remember shopping for a home in 2005 and 2006—when national inventories were extremely low—recall how difficult it was to find our dream home in our preferred neighborhood at a price we considered affordable, let alone realistic. With so few houses available, any home in a desirable area sold regardless of its condition or layout—often before it was even officially listed.
According to the National Association of Realtors, the inventory of existing homes for sale peaked in November of 2008 at an 11 months' supply. There was a 9.6 month supply at the end of May and, from what I hear, it has fallen since then.
While you think your dream home will remain on the market forever; the selection is shrinking.
You Can't See the Future
If we all had a crystal ball, we'd time our purchases by buying at the bottom of every pricing cycle. However, we all know that most of us are no better at picking bottoms than we are at selling tops. NAR statistics indicate that the national average for existing home sale prices peaked at $230,200 in July of 2006. In January of 2009, its lowest point, the average fell to $164,800, down 28.3% from its peak.
Since then, despite foreclosures still making up a significant portion of the transactions, the average price has slowly climbed each month. It stood at $173,000 at the end of May.
While mortgage rates have always climbed slightly, they, too, are near historic lows. Freddie Mac (FRE) reported recently that the average 30-year fixed mortgage rate is down to 5.32%. When I bought my first home in 1992, I recall paying around 8.5% and thinking it was a good rate. My sentiment back then was largely driven by my vision of my father getting stuck in a rate around 18% back in the early 1980s.
Given the economy over the last couple of years, we are all rightfully skeptical. When you see your investment portfolio drop dramatically—the Dow fell by more than a third, and the S&P and NASDAQ did even worse last year—and the unemployment rate continue to rise you have to think twice when someone tells you home prices are on sale.
A Great Time to Shop
But the numbers—both current and historic—show it is indeed the case. While the unemployment rate is high, the rate of people losing their jobs is slowing and it appears that inflation has moved up the list as a primary economic concern. And it's reasonable to expect any increase in inflation to also include an increase in home prices.
I do not claim to be Nostradamus, but I am observant enough to understand we are at a unique and opportunistic point in time within the realm of residential real estate. There are some terrific homes on the market today, at prices historically quite low, with attractive interest rates available to those with good credit.
I'm not suggesting everyone run right out and buy a home above their means. But I am suggesting that if you don't yet own a home, or if you own a home and have been considering trading up, now is a great time to go shopping.
Now's the Time to Buy Your Dream House
by Marc Roth, Founder and President
If you can afford it, home prices remain at an all-time low and selection an all-time high, writes Marc Roth.
Wait a second... BusinessWeek just ran a cover story saying home prices won't rebound until 2012, and here it is starting a real estate column?
What gives? Read more...
by Marc Roth, Founder and President
If you can afford it, home prices remain at an all-time low and selection an all-time high, writes Marc Roth.
Wait a second... BusinessWeek just ran a cover story saying home prices won't rebound until 2012, and here it is starting a real estate column?
What gives? Read more...
Saturday, July 25, 2009
Las Vegas Real Estate Sets Sales Record for June 2009
Las Vegas Real Estate sales of single-family homes, condos and town homes hit a record of 4,702 in June, beating the previous record of 4,414 set in June 2004 according to the information released by the Greater Las Vegas Association of Realtors. The main reason for the increase in home sales is the average sales price of $140,000 which is considerably less than the average sales price of $242,000 in June 2004. The drastic drop in home prices has made it affordable for first time home buyers once again and lucrative for real estate investors.
The window of opportunity will not last!
Call Today 702-525-4113
Las Vegas Real Estate sales of single-family homes, condos and town homes hit a record of 4,702 in June, beating the previous record of 4,414 set in June 2004 according to the information released by the Greater Las Vegas Association of Realtors. The main reason for the increase in home sales is the average sales price of $140,000 which is considerably less than the average sales price of $242,000 in June 2004. The drastic drop in home prices has made it affordable for first time home buyers once again and lucrative for real estate investors.
The window of opportunity will not last!
Call Today 702-525-4113
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