Las Vegas 2011 Outlook

    As Always the Big Question is, "What is happening with the Las Vegas Real Estate Market?" And as usual, there is no easy answer to this question.  I'm going to break down the issue into two answers, short term and long term. In the short term, we will see a surge of foreclosures hit the market.  When the banks got their bailout money, it was with the instructions to be kinder and more gentle to people not making their payments.  Those days are gone.  We also noticed that during the Holiday Season and the Election (conspiracy theorist), foreclosures were being postponed.  January has already shown itself to be a catch up month.   This sudden increase in inventory of Bank Owned Homes will probably cause another drop in Sales Prices and in turn, Home Values.  Sorry.  Over the Long Term I am more optimistic.  Large Corporations across the country have been very nervous about having a Democratic Congress, Senate and President. Issues like "Health Care" and "Cap and Trade" can cost companies big dollars.  Now with a Republican Congress and a split Senate, the next two years will be more business friendly.  The movie Wall Street coined the phrase, "Greed is Good". I contend that, "Gridlock is Good".  For Las Vegas to truly recover, we need the national economy to grow and be strong.  

        Does that mean we should wait to buy? That depends, if your paying Cash, you might get a better deal.  If your financing the purchase, I would say "Buy Now".  Many speculate that the Fed is going to have to raise interest rates to protect against Inflation.  Since Interest Rates hit bottom at 4.17 ironically at the same time as the election (more conspiracy), they have risen .75 of a point, lingering just under 5%.  If rates were to go up to 6%, on a purchase of a $150,000, that would change the payment from $ 805 a month to $900 / month. Or reverse the logic, if you qualify for a $900 / month payment, at 5% you can buy a $168,000 home, at 6% only a $150,000 home. 

  

$ 150,000 @ 5 % = $ 805 / month
$ 150,000 @ 6 % = $ 900 / month
$ 168,000 @ 5 % = $ 900 / month

  

No one is predicting prices to drop another 10%,
but many experts are predicting interest rates rising.
This is why we say, "Buy Now"

Thank you for your support,

Elaine & James Hansen - Broker Realtor

Horizon Realty Group
Elaine's Cell: (702) 768-4556
Jim's Cell: (702) 321-6296
Fax: (702) 933-8681
E-Mail: ElaineSellsVegas@gmail.com

A Short Sale is when the lender (bank) agrees to discount their payoff (amount owed) to accommodate a sale of a house when:

  1) The borrower has experienced a hardship and is unable to repay the entire mortgage balance
  2) The value is less than the amount needed to pay off all loans, encumbrances and real estate selling fees
  3) The loan is delinquent or in default.

Some examples of a hardships are;

Unemployment / Reduced Income, Divorce, Medical Emergency, Job Transfer, Bankruptcy or a Death.

Each bank has its own guidelines but the basic procedures are similar from bank to bank.

The seller will need to prepare a financial package for submission to the short sale bank.

The seller's short sale package will usually consists of:

- Letter of Authorization, which allows the agent speak to the bank

- HUD-1 or Preliminary Net Sheet (from a Title Company)

- Completed Financial Statement  (form supplied by the bank)

- Seller's Hardship Letter

- 2 years of Tax Returns

- 2 years of W-2s

- Recent Payroll Stubs

- Last 2 months of Bank Statements

- Comparative Market Analysis (supplied by Realtor)

It is very important to have a Realtor who is experienced in negotiating Short Sales.

I know you have questions, please give me a call and we can discuss your options.

James & Elaine Hansen

Horizon Realty Group

ABR, CRS, GRI & Broker Realtor

ElaineSellsVegas@gmail.com

Call or Text 702-768-4556