November Market Update

A Political Look at our National Housing Market

Trulia Posted an Interesting Blog Article I thought some of you might like.

I edited out the Blogger Opinions and just left the facts and data.

This way you can come to your own Conclusions

about where any Blame or Credit should go.

I would love to hear how other interpret this data.

Please comment on my Blog Page.

Thanks!

Historical Mortgage Rates

I found this graph during one of my searches for Interesting and Relevant information.

I find it interesting in a few of ways.

1.  We have been told over the past 15 + years that now is the time to buy because

Interest Rates are at an Historical low and you want to buy before the rates go up.

Well, if they would have waited, they would have most likely got a better rate.

2.  If from 2001 - 2002 and 2008 - 2009 are considered to have been Recessions.

Then what has 2009 - today been?  A Nightmare?

This is from Freddie Mac, a Government-Sponsored Enterprise (GSE), 

It's interesting what our Government wants to define as Recessions.

3.  We have an Election coming up.

Some people, aka, Radical Thinkers, Conspiracy Theorist's say that

Mortgage Interest Rates are Artificially being held down in an attempt to "Spark" the Housing Market.

If true... then after the Election, we could see a Rise in Rates.

Maybe now is the time to Buy!

Or wait...

Market Conditions... Do they answer any questions?

Nationally Prices are Trending Upward.

Here in Las Vegas,

Prices were Rising,

but have since leveled back down.

It's always a litlle scary to see the prices trending downward.

We had a lot of volatility this summer.

And it looks like we will end up where we started.

This summer was a big question mark.

Why did this happen?

What caused it?

What does the future hold?

My opinion...

This is an Election Year,

And the powers that be are trying to .....

The HAFA Program

The HAFA Program - Foreclosure Alternatives for Homeowners

  

The Home Affordable Foreclosure Alternatives (HAFA) program is for borrowers who, although eligible for the government Home Affordable Modification Program (HAMP), are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible borrowers who decide to do a Short Sale.

HAFA Benefits to the Homeowner

Homeowners who are eligible for HAFA are given an equitable way to avoid foreclosure by performing a Short Sale.  Homeowners benefit by receiving fair time frames for completing each step of the process, compensation for moving expenses and protection from collection actions by their lenders. Some of the key benefits are:

• Borrowers receive $3,000 for relocation assistance.
• Lenders must allow the opportunity for the borrower to attempt a Short Sale before following through with a foreclosure.
• Borrowers are fully released from future liability for the first mortgage debt – lenders cannot ask for a cash contribution, promissory note, or deficiency judgment to complete a short sale.  Additionally, junior lien holders (i.e. 2nd mortgages) who participate in the HAFA incentives must also release borrowers from future liability.

Qualifications and Eligibility

In order to qualify for HAFA, borrowers must meet the basic eligibility criteria

• The property is the borrower’s principal residence.
• The first mortgage originated before January 1, 2009.
• The mortgage is delinquent or default is reasonably foreseeable.
• The mortgage’s unpaid principal balance is no more than $729,750.
• The borrower’s total monthly mortgage payment exceeds 31% of their gross income.
• The mortgage also needs to be serviced by a lender who is participating in the HAMP program (the majority of lenders are).

Signs of Life . . .

If this was an EKG reading, it might be considered a Sign of Life !

What was that?  It got crazy busy for a couple of months and then . . .

Two months ago we were involved in bidding wars.

And then suddenly, back to normal.

But Why?

Dropping Inventory? Low Intertest Rates ? Something in the News?

Who knows.  So what has changed?   Nothing !

Be prepared to see a lot of Blips on the EKG of Real Estate over the next few years.

Market Statistics Ending July 2012

The Las Vegas Real Estate Market is a bit confusing these days.

Inventory had been dropping and causing prices to rise.

Now Inventory is starting to creep up.

Prices that were on the rise due to the dropping Inventory, 

have now been dropping.

So what has changed?

That's what is so confusing.

Interest Rates are lower than ever. 

The Job Market is supposed to be improving.

When we figure it out, we will let you know.

          

Zillow posted their 2013 prediction.

Keep in mind this is an opinion.

I am predicting a better than 2% rise in Las Vegas Home Values in 2013.
Time will tell.

Market Update July

The Las Vegas Real Estate Market is very active.

People feel this market has hit bottom, and is in recovery.

This combined with record low Interest rates,

is causing a buying frenzy.

We have seen a rise prices in the under $200,000 price range.

Our Listing Inventory has been moving from Foreclosures (REO) to Short Sales.

This is due to that fact that the Banks limit their liability when

Sellers voluntarily sign off on a Short Sales versus being Foreclosed on.

We can also see a strong trend of CASH buyers in the market.

Investors are making a great ROI in the LV Rental Market.

Interest Rates are Extremely Low.

In my opinion, This is being caused by pressure

from the Government to lower rates and spur the National Economy

These types of activities tend to occur during an Election Year.

Market Trends in May 2012

Below are May 2012 Listed and Sales Statistics.

Below that are Rental Listed vs Leased Statistics.

We are Listing Less Properties than we have in the past.

And we are Selling More than we have.

This is causing our Inventory to get Smaller.

Simple Supply and Demand says Prices will be Rising

We have been Renting more properties than are being Listed.

Again, this should cause Rents to Rise.

Statistics & Trends... April 2012

Supply is Down, Demand is Up.  Prices are Rising!

A Majority of Buyers are All Cash Buyers.

We are moving from a Foreclosure Market to a Short Sale Market.

The Banks have learned that Short Sales Cost Less and Reduce their Risk.

Why?  Call me and I will explain.

Jim Hansen  -  702-321-6296

Forecosures are trending downward... Inventory ?

Nevada AB 284, effective as of Oct. 1, 2011, has had a noticable affect on the number of foreclosures.

Instead of a mass number of foreclosures, banks seem to be foreclosing at a slower more steady pace.

They are not all coming on the market, and the shadow inventory seems to be slowly climbing.

Nevada is Improving... Compared to Last Year

Nearly 69,000 Completed Foreclosures Nationally in March

Largest Improvements in Foreclosure Rate from a Year Ago were in Nevada and Arizona

There were 69,000 completed foreclosures in March 2012 compared to 85,000 in March 2011 and 66,000* in February 2012. Through the first quarter of 2012, there were 198,000 completed foreclosures compared to 232,000 through the first quarter of 2011. Since the start of the financial crisis in September 2008, there have been approximately 3.5 million completed foreclosures.

Highlights as of March 2012

• The five states with the largest number of completed foreclosures for the 12 months ending in March 2012 were: California (150,000), Florida (92,000), Michigan (62,000), Arizona (58,000) and Texas (57,000). These five states account for 49.1 percent of all completed foreclosures nationally.
• The percent of homeowners nationally who were more than 90 days late on their mortgage payments, including homes in foreclosure and REO, was 7.0 percent for March 2012 compared to 7.5 percent for March 2011, and 7.0 percent in February 2012.
• The five states with the highest foreclosure rates were: Florida (12.1 percent), New Jersey (6.6 percent), Illinois (5.4 percent), Nevada (4.9 percent) and New York (4.9 percent).
• The five states with the lowest foreclosure rates were: Wyoming (0.7 percent), Alaska (0.8 percent), North Dakota (0.8 percent), Nebraska (1.1 percent) and South Dakota (1.4 percent).
• Of the top 100 markets, measured by Core Based Statistical Areas (CBSAs) population, 35 are showing an increase in the year-over-year foreclosure rate in March 2012, two more than in February 2012 when 33 of the top CBSAs were showing an increase in the year-over-year foreclosure rate.

April 23... Las Vegas RE Market Trends

The Las Vegas Real Estate Market is starting to look like it is going to Recover.

Time will tell.

What happened to all the Bank Owned Foreclosure Listings?

About two years ago, the banks realized that Foreclosing and Selling their own Properties,

is a very expensive process.  Shortly there after they began allowing Investors to purchase

these Properties, at a discount, at the Trustee Sale Auctions.

They also began building up their in house Short Sale Departments.

This graph does not show the rise and falls of the number of foreclosures,

just the percentages of how they are being sold.

Everyody is waiting for the "Psychological Bottom"

Keep in mind these are National Averages.

The seasonal trend really stands out.

Everybody is waiting for the "Bottom of the Market".

They can't be waiting for lower interest rates...

Do they think prices can get any lower?

International Buyers see Las Vegas as a "Hot Spot"

Click above to view this extremely detailed report on

where International Buyers are Investing their Money.

Most International Buyers are looking for something for themselves,

either a primary residence or a vacation home.

Not so sure what "Both of the above" is...

Gas Prices Affect the Economy

In my opinion, this is have a big affect the real estate market.

It's simple math, the more we spend on Gas, the less we have to spend on other things.

If you stop putting Gas in your car, it stops moving.

If you stop paying your mortgage, you get to stay there for a couple years.

A Recent Interview with Prof. Robert Shiller, Creator of the Case-Shiller Housing Index

This is one of the Ultimate Authorities on our National Housing Market.
Speaking on the National RE Market, Consumer Confidence, Political Policies and much more.

"Supply and Demands" and it's affect on Prices

I don't want to get too excited quite yet.

This slight upward trend is most likely an affect of the recent Assembly Bill 284.

Though it's nice to see a positive movement in the market,

we'll have to watch and see what happens next.

Do we learn from our mistakes?

 

I have mixed emotions about this issue.

On one hand, I am anxious for the real estate market to be in recovery.  On the other,

lower lending standards was a big part of causing the problem in the first place.

Your Las Vegas Real Estate Agent

Please allow me to introduce myself...
I'm a Realtor from Las Vegas.
I've been around for about 15 years...
Sold many homes and dreams.

Historical Mortgage Interest Rates

And every time the rates go down, somebody always says,

"They can't get any lower!"

830,000 Completed Foreclosures in 2011

1.4 Million Homes in the Foreclosure Inventory at the End of 2011

The number of Foreclosures is dropping,

but not enough to stop prices from continuing to fall as well.

2012 Case-Shiller Home Price Indicies

This is the most recent Las Vegas Case Shiller Index I could find.

It shows Las Vegas being extremely Undervalued.

Keep in mind these are National Statistics 

Inspections a MUST in a Foreclosure Market

Getting A Home Inspection

If you are in the process of buying your first home, you may be wondering whether or not you need a home inspection. Especially if you have contracted with a real estate agent to act as a buyer's agent on your behalf or are considering buying a new home, you may have doubts as to whether the expense associated with having a home inspection is necessary. You may also be afraid to ask for a home inspection for fear of offending the sellers or their real estate agent. You may think bringing up the subject of a home inspection might endanger the sale or make the seller less likely to negotiate with you. All of these concerns are common among potential home buyers, and all of them need to be addressed before you move forward.·

An Agent’s Insights Might Not Be Enough

A real estate agent, who is working for you, as opposed to a listing agent who legally works for the seller, is called a buyer's agent and is legally required to look out for your interests and share any negative information they may have about the home. While this is an excellent thing, it doesn't go quite far enough when it comes to identifying structural defects. Your agent is not trained to recognize problems and won't be entering the crawlspace or climbing onto the roof looking for problems like a home inspector might. New homes aren't immune to problems, either, and a home inspector can point out shoddy building practices before it is too late.

What A Home Inspector Might Look For

A home inspector can point out defects such as basement leaks, worn-out roofs, rotting floor supports or insect damage that will end up costing you thousands of dollars to fix if you discover them after the closing. Home inspectors can also identify potential trouble spots and make you aware of sub-par construction or repairs that are going to lead to high maintenance costs down the road. Home inspectors often are the ones who identify the presence of dangerous substances or conditions, such as lead paint, asbestos or radon. Sometimes they earn their fees almost instantly by giving you ammunition to use to negotiate a lower sales price based on their findings.·

It’s Not Personal

Although it may be difficult to mention to the sweet, elderly seller that you suspect defects in her precious home, and even more difficult to bring the subject up with her hard-driving listing agent, the truth is that you can order a home inspection without ever doing either. This is not a social arrangement; it is a business deal, and your buyer's agent is an expert at handling this part of the transaction for you. He or she will inform the seller that there will be an inspection, and he or she will also handle the negotiations if the report comes back with negative information.·

You needn't worry that requesting a home inspection will make the sellers change their mind about selling the house to you. Your seller is in this to sell their home and make a profit. Few people will allow their pride to cost them the sale of their house, and, in any case, your agent will handle all the face-to-face negotiations. Besides, do you really want to pay too much for a home, however nice it may be? Skipping the home inspection can result in just that, and being upside down in a mortgage is a position no one wants to be in. Your home is your biggest investment, and it pays to know exactly what you are investing in before you put your money on the line.

Home Builders Becoming "More" Optimistic

The National Association of Home Builders (NAHB) reports the

housing market index (HMI) increased in January to 25 from 21 in December.

Any number under 50 indicates that more builders view sales conditions as poor than good.

A question I have is, "If  2008 - 2010 is a Recession, then what is 2006 - 2008? 

A Catastrophe! "

Existing Home Sales

National Sales Numbers

It looks like we hit bottom back in late 2010,

since then we have seen over a year of increased slaes.

Even though we have had an increase in the number of sales,

we have still seen a fall in prices.