Market Numbers, Statistics and Trends

As of Today Thursday September 26

There are 7,879 Available Listings

of them 1,032 are Short Sales (13%)
504 are Bank Owned REO (7%)
leaving 6,343 Traditional Sales (80%)
3,584 of All Active Listings are Vacant (45%)
(Traditional Sales Include Investors Selling Rentals, Investor Flips and Regular Sales)

There are 10,004 Listings Under Contract 

of them 6,491 are Short Sales (65%)
358 are Bank Owned REO (3.5%)
leaving 3,155 Traditional Sales (31.5%)
3,755 of these Listings are Vacant (37%)
Also, 5,711 of these are expected to be CASH transactions (57%)
(keep in mind that Short Sales take an average of 6 months to Close)

Over the past 12 months there have been 40,429 Sold Homes

of them 14,315 were Short Sales (35.5%)
3,941 were Bank Owned REO (10%)
leaving 22,173 Traditional Sales (54.5%)
20,374 of the Sold Listings were Vacant (50%)
Also, 22,259 of those Sales were CASH transactions (55%)

The Previous Years had a total of 45,161 Sold Homes

of them 14,374 were Short Sales (31.8%)
16,321 were Bank Owned REO (36%)
leaving 14,466 Traditional Sales (32%)
31,547 of the Sold Listings were Vacant (70%)

 Also, 23,682 of those Sales were CASH transactions (52%)

In the past 30 Days, there have been 3,256 Sales, 1,559 were CASH (47%)
(CASH Buyers tend to be Investors)

So what does it all mean?
We can see some Trends.

The market has had fewer Bank Owned Foreclosures (REO)

Fewer Short Sales are being Listed.
Probably because Home Owners have Equity again 
and are Selling as Traditional Sellers.

Fewer Cash Buyers (Investors) are Buying Homes.
Prices have gone up, Rents have stayed the same,
making it harder for investors to get the return they need.

People are very skeptical about what is going to happen 
with the Las Vegas Real Estate market.

Are we at the beginning of another Bubble and potential Burst?

Or will the market . . . 

AB 300 vs NV Homeowner's Bill of Rights...

 

Back in June we talked about what affect Assembly Bill 300 would have on our local Real Estate Market.

We have all heard about the increasing number of homes out there just sitting vacant.

Would the banks flood the Market with these listings or would they trickle on the market.

Last week the LVRJ had an article,

Foreclosures surge in August; Nevada again No. 1 in U.S.

 Notice of Defaults went up from 340 in June to 1,125 in July a 226% jump.

In the big scheme of things, really not that big of a deal. 

We knew they were coming. 

But what is next?

Well, in the meantime, NV has passed the NV Homeowner's Bill of Rights.

What's that?  Good Question.

In my opinion, a couple of years too late. 

Purpose of the Nevada Homeowner’s Bill of Rights

The purpose of the Homeowner’s Bill of Rights is to provide homeowners in the state of Nevada with better consumer protections, as well as fair and honest treatment in the servicing of mortgage loans in default, especially when it comes to the loss mitigation process.

Many are speculating that the Intentions of AB300 was to allow the banks to Foreclose on the Shadow Inventory, but now the NV B of R's is going to draw that process out even longer.

NV Homeowner's Bill of Rights takes affect Oct 1st.

In the meantime, we will probably see the banks rush to Foreclose on as many properties as they can 

before the new Law takes affect and slows the whole process down again.

Interest Rates are on the Rise... What affect does that have?

When Calculating your Monthly Mortgage Payment, 

there are two primary numbers to look at.

The Cost of the Home, and the Mortgage Interest Rate.

Using an Example of a 30 year loan, Calculating only Payment and Interest.

(but do not forget about Taxes, Insurance, Association Fees and MIP)

If you Financed a $250,000 Home Loan in May 2013,

when Interest Rates were at 3.5

Your monthly Payment would have been $1,122.61

Purchase the same home today at the same price,

with Interest Rates at 4.5

Your monthly Payment will be $1,266.71

That's a difference of $144.10 per month

Reproduced with the permission of Mortgage-X.com

 So in a Market when Prices and Interest Rates are going up.
People want to Buy Now before Rate or Prices get any Higher.