Who's Buying Homes? young or old ...

Interesting Comparison of who is Buying homes broken down by age groups.

in 2005, 10 years ago the country seemed even.

10 years later things seem different.

So what happened?

We had a housing bubble / crisis.  A Struggling Economy.

We hear a lot about how the millennials can't find jobs.

North Dakota had a Fracking Boom.

Florida has a lot of Retirees.

Not exactly sure what causes changes like these but they are interesting to look at.

Seasonal Trends are Becoming More Noticeable...

Last Year about this time many people, "In the Know"

claimed that the Real Estate Market had Peaked.

Prices had leveled off and activity had slowed, 

the same way it is happening now.

In a Normal Market, there are Seasonal Trends.

On the graph below we can start to see ours.

Prices leveling off and a slower market from Sept thru March.

And rising activity and Sales Prices April to August.

Knowing this, Buyers might want to take advantage of this Trend. Now!

We still claim that our Las Vegas Market has a way to go before it has fully recovered.

According to Trulia, we are at 2004 pricing. Where should they be?

Rents are on the Rise... Interest Rates are Low... Probably Time to Buy...

There was an article in the LVRJ last week saying, 

Rental rates rising sharply in Las Vegas Valley

Since the Year 2000, Rents have jumped from about 

25% to almost 33% of your Income.

Buying a Home is NOT like Buying a stock.

Buying a Home is more about where you are in Life.

If you're renting an apartment in any of the Red Zones,

 on the Map below, and paying over $1,000/ month.

It's probably time for you to take the Next Step in Life and Buy a Home.

Interest Rates are Low.  For 2015 rates are below 4%.

 

FHA Buyers with around $5,000 for a down payment,

can Buy a $160,000, with some Seller assistance, 

and have a Payment below $1,000/month.

That includes Payment, Interest, Taxes and Insurance.

Home Prices Leveling Off - Activity Slows - Still a Sellers Market

Below is Price Trends and Market Activity 

for Las Vegas, Henderson and North Las Vegas.

All 3 show pretty much the same trend, a slow and gradual climb.

 Activity in All areas has slowed later in the Summer,

but all still remain Sellers Markets.

This is a common cyclical trend we see in a Normal Real Estate Market.

I put the 15 year graph on top this time because people tend to look at the 3 year graph 

and get worried we are heading for another "Pricing Bubble".

As I have said in the past,  We are in a Healthy Recovery.

Las Vegas

Henderson

North Las Vegas

Education - Income - Home Values

  Realtor.com & Payscale put together this data showing 

the average home price graduates with specific college degrees could afford.

Being a father of a high school senior, this is very interesting to me.

Ironically, as important as an education is, 

people working in the education field tend to be near the bottom of the list.

For the complete article and a detailed list of 300+ College Majors,

Click Here

Cash Buyers - "The Smart Money", still likes Nevada

One of the Big Problems when we had during the Housing Crisis was that 

Buyers didn't have have enough "Skin in the Game".

Buyers were putting 5% down and hoping values would continue to Rise.

Now "The Smart Money" puts 100% down.

These are the Cash Buyers.

In Nevada over 1/3 of all transactions are Cash Buyers.

In my opinion, a Good sign of a Strong Market.

 

Tourism is Pushing Las Vegas's Real Estate Market

 Las Vegas is a Tourism driven Town.

The Improving National Economy is having a positive affect on Tourism.

Below are some statistics the Vegas Convention and Visitors Authority.

 

 For more information click this link

http://www.lvcva.com/stats-and-facts/visitor-statistics/

2015 US Housing Stats and Trends

 

Nearly a decade removed from the onset of the recession, the U.S. real estate market has made significant strides. The recovery has gained momentum, and markets across the country are starting to show signs of life. Highlighted by historical appreciation rates, increased home sales, and a reduction in distressed properties, 2015 real estate trends suggests that the market is primed to fire on all cylinders. The following is just a small example of what we have seen up to this point:

• A 10.4% increase in total existing-home sales.
• A 5.7% increase in the median price.
• A reduction in distressed sales, with foreclosures and short sales dropping from 14% of all home sales to just 10%.
• 40% of all homes are sold within 30 days.
• The average price is up 28.2% in the past 3 years.

Than Merrill expressed his enthusiasm towards this year’s real estate trends saying, “The real estate market continues to rebound across the country and we’ve experienced 37 consecutive months of year-over-year price gains.”

 Click Image below for a Larger Version.

Wealth Map Shows Negatives for Las Vegas: from 2011 - 2013

 Click on Image to Open Web page for Interactive Map

Search by State - Metro Area - Zip Code

I find it interesting that in June of 2015 they are 

putting out articles about Data from 18 months ago.

Since 2013, Las Vegas has had Incredible Positive Growth in Housing Values.

What's scary is how long it takes to compile this information for us,

and that the "People" who make decision in this country might be using it.

But it is still interesting to look at...

Interest Rates... What's Gonna Happen?

Another common question we get is...

"What is happening with Interest Rates?"

I have always felt like everybody in the Industry likes to advance the idea that 

Interest rates are always going to go up. 

This motivates Buyers that there is a sense of urgency, and they should "Buy Now".

The truth is, I have No Idea what is going to happen with Interest Rates.

I know there are factors that affect Rates.

But Nobody knows whats going to happen to them either.

Below is an example of a $250,000 Loan with Interest Rates of

4.5%  -  4%  - 3.5%  -  3% with 20% down for 15 Yrs

If Rates go up 1% it can change your monthly payment $144 a month or $1,728 a year.

PAST 12 MONTHS

PAST 40 YEARS

It's Geting HOT this Summer....

 Back to my favorite graph.

These graphs show the last 3 year price trends.

Most everyone I have talked to in the Real Estate Biz has said 

they thought the Market had "Leveled Off"

The question was, what was going to happen next?

We have all seen the Resurgence of New Construction throughout Town.

Tourism is on the Rise, and it is having a positive affect 

on our Economy and our Real Estate Market.

LAS VEGAS

HENDERSON

NORTH LAS VEGAS

Solar Panels are Heating Up - Buy - Lease - Or...

Solar Panels are The Hot New Trend!

As a Realtor I am concerned about what it will do to the Value of Our Homes.

If you can afford to Buy Panels, Great. Awesome Idea.

If you are Leasing the Panels, Proceed with Caution.

People are signing 20 year leases that attach to the home. Liens.

If you decide to Sell in 10 years, the New Buyer has to assume that Contract.

But what if the Cost of Panels drops in those 10 years?

Look at the first VCR's or Cellular Phones as examples of how 

Technology and Market Demand drive down Prices.

A Buyer might be Comparing Your Home with another that has either;

a Newer, Cheaper, or More Advance System.

Or a Home with No Contract attached to it at all.

We all want to do our part, just be cautious.

Q. Is it a good time to buy? Are Rates Good?

Some in Real Estate say,

It's All about Location, Location, Location...

Now people want to know if it's a good time to Buy based on whether or not the 

Market is going up or down or if Interest Rates are good.

It seems it's more like buying a Stock than a Home. 

Below you can a Historical Graph of Interest Rates.

Below that is a State by State Comparison of each States Equity Growth.

Nevada has had an Awesome Recovery over the past few years.

I wonder what Colorado and Washington have done to get their strong growth.

Las Vegas Housing Market Prices and Trends

Another Up Swing this Spring

Over the Last few months, whenever anybody would ask about the Market,

We said it had "flattened out".

Some thought this was a sign that the market was going to drop.

We maintained the Market still had a lot of room for recovery.

Over the last two months the market has Spring-ed into action.

Activity and Prices have both Jumped Up.

When you look around town, there are construction projects everywhere.

Within 5 miles of my home, I can think 5 new restaurants that recently opened.

These are positive signs and we are anticipating another year of strong equity growth.

Thanks Nevada Title and Chicago Title for Graphs and Data

Equity Growth Map by Zip Code - How did you do?

Last week the Las Vegas Review Journal had this Map on the front page.

This is always a fun one to look at.

But again, review with caution.

One or two Million dollar homes or a few Distressed Foreclosures can skew these numbers.

 It's better to look at the Valley as a whole. And generally speaking...

Las Vegas Metropolitan Area had a very good year of Equity Growth.

From 2012 -2013 we had close to 30% growth.

from 2013 -2014 it looks like close to 20% growth.

And my guess for this year is a more modest 10% Growth.

Off to a Slow Start... For how long?

  The New Year usually starts with a Surge of New Sales.

Not this year, even with the crazy low Interest Rates.

For Sellers, you might need to settle for your current level of Equity.

Buyers, Inventory is growing, Interest Rates are Low

and Prices aren't going up yet...

Las Vegas 

 

Henderson

N Las Vegas

Two Sides of the Same Coin...

Earlier this week Keith Lynam, the President of the GLVAR

The governing body over our local Realtor Association.

Gave a speech and then two different reporters used the same quote.

“January is typically a time when we see local home prices and sales slow down, so this month’s statistics are no surprise,” association President Keith Lynam said. “What’s more relevant to us is how we’re doing compared to the same time a year ago. Compared to last year, home prices are still rising, just at a more gradual pace than they did in the past few years.”

Below are the two Headlines and articles they wrote.

Is it any wonder why people don't have a good understanding of what is actually happening 

with our Real Estate Market.  Or any other issue the media "reports" on...

2015 Predictions - Opinions are like...

 Opinions are like Belly Buttons...

Everybody's got one!

But this guy is Paid to have His!

NAR Chief Economist Lawrence Yun makes a few predictions about 

The 2015 National Housing Market.  see Video Below.

It all sounds good to me. A Nice Steady Growth / Recovery.

note... 37% Increase in New Home Sales may seem like a Huge number.

It means if we had 100,000 New Homes built in 2014, he's predicting 137,000.

Las Vegas and Nevada are #1 in Home Value Appreciation

Freddie Mac and S & P / Case-Shiller are two of the biggest 

resources of information for us as Realtors.

Below you can see Freddie Macs National Appreciation by State 

and 30 year History of Mortgage Interest Rates.

S & P / Case-Shiller's The Top 20 Cities Appreciation over the past 3 Years.

Las Vegas and Nevada are back on top.

For many this is a Flashback to the beginning of the Housing Bubble Crisis of 10 years ago.

For us it's a rapid and needed recovery.

2015...Hopefully more of the same as last year

 

 Looking back at 2015 we had a very good year. 

Below you can see the rising price trends for Las Vegas, Henderson and NLV.

Home Prices in Henderson and NLV are still moving upward.

Las Vegas dipped down at the End of 2014

If you look at the End of Year for 2013 and 2012 you will also see a similar seasonal drop.

Looking ahead...
With Prices Stabilizing, Unemployment Dropping, Interest Rates hitting new lows...

This is a good recipe for another strong year for Vegas Home Values.

 

^^^   Las Vegas   ^^^

 

^^^   Henderson   ^^^

 

^^^   North Las Vegas   ^^^

 

Click on Image below for the Complete Report