Monthly Market Report 1-15-2015

With the historically low level of open escrows in December, it’s not surprising that total sales were down in January. Fortunately, the number of homes that went into escrow increased in January, so we expect February to have higher sales, despite being a shorter month. Listing activity also expanded in January, but so did withdrawn and expired listings. Price indicators are mixed between positive and negative values characterizing the market as flat. Marketing times should begin to decrease as we approach the seasonally strong spring season. Going forward, we anticipate minimal price appreciation and if you are thinking of listing a home this year, it is prudent to take advantage of this window of opportunity.

Monthly Market Report 15-12-2014

2014 finished the year with a net gain in the median prices of both single family homes and condominium/town-homes. Single family home prices were 10% high-er than in December 2013, while condominiums and town-homes increased by 5%. The market has been largely flat since about mid-2014 as we have become more stable, driven less by investors on the demand side and distressed sellers on the supply side. This, along with total closings lower than last year signifies a shift from a once-in-a-lifetime opportunity to a more normal market.
As we have returned to more traditional fundamentals, a significant question is will more Millennials enter the housing purchase market. This demographic has been a wildcard for some time with recent evidence more are purchasing homes, particularly where the cost of renting per month exceeds the monthly payment on a purchase when considering the down payment. The strength of first-time buyers is a leading indicator of the move-up market. Fortunately, the local job market continues to improve. Year-over-year job growth in Las Vegas was 2.5% compared to 2.0% nationally. The November 2014 reading was the highest employment level in Southern Nevada since November 2008. This certainly helps improve net inbound migration and local household formation, plus the Millennials, many who have student debt or weak credit, may finally benefit from some of the strengthened economic drivers.

 

 

 

The Holiday’s Are No Holiday

Holiday’s… Is it a good time to sell?  Most people believe holidays are not a great time to sell.  This comes from the thought that most family’s are traveling out-of-town or that families are just to busy with relatives in town.  Some sellers just don’t want to deal with people constantly tracking through their home during this time or year.

Below shows you that the Holiday’s are actually the best time of year to have your home listed.  Over the last ten years the average ratio between residential listings taken and listings sold is 58%; however, for the months of November and December the average is 70%, which means there is a 12% greater chance of your property selling during the holidays than any other time of year.

 

Las Vegas Monthly Real Estate Report

Inventory is increasing and price growth appears to be weakening. This is due to seasonal fluctuations and the market being in a transitional phase. Investor activity has fallen materially from last year and early 2014 so the market is once again dominated by traditional end-users. The inventory buildup is somewhat expected as sales rates typically decline in the late fall while listing activity generally is more stable. An increase in inventory means more options for buyers so from that perspective there is improvement. Months-of-supply, or the time it would take to absorb the current inventory at the recent pace of sales, is a rather undramatic 3.4 months and growing. We have moved from an extremely low supply environment to one with moderate supply.
Downtown Summerlin, Howard Hughes Corporation’s 1.6 million square-foot shopping and entertainment development recently had its grand opening spectacular that attracted locals en masse. The project was stalled for a long time during the great recession and the opening signals that long-term capital and retailers once again view Las Vegas as a good bet.

Great New Loan Program – 4% of Loan Amount towards closing cost

The Nevada Housing Division launched a fantastic home buyer grant program.  Below are the requirements.   Not all lenders qualify for this program so if you need to speak with someone please let me know.

Benefits

• Fixed interest rate 30-year loan
• No first-time home buyer requirement
• Grant is non-repayable
• Must be home buyer’s primary residence
• No asset limits for home buyers
• Provides a grant up to 4% of the home loan amount that can be used for down payment assistance and/or closing costs

Program Requirements

• Minimum credit score of 640 for government ensured loans, 660 for manufactured homes and 680 for most conventional loans
• Qualifying income on mortgage application must be below $95,500
• Home Price below $400,000
• Home buyer eduction course required
• Must meet normal government or conventional loan underwriting requirements

Again… this is an amazing program for buyers,  please let me know if you have any questions.

Michael McNamara
Agent for Team Lavert
Coldwell Banker Premier
Cellular-702-582-7690
Business- 702-871-9500
Fax- 702-871-9374
Mike@teamlavert.com

Simple 1031 Exchange Rules

Every once in a while a client of mine is interested in doing a 1031 Exchange.   For those of you who don’t know what this is, it is a way of transferring money from one investment property to another without having the tax consequences.  1031 Exchange does not work on personal property!

Simple Rules

1. Property must be exchange for a “like Kind” asset or assets.
2. Funds from the property you are selling must be placed into a Qualified Intermediary (Company who holds the money while you locate your next property)
3. You have 45 days to locate the new investment property
4. You have 180 days to close on new investment property (But deadline is sooner if tax   filing is done before the 180 day expiration. For example, if you sell your relinquished property on December 15, 2011, and submit your tax filing for 2011 on April 1, 2012, then the acquisition of the replacement property must happen on or before April 1, 2012, and not the typical 180 days after sale. To avoid this trap, have your tax preparer file a timely extension).
5. Any left over money from the exchange is returned to you yet may be taxable

For any further questions please feel free to contact myself and I will personally connect you with the company I use.

Michael McNamara
Agent for Team Lavert
Coldwell Banker Premier
Cellular-702-582-7690
Business- 702-871-9500
Fax- 702-871-9374
Mike@teamlavert.com

Las Vegas Monthly Real Estate Report

Home prices are growing more slowly, coincident with what we view as seasonal trends where buyer traffic softens and inventory builds. Similarly, homes that went under contract have declined which anticipates more seasonal weakness leading up to the holiday season. We are much more comfortable with moderate changes in price than large increases, which may imply some disconnect between underlying economic trends and asset prices. In terms of fundamental values, the market remains fairly priced. On a relative value basis compared to other cities, especially in California, southern Nevada is clearly a winner from an affordability perspective. Although many families like to do their home purchase activity in the summer before children are in school, the fall typically offers a greater selection of home choices and an optimal time to look at them.
For Nevada, the widely touted selection by Tesla motors to build a plant in our state is great news. Although largely impacting Northern Nevada and the state offering incentives to secure Tesla’s decision, it is a positive signal that modern businesses desire to operate in the state. While Nevada still has an unemployment rate in excess of the national figure, the rate of job growth (3.8% year-over-year) is above the national figure. With the planned construction activity in both Reno and Las Vegas, we expect a further bump in job growth in the near and medium-term ahead.

Home Maintenance Tips

Protect Your Home Year-Round with These 8 Maintenance Tips
Whether you’re a new homeowner or an experienced do-it-yourselfer around the house, these handy tips will help protect your investment year-round.

Safety first – Replace the batteries in all smoke and carbon monoxide detectors. It’s also a good time to make sure that any fire extinguishers in your home are in working order.

 

 

Look up – Inspect your attic and roof for leaks, missing shingles and ventilation issues. It’s also a good idea to check on the chimney, as well as attic fans and vents.

In the bathroom – Inspect grout and caulk around bathtubs, sinks and showers. Get rid of cracked grout and replace missing grout. Seal tile grout. Discolored and mildewed caulk should be cleaned and might need to be replaced with new caulk.

In the kitchen – Clean appliances, including refrigerator coils and underneath the range hood. Remove and clean or replace range hood filters. Clean faucet aerators and replace washers as necessary. Don’t forget the drain!

Keep the weather out – Inspect doors and windows for drafts and replace/install weather stripping where needed.

Bug out – Inspect your home for signs of termites such as tunnels or buckling wood, swollen floors and ceilings. Termite damage can look similar to water damage. Call an exterminator if you think you’ve got termites.

Clean it out – Flushing mineral deposits out of your hot water heater can extend the life of this important appliance.

Don’t forget – Did you know your garage door needs cleaning, inspection and lubrication of its springs at least once a year?

Juan Huerta
Mortgage Consultant
jhuerta@cmgfi.com
Phone: (702) 777-1240
Mobile: (702) 287-7992

Michael McNamara
Agent for Team Lavert
Coldwell Banker Premier
Cellular-702-582-7690
Business- 702-871-9500
Fax- 702-871-9374
Mike@teamlavert.com

Las Vegas Monthly Real Estate Report

A big part of the housing news of the month was single family homes returning to the $200,000 mark, the highest median single family home figure since 2008, which was still in the downdraft in pricing and fraught with distress. If we look back even further, before the recession, we haven’t experienced this pricing level since 2004. Clearly we have come a long way since we bottomed out in pricing in 2011 and 2012. This begs the question, are underlying fundamentals keeping up?
Although there is significant room for improvement, the overarching answer is mostly yes. Employment is rebounding with the Department of Employment, Training and Rehabilitation measuring a 3.1% year-over-year job growth. Taxable sales for Clark County are up 12.7% year-over-year. Southern Nevada’s core industry, gaming, is benefiting from continued worldwide interest. Visitor volume established a new high in March 2014 and has posted year-over-year gains for each month of this year.
With challenges in New Jersey gaming and hospitality, it is clear that Las Vegas, as a product, has an obvious command of this business space. A lot of this is driven by a key element of the city, the only thing that remains constant is constant change and adaptation. Each age group of visitors has a wide set of options, with the nightclub scene reaching Millennials, performance acts reaching a broad-based audience and the old standby, gaming, continues to make refinements based on a variety of customer desires. Gaming remains one of the “coolness factors” for Las Vegas, much of which is driven by baccarat play. This game is often played by high rollers with a majority coming from Asia. As a result of both high rollers and other visitors, gaming is growing on both the Strip and Downtown at 3.39% and 1.88% respectively (http://gaming.unlv.edu/reports/6_month_NV.pdf). The strength in visitor volume has grown the market for hotel rooms and the LVCVA has measured increases in the year-over-year average daily room rates every month of this year.

Summer has certainly reheated pricing with some strong increases in both single family and condominiums. Average prices per-square foot increased by 3.8% for single family and 3.4% for condominiums/town-homes. Although prices increased, the number of closings dropped mildly from last month and is significantly lower than last year, which was a stellar year for home sales and for price increase

The market continues to move towards a more traditional one no longer dominated by investors. Single family homes financed through conventional, VA and FHA loans now make up almost 70% of transactions. Twenty-eight percent were cash transactions and this is likely mixed between investors, second homes and principal residences. Last year at this same time, nearly 50% of single family transactions employed cash. Additionally, distress is largely out of the market and most homes on the multiple listing service are by owners with equity.
As we take the mid-year to reflect on where we have come from, one may be reminded of the Tom Petty and the Heartbreakers lyric, “and the days went by like paper in the wind, everything changed, then changed again.” We have moved from boom, to distress and then back to a more normal market where families buy and sell for traditional reasons in-cluding job changes, expanding family size or for recreation and retirement purposes. Positively, while price increases are returning, we are happy to note this is coupled with some real organic economic growth in the Valley.