November 11th, 2009 by Jeff
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The Starwood Capital Group recently purchased several high-rise properties in Las Vegas through U.S. Federal Deposit Insurance Corp.’s asset auction of Corus Bank, a unit of Chicago-based Corus Bankshares. This deal is expected to have a huge effect on Southern Nevada’s luxury condominium market because of the scope and scale of Corus Bank’s local financial participation. In the past, Corus Bank provided more than $400 million worth of loans for Las Vegas Valley condominium developments, many of which didn’t reach full potential. According to the analysts, this maybe an opportunity that may result in some abrupt price adjustments thought Las Vegas Valley.
The recent failure of Corus Bank in the Las Vegas market was accelerated due to the bad investments it made. The publicly traded lender listed on the Pink Sheets under ticker symbol CORS was seized by the FDIC on Sept. 11 after being crippled by the condominium downturn. The Corus shares recently went down by 98 percent from a 52-week high of $5.23 a share. Unfortunately, it was delisted from Nasdaq National Market last September 15.
According to the real estate experts, with such low purchase costs the new owners can make good profits with sales at foreclosure like price. The median Las Vegas luxury condominium price was $386,500 this summer, which is 25 percent less than a year ago. The chaos in Las Vegas Valley’s high rise market carries on due to the major price resets to meet depressed conditions in this product.
Local projects financed by Corus include Meridian ($111.3 million), Platinum ($87.6 million), Loft 5 ($56.5 million), Juhl ($106.2 million), Newport Lofts ($67.1 million), Panorama Towers ($236.3 million), Village Green ($60 million), the Residence Las Vegas ($56.8 million), Soho Lofts ($49.3 million), Copper Canyon ($43 million), Boulders at Lone Mountain ($40.2 million), Verano ($39.5 million) and Spanish Palms ($28.2 million) Streamline downtown and One Las Vegas on the South strip.
November 11th, 2009 by Jeff
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Superstar country singer, Garth Brooks, was lured out of semi-retirement by the casino mogul, Steve Wynn. By giving him a large paycheck together with perks, Garth Brooks have agreed to sign a contract to take a five year weekend residency and shows at the Wynn Encore in Las Vegas starting on December 11. This summer, Brooks have already started by playing two secret shows at the hotel.
Steve Wynn, whose expensive art collection proves again that what he wants is what he gets. It took a lot of convincing to get Garth Brooks to sign the contract, as when Brooks retired, he vowed that he would drive his three daughters to school everyday. Taking more than a big paycheck to get him to play at the Encore Theater , Wynn included the ultimate executive perk for Brooks, the private jet. A new 11-seat Challenger jet, courtesy of Steve Wynn, will help him honor his promise, making short work of the commute from Oklahoma to Las Vegas. According to Brooks, his top of the line private jet has a very cool interior and paint job.
In these shows, each ticket at the Encore will cost $125 and total sales for the shows could bring Wynn millions of dollars. But more important than ticket sales is the fact that he will be drawing people to Las Vegas and to Encore, the luxury hotel he opened when the economy was at its worst. Wynn having been in the casino business for a very long time knows that getting the people in the door can be the hardest part. Having Brooks as an enticement for people to visit the hotel might just be worth the plane and the paycheck.
November 11th, 2009 by Jeff
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Property investors are now slowly returning to US real estate market although there the project are smaller compared to the big projects they got years ago. According to the experts, investors who has extra cash and are willing to take risks are taking advantage of the opportunity while the prices right now are still low, before they slowly go back to their normal prices. Based on the reports, the investors return as they see that prices have fallen far below the trend and considers this a very good investment opportunity. Based on the data, residential property prices across the nation rose for a third straight month in July, encouraging investors to buy property. The S&P/Case-Shiller index of house prices in 20 metropolitan areas rose nearly 4% in the period.
One of the areas affected by the price drop is Las Vegas, where the properties are particularly cheap, abundant and have decreased by 58%. According to The Montecito Companies, a Las Vegas based real estate investment and development firm, they will start buying around 100 bank owned properties in the city some of which they will rent but others they intend to purchase before prices start rising. They also explained that the key to turning a profit is getting a steep discount by buying properties in bulk for cash and spending $3,000 to $10,000 in refurbishment, for a swift resale. Despite this, the buyers are risking their purchases if the prices fall again, experts have warned rising unemployment could still hit the real estate market further and an excess of foreclosed properties suddenly jumped on the market could see values plummet.
November 11th, 2009 by Jeff
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This October, the mayor of Las Vegas, Oscar Goodman was invited as the keynote speaker of the Las Vegas Real Estate Insider Club. The house was packed during the said event and unfortunately, some of the guests that have not pre-registered was turned away due to the space constraints of the top floor of the Newport Lofts in downtown Las Vegas. The mayor, known for his stints as being the high-profile defense attorney for the Las Vegas mob, amused the crowd with interesting stories about his ex-clients and his fondness for the movie business.
The main focus of his speech was directed towards the current state of the Las Vegas housing market. According to him, the huge majority sales closing in the Las Vegas valley continue to be real estate owned (REO) or bank owned property. The mayor also pointed out that the number of SFRs currently available is not nearly so important to consider as the number of foreclosures being added to the market as REO listings on a monthly basis. Based on his observation, the number of sales remain consistently high since June and the number of foreclosures are steadily declining, thus, the market is actually facing a shortage situation.
The effect of this is that there are more people who are looking to buy low-priced REO homes than there are homes to sell them. This clarifies why the investors and realtors are faced with multiple offers and bids as they try to purchase homes in the past couple of months. As the REO steadily declines, the mayor has found that a change in direction is now required to provide his investor clients with the continued ability to purchase quality investment properties without having the price bid up to levels incompatible with strong cash flow.
November 11th, 2009 by Lynn Marrott
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In todays market the question actually seems to come up more often than before..”Is it better to Rent or Buy”?
Even with the great loss in home owners equity the answer hasn’t changed. Let me explain. Most people who are renting only consider the difference between the amount of their monthly payment vs the amount of a house payment..if the rental amount is less..then that is how they feel they are doing as well or better than a home buyer!
Of course each person has a different tax profile and should consider talking to their accountant..in most cases you can normally reduce your withholding taxes because the interest on your mortgage is tax deductible. Locking in a fixed monthly payment for 15/30 years is the key. Rent payments tend to keep pace with the economy and inflation. If you calculate your rent payments over 20 years with a 2.82 percent inflation rate, your rental payment would have increased from $1,000 per month to $1564 per month..where a comparable fixed mortgage payment would have stayed steady and you wouldn’t have payed out an extra $6768. per year paying rent!
Of course, there are other costs of homeownership to consider, such as home owners associations property taxes and utility bills.
So..for some individuals, this may be the best reason to purchase real estate. If you hold your porperty for long term, it will normally keep pace with inflation creating you additional wealth. If you rent, you pay off your landlord’s mortgage and make him or her wealthy. This may be one of the best reasons that homeownership remains an American ideal ..and the norm.. It may also explain..why Lowes and Home Depot and the rest of the DIY stores “are there for you”..not to mention all the “honey do” lists that are created by homeownership..if you deduct those purchases from your estimated increase of wealth..you might find yourself just breaking even with renting.. but you will have all that satisfaction of working on your house each weekend instead of playing GOLF!
(some information quoted from Bernice Ross, Inman News)
October 26th, 2009 by Lynn Marrott
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The local Las Vegas Market has had some positive air time from GLVAR and local news channels about the number of homes being sold and the rise in prices of nearly 2%! Prices rising for the first time in many months. The buyers seem to be primarily new/first time buyers and investment groups and the moving of inventory from Builders for New Homes. There are many “traditional” listings on the market without the dreaded Short Sale and or REO label..All good signs, and yet…
Many homeowners are waiting for the next Libor release soon to come before the end of the year. Should the interest rates rise the reset of their Interest Only and ARM loans may eclipse what they can afford to pay for the first six months of 2010. Even a $300.00 bump could send many of them packing and looking for rentals before their families are uprooted. If an upward trend of the interest rate should happen..then the 2nd increase house payments.. due July 2010..we might see the local housing market shudder and stumble again.
There is no doom and gloom here or running screaming..”the sky is falling”, but there needs to be a reality check and a reminder to agents and lenders alike..about being ethical in how they present opotions for the homeowner and buyers.. when taking Listings and making offers..
On a continued observation of the banking system and their requirements for borrowers, they have not lessended and in many cases have become obstructive. Also, appraisers are fearful of making less than very conservative appraisals as they have become a target for investigation as the cause and effect of the last “bubble” is reviewed by those seeking deficiency. Which is a whole other topic.. as the Deficiency laws that have been engaged do not cover the loans that were made prior to October 1st 2009. Also the Lenders will utilize the deficiency and promissory notes to recoup the difference between the loan amount and the sale amount..So..with all the new positive spin on the local market we are not out of the woods and that light at the end of the tunnel might just be the next train coming with more Foreclosures aboard!
October 21st, 2009 by Lee Ann
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The Las Vegas Real Estate Market has seen a jump in the amount of buyer’s actively looking to purchase!!! Great news…..or is it????? The public seems to be under the impression that Las Vegas is still a buyer’s market; well people, I’m here to tell you don’t believe everything you hear!! There are alot of people who want to come in, find a property and then put in a “low-ball” offer, and I can understand wanting to pay as little as possible for a home, but this will not work in Las Vegas anymore!!! The listing agents for the banks foreclosed homes have found out that if they price the property really low, they get multiple offers! Their next move is to issue a multiple offer addendum and tell everyone to bring their “highest and best” offer, which brings out the beast in almost every buyer!!! The agent finds the best price with the fastest close and the bank accepts that offer, which is usually quite a bit higher than the listed price. All those other buyer’s have to move on to the next “great deal”, usually to find themselves in the same situation.
I have made offers for clients where there have been 30 (yes, THIRTY) other offers!!! This is becoming normal…something is very wrong with that! I’ve had to start educating my buyer’s on the market situation, most of them don’t believe me until after a few offers have been made. Once they “get it”, we start looking in a price range alot lower than what they want to spend so we can out-bid other buyers, start looking at the benefits of purchasing a short sale, or go directly to the new home models where we find better footing and some really interesting deals!
So if you are looking to purchase property in Las Vegas, don’t think that you can just come in with any price and grab up a foreclosed home for almost nothing! Seller’s, even if they are suits at the bank are still in charge and the “Buyer’s Market” has left the building!!
October 20th, 2009 by Lee Ann
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Seems like every buyer in Las Vegas today has CASH!! As a Realtor who specalizies in listing short sales here in Las Vegas, I can’t believe the amount of people who are buying properties with CASH!! I could sell 50k condo’s all day long!! Where are these people getting all this money???? I have no idea, and don’t really care….just happy for this new trend!! If you are out there, making cash offers on properties, don’t be surprised if the Realtor doesn’t act overly happy and excited when you say “I HAVE CASH!” because right now, SO DOES EVERYONE ELSE!!!
Of course, as with all good things, there is a down side….all those other people who need to get a property financed! What about all those hard working, blue collar, regular Joes, who want to LIVE in a house??? They are having a tough time getting a property, usually due to a cash offer!! For them, foreclosures have just become a complete waste of time…causing them nothing but stress and heartache! Doing an FHA or VA loan? Even harder…..usually takes longer to close and includes alot more red tape!!! If you are trying to purchase your American Dream, take some time to learn the market….what kind of offers are being considered? Is the listing price realistic for the market, or are they pricing below market to entice a bidding war? Listen to your Real Estate Professional!!! They are trying to educate you to make your Dream come true!
October 19th, 2009 by Lynn Marrott
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Recently a client called from a sale nearly 13 months ago. He had waited thru the process of a Short Sale and purchased a great property for about half the price..deep corner lot with a Casita located in the back corner..backed up to a school/park. On the day of signing he and his wife anxiously went thru the paperwork, gave their check to the closing officer at the Title company and proudly took possession of their property in this lovely gated community of only 25 houses. HOA certs were provided as were all the rules etc..he laughed and said he would “read them in the bathroom”..Well..now he is upset because he can’t use the Casita for a permanent residence for his not to friendly mother-in-law. The HOA is enforcing the law and the rules and are threatening legal action as the mother in-law has been voicing her residence to all the neighbors as well as all of her son-in-laws foibles..so, he cannot deny she lives there! In his frustration he called the HOA president and me..both reminded him of the law, rules and regulations that he initialed and signed. Needless to say..he is NOT HAPPY! I read to him from his file..where his signature was emblazoned..”The CC&R’s become a part of the title to your property. They bind you and every future owner of the property whether or not you have read them or had them explained to you. By purchasing a property encumbered by CC&Rs, you are agreeing to limitations that could affect your lifestyle and freedom of choice.You should review the CC&Rs and other governing documents before purchasing to make sure that these limitations and controls are acceptable to you..” Unfortunately, the Short Sale process became very painful as in his case..it included a mother-in-law who will have to move INTO his house!
October 19th, 2009 by Lee Ann
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The Las Vegas housing market has seen a lot of short sales lately! Why would a buyer think a short sale is worth waiting for months on end for the seller’s lender to approve the deal? Well, several reasons…..at least in Las Vegas!! With inventory down on foreclosures, the competition to get these homes has become overwhelming for some buyers! After writing 10 or so offers on different foreclosed properties, only to be “beat out” by one of 20 or so other offers, buyer’s finally turn to short sales in a funny kind of desperation!! The most appealing part of a short sale? The property has usually been taken care of….seller’s may still live there…and they love that house!! They aren’t going to rip out the kitchen or steal all the appliances because they are mad at the bank! They are trying to do the “right thing”…work it out with the bank…let someone who can afford the home buy it! This gives them the opportunity to get out of a home that is causing them stress, and to move on into a future that includes being able to rebuild credit and a few years down the road, purchase another home that they CAN afford! Other great benefits include, competitive prices, less competition with other buyer’s and an extensive inventory to choose from!!
Short sales can take a long time to get approved, it’s true, but they are proving to be worth their wait in gold to many Las Vegas buyer’s!
