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!!

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!

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!

Buyers turn to new homes

Even as foreclosure sales persist to pull down the median home price in Las Vegas, there are progress signs that buyers are opting for new homes, this according to Home Builders Research.

The research group reported that the median resale price in August was $122,000, a decrease by 39 percent from the previous year. In August as well, sales of existing homes was only 3,833 compared to 4,371 in July.

Home Builders Research reported that while many buyers are still interested in foreclosed homes, others are interested in new homes. The reasons for this new interest in new homes, the research group said, is that good existing homes are hard to find and many of these good existing homes have already multiple offers. The other reason cited is that buyers find buying new homes less stressful compared to buying foreclosed homes.

The research group added that buyers are particularly interested in new homes that have $100-square foot floor plans.

The research group said that for the month of August in Las Vegas, 426 new homes were sold. In the previous month, 407 new homes were reported sold in Las Vegas.

A recent survey conducted by John Burns Real Estate Consulting showed that in California, the housing market is stabilizing. There were 269 home building executives who participated in the John Burns Real Estate Consulting survey. This California survey is quite important as California market mirrors that of the Nevada market.

Jody Kahn, vice president of Irvine, California-based John Burns Real Estate Consulting reported, “For the first time since we began our home builder executive survey 15 months ago, more California builders reported raising prices than those who reported prices were flat or down.”

According to Las Vegas-based SalesTraq, there is a continuous supply of home repos on the market. With this, SalesTraq added that home median price could hit $100,000.

July home sales in Las Vegas second-best on record

Greater Las Vegas Association of Realtors reported that 4,602 homes, condominiums and townhomes were sold in Las Vegas last month. That’s down one-hundred from June but still the second-best showing on record, the association of realtors said.

Of the 4,602 homes, condominiums and townhomes sold in Las Vegas last month, the association of realtors said bank-owned foreclosure sales dominate. Bank-owned properties account for about 73 percent of all home, condo and townhomes sold in July, the association of realtors said.

In a statement, Sue Naumann, president of Greater Las Vegas Association of Realtors said, “We didn’t set another sales record in July, but we came close. This shows that the demand for homes in the Las Vegas area right now remains very strong.”

According to the Greater Las Vegas Association of Realtors, last month, the median price of single-family homes in July was $138,800; while the median price of condominiums and townhomes was $67,000. In contrast with the data from June, this represents a 0.9 percent decrease in the median price of homes and a 1.5 percent rise in the median price of condominiums and townhomes.

Greater Las Vegas Association of Realtors report also showed:
Median home price of $138,800 decreased by 36.9 percent from $220,000 in July 2008;

Median price for condos and townhomes was $67,000, a decrease by 50.4 percent from $135,000 the previous year;

Single-family homes sold last month was 3,738, a 1.2 percent decrease from 3,785 in June, but a 44.2 percent increase from 2,592 sales in July 2008;

Condos and townhomes sold last month was 864, a 5.8 percent decrease from 917 in June, but 141 percent increase from 358 in the previous year;

Single-family homes listed for sale last month was down 0.9 percent to 20,423, in contrast to 20,613 homes listed for sale in June; and

Condos and townhomes listed for sale was down in July, a 0.7 percent decrease from 5,416 in June to 5,378 in July.

Condo prices in Las Vegas fell by 54.1%

CNN reported that condo prices in Las Vegas fell 54.1% compared with the second quarter in the previous year and dropped 11.7% between the first and second quarters of this year.

The median price of condo units in Las Vegas now stands at $66,400, CNN said. Nationwide, the news agency, said condo prices fell 19.8% year-over-year.

CNN added that the price drop can be  attributed to the increase of foreclosures and short sales. Nationwide, foreclosures and short sales represent 36% of all transactions during the quarter, CNN said.

Properties sold through foreclosures and short sales, the news agency said, are mostly sold at discounts of at least 15% in contrast with traditional sales.

CNN said that due to the sinking home prices, buyers were able to buy homes in places they could not previously afford.

According to the National Association of Realtors or NAR, out of the 61 metro areas surveyed, only four showed a year-over-year increase in condo prices. NAR reported that this increase in condo prices only happened in the following areas: Virginia Beach, where prices increase 2.8%; Wichita, Kan. (2%); Dallas (0.7%) and Colorado Springs (0.2%).

NAR added that the most expensive condo market was San Francisco, where the median price was $405,700, down 22.5% from the previous year.

The realtor association said prices of homes also sank, as median home prices dropped by a record 15.6% during the three months ended June 30, compared to the same period in the previous year.

In majority of metro areas; that is, 129 out of 155, median home prices dropped year-over-year, the realtor association reported.

In terms of home prices, NAR said the Cape Coral metro area in Florida recorded the largest drop decline: 52.8% or $84,000.

The realtor association added that the lowest priced home market in the US now is Saginaw, Mich., where the median home sold for $55,700 during the quarter, a 30.6% drop over the previous year.

 If you are looking to purchase a condo in Las Vegas, please call Jeff and Lee Ann Mix of i Realty. If you are facing foreclosure, Jeff and LeeAnn Mix can help you through a short sale of your home. A short sale is when your lender accepts less for the home than what is owed.

Sales in luxury homes stalled

Gone is the time when sellers of smaller houses graduate into the million-dollar homes. Sellers of smaller houses are not moving up because most of these sellers are distressed sellers in short sales.

CNN reported that demand in million-dollar homes or luxury homes is specifically down in Las Vegas–a place where foreclosure is rampant.

Due to the low demand in luxury homes, the news organization reported that realtors are advising sellers to reduce their selling prices.

According to the National Association of Realtors, right now, luxury homes–those  priced more than $750,000–would take 16.8 months to sell, in contrast to about 14.5 months in the previous year.

CNN reported that the oversupply of luxury homes is caused by the following:
• First, buyers who earn more than $75,000 annually are not qualified to avail to the  government’s $8,000 tax credit for first-time homebuyers;
• Second, the loans for homes priced more than $417,000 remain tight; and 
• Finally, as an aftereffect, Americans are buying smaller homes.

CNN said there is a tax policy gap. While the government’s $8,000 tax credit for middle-income, first-time buyers aided in cleaning out inventories of small homes, wealthier buyers have not been afforded comparable credit, the news agency said.

According to Lawrence Yun, chief economist for NAR, mortgage laws passed early this year did not help the wealthier buyers as these buyers are not covered by Fannie, Freddie, or the FHA.

A survey conducted by the real estate agents of NAR showed that 73% of buyers decided not to buy luxury homes due to difficulties in getting credit.

According to mortgage-bond analysts from J.P. Morgan Chase, luxury homes prices may not bottom out until 2012, when prices will be down 60% from their peaks.

Prices of apartment complexes in Las Vegas continue to drop

Sales of apartment complexes increased in the first half of this year in Las Vegas. 171 apartment units were sold in 2009–a 38 percentage point gain. Most of those deals were either short sales, bank repossessions or foreclosure purchases.

Even with the increased of sales of apartment complexes, purchase prices still plummeted by 38 percentage points to $53,000 per unit.

For this year, notices of default have been issued to more than 250 apartment complex in Las Vegas and it could be years before prices similar to several years ago could occur again.

As prices of real-estate properties continue to plummet and with the government’s tax breaks, renters are now opting to buying homes.  

According to the Greater Las Vegas Association of Realtors, median home sale prices in Las Vegas were $140,000 in June or 37.8 percentage points less than the previous year.

Las Vegas Business Press reported that banks are making fast deals on foreclosed homes. The news agency said that foreclosed homes continue to dominate the residential sales market.

The news agency added that the recent government’s $8,000 tax credit for first-time buyers also prompted some people to opt for home ownership rather than renting.

Las Vegas business advisory firm, Applied Analysis, reported that the growing number of unemployed and the decrease in demand contributed to the downward pressure on Southern Nevada’s apartment market in the second quarter.

The advisory firm reported that apartment occupancy rate plummeted to a record low of 90.5 percent. The 10-year occupancy average in the valley is 94.2 percent, the advisory firm said.

Applied Analysis added that the average asking rents in the valley dropped to $857 a month or 95 cents per square foot–a close to 4 percent drop from the previous year.