(October 2008 Las Vegas real estate report)

If you would like to see the latest report with charts and statistics for October 2008 sales please go to www.maxsellsvegas.com the information about Las Vegas Home and Condo Sales is right on the front page.

Las Vegas home sales in Sept. 2008 were 9.4% stronger than August. Over 60% of these sales were the sale of foreclosed by banks (REO’s). The median price of a Las Vegas home sale fell 7.1% in September from the month previous. It looks like we are going to continue to see additional listings hit the market in coming months as a new batch of R.E.O.’s continue to enter the market. I look for prices to continue their decent.

The Federal Government estimates that we are approximately half way through the foreclosure crisis. Although sales statistics have shown increases in September, I and my fellow agents are seeing first time home buyers desperately trying to buy before FHA Nehemiah program (down payment assistance) was eliminated on October 1, 2008 by new Federal legislation. I look for the Sold’s numbers to fall after this month due to the elimination of Nehemiah and a possible increase in mortgage interest rates. With the loss of FHA Nehemiah and the lack of savings for most Americans I see the available pool of first time buyers to shrink dramatically from this point forward.

I have noticed an increase in U.S. investors and out of country investors. Canadian retirees in particular are finding the Las Vegas homes for sale to be particularly attractive. They have been very impressed with how much their dollar will buy in this temporarily depressed Las Vegas real estate market.

The spread on mortgage interest to the 10 year Treasury will continue to be untraditionally wide as the mortgage industry continues to limit their losses. Although the Federal Government under “TARP” is injecting $250 billion dollars into the major banks the banks have not been required to use the monies to renegotiate existing home loans nor are they required to grant new mortgage loans. “TARP” will help free up the commercial loan and possibly the consumer loan sector but with real estate depreciating each month in Las Vegas the mortgage business will continue to be exceedingly tight.

With the still heavy inventory of homes available on the market and over 60% of these homes being vacant I know that Las Vegas homes can be purchased substantially below the median price making Las Vegas an excellent Buyers Market.

Canada citizens can buy Las Vegas Homes at prices they previously could only dream about. We are seeing the numbers of Las Vegas homes selling to Canadians at unprecedented rates. Even though the currency exchange rate has narrowed to more traditional levels the steep discounts in real estate in Las Vegas have proven to be a great opportunities for Canadian snow birds.

For insight on the Las Vegas real estate market in general I invite you to visit my “Las Vegas real estate report” blog.

I would also like to invite you to contact me in person for specific opportunities in this exciting market.

Max Schmidt
702-334-2200

Contact Max and let him know what you are looking for here NOW!

Source: Greater Las Vegas Association of REALTORS®

For the Latest in Las Vegas real estate call Max at 702-334-2200. Your comments and questions are welcome.