July 2009 Archives

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July 8, 2009

Las Vegas real estate April 2009 residential market Statistics

(May 2009 Las Vegas real estate report)

For June 2009 Las Vegas real estate report go here!

Las Vegas home sales for April 2009 were up from March by a more manageable +7.3%. Approximately 79% of these homes sales were foreclosures called banks (REO’s). The median price of a Las Vegas home continued to fall to -4.9% from March 2009. The total listing for April fell -23.9% from March 2009. We believe that this slowing in inventory is only temporary as a result of the moretorium on foreclosure during the holiday season of 2008. According to Realtytrac we will be seeing increased inventory levels in May.

We are seeing a marked increase in buyers in the Las Vegas real estate market. Sales are up +7.3% over March but in comparison with one year ago they have increase +78.3%. In some cases we are seeing multiple offer bidding on some of the best properties!

We are now starting to see foreclosures of loans from prime borrowers on “Alt. A” or cafeteria loans. This means we will see an increase in higher priced, larger homes, resulting in some great buys for buyers with large cash down payments in the purchasing range of $475,000 range and above as the mortgage market is very difficult for loans over $415,000 currently. We could see pricing at 60% off of the peak Las Vegas pricing.

Las Vegas is experiencing increased unemployment of 10.4% in March which is resulting in additional foreclosures.

The total number of homes sold in Las Vegas increased in April over March by +7.3% which is continuing to prove that the Las Vegas real estate market is much more active and continues to accelerate.

With the increase sale activity and drop in new inventory it is becoming increasingly harder to find homes in excellent condition to purchase now. Las Vegas homes still can be purchased substantially below the median price but these homes are increasingly in need of repair and redecorating. I have seen countless homes for sale at below 50% of what they were selling for at the height of the market. Las Vegas homes are truly ON SALE!

Las Vegas Homes are selling at prices they previously could only dream about. We are see the numbers of Las Vegas homes selling to Canadians and other foreign buyers at unprecedented rates. Steep discounts in real estate in Las Vegas have proven to be a great opportunities for Canadian and U.S. retirement and investing.

For more insight on the Las Vegas real estate market 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 Buyers 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®

April 2009
Single Family Homes 		  % change from last month
Active listings 22,112 -3.1%
New listings this month 4,297 -23.9%
Las Vegas homes SOLD this month 3,198 +7.3%
Median purchase price this month $141,720 -4.9%

 

April 2009
Condos & Townhouses		   % change from last month
Active listings 5,724 -2.7
New listings this month 1,079 -20.8%
Las Vegas condos SOLD this month 727 +20.4%
Median condo purchase price this month $64,500 -8.5%

Las Vegas Real Estate Market Charts

Las Vegas listing history to April 2009

 

Las Vegas homes SOLD history through April 2009

 

Median home sales price history Las Vegas real estate through April 2009

 

Filed under Las Vegas real estate news by Max on Jul 8th, 2009.

July 23, 2009

How Las Vegas REO’s are priced!

I had a question emailed to me today.
This person asked: How do the Banks price Las Vegas REO’s in the market?
Historically, Las Vegas REO’s are priced using an appraisal and 2 to 3 BPO’s (Brokers Price Opinions) which are about the same thing as a Sellers Comparative Market Analysis.  The bank takes this information and determines what they think they can sell the home for. It does not matter if they foreclosed on $10,000 or $1,000,000 note as they are going to try to get the most out of the home they can. 
If they make money then they will. Generally, they loose money in today’s market. 
After listing the Las Vegas home with their real estate agent REO specialist if the property does not sell in a few months (2 to 3) they will review the file and drop the price of the unit further to spur an offer. 
The above is what WAS the general standard procedure of REO departments in the Selling Banks here in Las Vegas until recently!
Now the Banks are moving into a new strategy. They are still establishing the price the same as the example above but now they are listing the Las Vegas homes with the REO agent at about 20% below what they think it will sell for. 
This new listing will then generate immediate offers and multiple offers. The bank then has their agent send out a notice of multiple offers and this starts a bidding war between the buyers.  The reason the Banks are using this strategy is that the home sells almost immediately which means they do not have extended carrying costs (about 1% per month according to the National Bankers Association).  By creating a bidding war they end up sometimes making more money than if they had priced the home at retail.  They have a choice to accept the offer they believe they will make the most money on and has the best chance of closing.
Sometimes the banks will collect offers for weeks before they answer. Sometimes they will only answer what they feel are the best offers.  They just allow the other offers to laps.
The Selling Banks are using every strategy they can in order to optimize their net income on the property!  No longer does it matter what the bank asks for an REO as it has no relationship to what the Las Vegas home will sell for.  To find what a home is worth you must now look to what the Las Vegas homes are selling for of like kind and condition in the neighborhood you find the REO in.  That is the price REO properties are selling at and their true value.
This means that the ask price may very well be below what the Seller will sell their Las Vegas home for.
If you have a question about the Las Vegas real estate market? Please send it to me at Max@MaxSellsVegas.com

Filed under Henderson Nevada real estate news, Henderson homes for sale, Henderson real estate, Las Vegas condo report, Las Vegas condo sales, Las Vegas home sales, Las Vegas homes for sale, Las Vegas luxury homes, Las Vegas real estate market, Las Vegas real estate news by Max on Jul 23rd, 2009.

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