Henderson homes for sale

November 10, 2009

Las Vegas real estate August 2009 residential market Statistics

Get the latest on the Las Vegas home market here!

(September 2009 Las Vegas real estate report)

Las Vegas home sales for August 2009 were down for July by 13.6%. This is primarily due to the lack of new inventory entering the market while we are experiencing a substantial increase in the number of Buyers in the Las Vegas home market. Although the MLS showed 20,999 listings in the market only 8,579 units were not under contract and waiting to close. Approximately 68% of the total Las Vegas home sales were foreclosures called banks (REO’s). The median price of a Las Vegas home has held some what steady for the last 5 months. The total Las Vegas single family home listings for August fell -2.8% from July 2009. We believe that the foreclosure inventory has yet to increase due to the Banks slowing of final auctions. It has become apparent that the completion of foreclosures through the Sherrifs auction is much slower as the Mortgage holders are flooded with mediation and other internal problems in completing the reposessions. According to Realtytrac we will be seeing increased inventory levels.

We are continuing to see a marked increase in the number of Buyers in the Las Vegas real estate market. Sales are down 13.6% from July in most part due to lack of available REO inventory. We are seeing multiple offers on properties under $250,000 and many of these better properties are recieving over 12 offers. The Sellers (Banks) are now setting asking prices below their market value by as much as 20% in an effort to turn their properties into an eBay style auction. The properties are selling well above the asking price and in some cases above the sales prices of the surrounding properties. With over 40% of the Las Vegas homes being sold for cash to investors the appraisal ceases to be a factor in these cash sales. Investors are purchasing properties based on rental cash flow and in many cases this value exceeds the sales prices of like homes in the area. This results in cash investors paying more than a financed owner occupant can pay for the same home.

We are 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 Las Vegas 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 more difficult to qualify for loans over $415,000 currently.

Las Vegas is experiencing increased unemployment of 13.1% in July. The unemployment rate has been growing which will result in additional Las Vegas real estate foreclosures.

With the increase sale activity and drop in new Las Vegas REO inventory it is becoming increasingly harder to find homes in excellent condition to purchase. Las Vegas homes still can be purchased 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! But it appears that the Las Vegas real estate market is stabalizing as inventories decrease, sales increase and the median price is now holding steady.

I would  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®

August 2009
Single Family Homes 		  % change from last month
Active listings 20,999 +2.8%
New listings this month 5,104 +0.3%
Las Vegas homes SOLD this month 3,229 -13.6%
Median purchase price this month $135,500 -2.4%
August 2009
Condos & Townhouses		   % change from last month
Active listings 5,508 +2.4%
New listings this month 1,270 -5.0%
Las Vegas condos SOLD this month 810 -6.3%
Median condo purchase price this month $66,288 -1.1%

Las Vegas Real Estate Market Charts

Las Vegas listing history to August 2009
Las Vegas homes SOLD history through August 2009
Median home sales price history Las Vegas real estate through August 2009

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 Nov 10th, 2009.

September 25, 2009

Las Vegas real estate June 2009 residential market Statistics

(July 2009 Las Vegas real estate report)

Las Vegas real estate review for August 2009

Las Vegas home sales for June 2009 were up once again over May by a substantial increase of 16.3%. This is the largest increase in the number of Las Vegas homes sold in more than 2 years. Approximately 72% of these homes sales were foreclosures called banks (REO’s) which is a 7% decrease in the number of Las Vegas single family REO homes sold from the previous month. This is due in part to the lack on new REO’s being listed in the market place. The median price of a Las Vegas home held steady from May 2009. The total Las Vegas single family home listings for June fell -2.7% from May 2009. We believe that this slowing in inventory is only temporary as a result of the moratorium on foreclosure during the holiday season of 2008. According to Realtytrac we will be seeing increased inventory levels.

We are continuing to see a marked increase in buyers in the Las Vegas real estate market. Sales are up +16.3% over April but in comparison with one year ago they have increase +70.0%. In most cases we are seeing multiple offer bidding (as many as a dozen offers) on some of the best properties in price ranges under $250,000!

We should start 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 Las Vegas 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 more difficult to qualify for loans over $415,000 currently.

Las Vegas is experiencing increased unemployment of 11.3% in May. The unemployment rate has been growing which is resulting in additional Las Vegas real estate foreclosures.

With the increase sale activity and drop in new Las Vegas REO inventory it is becoming increasingly harder to find homes in excellent condition to purchase. Las Vegas homes still can be purchased 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! But it appears that the Las Vegas real estate market is stabalizing as inventories decrease, sales increase and the median price is now holding steady in June.

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®

June 2009
Single Family Homes 		  % change from last month
Active listings 20,613 -2.7%
New listings this month 4,779 14.0%
Las Vegas homes SOLD this month 3,785 +16.3%
Median purchase price this month $140,000 -0.0%

 

June 2009
Condos & Townhouses		   % change from last month
Active listings 5,416 -2.8%
New listings this month 1,218 +10.8%
Las Vegas condos SOLD this month 917 +24.4%
Median condo purchase price this month $66,000 +1.5%

Las Vegas Real Estate Market Charts

Las Vegas listing history to June 2009

 

Las Vegas homes SOLD history through June 2009

 

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

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 Sep 25th, 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.

June 30, 2009

Henderson Home investing future?

I was recently sent a written interview by an international investor publication concerning investing in Henderson real estate.  I have included both the questions and answers in this series of articles on Henderson Home investment opportunities.

Allison (Question): What is your short-term (6 months) outlook? Long-term (5 years)?

The Las Vegas market in general is becoming tighter as few REO units have been listed lately.  REO’s have been over 80% of the market for the last 6 months.  Some units in Henderson have not moved since they require renovation. I have noticed that the REO owners are becoming more sophisticated and are starting to repair and clean these units up to receive a greater return on these previously substandard units.
Because of the heavy flood on investors now entering the Las Vegas market I do not see prices in continuing to fall in the under $250K bracket and we may see an actual increase in units currently priced under $150K because of their current undervalue and extreme demand for this product.  We are currently experiencing multiple bids on properties priced under $150K and approximately 35% of the Sales in the market are CASH. This flood of investors is due to the Las Vegas market moving from a 40% rental market to a 60% rental market as people loose their homes but not their jobs due to the economy and the predatory mortgage products.  Investors are finding it easy to find 5% to 10% R.O.I. on their investments in this market.  Un-employent is currently at 11.3% with the bulk of construction jobs no longer available. This indicates that as the economy recovers and tourism picks up new employment will be in lower paying sectors requiring housing with lower rents.  This will dry up the lower priced inventory and this is what investors are banking on for a 3 to 5 year hold.
I look for price brackets below 150K to continue to be competitive and possibly more expensive to acquire.  I see price brackets 150k to 300k to continue to accelerate as foreign nationals and retirees continue to come into the market place to buy second homes and retirement residences.  I see an increase of inventory in price brackets of $300k to $450k as job losses, Alt “A” loan resets continue to accelerate foreclosures with little demand to acquire this inventory.  I see price brackets of over $450k to continue its downward spiral as jumbo loans to purchase such properties are not available at reasonable rates and conservatism has over taken Buyers in all price brackets.
 
As to the Henderson real estate market in general.  I see an “L” shaped recovery with prices rising approximately 3% per year beginning in 2010.  This is conditional on the Feds continuing to control inflation.  Should inflation set in then this number will grow.

Filed under Henderson Nevada real estate news, Henderson homes for sale, Henderson real estate, 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 Jun 30th, 2009.

How Banks work Short Sale real estate in Las Vegas!

I received an email about buying multiple Las Vegas “Short Sale” homes. 

He writes: “I have some questions  about “Short Sales”

“1. I actually see a big difference in price ($/sq ft) between “short sale” homes and non-short sale homes…  I am just curious … You told me 95% of the short sale homes become foreclosed?  What happens after the foreclosure?  Does the bank try to sell the home for a higher price than the short sale price?  Do the Banks usually succeed in selling higher?”
 
“2. Can I place offers on a couple of short sale homes at the same time?  If one of my offers is then accepted great. But what if more than one of my offers are accepted at the same time? What will happen then?”
 
The Short Sale asking price has nothing to do with what the bank will accept in 8 to 12 weeks after you submit your offer.
 
The above articles explain that the Seller could care less if they even ask $10 to purchase their home as they are getting nothing to sell it.  The Sellers bank is interested in not only getting the most money they can from you (the Buyer) but also extracting additional money from the Seller in order to release them from the home loan.
 
I recently had a Buyer who offered full price CASH on a short sale based on the Sellers Banks appraisal.  The Sellers Bank would not accept the deal unless the Seller paid them an additional $30,000 cash!  Since the Seller didn’t have the cash the deal fell apart and I had to help my Buyer find another home to purchase.
 
This previous Short Sale home is now foreclosed and the Sellers Bank will not receive as much as my Buyer was willing to pay. The market has gone down in price for this home. The Sellers Bank has had the cost of foreclosure and the cost of tax, insurance and other liens on the property.
 
I know this does not make sense to you. But look at it from the Banks perspective.  The Bank must try to make as much money from the Seller/Borrower as possible on the loan.  If they think the Seller/Borrower has some money or access to some money then they want it. 
 
There are a number of other Seller/Borrower conditions that will cause the bank to reject even a full price offer. One is if the Seller/Borrower is making payments while they are trying to Short Sale their home.  The incentive for the Seller/Borrower is that they help to protect their credit.  For the Sellers/Bank there is no reason to accept a Short Sale on a fully preforming loan!
 
The above examples are why the asking price and your offer price has nothing to do with weather the Bank will accept your offer.  They will not sell the home for less than the Appraisal they order on the home!  So offering $50,000 on a home with an asking price of  $70,000 means nothing if the appraisal value of the home comes back at $100,000 and a Sellers/Borrowers loan amount of $200,000.  After 8 to 12 weeks of waiting you will get a counter offer for $100,000 and if the Bank thinks they can get more out of the Seller they will condition the approval on the Seller coming up with cash as well.
 
The Bank has three separate divisions that handle mortgages:
1) The collection division- this division attempts to get the most out of the Borrower any way they can.
2) The foreclosure division- this group handles the legal processes to take the home back when collection is unsuccessful.
3) The REO (real estate owned) division- this group handles the properties that are taken back by setting values, eviction, sometimes making repairs, listing them with agents, evaluating offers and selling the properties.
 
Each of the divisions have their own set of rules to operate under and are not in communication with the other divisions. So the Collection and foreclosure Division do not talk with the REO division to see if they should accept the Short Sale offer as it may net the Bank more money. I know this is stupid on the Banks part but that is the way they operate.
Short Sales are handled by the collection division and are therefore under the basic premise of  “Borrowers are  lying flakes and the Banks job is to get as much as you can any way it can.”
 
This is why only 5% of Short Sales listed actually Sell.  Most will become R.E.O.’s. 
 
As to weather you can make offers on several properties at a time.  You can make offer on as many properties as you wish.  You must put down an earnest money in each case being deposited into an Escrow Company on acceptance of your offer.  If YOU fail to preform on the contract your money is forfeited to the Seller.  So if you don’t buy and the Seller fully preforms, you are out your $2,000 to $5,000.  A contract requires that each party preforms with provisions for damages if a party fails to preform.
Thanks for asking!

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 real estate market, Las Vegas real estate news by Max on Jun 30th, 2009.

June 28, 2009

The Henderson foreclosure picture

I was recently sent a written interview by an international investor publication concerning investing in Henderson real estate.  I have included both the questions and answers in this series of articles on Henderson Home investment opportunities.

Allison (Question):  What is the foreclosure picture in Henderson?  I know Henderson is a nearby “neighbor” market of Las Vegas. How is it doing in comparison to Vegas, particularly in the wake of the real estate fallout?

The REO (foreclosure) properties were not divided by the Greater Las Vegas Association of Realtors until March 2008 with the first real results being posted for April 2008.
 
Approximate total single family units in the Greater Las Vegas area  427,000.
Total single family REO’s Listed Since April 1, 2008 in the Greater Las Vegas area including Henderson 31,791.
Total single family REO’s Sold Since April 1, 2008 in the Greater Las Vegas area including Henderson 26,296.
7.45% of the Greater Las Vegas housing inventory has been listed as REO’s since April 1, 2008
6.16% of the Greater Las Vegas housing inventory has been Sold as REO’s since April 1,2008
 
Approximate total single family units in the Henderson area 71,500.
Total single family REO’s Listed Since April 1, 2008 in Henderson 3,961.
Total single family REO’s Sold Since April 1, 2008 in Henderson 3,273.
5.54% of the Henderson housing inventory has been listed as REO’s since April 1, 2008
4.58% of the Henderson housing inventory has been Sold as REO’s since April 1, 2008
 
It appears that Henderson has faired 21.1% less depreciation in the market place while having 74.3% less units for sale than Las Vegas, based on total home inventories.
Henderson is fairing far better than most areas in Las Vegas.
The next instalment I will cover the question:  What is your short-term (6 months) outlook? Long-term (5 years)?

Filed under Henderson Nevada real estate news, Henderson homes for sale, Henderson real estate, Las Vegas home sales, Las Vegas homes for sale, Las Vegas real estate market, Las Vegas real estate news by Max on Jun 28th, 2009.

June 26, 2009

Henderson homes better in down turn!

I was recently sent a written interview by an international investor publication concerning investing in Henderson real estate.  I have included both the questions and answers in this series of articles on Henderson Home investment opportunities.

Allison (Question): How has Henderson weathered the real estate downturn?

 
June 2006- Henderson Median price of a single family home Sold was $315,000
June 2009- Henderson Median price of a single family home Sold was $206,636
A difference of <$108,364> or a loss in value since the top of the market of 34.5%.
 
June 2006- Greater Las Vegas Median price of a single family home including Henderson $315,000
June 2009- Greater Las Vegas Median price of a single family home including Henderson $140,000
A difference of <$175,000> or a loss in value since the top of the market of 55.6%.
 
If we were to remove Henderson from the Greater Las Vegas statistics the Las Vegas losses would be even greater.  The Henderson market lost less value because of its desirability in the market place to home owners and investors and is a more stable market.
The next installment will answer the following questions:
3) What is the foreclosure picture? 
4) I know Henderson is a nearby “neighbor” market of Las Vegas. How is it doing in comparison to Vegas, particularly in the wake of the real estate fallout?

Filed under Henderson Nevada real estate news, Henderson homes for sale, Henderson real estate, Las Vegas home sales, Las Vegas homes for sale, Las Vegas real estate market, Las Vegas real estate news by Max on Jun 26th, 2009.

June 24, 2009

Henderson Homes for Investors

I was recently sent a written interview by an international investor publication concerning investing in Henderson real estate.  I have included both the questions and answers in this series of articles on Henderson Home investment opportunities.

Allison (Question):What makes the Henderson market attractive to investors? What, if anything, about the city may not be so attractive to investors?

 
Henderson Nevada is a very stable community.  From a resident standpoint (population 260,000+) it offers some of the best public schools in the Clark County School District most teachers strive to work in the schools in and around Henderson. 
The City (land area of approximately 80 square miles) has its own Fire and Police Departments that are adequately funded and seem more responsive to the residence needs than the Larger Las Vegas Metro Departments that covers much of the almost 8,000 square miles of the Clark County. 
 
Henderson has excellent services and shopping and is considered as one of the best shopping areas in all of Las Vegas.  Henderson also done an excellent job of traffic planning providing 3 Major arteries within the city limits to handle traffic flow as well as many excellent surface arteries to facilitate the flow of traffic.  They have also have an extensive plan for future mass transit system in place to provide for the needs of the community and connection to Las Vegas.
 
Henderson has a great reputation as a real community which has helped in holding land values in general higher than in much of the Las Vegas valley. There are fewer repossessions currently in Henderson because the community was built before the real estate bubble fewer properties have been repossessed.
 
Because of its reputation as a desirable place to live with lower crime rates and better shopping and community services Henderson creates a more stable investment market yielding higher gross incomes on properties and higher market demand for its real estate products.
 
As to the negative side of Henderson. Most of the City was developed before the Boom cycle that ended in 2006.  The availability of home built in the last 5 years is a much smaller percentage of the market than those built prior. This means that in comparison with Las Vegas in general it is much harder to find an investment property in pristine condition and most repossessions need additional work to bring them up to rentable standards.  There is also an old core that was originally a Federal Arms plant in World War II.  This area is dotted with 1940’s 750 sq. ft. cinder block homes.  Much of this area is slated for Urban renewal but this will be stifled by the current real estate market conditions.
Tomarrows post:  How has Henderson weathered the real estate downturn?

Filed under Henderson Nevada real estate news, Henderson homes for sale, Henderson real estate, Las Vegas home sales, Las Vegas real estate market by Max on Jun 24th, 2009.

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