Las Vegas Homes Blog

Predictions for 2007

2007-01-03T14:21:00.000-08:00

Statistics show that just over 7,000 people a month are making the pilgrimage to Las Vegas.

According to Stephen Bottfeld, a Las Vegas real estate analysts, Vegas has the best brand name of any city in the United States, it's a hangout for movie stars and celebrities and has everything necessary to make the average Joe want to be there.

Due to these facts and others, many have stepped forward to let the country know that the Las Vegas housing market is far from dead. Some predictions have Las Vegas falling off in 2007, but now more than ever, the consensus seems to be that the Las Vegas housing market is far from dead.

Home Defaults: A Growing Problem

2006-12-20T06:57:00.000-08:00

There have been concerns rippling through the real estate industry over the rising rate of defaults and foreclosures occurring in many areas around the country.

Recently the National Association of Realtors express concerns publicly saying that some families aren't understanding the risks of taking out exotic mortgages. There have been many statistics that show many families get in over their heads when buying a new home for their family.

NAR president Pat Vredevoogd Combs participated this past week with representatives from Responsible Lending and the Leadership Conference on Civil Rights.

An announcement was released that "urged consumers to make sure they understand the risks and rewards of all types of mortgages before they make a decision on a loan".

According to a report released earlier this month by the Mortgage Bankers Association there has been a rise in housing delinquencies by 28 basis points in the third quarter alone.

Foreclosure Convention

2006-12-19T14:16:00.000-08:00

A brochure released last month hits on predatory lending and offers consumers tips on how to avoid those lending practices.

The five page brochure is titled "Shopping For A Mortgage? Do Your Homework First" and was released to an audience listening to speakers at a real estate convention.

The National Association of Realtors President, Pat Combs, was at the convention and offered a bit of insight to the growing mortgage problem.

Combs said, "Foreclosures can lead to high vacancy rates, which in turn, can cause all homes in the neighborhood to lose value".

The theme of the convention was realtors informing consumers that foreclosures are not only devastating for them, but that foreclosures also have a devastating impact on local communities.

Concentrated areas and clustered cities have always had problems with loans. Some areas are susceptible to high foreclosure rates and can seriously threaten a neighborhood's stability.

Former Fannie Mae Executives Face Charges

2006-12-18T20:38:00.000-08:00

Three former Fannie Mae executives are being accused of submitting inaccurate accounting reports.

The government said they will seek more than $100 million in civil penalties from the accused and the return of more than $115 million in bonuses.

There were 101 charges filed against the former Fannie Mae Chairman and Chief Executive Officer Franklin Raines, former Chief Financial Officer J. Timothy Howard and former controller Leanne G. Spencer.

The charges will be filed by the Office of Federal Housing Enterprise Oversight which released a statement saying that the case will be heard by an administrative law judge.

The Office of Federal Housing Enterprise Oversight filed charges after a long investigation of the management and accounting practices from 1998 through 2004.

According to James Lockhart, Director of the Office of Federal Housing Enterprise Oversight, there are other current and former Fannie Mae executives who could be facing similar charges.

According to Howard and Raines attorneys these charges are politically motivated and are part of a conspiracy for the Office of Federal Housing Enterprise Oversight's attempts to persuade Congress to pass legislation that will allow the office to have more regulatory power.

What Will 2007 Bring For Real Estate?

2006-12-17T21:01:00.000-08:00

There have been many conflicting reports about the future of the housing market in 2007.

There are those who say that the market will continue to slide, that the market will continue to be a buyer's market throughout most of the year.

And there are those experts who say that home sales will increase that with the national economy doing well and unemployment dropping to historical lows that real estate is in for another historic year in 2007.

Recently the National Association of Realtors forecasted that there will be an increase in existing home sales.

The forecast comes with reasoning that annual totals will be slightly lower than 2006 and the prediction that new home sales will continue to go by the way side.

Numbers that were released showed that NAR is anticipating that roughly three-quarters of the country will experience sluggish real estate expansion.

NAR's chief economist, David Lereah has said that the market across the nation will be sketchy, however he also said, "Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards".

We will just have to wait and see what 2007 holds for the real estate market.

Harrah's Entertainment Welcomes Two Equity Firms To The Family

2006-12-16T15:18:00.000-08:00

Rumors have been in the pipe that Harrah's Entertainment had intentions of purchasing two equity firms.

Well those rumors have become reality as Harrah's Entertainment announced Tuesday that there had been an agreement reached to acquire two firms. The two firms, Texas Pacific Group and Apollo Management are now part of the Harrah’s family.

And what a large family it is. Harrah's Entertainment already boasts the largest casino business around today.

The two firms were acquired with an all cash transaction that totaled almost $28 billion. Also acquired was over $10 billion in debt.

There will be no complaints from the stockholders; they received $90.00 per share. This is a premium of approximately 36 percent over the closing share price from when the deal was announced.

Las Vegas's Local Economy Will Do Well In 2007

2006-12-15T15:49:00.000-08:00

There are still rumors of a recession going about in Las Vegas. However, some experts are having a hard time recognizing it.

People are working, consumers are spending money, the housing market is a buyer's market and things, frankly, are looking good. Yet there are still those who predict a bursting of the housing bubble and a recession.

It's obvious that while the housing market sometimes seems like a recession, there are many sectors of the economy that remain strong and help the market move along.

Recently Dr. Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas spoke at the Economic Outlook 2007 presentation at Green Valley Ranch Resort.

The message he sent was clear, Las Vegas is not in trouble. Not the housing market, not the economy, Las Vegas economically will do fine in 2007.

According to Schwer steady growth nationally should help spur another strong year for tourism.

About tourism Schwer pointed out that tourism usually follows capacity. The number of available rooms has recently tightened and that of course allows resorts to increase prices.

However that is not necessarily a bad thing, with the increased rates, comes a more sustained development.

During A Buyer's Market, Real Estate Agents Must Get Competitive

2006-12-14T19:12:00.000-08:00

Recently a survey of 1,000 consumers was conducted by Public Opinion Strategies to see if being in a buyer's market affects consumer's view of the competition.

The results were astounding. Nearly 2 out of every 3 consumers reported that they felt it was much more difficult to sell a home in today's market than that of last year.

Consumers also reported that they felt those hired to represent them both as a seller or a buyer's agent worked hard and did satisfactory work. This shows that there is faith among the public for real estate agents.

The survey showed that consumers believe that the real estate market is becoming fiercely competitive.

Many believed that there was much competition due to the buyer's market.

According to the National Association of Realtors President Tom Stevens, "Consumers know real estate is a highly competitive industry and that it's even more so in a buyer's market".

Nevada No Longer Number 1

2006-12-13T16:01:00.000-08:00

These days it seems like everyone wants to be down on Las Vegas. There is talk of a housing bubble, some highly publicized Las Vegas condos projects weren't constructed, and that the local economy is on the fritz.

While these topics are debatable, one fact that is not debatable is that Nevada is no longer that fastest growing state in the United States. After 19 years in the top spot, Nevada has fallen from first place in leading the nation in population growth to the number two slot.

Statistics released at the beginning of the week show that Nevada was pushed out of the top spot by Idaho in 2006.

Even with the slip at number one, Las Vegas gaming revenues are up. Gaming revenues are expected to increase by 5% next year.

In the housing market it appears as though new house prices are starting to level off and new housing construction permits are starting to decline.

There are many speculations as to why this is but with Nevada dropping out of the top spot for population growth and rising construction costs, it's pretty easy to understand were the real estate market will be next year.

Lennar EI Recieves Builder of the Year Award

2006-12-12T19:28:00.000-08:00

The Builder of the Year award for 2006 was awarded to Lennar Everything's Included Homes.

The award which is issued annually was presented to Lennar on November 18th. The Greater Las Vegas Association of Realtors hosted its annual installation dinner and selected Lennar to be the recipient of the prestigious award.

This award is handed out to the builder who has given an outstanding contribution to the Realtor community and given back the Las Vegas community.

The pool of nominees consists of any and all builders who have completed and sold a minimum of five homes during the year.

Lennar was chosen though the company had 97 competitors. Lennar EI executives Pam Banaszak and Thom Isbell were both present for the presentation. The company had reported that over 70 percent of their homes sales had involved participation of a Realtor.

Banaszak said after receiving the award, "We have a wonderful working relationship with our local Realtors".

Lennar EI is proud to have won the award and looks forward to progress and exceeding this years goals.

The Numbers Are Starting To Level Out

2006-12-11T21:33:00.000-08:00

There is more bad news for consumers in the Las Vegas real estate market according to the Greater Las Vegas Association of Realtors.

According to GLVAR the inventory of Las Vegas homes for sale on the MLS (Multiple Listing Service) are on a major downward spiral.

The numbers show that in November there were 19,729 less homes on the MLS or down 16 percent from the previous month.

However it does depend on how you look at the situation, half full or half empty. Linda Rheinberger, who is the president of the Realtors association, says that while this number is lower than usual, it is still up 34 percent from a year ago.

Rheinberger says these numbers are a good sign for the market. The numbers appear to have peaked at 23,474 in October of this year.

It peaked at an outstanding number, and now the numbers are starting to level out.

"I think people are finally starting to listen and read the news," Rheinberger says, "They understand that market conditions are not what they were yesterday and who knows what they will be like tomorrow. It's a different environment. They're not going to attain the results of 2004. The market has changed".

The Northpoint Buisness Center

2006-12-10T16:24:00.000-08:00

The Northpoint Business Center in North Las Vegas was purchased by I&G Direct Real Estate.

I&G is a J.P. Morgan partnership and purchased Northpoint for $33.15 million from the Lauth Co. of Indianapolis.

The property currently is occupied by International Truck and American tire Distributors and the rest of the 18 acre center are currently for leas by CB Richard Ellis Las Vegas.

Northpoint Business Center is one of the largest single speculative industrial buildings ever constructed in Southern Nevada.

The relatively new building was recently completed in September. According to Donna Alderson both the buyer and seller were represented by CB Richard Ellis.

National Association Of Realtors Releases Third Quarter Reports

2006-12-09T11:54:00.000-08:00

Last Monday the National Association of Realtors released its sales report for the third quarter.

According to the report, nationally the total number for sales of existing single family homes, condos and co-ops were down 12.7 percent.

There were some areas that were hit harder than others, Nevada taking the top spot.

Sales in Nevada were down 38 percent. Nevada was followed by Arizona, Florida, California, Hawaii and Virginia in ascending order.

The report also showed that condo prices had dropped more than single family homes with the national median at nearly $223,000 in the third quarter.

This is down just over 2 percent from the same time last year. Local Las Vegas real estate experts say that not all is doom and gloom however.

There are some markets that are soaring, one of those being Oregon which takes home the trophy for the best performing market in the country. Prices there skyrocketed almost 25 percent higher from a year earlier.

Top 10 Great Suburbs Outside Of Major Cities

2006-12-08T08:37:00.000-08:00

Recently the National Association of Realtors published a list that contained the 25 most affordable suburbs close to big cities.

There are many reasons to consider living in a suburb of a city rather than the city itself. Living in the suburbs outside the city you are able to have the city lifestyle while taking yourself and your family away from the negative aspects of city life.

Plus there are many other added advantages to the suburb life, including affordability, good schools, safety and culture. The National Association of Realtors working with Buisnessweek.com and Sperlings Best Place developed a list of 25 suburbs with decent schools and low crime rates that are affordable for families making $50-$60 thousand per year.

Here is a list of the top ten in order: 1. Albuquerque, Sandia Heights; 2. Atlanta, Roswell, Ga; 3. Baltimore, Columbia, Md.; 4. Boston, Sharon, Mass.; 5. Charlotte, Matthews, N.C.; 6. Chicago, Lake Zurich, Ill.; 7. Cincinnati, Evendale, Ohio; 8. Dallas, Flower Mound/Lewisville, Texas; 9. Denver, Castle Rock, Colo.; 10. Fort Lauderdale, Weston, Fla.

Relocating To Las Vegas

2006-12-07T19:28:00.000-08:00

Las Vegas has continued to grow and record breaking paces throughout the years. And local experts don't see that trend ending any time soon.

Vegas is not just for vacationers anymore, there are individuals and families moving here in record numbers. A common misconception is that Las Vegas features only fancy hotels with grand casinos or resort areas.

And many people relocate to Las Vegas primarily for these reasons. There are many other reasons to make the move local residents say.

According to John Bryan, a Las Vegas resident for the past 12 years, there are many educational opportunities, tax breaks, and employment opportunities in Vegas. And with the city growing at such break neck pace there is plenty of housing to accommodate all new comers.

When moving to Las Vegas from another state it can seem like an overwhelming feat, however if you do your research you should be able to familiarize yourself with Nevada state regulations find Las Vegas condos for sale or the piece of Las Vegas real estate you and your family have always dreamed about.

Many Are Pulling For Las Vegas To Win The Numbers Game After The Holidays

2006-12-06T06:11:00.000-08:00

It has been no secret that there are certain areas of the country that are at a high risk for falling prices. Those areas that are considered a great risk are the once booming regions are California and Florida.

Also in this category are states that are in the Mountain West and Northeast region. According to the Chief Economist at National City Corp., Richard Dekaser, 39 percent of the single family home market is extremely overvalued.

There are predictions that the sales slowdown is about to bottom out. According to David Lereah, chief economist for the National Association of Realtors, stubborn homeowners are starting to realize that in order to sell their homes they will have to list with more reasonable prices to attract buyers.

Lereah says, "We are going from a seller's market to a buyer's market and it looks like the worst is behind us and sales are starting to level off".

Statistics show that the economic growth has slowed down almost 3 percent in the last quarter of the year. Many local analysts contribute this to a fall in residential construction and they see no increase in the near future.

This is making those analysts who play the numbers game very concerned.

However some analysts are optimistic that Las Vegas will pull out of its slump and that this years numbers will be some of the best that they have seen in recent years.

All Eyes Are On The Las Vegas Real Estate Market

2006-12-05T16:04:00.000-08:00

Some local Las Vegas real estate experts are ecstatic about the direction the Las Vegas real estate market is going.

However some are not so optimistic and are worried that the nation's five year housing boom will turn into a devastating bust that will derail the economy.

It is question that weighs on the minds of others besides local or national realtors. It also weighs on the mind of Federal Reserve Chairman Ben Bernanke. Towards the end of the year for sale signs were staying out longer.

It seems as though house prices are easing as sellers try to lure buyers in for the holiday season.

Bernanke has been keeping an eye on the market and said, "We recognize a risk… and we are watching it very carefully".

This is not good news for all. The Fed's interest rate increases earlier in the year helped push mortgage rates to their highest levels in more than four years and according to many local experts put a damper on housing.

When the central bank looked at the stats they felt they should not raise key short-term rates for the 18th time. Policymakers in D. C. made a point to say, "that gradual cooling of the housing market" would help slow down the economy and allow inflation pressures to moderate.

Recently the Greater Las Vegas Association of Realtors released data from its Multiple Listing Service that collaborated with information that showed there was a gradual housing slowdown.

New Homes Sales Down In October

2006-12-04T16:03:00.000-08:00

There have been many things happening the past few months to indicate to where the Las Vegas real estate market is going. Recently sales of new homes fell in October by the largest amount in three months.

Local experts say that this is a sign of the cooling taking place after the sizzling housing market. Wednesday the Commerce Department reported that new home sales dropped the most since July when home sales plunged by over 9%.

According to the report new home sales totaled at 1.004 million at a seasonally adjusted annual rate of 3.2% decline from September.

Some experts were baffled as to why with these conditions home prices are rising. Home prices fell towards the end of August and September, but in October began to rise again.

In October the median price of a new home was up almost 2% from the same month a year ago.

Sales seem to be falling throughout the country except in the West, where it seems as thought homes will continue to fly off the market.

2007 Looks To Be A Good Year For Real Estate

2006-12-03T18:38:00.000-08:00

According to reports released by the National Association of Realtors, sales of existing homes showed a modest increase but were otherwise stable. Experts say that this is another indication that the housing market is transitioning into a more stable market, rather than an unsustainable market.

Last years market would qualify for as an unsustainable market experts say. The report showed that the total existing home sales rose 0.5 percent to a seasonally adjusted annual rate of 6.24 million units in October.

This number is up from the 6.21 million that were moved in September. The stats show that while things are stable and look well, the numbers are far below those being posted this time last year when October 2005 boasted 7.05 million.

The numbers show all existing home sales including single family, townhouses, condos, and co-ops.

According to David Lereah, the National Association of Realtors chief economists, "The present level of home sales demonstrates some confidence in the market, but sales are lower than sustainable due to psychological factors".

Lereah is saying that even though jobs are up and on the rise and mortgage interest rates are down, many potential buyers aren't ready to get their feet wet. Lereah predicts that once the period of price adjustment is over, consumers will have more confidence and the real estate market will see an increase in sales in the first quarter of 2007.

Third Quarter Reporting

2006-12-02T09:25:00.000-08:00

During the third quarter home prices declined, which presents good news for those shopping for Las Vegas real estate.

According to the latest quarterly survey by the National Association of Realtors conditions for buyers improved. With a decline in home and metropolitan prices and the reduced sales activity the market just got a lot friendlier for buyers.

Also there has been a massive increase in inventory in the Las Vegas area, with new construction continuing to increase.

The report from NAR showed that the total state existing-home sales were at a seasonally adjusted annual rate of just over 6 million units. This stat shows that there is an almost 13 percent decrease from this time last year.

Stats like these are plaguing most states across the country; however there are at least 10 states that have shown increases in sales activity from a year ago.

The Appraisal Foundation Holds Its First Symposium In Washington D.C.

2006-11-25T18:27:00.000-08:00

This past October the Appraisal Foundation initiated dialogue on valuation fraud. The Appraisal Foundation was created and authorized by Congress to set appraisal standards and qualifications to try decrease the amount of fraud problems plaguing both the appraisal and mortgage industries.

They also build awareness and educate consumers on valuation fraud and provide a platform for discussion for possible solutions. This past October the Appraisal Foundation held its first symposium in Washington D.C.

According to the chairman of the Board of The Appraisal Foundation, Lee Hackett, "The Foundation wants to do everything that it can to limit the impact of mortgage fraud on public trust in valuation".

The FBI released statistics that indicate that valuation fraud is an ever-increasing problem. The report shows that there have been losses that total more than $1 billion in 2005. The FBI report goes on to say that this year's numbers are predicted to exceed those from last year.

John D. Arterberry, executive deputy chief at the United States Department of Justice, delivered the keynote address. The program centered on three panels which were Valuation Fraud and the Lender, Valuation Fraud and the Appraiser, and Valuation Fraud and the Regulatory Community.

Richmond American's Elsinore Neighborhood

2006-11-24T17:21:00.000-08:00

Buyer's who are interested in Richmond American's Elsinore neighborhood will be glad to know that for a limited time buyers are able to select as many as 10 package options at no additional cost.

The Elsinore neighborhood has announced that they are featuring a Buyer's Advantage that they will offer for a limited time.

According to sales agent Amy Galbraith, the Elsinore's southwest location has proven to be a strong draw.

Amy Galbraith said about the community, "This community has a great location with convenient access to a number of shopping and dining opportunities, as well as southern Highlands' many parks and trails. The neighborhood offers a charming atmosphere and a nice sense of peace and privacy that is appealing to a lot of residents".

According to Galbraith they offer three models open with well-designed floor plans with square footage that is laid out nicely.

Elsinore also offers four designs from Richmond American's Stonegate Collection, which are highlighted by stone exteriors and wrought iron dealing. Galbraith says that the homes are really striking, with beautiful stonework and architectural designs.

No Closing Costs At Sullivan Square

2006-11-19T09:37:00.000-08:00

Sullivan Square is offering to pay closing costs at their new 16.5 acre mixed use community in Las Vegas. This offer is for a limited time only.

According to Dale Rowse, "This exclusive, limited-time offer will reward buyers who make the decision to purchase at Sullivan Square".

Dale Rowse is principle of Viridian Vertical, a division of Viridian Group, the development's sale representative. Recently Sullivan Square opened its sales and center and the 6,000 sq. ft. building which showcases their six design options for urban living.

Upon completion, the complex will include as many as 1,300 residences within terraced condos, Chicago-style lofts, towers and more. There will be many perks for residents including fiber optics with voice, data and video connectivity.

The complex will also meet the standards of LEED (Leadership in Energy and Environmental Design) which helps promote healthier environment and cost savings to residents.

Stats Show A Decline In New Home Permits

2006-11-18T20:19:00.000-08:00

Marketing Solutions has recently released reports that show that Las Vegas consumers have a lot to be happy about despite numerous reports saying the opposite.

Some analysts still say that Las Vegas is going to suffer a decline before the end of the year. Some analysts are also saying that the housing bubble will burst.

According to real estate consultant Steve Bottfield, this will not happen. Stats released by Marketing Solutions shows that there has been a 21.5% decline in new home building permits for the year.

Local home builders have not pulled a high number of new permits for the month of September, in fact new home permits are at there lowest numbers in 56 months.

Bottfield was noted as saying that when builders are not building new homes, the inventory must be adjusted downward.

Some Say That The Increase In Foreclosures Is Due To Massive Layoff's In The Automobile Industry

2006-11-16T14:05:00.000-08:00

Analysts are weighing in and there is no shortage of opinions on the reasoning of why the number of foreclosures is up in the Las Vegas area.

Some analyst's say the increase is of foreclosures is due to the economy. However stats seem to disagree. The economy is doing well and unemployment is down. According to Jason Adams analyst for Bargain Network, this is not so.

Adams feels that massive layoffs in the American automobile industry have been the catalysts for the increase. According to Bargain Network's measure of foreclosure activity, which was 7.1 percent in August, Michigan ranks No. 3.

Adam's states the obvious when he says that when people lose their jobs they can't pay their mortgage. Even though home prices have decreased in the Las Vegas area, prices are still considered high.

Those higher prices mean home buyer hopefuls have needed a few assists from mortgage banks.