Las Vegas real estate. The good, the bad, the ugly!
All the real estate experts will tell you how the Las Vegas market as a whole is doing. However the main driving force in the Las Vegas real estate market is R.E.O's or Bank owned homes being sold off at huge discounts. I am going to give you the statistics on this important driving force in the Las Vegas real estate market. What these current statistic reveal is that things are already changing in the Las Vegas real estate markets.
Prices continued to fall through April 2009 (click picture for larger image)
Las Vegas single family home R.E.O. sales prices continued on their price dive through April 2009. The median price of a Las Vegas home including condos, townhomes and mobile homes was reported to be $125,000 by the Greater Las Vegas Association of Realtors. The above median price of $129,175 reflects only single family R.E.O. sales only for the month of April.
To continue reading this article on Las Vegas real estate click on the link below.
"Short Sales" in real estate are a very complex and unfamiliar transaction for Buyers. This article give you the information you need as a Buyer to understand Short Sales and how they work. Not understanding them can cost you a great deal of time, money and disappointment. Learn the inside of Short Sales from Max Schmidt a Las Vegas real estate Broker/agent.
We have all seen deals that are to good to be true. When we were kids we saw toys that seemed to walk on their own and come to life. "Wow, I got-ta have that G.I. Joe he fires a real bazooka!" Then when we get older we realize when we are presented with a deal that is too good to be true, right? Well maybe not. I am constantly amazed by the chances we all take thinking we can get, not just a good deal but, a deal that no other human being could think of getting. We are all suckers for the great deal and as my dad used to tell me "if a deal looks to good to be true, it usually is to good to be true and not a real deal." Even the super rich and well educated get suckered into "The Deal of a lifetime!" Look how many people stood in line to invest with Bernie Madoff who like his last name Mad-off with their $50 billion!
So here you are thinking about getting the deal of a lifetime in Las Vegas real estate because you know it is one of the foreclosure capitals of the world right now. You know that the average price of a Las Vegas home is down about 33% from a year ago and economists are saying the market is under valued for what the average income is by 18%. "Wow, I got-ta have one of those Las Vegas homes for sale! Maybe I'll even take more if I can find a good deal!"
You are looking through North Las Vegas houses on line when one leaps off the page at you. It looks nearly new and the asking price is only $44 per sq/ft. That's $99,000 for a 2,250 sq/ft home built in 2005. The other homes that size in that area are asking between $135,000 to $177,900. Wow. You call your real estate agent and immediately run over to see this beauty and after viewing it immediately make an offer at full price! What Seller could resist full price and you happen to have cash so the sale will be guaranteed right? Through your agents research you discover that comparable homes in the North Las Vegas area have sold from the lowest price of $105,000 (a beat up repossession) to a high of $215,000 (also a repossession). Your agent presents your offer and the Seller immediately accepts it on the condition that his lender approves the sale. Time to break out the Champaign and celebrate you just made the deal of the century right? WRONG! It is more likely you just got suckered. This is a Las Vegas home "SHORT SALE."
Sometimes life can be straight forward, like when your gas tank registers empty. But concerning Las Vegas real estate life is no longer what it seems. Like the master magicians that grace our famous strip there is a lot more going on behind the scenes that you may not be aware of. Historically real estate has been pretty straight forward with the standard statistics of homes sold, average sales price, and number of resale homes on the market. With the Las Vegas economy loosing some steam, the bubble bursting in Las Vegas home sales and repossessions sky rocketing it seems that Mortgage companies, analysts, auctioneers and anyone else connected with real estate have come up with a whole bag of tricks to dazzle us into thinking the end is near for the Las Vegas real estate bust.
"HURRY BEFORE THE BOTTOM GOES AWAY," "BUY NOW," "SALES ARE RISING DON'T MISS OUT," "LAS VEGAS REAL ESTATE MAY BE BOTTOMING OUT," "MAKE A GREAT DEAL AT OUR HOME ACTION." These and more have become the mantra of the real estate and news industry recently. I even have to laugh at myself for using like headlines in this blog. But not is all as simple as the number of home sales rising, inventory leveling off, and the falling median home price slowing. There are many other factors in this Las Vegas real estate market that are special and unique to this market. The behind the black curtain at the magic show stuff and many of you may be under educated in making those important purchasing decisions.
Please wait while I set my soap box down. I am about to give my opinion on this disgusting turn of events by our government.
The Fed lending rate cut, for the most part, bails out the Banks.
The short term Fed rate is the rate Banks can barrow from the Fed resulting in them making more money. As a general rule they do not reduce the rate they are charging the consumer resulting in more interest spread or profit. If their money costs less they make more money. If the bond market becomes nervous about inflation mortgage interest rates on loans could actually increase as a result of the Fed cutting rates. The cutting of short term Fed rate helps save Banks from their bad investments. The Fed isn't really interested in helping "the average guy on the street." They are interested in helping the Bankers club and all the upper crust of the investment society.
You will see results on your credit card bills , ARM's and HELOC's that are tied to the Fed. bank rate. This will not help people with teaser rates that can not afford the new rate adjustments. These home owners and investors will still loose their homes. This is still a major problem that will not be mitigated by interest rates as poorly written loans cannot be fixed from the borrowers side. These properties will have to be taken back and resold.
If the government wanted to help the average man and the economy, they would....
I am having some great success with my real estate news services with agents accross the U.S. I currently produce two free video news services that agents can link to on their web sites and blogs. I am including three links here to information and the reports.
For information about why you may want this report on your websites and blogs click on the gift picture below.
Blog icons are also available if you click on the code links at the bottom of the player for each report.
According to the NRA it takes approximately 7 advertising exposures by an agent to convert a prospect into a client. With that in mind how do you get all those visitors you keep seeing in your web logs back on your site so that you have a chance to convert them. I know the traditional theory is to trap them, make them register all their important information to get at your information. I have used these traps, but have you looked at where prospects are leaving your site? It's at the registration page! I know that some of the most desperate (serious) prospects will register but so will the lonely ones. But I want that group that won't register right now back on my site! I want them because they represent the prospect that is busy, considering the market place and want that current information about the market. They also generally have money, credit and a desire for what I have to offer and they know I want them, they are great prospects!
You have to give them what they want or you will never see them again as they continue search for what they need. This group is by far the largest portion of the 80%+ prospects that start their search on the internet.
So, what is it that they want? It is not a Machiavellian moment but a time for honesty, clarity and openness. They want what they want at their finger tips and if you make it easy for them they will reward you.
They want CURRENT INFORMATION: 1) On the real estate market in general. Where are interest rates going? Is it a Buyers or Sellers market? Where is the market heading? What can I expect from the current market conditions? 2) On the Local market in the town, city or area where they are looking. What are the inventory levels compared to the historical average? Is it a Buyers or Sellers market? What are the areas that are appreciating and which areas are not? Are prices headed up or down in general? 3) Specific homes currently for sale in their price range. Can I see all the homes for sale in my price range on your site? What kinds of details as to area, amenities and most importantly photos can I see?
As agents we are all busy, but it may not be to difficult to fulfill this prospects needs and gain their trust.
A) Make sure your MLS search link is easily available at the top of your page with at title like "Find homes in (your area) NOW!". B) Do a blog about your areas market, keep it current at least weekly and put the link to it at the top of your page as well with a title like "Current local market conditions in (your area)." C) Put a link at the top of your home page that takes people to your national real estate news. Either create your own blog and write about the national real estate news, market conditions, interest rates, etc. or subscribe to a service such as this U.S. real estate reportfree real estate video service that will give your clients the national market news and information. DON'T GIVE THEM STANDARD REAL ESTATE NEWS FEEDS! These news feeds are way to general and sporadic with the pertinent information they want. An article on interest rates may only pop up for one day in 2 weeks. You are not helping them and if there are other articles that have nothing to do with what they want, they may just leave. D) Now lastly include this link "Current information on specific local neighborhoods" and put your registration form on that link.
You can see an example of the above layout on the top of my Las Vegas real estate home page at: www.MaxSellsVegas.com
Now you have a plan that will keep prospects coming back to your web site. Why? Because your website gives them the current information they want and is not just a pretty advertising piece for your services. They will no longer feel you are their to trap them but their to help them.
The last thing you need to do is act NOW! Get it done today! If you don't do this today you won't get to it and you will loose money. Give your Internet prospects what they want and they will award you with what you want, a new client.
In these reports I discuss all types of sales statistics and analyze what has happened in the Las Vegas market in each market segment. I have also produced an insider information report that you can subscribe too and receive via email that tells you what the experts predict for this market and includes my own opinions concerning the market. You can subscribe to this private insider information video just below each of the other videos on the above links.
My website has other tools and videos on how to use these tools to help anyone search for properties in Las Vegas.
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What's happening in Las Vegas
Well it seems George Clooney may have lost his ground for Las Ramblas. The "W" Hotel aka The Edge group bought it the other day. I reported that they had it under contract clear back in April. That hasn't stopped George though, he's looking for another spot. Hey George have I got a spot for you! It seems your ex-neighbor Peter Morton has sold his Hard Rock Casino to the Morgan Hotel Group. Most Wall Street stock analysts feel that they over paid and over leveraged themselves. Their stock has dropped from $20 per share on its opening offering to $15 per share over this deal. Cut a deal with Morgan and save them from those cut throat Wall Street boys. It appears that the condo-tel market (condo/hotel) is currently one of the hot properties in Vegas. And because of all the interest the National Association of Condo Hotel Owner (NACHO) has issued its first report on the Las Vegas market and what return on investment they feel purchasers of different condo-tel's can possibly or maybe expect on their investment. You can get a copy of the report by becoming a member ($50 a year). I ran into another article today about how Las Vegas real estate has "cooled off" and I must agree buying a home in Las Vegas no longer requires that you car bomb the other buyers agents car in order to get your offer accepted. I haven't seen buyers physically fight over an available property in months now. Yes, I am kidding. Anyway, this article said that their was a flood of houses on the market (over 20,500 homes). Ok, I'll buy that if you add the resale homes, the new homes, the new condos, and all of the condo conversions together. Now it goes on to say that 6,000 people move to Las Vegas a month to work. Now the move-in population is based on the number of motor vehicles registered in Nevada that have previously been registered in other states. So, If your a buyer from New York and fly to Vegas and use cabs then you haven't moved here, even though you bought property here. Or if you live in Canada and are retired and drive to Las Vegas every winter to stay in your seasonal home you purchased, then you haven't moved here. Or if you buy a condo-tel as an investment, you haven't... Well I think you get the idea. But lets use the 6,000 people whom register their vehicles here every month in Clark County and say that 50% are going to rent and the other 50% are going to buy a home. That means 3,000 units a month move through the market divide that by the 20,500 units available and you have just under a 7 month supply of homes on the market. Now remembering that greater Las Vegas is just under 2 million people and the fastest growing city in America. Also keep in mind that it has one of the highest job creations rates in the country and one of the lowest unemployment rates in the country. And remember that the economic growth outlook for the next 5 years puts Las Vegas as one of the top Cities in the country. Are you starting to get a picture here about what is happening in the Las Vegas real estate market? The real estate flippers are dumping their properties on the market an bailing out because they believe the garbage that some Kansas reporter wrote about the Vegas Bubble Bursting. Maybe their bubble has popped but the market here is sound because the underlying economic conditions are sound. So we all have a temporary opportunity to buy before the prices start heading up again. Remember that Las Vegas is running out of developable land. It cannot continue to grow out.
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Las Vegas is back from vacation!
Well it has been a while since I posted to my blog. Remember how when you go on vacation you find that life is just to good to be true? Then you come home and realize that reality is not like your vacation at all. Las Vegas has come back for its, real estate appreciation, vacation! The Las Vegas market is changing right now and the wind is billowing nicely in the Buyers sails. The Las Vegas real estate quick buck flippers that still hold properties are feeling the dollars get vacumed out of their pockets by their mortgagers and the people they are looking too to bail them out, the buyers. Currently we have over 500 new home subdivisions currently selling inventory here in the valley. Add to that more than 18,000 Las Vegas and Henderson homes for sale and you have one wale of an opportunity for a buyer to make a deal right now. Very shortly I think we will see some additional units come on the market as two types of foreclosures. One type it the adjustable rate mortgages with little or no down payment that many used to buy their property with over the last 3 years. Interest rates have gone from 5% to about 6.5% in the last 2 years. With no initial investment in the home and interest rates climbing on their loans, I look for some people to tank the house that's sitting on their neck and financially killing them, leaving the mortgagors to salvage what they can. The second set of foreclosures I see coming on the market is people working in the housing industry. There have been a few people who have already been trimmed from the construction and sales, title and mortgage portion of this industry but look for more. Now before you think I'm all doom and gloom about Las Vegas real estate let me point out some upsides to this whole deal. My daddy taught me that you buy low and sell high. You make money in real estate when you buy it not when you sell it. Real estate is an investment not a stock or commodity and should be treated as such. Lastly real estate has made more people more money than any other type of investment.Now that you have the complete history of my father’s real estate lessons, lets have another look at this market. Last time the California market got soft guess whom the people where that went buying? The people who now are worth allot of money. They bought when the market was soft, negotiated great deals, sat back and watched it firm back up and then road the escalator of appreciation all the way to where it is today. Do you think that if the California market takes a dip now that they will panic? No, they know something we all need to learn. Real estate has cycles in the market but still is much more stable than the stock market roll-a-coaster. You won't loose a third or more of the value in a real estate investment due to market conditions like you've seen in the stock market. So, if you’re an investor this is a great day! A day that you can purchase and start collecting real estate in your portfolio so that when things dry up and prices start raising again you can benefit. Did you notice I said "collect" that's because people who collect assets become wealthy. People who buy and sell do so to make money in the short term and usually end up spending it. I hope you become a collector with a portfolio, which is the right way to accumulate wealth in real estate.If I can help please let me know. Thanks for reading. I wish you all the best. Max Schmidt
P.S. If you want to read more about the Las Vegas real estate market, you can go to my Las Vegas Real Estate News on my web site.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
"Short Sales" in real estate are a very complex and unfamiliar transaction for Buyers. This article give you the information you need as a Buyer to understand Short Sales and how they work. Not understanding them can cost you a great deal of time, money and disappointment. Learn the inside of Short Sales from Max Schmidt a Las Vegas real estate Broker/agent.
Sometimes life can be straight forward, like when your gas tank registers empty. But concerning Las Vegas real estate life is no longer what it seems. Like the master magicians that grace our famous strip there is a lot more going on behind the scenes that you may not be aware of. Historically real estate has been pretty straight forward with the standard statistics of homes sold, average sales price, and number of resale homes on the market. With the Las Vegas economy loosing some steam, the bubble bursting in Las Vegas home sales and repossessions sky rocketing it seems that Mortgage companies, analysts, auctioneers and anyone else connected with real estate have come up with a whole bag of tricks to dazzle us into thinking the end is near for the Las Vegas real estate bust.
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