Something got me thinking yesterday, it's all about the tax credits.  Yes, they have been so wildly successful that they have caused inventory shortages all across the country.

Qualifying First time buyers (and now move up buyers with the expansion,) are so wanting their fingers on that up to $8000 credit that they are gobbling up that foreclosure inventory as quickly as it is released on the market!

Now, I was hoping that they would put the buyer tax credit to rest (at least for a while) so that some of these areas (like the Las Vegas - Henderson - North Las Vegas) areas have some time to grow and recapture that inventory for buyers.

Here are my thoughts - areas that are hard hit (like the Las Vegas Area) are attracting buyers just because of pricing alone!  I have seen some neighborhoods - subdivisions - communities that are sporting SUB 1990 pricing.  This alone, sparks activity and interest from first time buyers, move up buyers, second & vacation home buyers and buy and hold or buy and flip investors.

Now while our inventory is being gobbled up at a record pace:  strategic defaults, short sales, deed-in-lieu of foreclosures and foreclosure sales are continuing to rise.

We cannot see stability until the above problem is nipped in the bud!

Why not give underwater homeowners a tax credit for staying in their upside down mortgages?  Hello?!?!  McFly?!?!  Bueller?!?!  Anyone?!?!  With economic conditions going they way they are (unemployment UP, wages DOWN, energy costs UP, house upsideDOWN,) why not reward those that stay rather than penalize those that stay?!?!  This could help take care of some "deferred maintenance" issues or part of that overpriced house payment on a real distressed homeowner and take the whole "strategic mindset, how can I buy my home back at half price?" mentality.  Stopping the defaults, in my mind, this could be the ONLY way to stabilize the market. 

If we are going to throw money at the problem, might as well put it in the hands of homeowners who are thinking about defaulting, just because they can!

Seriously!

(Sorry about the rant!  In reality, I am a libertarian and wish that we wouldn't be throwing money at the problem at all.  If we have the mindset that money must be thrown at the problem, why not throw it at the problem so it STOPS.  Oh wait, we are talking about our government here, they need to appease the lobbyists and not the electorate to solve the problem!)

Las Vegas Area REO Inventory has risen since last report (+10 units), Under Contracts have fallen (-543) units  Closing data has vallen (-491 units).  Low interest rates have spurred a flurry of buyer interest & activity this December and it continues.  

REO sales accounted for 63% of all Las Vegas Area Valley resale closings in October 2009.  REO listings account for only 22% of total resale listings.

Multiple offers are streaming in as banks continue to lower to fire and auction sale prices.

Current Listed Bank Owned Statistics:

• Listings (12/15/2009): 2253
• Under Contract (12/15/2009): 3911
• Sold November 2009:  2378
• Absorption Rate:  0.9 Months (THATS LESS THAN ONE MONTH = VERY LITTLE INVENTORY)

View Last Month's Report Here  

To find the most recent report, click here

I decided it was time to update and rewarn all Las Vegas Renters and POTENTIAL Renters of the signs that your home you are renting (or want to rent) is in stages of foreclosure.

I perform many BPOs.  BPOs are Broker Price Opinions which means banks are just searching for opinions on list pricing for a home.  The home may already be foreclosed upon OR it may be in various stages of default or foreclosure.  This allows me see trends before they start happening.  While I have seen this in the past before, I have seen it way too much in the last week:  homes listed for rent that are in default!  This means, that if a solution doesn't come about for the owner of the home, the renter may pay all deposits, move in and find themselves speechless and homeless when the home goes into foreclosure.

Here are ways to protect yourself:

Find out when the home was purchased or if it was refi'd (for cash out) during the boom years (2003-2007.)  This could help you gauge if the home is upside down and could go into default.  This isn't a sure-fire way to protect yourself from heartache soon after you move in as I have seen some neighborhoods and areas have sub-80's pricing.  You can see this information on the recorder's website which I am about to give you.

Get the deposits & rents escrowed.  Instruct escrow to pay the mortgage payments AND HOA dues rather than relying on the owners to do that.  Also instruct escrow that in the event of foreclosure, the deposits and rents are to be released to you, the renter.  This will help protect you from the nightmare of having to fight a broke landlord, (who may file for bankruptcy protection,) for your deposits.

This is a tutorial for renters who are curious about the foreclosure status of the property you are renting (or are about to rent).

With the wave of foreclosures in the Las Vegas Area, many renters are concerned if the property they are renting is in good standing or about ready to get foreclosed on.  Even if you have been paying your rent or even have a lease option on the property, it is not a bad idea to make it a habit to check on a monthly basis.

It is also a good idea to check prior to renting a home!

Step 1:  Go to the Clark County Assessor's office and click on search, under real property records click "address".  The reason why you may not want to search by name is that many investors hold title in an LLC.

Step 2:  Fill in street number and street name.  Make sure you check the box next to "show current parcel number record"

Step 3:  Many addresses show up so write down the parcel number next to the address:

Step 4:  Go to the Clark County Recorder Home page for "Land & RPTT Information".  Scroll to the Arrow and choose "Search Records" 

 Step 5:  Read Terms and Accept (if you accept terms:)

Step 6:  Click on Parcel # (for Search):

Step 7:  Look for the following: 

Lien:  Look for liens.  Could be from homeowner's association or from master plan.  These entities may foreclose on the house!

Breach or Notice of Default:  Owner is in Default of their loan.  Foreclosure may or may not be in the works.  General rule of thumb, if house is going to be foreclosed on, it will happen in the next 3-6 months from recorded date

Notice of Sale or Notice of Trustee Sale:  Foreclosure is imminent.  Usually 30-60 days from recorded date

Trustee Deed:  House is foreclosed on

If your rental home is in default, please consult a real estate attorney prior to breaking a lease or stopping your rental payments!

 

 

 

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Sun City MacDonald Ranch is located in the Green Valley Area of Henderson, NV (zip 89012). There are 893 Homes in Sun City MacDonald Ranch ranging from 1020-2489 Square Feet.  Community Amenities Include:  Clubhouse, Community Golf, Gym, Pool, Spa, Tennis

Sun City MacDonald Ranch Market Report:

• Listings (12/15/2009):  12
• Under Contract (12/15/2009):  5
• Sold November 2009:  1

Sun City MacDonald Ranch is currently enjoying a stable-buyer's market.  Since Last Month:  Listings DOWN -2, Pendings UP +2, Sold Units DOWN -1

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience.  If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's Sun City MacDonald Ranch Real Estate Market Report Click Here

For Most Current Sun Cities Market Report Click Here

Part 5 of 12!  Please go to Lewis' blog for comments.

If you got out of the game back in October when the kitchen was getting hot (due to high buyer interest trying to beat the tax credit clock).........right now you may want to check back in till the end of the month!

Here is what I am finding......crickets are chirping all over town in the dead of winter: keys are in lockboxes, less liklihood of running into other agents while looking at homes, offers are getting countered or accepted, life is busy and good for the buyers that are looking right now!  There may be no heat on but it's better than looking in July when there is no Air Conditioning in these homes!

Don't find yourself playing "beat the clock" if you are seeking the up to $8000 first time and move up buyer tax credit.  (go to the IRS website to see if you qualify) Right now may be the perfect time :)

Search for homes now:

And don't wait until the last minute!

Contact me today and we can get you set up on several home searches in the resale market and I also have a tool that will deliver new home floorplans right to your email.

Short Sales and New Construction can take on average of 4-6 months to close

MySpace-Countdowns

Financing the property after you are in a ratified contract can take 45-60 days!)

MySpace-Countdowns

What are you waiting for? (If you are a first time buyer, you may also qualify for down payment assistance.)

Now there are absolutely no excuses for you to miss the deadlines!

The absorption rate for Las Vegas Valley Area Short Sales is finally seeing movement.  Absorption is moving to the stable market territory at only 6.9 months of inventory.  Solds have FINALLY gone from hovering the 200 unit mark and went over the 500 mark.  I see improvement in this sector! Inventory has decreased  (-1 units).  Pending units have increased by +278 units.    Solds have decreased by -43 units. (this is the first decrease in short sale solds since May)

There are many reasons for the lack of closings in this market and it is outlined in this post. 

Short Sale Synopsis:

• Listings 12/15/2009: 4474
• Pending 12/15/2009: 9016
• Closed November 2009: 645
• Month's Inventory: 6.9

Short Sales Currently Account for:

• 43% of All Las Vegas Valley Listings
• 17% of All Las Vegas Valley Sales
   

Read here for the most current Las Vegas Area Short Sale Report.

Read here for last month's report on Las Vegas Area Short Sales.

If you need to sell your home through the short sale process, you can either fill out the form on this page or you can call 702-966-2494 and press option 0. 

The Las Vegas Valley (includes Henderson & North Las Vegas) has seen some major market stabilization in the last year!  Absorption for November 2009 is a seller's market @ 2.7 months of inventory.  Some micro-markets (ie,Foreclosures Bank Owned, REO) are extreme seller's markets where there is no mercy to the buyers, multiple offers are the norm!

We are FINALLY seeing a stabilization of inventory and a decrease with escrows (we should have seen that late spring/early summer!)  Good news for buyers?  Still remains to be seen.  We need to get over 10000 active units on the market before it can be stabilized from a seller's market 

Las Vegas Area Market Activity (Includes North Las Vegas, Henderson and Las Vegas)

• Listings (12/15/2009):  10332
• Under Contract (12/15/2009):  14136
• Sold November 2009:  3774
• Month's Inventory:  2.7

Short Sales:

• 43% of Listings
• 17% of Sales

REO (Foreclosures, Bank Owned:)

• 22% of Listings
• 63% of Sales

The above breakdown shows how very few short sales are being closed and how little inventory is in the REO market currently. 

In One Month:  Listings are DOWN -61 units, pendings are DOWN -473 units, closings are DOWN -554 units.  Close ratios are going lower because much of the pending inventory is short sales which requires LONGER close times. 

 DOWN PAYMENT ASSISTANCE HAS NOT ENDED FOR FIRST TIME BUYERS, HOWEVER!!

Last Month's Pending Report

The Most Current REO (Foreclosure) Report

The Most Current Short Sale Report

The Most Current Las Vegas Area Pendings Report

The Third Annual "Dog In a Box" Holiday Party for the Las Vegas Italian Greyhound Meetup group was held at my house on Saturday, Dec 12.

We had 13 Humans and 18 Iggies.  Of the 18 Iggies, 1 was a foster (up for adoption) and three were "honorary iggies".  Of the three honorary iggies, two were Boston Terriers and one was a Schnauzer.

The humans ate, drank and got merry while the Iggies played begged for food.  We then exchanged White Elephant (dog) gifts and then they had their annual "dog in a box" photos in front of the Christmas Tree.

It was nice to re-connect with some people I haven't seen in the group since Summer!

If you have an Italian Greyhound in the Las Vegas Area or are interested in the breed, feel free to join our meetup group for events such as this and meetups at dog parks all year long :)

I want everyone to remember this Holiday Season:  Don't Shop ~ Adopt!

We currently have an abundance of Italian Greyhounds in Rescue (these aren't the only ones!)  If you are interested in adopting an Italian Greyhound or fostering an Italian Greyhound, please call me @ 702-580-1783 or email me @ Renee@ReneeBurrows.com

 

While I am seeing no end in sight with so many upside down properties, I don't see "shadow" inventory being dumped on the market.

While we sit in the middle of "moratorium" and "slow" season, here is what *I SEE* is going on:

Inventory climbed slightly in November and now dropped slightly (I pull numbers officially on the 15th.)  Pendings have dropped tremendously since November BUT so far December's closings are telling me that there will be more closings (Christmas presents) in December than November!

Where is that pesky Shadow Inventory or the "Big Dump" banks will be taking that people (Realtors, Servicing Companies, Financial Planners, Wallstreet Gurus, etc) have been promising since last spring??

Should we have a recap?  Yes I say we shall!

Rentals:  Fannie and Freddie have Rentback programs for Tenants and Homeowners that qualify

Bankruptcy:  Yup, a property can get tied up while a defaulted owner is in BK

Loan Modifications:  I do sincerely believe that many who have defaulted are getting loan modd-ed

Short Sales:  It's not too tough to push back a sale date when an aggressive lawyer or short sale agent is working on your file and you have a good offer.

Trustee's Sales:  Summer 2008 I estimated 2-4% of Trustee's Sales were NOT going back to the bank but rather going to corporate flipping entities or private parties.  Today I say that number is between 40-60%. 

Fire Sale Prices Picqued Buyer interest is at an all time high:  yes, I said it!  REO inventory is being GOBBLED up by extremely high buyer interest!

Certain Servicers are Just NOT Foreclosing:  For some reason (yea, someone else can name names) there is a major servicing company that is just not issuing sale dates on empty properties and they aren't moving on short sales either.  Don't know the reasoning behind that one but :shrug:

Our inventory is being controlled by the forces above, and a little by the banks and the government.  We still need about 10000 units (yes, 10,000, ten thousand) units to turn this from a SELLER'S MARKET to a STABLE MARKET.

Nope, it won't stop any time soon.  They only way we can get more inventory and declining prices is by severe underwriting guideline changes (tighter) or large hikes in interest rates. (The aforementioned scenarios are not out of the realm of possibilities especially with DU 8.0 on the horizon.)  It simply means less buyers will be swimming in the inventory pool because they no longer qualify!

I am sick of the phrase "It is What it Is" (I will vomit next time I hear it) so help me think of a new phrase to describe what selling in hell is like ;)