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Las Vegas Market Trends: Listings for HUD Homes & Trustee Flips Appear to be on the Rise!

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Services for Real Estate Pros with Savvy Home Pix B.1000860.LLC
HUD Home Listings
Seem to be on the Rise

HUD Home listings appear to be trending a rise.  I think this is due to the lack of FHA lending between 2002-2006.  FHA started to gain some steam when the conventional 100% stated income loan started it's demise in 2007.  In the last several years we have cycled through refi's and purchases between 2002-2005.  The defaults we are seeing now are newer defaults - ones that were bought or refinanced in 2007 or 2008.

Trustee Sale Flips

Infiltrating the Market

Trustee sale flips are slowly gaining their ground and have been for months.  I expect to see a larger percentage of these types of investor resales as the FHA anti-flipping ban has been relaxed for a year.  Banks seem to be eager to want these things off their books for good and allow all cash investors the opportunity to take over the risk of rekey, evictions, listing and possible declining markets.

The Resale Market
Remains Stable

Pricing within the Las Vegas Area resale market remains stable and has been fairly stable since May 2009.  Prices are not going up nor are they declining - overall in the Valley.  Much inventory is coming online and the buyers are continuing to absorb that inventory with buyer interest still at very high levels.  I am seeing pockets of increased inventory in newer subdivisions which provides excellent opportunity for financed buyers that are not yet able to secure a contract.  This may cause declines in certain subdivisions.

I don't believe we will
see quick appreciation
in the near future!

The reason why I don't believe this is because of HVCC (newer appraisal guidelines)+lender overlays.  We are also seeing some changes in one of our most popular current lending products (FHA) - mostly due to risk and loss of funding from foreclosures as I mentioned in my first paragraph of this post.

We are not seeing a decline in new REO inventory and I don't believe we will any time soon.  We are also seeing high buyer interest swoop that inventory up.  Any changes in inventory or buyer activity could swing our market back into a stable or declining market quickly as REO doesn't have problem slashing prices to dump inventory.

We are currently a very strong seller's market and have been since late spring - without appreciating prices.

How do I know this?

Not only do I spend a little time by pulling statistics to add monthly market reports to my blog but I actively work with buyers and sellers in my market. 

I also perform 100+ BPOs a month.  BPOs are "Broker Price Opinions" which basically help the banks & investors for pricing on their "assets" (homes.)  I think this is the perfect way to gain market insight. 

I currently carry five real estate designations/certifications (ABR, AHWD, RSPS, SRES & SRS) and I am seeking 4 more by the end of 2010.  You may view definitions for those designations right here on my profile!

With the spring buying and selling season upon us, it is essential to start interviewing your potential Realtor to see if they have the current market insight and knowledge necessary to bring to your transaction.

 

 

Posted by

Thanks, Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Comments(13)

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Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Renee - Your informative blogs have never failed to impress and educate me.  I like this one so much that I'm going to tweet it!

Feb 10, 2010 12:04 AM
Cari Anderson
Danville, CA

Renee - I totally agree with your assessment regarding the increase in HUD homes as their market share increased and unfortunately so did the defaults on early originations in late 2007 and 2008.  Keep an eye out for lenders/brokers who are currently offering financing under the relaxed flipping rule.  Thus far we have not seen many investors jump on the bandwagon.  Even one already suspended the program last week.  Probably just a "bump in the road" and hopefully the program will be going great guns in the coming weeks.  Take care. ~Doug

Feb 10, 2010 12:47 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

OMG 100 BPOS a month???That is insane...I sure do trust you and your numbers :-)

Feb 10, 2010 01:18 AM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

There's an agent in my office trying to break into the BPO business. What specific services/companies are you getting 100+ BPOs per month from? Are you using an email autoresponder or some other method?

Feb 10, 2010 02:13 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Hi Renee:  You are definately one of the hardest working agents I have ever known.   

Favor:  You wrote a blog about where investors can get bank owned homes.....can you please forward me the link to that blog?    I would really appreciate it....Thank you!

Feb 10, 2010 03:05 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Your market sounds a lot like ours.  There are not a lot of homes for entry level FHA buyers, the cash buyers are snatching up everything.

Feb 10, 2010 05:47 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Renee

You are one busy lady; HUD properties are great sellers and I think they are just going to get that much beter and better. Lars says woof to you and hope all is well.

Feb 10, 2010 07:35 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

Hi Renee,

I don't know your market but I think you are probably right. I'm sure if I did a study here in FL...we'd have similar numbers.

Feb 10, 2010 10:34 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Nevin:  So you were the one to thank for all the new followers today, Thank you, Thank you, Thank you!  I believe you are a wealth of 411 in the mortgage world as well!

Cari & Doug:  SPOT ON, I LIKE YOU!!  You are right, I do suspect lender overlays on the program.

Kristin:  I am a little psycho for liking them so much ;)  If you think about it, it is only about 3 per day.  Most are in a 2 mile radius of my home so 2-3 hours a day is consumed with BPOs!

John:  I hope that email helped.  I won't be giving out who is feeding me, they just have to sign up for themselves and figure out who will give them a chance at life ;)

Jane:  Lemme go look.  It's way in my july/august or sept archives!

Gene:  BINGO!

Tom:  They are good sellers!  Tell Lars Woof Back and give him a courtesy scratch behind his ears from me!

Neal:  OH I am sure.  Our markets mirrored upward and downward trends.  Don't know whether to follow that with an "LOL" or a "BOO HOO" :wink:

Feb 10, 2010 10:46 AM
Esko Kiuru
Bethesda, MD

Renee,

Thus far strong buyer interest in Vegas real estate market is a blessing, that demand keeping the inventory reasonable up to now.

Feb 10, 2010 10:53 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Renee - Hard for us to see a quick appreciation in the near future. We never had the big jumps anyway. Unfortunately we are a little flat. Wishing for a little more hope and change. But I digress.....

Feb 10, 2010 11:39 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Renee this is an excellent and well written market overview. What I like most is your statement "but I actively work with buyers and sellers in my market." and you are so right. People, agents, investors...whoever can sit in front of a computer looking at statistics and get a "snapshot" of the market but when we are out there everyday looking at the market from both a sellers and buyers viewpoint, it's makes for a clearer picture of what the market is really like as well as where it is trending! Nice job!

 

Feb 10, 2010 01:11 PM
Cari Anderson
Danville, CA

Thank you for the nice words Renee.  I enjoy reading your posts as well as the formatting you do.  Gotta say I do like the cocktail icons!  And with this comment we reach a 20K milestone!  Have a great day. ~Doug & Cari

Feb 11, 2010 04:07 AM
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