Las Vegas Real Estate Blog

A new statistical study out on the periodic ups and downs of home real estate cycles offers some insights into timing, lengths of ownership and rates of return on housing investments.

It makes a strong argument for timing in terms of when you buy and sell your property. For example, if you buy at the top of an inflation cycle as a speculator and sell into an economic down cycle a couple of years later, you will probably suffer a significant loss. However, if you buy a house and live in it for 5, 7, or 10 years, the odds are good that you will probably come out ahead.

The study was conducted by Mark Milner, the chief risk officer for PMI Mortgage Insurance Co. Based on historical data, he found that from 1996 to 2000, buyers who sold their houses within five years of purchase had a 1 in 20 chance of losing money on their investment, with annualized losses averaging 10%. From 1986 to 2005, 99.6 percent of home buyers who held on to their houses for at least 10 years made money.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513

Popularity: 16%

Channel 4 KRNV is reporting that the Nevada Supreme Court has ordered state tax officials to reassess the value of two Clark County golf course developments controlled by developer Billy Walters.  The court does not believe they are worth as much as the county and state think and that the wrong rate of computing was used.

Property owners had contended that the developments were valued at an inflated rate.  If county officials do decide to reduce the tax rate, it could save property owners more than $100,000.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 17%

The Greater Las Vegas Association of Realtors announced that home prices in Las Vegas dropped to a median of $309,000 in February.The number of new listings in February declined 6.9% to 5,214. However, the total number of listings rose 7.2% to 17,675. Approximately three-fourths of homes are selling within 90 days and nearly 60%  within 60 days.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 15%

Exotic mortgages are causing a great deal of concern.  In the last two to three years, especially in many parts of Nevada, California, and Florida, all types of buyers have been turning to exotic mortgages — interest-only and option adjustables mortgage products — that allow them to buy more house with fewer financial resources.  In fact, a recent press release stated that 61.3% of Nevadans have an exotic mortgage.  What’s the problem?
The problem according to Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard is that, “Although interest-only and adjustable loans can initially save a typical home buyer hundreds of dollars in monthly payments, these loans also leave borrowers vulnerable to sharply higher payments when interest rates adjust or principal payments start to become due.”
“With the number of borrowers vulnerable to payment shocks up, default rates predictably several times higher for subprime than prime loans and house prices growing at such rapid rates, the housing market could deteriorate if the economy softens or if rates increase sharply,” he said.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 16%

Rising property prices, escalating construction costs and a shrinking local land inventory have many homebuilders looking to rural communities surrounding Las Vegas for their next possible build sites. After all, the land is still cheap and plentiful. Local officials are welcoming. Permitting is faster. And there are fewer water restrictions.

Many builders believe that people will be attracted to the idea of getting more bang for their buck. The Las Vegas Business Press takes a look at the issue in their article, “Homeowner affordability fuels suburbs”.

So, the big question becomes, will homebuyers be willing to drive that extra distance for a larger lot and bigger home that’s 40 to 50 percent cheaper?

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 17%

U.S. consumers are not optimistic about the state of the real estate market. For many, its no longer a matter of “if”, but “when”. Consumers believe a national housing bubble will burst and home prices will collapse within the next year.

According to the Experian-Gallup Personal Credit Index study 71% of the 1,004 adults surveyed believe a bubble exists and could burst within the next 12 months. However, 56% of consumers don’t think it will happen where they live — at least not in the next three years.

The Gallup Organization’s chief economist believes that these findings are a result of all the hype surrounding several hot markets such as Manhattan, Washington, D.C., Miami, Las Vegas, San Francisco and Los Angeles. People just do not believe that it can continue.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.  

Popularity: 17%

As land in Las Vegas continues to become a scarce, yet much sought after commodity, we’ve watch commercial buildings rise higher and higher into the sky.  However, they aren’t the only structures going up.  In fact, the trend is beginning to catch on among residential home builders as well.  Say hello to the three-story home.

One of the earliest builders of three-story homes in the Las Vegas area was Astoria Homes.  They built the first of their three-story homes in late 2005 as part of its 1,254-home Tapestry development in Centennial Hills.   Astoria Homes notes a positive response to the idea of three-story homes and expects demand to continue to grow.

Other builders feel the same way.  KB Home and American West Homes Inc. have also started three-story builds in the LV area. Many view the vertical move as a necessity.  While a three-story home may not be someone’s first choice, supporters believe that the concept will become more and more acceptable and common place over time.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 16%

We know as the market has slowed that builders are offering additional incentives to purchase new homes. These incentives include everything from upgrades to covering closing costs.

Now, homeowners are taking their own steps to woo potential buyers. Some creative incentives being offered by sellers include a year’s worth of free landscaping or lawn care, free snow removal for a year or a year’s worth of alarm service.

Many buyers are taking a wait and see attitude in regards to purchasing a home. Additionally, they are demanding, and receiving more from sellers and builders as the pendulum continues to swing back from its unprecedented levels of past growth.

Signs continue to point to a market correction. For example, inventories continue to grow. According to the NAR, there were 3.03 million previously owned homes for sale in February, a level not seen since 1991. Moreover, mortgage applications are down. The Mortgage Bankers Association states applications for home loans are down 20% from a year ago.

Even though many sellers may be hesitating, they appear to be gaining an advantage in this revised real estate marketplace.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

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The pendulum appears to be swinging back.  Where once gated communities were all the rage throughout the Las Vegas Valley and elsewhere, a new type of community — one without gates - referred to as New Urbanism, is gaining in popularity.

A recent article in the Las Vegas Sun explores the pros and cons of living in a gated community versus the benefits of a non-gated community.  Which do you prefer and why?
To read the article, click here.

Or For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

Popularity: 16%

According to Default Research, the number of foreclosures in Clark County increased by 36 percent in the first quarter of 2006 compared to the same period in 2005.

The company claims that one of the contributing factors to rising foreclosure rates relates to the housing shortage in 2003 and early 2004. At that time, investors purchased properties hoping to make money when property values went up because of increased demand levels. However, they miscalculated because the housing shortage ended, and many investors were stuck with overpriced properties.

The question posed is whether this is a pattern that LV will continue to see for many months to come.

For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.

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