Posts in category: Statistical Housing Data
Posted by New Home Resource on August 6, 2015 in
This year, Las Vegas has been reaping the results of the long-term recovery in the real estate market with many economic indicators headed in the right direction – Up. A drop in unemployment, more new homes starts, an increase in the sale of resale homes – overall, we’ve seen a consistent improvement each month across the board. And that’s a welcome change for home owners / sellers, buyers, and the real estate industry as a whole.
And the good news continues: New home builders are seeing more first-time buyers entering the market, and as the job market improves, Millennials are beginning to transition from renting to owning. Single-family home sales have hit a 9-year high nationwide – and here in Las Vegas, the median price of homes has increased by 10% compared to June 2014.
Granted, for several years, it seems there’s been nowhere for the market to go except up. Due to the uncertainty in the job and housing markets over the past seven years, 7.4 million home sales have been lost. And while many of those sales may never be recovered, the housing demand is now being driven by population growth, higher employment, and improved incomes. It’s all great news – with industry analysts predicting that the U.S. housing market should continue to improve into 2016.
Adding to this resounding recovery is the fact that more buyers are once again able to become owners. Those who were hit hard by the recession have spent the interim years rebuilding their credit and recovering financially. And many who experienced short sales or foreclosures have moved past the mandatory imposed waiting periods imposed before they could obtain a new government mortgage loan. (Although thanks to a special financing program from one local Las Vegas lender – Premier Mortgage Lending – buyers are also eligible to get non-traditional financing as early as one day after a foreclosure or short sale is completed. Visit AnotherChanceNevada.com for more information.)
When you combine all these excellent reports from all sectors of the U.S. economy – and add in that mortgage interest rates are still at long-time historic lows – more and more buyers are able to pick the home they love and receive that “Loan Approved” phone call we all hope for.
But to find out if you’re able to get that good news, you have to ask! Discover if you can get back into home ownership by contacting a real estate professional or mortgage lender today. Here at New Home Resource, we’re making it possible for Las Vegas residents to do it every single day. You could be among them.
New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!
Posted by New Home Resource on March 10, 2015 in
We’re well aware of the reputation that Southern Nevada has developed over the years. They say what happens here stays here. Sure, gambling and casinos is what put us on the map. But believe it or not, there are other charms to the Las Vegas metro area that don’t involve blowing your paycheck at the craps table. Consider these four reasons why Southern Nevada is such a great place to live.
1. Southern Nevada is awake all night: Some people may think the Strip is the only place open 24/7, but that’s not true. Throughout the Vegas Valley, you’ll find that most grocery stores, gas stations, bars and even gyms are open all night. This means that no matter how early you wake up (or stay up), you can still grab a bite to eat.
2. Red Rock Canyon National Conservation Area: Just west of Las Vegas you will find some of the most beautiful desert landscape in all of the U.S. Red Rock is the place to go if you’re interested in hiking, biking, camping and especially climbing. Best of all, it’s only about 20 minutes away from the center of Las Vegas.
3. Over 300 sunny days a year: Hate shoveling? Had enough of rain and clouds? Well in Las Vegas, an average of 85% of days are sunny. Southern Nevada is perfect for those who prefer the heat over the cold.
4. No state income tax: Nevada is one of seven states that has no state income tax. This is a wonderful benefit for retirees and many entrepreneurs.
If you are looking for a new home in this exquisite place to live or wanting to sell your current home, please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!
Posted by New Home Resource on January 6, 2014 in
Many of the critical factors for a recovery in housing prices are in place. The drop in housing prices, coupled with the current low mortgage interest rates has brought affordability back into alignment with historical ranges in most markets. Unemployment levels appear to have bottomed out, and a growing number of real estate economic indicators also suggest that, on a national level, we’re also at, near, or just past the bottom of housing prices. Mortgage interest rates remain near all time lows. In many areas, today’s buyers have the best opportunity to choose from a very large home inventory at the lowest prices. Nonetheless, there is a great variance among local housing markets, and some may be looking at further declines in home values, perhaps even double digit drops, before prices hit bottom.
Consumer confidence will play a big role in any housing recovery. According to a June and July survey by Fannie Mae, 70% of Americans think it is a good time to buy a house, an increase of 6% responding to the same question in a similar survey conducted in January 2010. Not surprisingly, 83% also think now is a bad time to sell. Those surveyed are also becoming more optimistic about home values-78% think that home prices will either remain stable or increase next year-a 5% increase over the January survey.
Mortgage rates will also play a big role in the housing recovery. They are very low by historic standards today. Importantly, Federal Reserve policies intended to prevent a double dip recession are helping to keep mortgage interest rates low, and are likely to remain in place for some time. The slow recovery of the business sector, while not encouraging from an employment standpoint, also means that there will be less upward pressure on interest rates in the near future.
On the downside, the share of consumers who think housing is a safe investment has dropped from 83% in 2003 to 67% today. Delinquent borrowers and renters still think a home is a safe investment (57% and 54% respectively). More optimistic about the safety of a home investment were those with mortgages (74%) and even those with negative equity (69%). Minorities were also more optimistic on this question than the general population. Also not a big surprise, more people (33%) say they will be more likely to rent their next home, up from 30% in the January survey.
Recent forecasts about home sales and home prices have varied. Most suggest stabilization or near stabilization of housing prices this year, followed by a slight increase next year. On a national level, actual sales and price results have been mixed from one month to the next, suggesting that we may be at or near the bottom of home values.
Most important to your own home purchase decision is the current status of your local market. While at the national level there are many indicators that suggest that now is a good time to buy, the current state of your local market is the most critical consideration. In many areas there is even significant variance from one neighborhood to another. Some markets never got badly hurt by the real estate bubble and are still stable. Others, whether they suffered from price declines or not, are already showing signs of a healthy recovery.
Unfortunately, some of the hardest hit markets and/or neighborhoods are likely to face still more declines in housing prices. Mortgage insurer The PMI Group Inc. estimated recently that just over half of the 384 markets they follow, including 70% of the 50 largest metro areas, face a high risk of declines in housing prices over the next two years. Particularly in those markets, the size of the “shadow inventory”(foreclosed homes and nonperforming mortgages owned by lenders), could delay housing recovery, as could the growth in “strategic defaults” (homeowners who can afford to make their mortgage payments but who choose instead to walk away because they owe so much more than the home is worth).
Since homes tend to appreciate only 2-4% annually over the long term, it doesn’t make sense to buy right now if your area is at risk of dropping another 10-20% in value when you could rent the same home today for less than mortgage payments. The short term direction of housing values for current homeowners who are moving up or downsizing buyers is of far less consequence, because their homes market value will be similarly affected whether they stay in their current home or replace it with another. For them, current mortgage interest rates are far more important, and they strongly favor buying now.
While you may want to defer your purchase for any of these reasons, buying a home remains a wise long term economic decision for most of us:
1. Homes can provide an excellent return on investment (ROI). Although historic annual home appreciation rates are modest, the purchase is usually highly leveraged. If you put 10% down, a modest 3% annual increase in your home’s value represents a 30% ROI.
2. There are many opportunities to gain sweat equity. For example, a well landscaped home can be worth thousands more than a home with a barren landscape. You don’t have to spend that much to get such a return. Buy a shovel and a bunch of small $5-$20 shrubs and trees, and wait a few years. Do your own remodeling (or some of the finish work, such as painting and trim) and those projects can add more to your home’s value than they cost.
3. A landlord can (and will) raise your rent, but a lender can’t raise your mortgage interest rate (assuming that it is a fixed rate mortgage).
4. Many people pay off their mortgage by the time they retire. With no more mortgage payments, they are able to live comfortably on modest retirement income sources. The equity is also transferrable-many homeowners who move to different locales after retirement simply roll the equity from their old home into a paid off retirement home. A lifelong renter may well have paid more in aggregate for housing over their career, but they will still have to pay rent and many find that this additional expense severely cramps their retirement lifestyle.
5. Most owner-occupied neighborhoods have a sense of community that results from a relatively stable set of residents. That rarely happens in rental environments, where the residents of the neighboring apartments may come and go before you even meet them.
Key to a smart decision on whether or not to buy a home now is research into your current market outlook. There is plenty of research data on the Internet regarding the likely market direction of your area. Experienced real estate agents can also provide very useful local market insight.
If you are looking for a new home or wanting to sell your current home, please contact a New Home Resource Realtor® today at 702-365-1000. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!
Courtesy of the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners.org.
Posted by New Home Resource on November 25, 2013 in
The economy has been on the road to recovery and this past April, United States home resales rose to the highest they have been in three and a half years. The National Association of Realtors® said that existing home sales increased nationally by 0.6 percent equating to an annual rate of 4.97 million units. This is the highest level that has been reported since November of 2009.
It appears that sellers are entering back into the market and are attracted by the rising prices. This is a strong indicator of the economy’s upheaval and it is predicted that it will only continue to get better and to grow. Even with the rising prices in housing, more sellers have been entering the market and lifting the inventory of unsold homes by nearly 11.9%.
Although these increases are signs of a healthier economy, the National Association of Realtors® says the national statistics still fall short of what is considered to be a “healthy balance” in the market. In April, it reached a 5.2 months’ supply. To be considered a healthy balance in supply and demand, the housing market needs to be at 6.0 months’ supply. A monetary policy put in place by the Federal Reserve is helping the housing market back up to its healthy state.
Our agents are here to assist you in making your home buying or selling a seamless and easy process. With the housing markets on the rise, having an agent you can trust and rely on will be more important. That’s where we come in: to get you there first!
If you’re looking for a new home or wanting to sell your current one, contact a NEW HOME RESOURCE professional Realtor® today at 702-365-1000. Broker Joanna Piette, Denise Moreno Thrasher, Evelyn “Beng” Kern, Jessica O’Brien, Lance Partin and Kathy Paterniti are at your service!
Posted by New Home Resource on November 18, 2013 in
Recovery to Continue in 2014, Says NAR; Rates and Home Prices Predicted to Rise
By Nick Caruso
The real estate market will continue its road to recovery in 2014, with home prices rising 6 percent and mortgage rates hitting 5.4 percent. In addition, demand is predicted to plateau, all according to Lawrence Yun, chief economist and senior vice president of Research for the National Association of REALTORS®, who presented his 2014 market forecast during last week’s REALTORS® Conference and Expo.
Other factors aim to set the market back on the right path. Although there could be a possible negative impact due to rising mortgage rates, job creation and loosening underwriting standards should balance out 2014’s sales volume.
“There were two million jobs created in the past few months and we’ll see the same next year,” says Yun. “These people could potentially enter the market.”
Yun does not see, however, an increase in unit sales nationwide, as inventory levels remain an issue to keep an eye on. Currently, the nation is under one million and this number needs to increase 50-60 percent in order to get back to normal numbers.
“I don’t foresee that next year, but maybe we can at least make up half the needed gain to steadily reduce the inventory pressure,” he says.
While existing home sales are expected to remain flat at roughly 5.1 million units, new homes could rise by 25 percent from 430,000 to 510,000 next year. This part of the market is still in recovery due to the difficulties for smaller builders to obtain financing. This should continue easing throughout the next year.
When prompted further about how the rising mortgage rate will affect sales and the market, Yun responded: “Assuming nothing changes further, I believe it takes about 10 percent right off the top in terms of people who qualified this year versus the same people who would qualify next year. If need be, NAR will be pushing for new legislation to clarify what QM and QRM are so that we don’t get hit by that 10 percent.”
With the housing market is recovering for most Americans, homeowners will be more concerned than ever about their home values in 2014. Actual price increases for 2013 was 11 percent, which is now expected to be a six percent rise next year. The way to relieve home price pressure is for more inventory to come into the market, says Yun.
“We were surprised by how fast inventory would decline, but there was always a fresh set of inventory trickling in as it went out,” he says.
Overall in 2013, investor activity has been normal, but numbers slightly declined. Though, more small-time investors entered the market, staying one step ahead of the population, consistently punching numbers to see what transactions made the most sense for them. “If investors remain active, it implies that housing is a good buy,” says Yun.
Despite some cautionary areas, the real estate market has its beacons of potential. The industry may not be back to its best numbers yet, but we are still heading in the right direction and making our way down that road to recovery.
“We’ve had a decent year this year and next year will be roughly the same.”
Posted by New Home Resource on December 4, 2012 in
Happy Holidays! There has been quite a bit going on in our marketplace today, from even further constraint in available housing, to increased NOD filings, to even higher sales prices in recent months.
A little bit of history…… In August 2009, Clark County saw a whopping peak of 11,482 filings of Notices of Default. The filing figures remained steady around 4,000+/- per month, from 2010 through September 2011. The October 2011 effective date of AB284 then caused filings to fall to less than 1,000 a month.
To clarify, the “need” to foreclose on a property did not change – what DID change was the bank’s ability to foreclose, due to the requirements of AB284. You can read my blog post from earlier this year regarding AB284 to learn more. According to the Board of Realtors®, foreclosures have fallen from nearly 50 percent of Las Vegas home sales to about 15 percent in October (we believe to be a direct result of AB284), and short sales now account for roughly 45 percent of the market.
As a result of AB284, default filings fell by as much as 80% through September, though the numbers have been growing over the past several months. There were almost 2,100 Notices of Default filed in August 2012. Additionally, as banks resolve past issues with MERS, we anticipate increased foreclosure activity – and may even see some lower prices as a result of the increased supply in available listings.
At this time, our current MLS inventory shows only 3,800+/- single family homes available, an unbelievable 10-day supply of housing! This decreased inventory has caused asking prices for Las Vegas homes to increase 13.7% over a year ago, as reported by online site Trulia.com this morning, December 4th. And according to Las Vegas-based SalesTraq, the median existing home price in Las Vegas has climbed from $100,000 in January to $124,000 in October.
We do try to report the most accurate, up-to-date information to our clients, but there could be a margin of error in our reporting. Please understand that some of our comments may also be opinions and not absolute fact.
If you’re a home buyer or a home seller in today’s frenzied Las Vegas market, you need professional help. Call Heather Brockhurst, Denise Moreno or Joanna Piette at 702-365-1000 and be a part of the right team! HAPPY HOLIDAYS FROM NEW HOME RESOURCE!
Posted by New Home Resource on October 19, 2012 in
The lack of resale housing available in Las Vegas has caused all out-frenzy to buy, perpetuating a steady increase in pricing over the past year.
The GLVAR (Greater Las Vegas Association of Realtors) reported earlier this month that the median price of single-family homes is up almost 14% since September 2011, and some sources that believe prices have increased as much as 20% from one year ago! GLVAR reports that condominium prices are up 24% from this time last year.
Almost half of the Las Vegas market is comprised of short sales; foreclosure activity has slowed to barely a crawl since the inception of AB284, whose effects are still be greatly felt throughout the state. This tight supply of homes is responsible for pushing up pricing from all types of home-sellers, who are taking advantage of the lack of inventory.
This increase in pricing is being felt in the appraisal arena (see my blog from 9-25-12) because comparable sales can’t keep up with the fast-rising pace of the newly listed properties. Even new construction homes are suffering with low appraisals.
Some reports are showing sales volume is actually down from a year ago. One must wonder if this surge in pricing isn’t keeping many buyers out of the arena.
When this will end is anyone’s guess. For home sellers, NOW is a great time to sell your home for top dollar!! For buyers, you need a professional agent who knows how to work well within this unique market. Contact Denise Moreno, Heather Brockhurst or Joanna Piette with New Home Resource today at 702-365-1000!
Posted by New Home Resource on June 9, 2011 in
We’d like to share this article that was posted in Las Vegas Review Journal. This is a more positive outlook on the current state of the Las Vegas housing market.
BY HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL
Posted: Jun. 8, 2011 | 10:08 a.m.
The number of homes sold in Las Vegas and their median price increased slightly in May from the previous month, though prices are down 11.3 percent from a year ago, the Greater Las Vegas Association of Realtors reported Wednesday.
Realtors sold 3,991 single-family homes, condominiums and townhomes in May, up from 3,902 in April and 3,653 in May 2010. Single-family home sales increased 7.9 percent, while sales of condos and townhomes increased by 14.4 percent, compared to May 2010.
The median price of a single-family home sold in May was $126,000, up 0.8 percent from $125,000 in April, but down 11.3 percent from a year ago.
“This was the first time so far this year that both of these key indicators increased in the same month for both single-family homes and for condos and townhomes,” Realtors association President Paul Bell said. “We’ll take anything positive these days.”
Bell said he sees a positive trend in the increasing number of home sales involving “traditional” buyers and sellers, as opposed to investors and lenders who have dominated Southern Nevada sales for many months. He noted that the number of traditional home sales increased in May as the percentage of sales involving bank-owned homes and short sales declined.
“It’s a gradual trend, but it certainly is an improvement over what we’ve been seeing,” he said.
Realtors’ statistics showed 51.4 percent of existing homes sold in Southern Nevada in May were bought with cash. That’s down from 51.9 percent in April, but remains near record levels.
Las Vegas-based Residential Resources reported 1,322 REO, or bank-owned, sales in May, or 43.1 percent of all closings; 985 regular sales, or 32 percent of the total; and 758 short sales, or 24.7 percent of the total.
Assuming that owners of homes listed for short sale have stopped making payments, that’s a financial stimulus of $5.54 million flowing into Southern Nevada’s economy and not going to financial institutions, said Frank Nason, president of Residential Resources.
He based his estimate on an average mortgage payment of $750 for principal and interest and 7,389 short-sale listings in Las Vegas.
“I started thinking about this in national terms estimating that there is probably quite a large stimulus occurring,” Nason said. “Is it purposeful stimulus or just a serendipitous result of the slow approval process? I don’t have any answers to the larger questions.”
The least expensive closing was $10,052 for a home at 1812 Princeton St.; the most expensive was $15 million for a home at 7030 Tomiyasu Lane, according to Residential Resources.
The number of homes for sale on the Multiple Listing Service increased slightly, to 22,767, in May, up 7.7 percent from a year ago. About half list pending or contingent offers.
Bell said real estate agents are seeing a tightening of inventory in master-planned neighborhoods such as Summerlin, Green Valley and Seven Hills, and near employment centers.
Rob Jenson of ReMax Central said the Las Vegas housing market shows stability in the lowest price range with less than six months’ supply. It gets softer in the mid-range and luxury markets. “Once the price hits $600,000, the supply more than doubles, then it just goes up from there,” Jenson said.
The monthly value of single-family home transactions tracked through the MLS increased 0.3 percent, to more than $491 million. For condos and townhomes, sales volume was more than $76 million, up 11.9 percent from April.
Realtors’ statistics are based on data collected through its MLS, which may not account for new homes sold by builders or for sale by owners.