FAST FACTS FOR REAL ESTATE IN LAS VEGAS OF MARCH 2011

FAST FACTS FOR MARCH 2011:

While Las Vegas’ March 13.3% unemployment is not something to get excited over, it is, however, the lowest mark since December 2009. The state reported a year over year employment increase for the first time in over 30 months.

Unfortunately, first quarter residential housing statistics for the Las Vegas market contained little additional news that would suggest a recovery is imminent. Virtually every number that suggested change could be on the way was offset by a corresponding negative number.

For example, the number of existing home sales did jump (5.6%) to 5,114 in March, even as prices slid to their lowest totals in nearly two decades. But, significantly, more than seven out of ten of those sales were distressed properties. The 2,131 foreclosures sold at $106,500 represent 41.7% of the existing home sales. The 533 auction sales at $93,500 represent 10.4% of the sales. And, 929 short sales at $120,000 account for 18.2%. In short, existing home sales improvement was the product of distressed property. More than half were cash sales. Almost four out of five were vacant.

The 1,521 “non-distressed” sales amounted to just 29.7% with an average price of $108,500. That’s a slightly better percentage than last month.
New homes sales continued to lag behind last year. First quarter new home sales lagged last year by 41% at 781 total. The March tally of 279 sales was just 10 units above February and prices for new homes rose slightly to $195,950. (February was their lowest price point since 2002.)

While prices and sales are always major measures of a market’s potential, inventory is the most telling component. There were 2,099 bank repossessions in March – the highest total since last April. Yet, the number of REO’s held by financial institutions continued its very slow decline, reaching its lowest point since last May (11,684).

MLS inventory remained stable at 14,269 with roughly half of those homes listed as short sales. The number of new home subdivisions was also stable at 239, and the number of closings per subdivision averaged just over one per month.

This article is a courtesy of Steve Bottfeld, Marketing Solutions & Larry Murphy, SalesTraq™

IT IS NOT THE BUYERS' MARKET!

Although the media screams that it is the buyers' market, I have to convince every one of my new clients that IT IS INDEED NOT true. On the opposite, it is very closely controlled by the large banks-sellers that were "saved" by the Government, aka "We the People", from being illiquid and not able to lend. They control the inventory and the prices. Yes, oh yes, it is, unfortunately, the truth about Real Estate nowadays. Banks control buyers AND sellers through short sales. So, here you have it- full control of the marketplace. Don't take me wrong- you still get a low price and a great deal but you DO NOT get to negotiate your terms or conditions; on the opposite, if you do not play by banks' rules, you don't get to buy a bank-owned home or a short sale, which are the majority of the inventory.

Clients often ask me why banks do this and don't do that. The scream in despair: "It is unfair!" Who said anything about business was fair? The law protects a buyer or a seller to some extent but the rest is being set by the marketplace. At this particular moment, the banks are the monopoly in the market and they control prices, terms and who buys and who doesn't. Whether you agree with it or not.

It is not surprising whatsoever. As a matter of fact, the market is ALWAYS controlled by someone. It is not a free commerce like the Government tries to fool us into thinking. It was set up like that and remains till now. It is controlled by powerful group of people that make money manipulating the unaware general public. I have nothing against them and I am not preaching they are bad, I am just trying to portray the situation as it is.

There's a great quote that was said by James Garfield, the 20th President of USA, back in 1881:

"Whoever controls the volume of money in our country is absolute master of all industry and commerce...when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."

I think it just explains it all.

10 foreclosures for every home saved. Are loan modification programs working? Statisctis show- not really.

NEW YORK (CNNMoney.com) -- The Obama administration's mortgage-modification program is not keeping pace with the deluge of foreclosures hitting the market, a government watchdog found.

Only 168,708 homeowners have received long-term mortgage modifications under the president's plan, as of February, a small fraction of the 6 million borrowers who are more than 60 days behind on their loans, according to the Congressional Oversight Panel's latest report, released Wednesday.

Read more here

My property taxes are outrageous!!! What to do?

You buy your very first Las Vegas home and notice that your property taxes are really high. What should you do? It's been an issue for many buyers.

The Assessor will be using all sales up to July 1 of the year before the tax year. For example, for the 2009/2010 year, the Assessor used sales up until July 2008. You can call County Treasurer's Office (702) 455-4323 to find out when the next re-assessment is going to take place and what the assessed value is going to be.

If, in your opinion, the taxable value of your property exceeds the value indicated in the real estate market, please call (702) 455-4997 or come in to the Assessor's Office and discuss your appraisal with an appraiser. The Assessor welcomes the opportunity to review any evidence you can provide that will show the valuation exceeds market value. If, after discussing the matter with the Assessor's staff, a difference of opinion still exists, you may appeal your assessment to the County Board of Equalization. You may obtain the appeal forms from the Assessor's Office during the month of December until the deadline for filing, which is January 15 unless it falls on a holiday or weekend, which then would make the deadline the next business day. Completed forms must be returned to the Assessor's Office by the appeal filing deadline date. Please call 702-455-3891 to have an appeal form mailed to you. The forms are relatively easy so you may represent yourself rather than incur legal expenses.

The Nevada Legislature provides for property tax exemptions to assist individuals meeting certain requirements. Some of these include veterans, disabled veterans, surviving spouses, and blind persons. Nevada also offers a Senior Citizen Tax Assistance/Rental Rebate program to persons 62 years of age or older.

You can read more at: http://www.accessclarkcounty.com/depts/assessor/pages/valuenotice.aspx

Hope that helps!

FLIPPING PROPERTIES IN THIS MARKET??? IT IS INDEED POSSIBLE...

It is possible, however, the transaction must be in cash. How much could you make? We usually seek out properties that are 30-40% (the more, the better!) below the market value. There are certain costs involved and there are certainly some risks as well. We go case by case in determining the feasibility of any given property.

It is not as easy as it might seem- there is a lot of research and market knowledge involved. With recent changes in foreclosure procedures in Nevada, the rate at which lenders are foreclosing will significantly slow down, so this opportunity most likely won't last long. Additionally, the first-time and repeat buyers credits definitely stimulate more purchases, but once again,there's a time limit- the credits will only apply through purchases that are in escrow by April 30th. Please contact me with further questions.

Top Reasons You Shouldn’t Wait to BUY A HOME!

1. NEW FEDERAL TAX CREDIT
First-time home buyers may qualify for up to $8,000.00 and repeat buyers up to $6,500.00; plus income limits have been raised. Don’t wait — homes must have a signed contract by April 30, 2010.

Lean more: www.FederalHousingTaxCredit.com

2. LOW INTEREST RATE
Rates remain at near-record lows; you can lock in a payment that fits your budget.
See here how much you could qualify for.

3. UNBEATABLE INVESTMENT
Even in down markets, over the long term home prices still appreciate more than the stock
market.

4. AVAILABLE LOANS
Lenders are still eager to make loans to borrowers with good credit.

5. GREAT SELECTION
With so many homes on the market, you can get the features you want.

6. ENERGY EFFICIENCY
Newer homes have advanced technology and environmentally- friendly features that can
help you save money.

UNREALISTIC SELLERS????

So, I received a phone call recently from a lady asking me to do CMA (comparative market analysis) because she wanted to find out the value of her home. As any Realtor would do, I've looked up the comps of what has sold in the neighborhood in the last 90 days. Surely, there were few foreclosures that went for $230,000 -$250,000 for the same floorplan. Once I called the lady back and told her that he home was worth about $230,000-$250,000 in today's market she practically told me that I was out of my mind.

NOW the question is: where is the logic??????? Her reaction: "We bought this house in 2003 for $355,000! We were selling it in 2007 for $615,000! That's impossible!"

So what? Did it sell in 2007 for $615k? NO, it did not....you know why??? In case you missed the recent news, the housing market was ballooned and recently crashed. In case you missed that part and are not aware of the current situation - the foreclosed properties (and some short sales) drive the market values.

A market value is NOT what you paid in .... year, it is NOT what you are wishing to obtain, it is NOT what your neighbor/relative/mom/dad is assuming it to be, it IS what a willing buyer would pay in a competitive market. Therefore, a market value fluctuates depending on the amount of sellers & buyers, current inventory and its pricing. OF course, there are many more factors involved but ultimately this is what drives any market.

Summer is over...

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HOME MAINTENANCE TIP

Conserve Water and Reduce Pocketbook Pressure!

You may love the forceful flow of water at your faucets, showerheads and toilets, but did you know that installing low-flow aerators could cut your annual water consumption by more than half? You can also conserve water and save money on your water bill just by adopting a few new habits:

* While waiting for water to warm up, catch excess water in a bowl or bucket and use for houseplants or pets
* Only run the dishwasher when it is fully loaded
* Instead of using the in-sink garbage disposal, compost your food scraps
* Simply cutting your shower by 2 minutes will save 1,000 gallons a year!
* Turn off the water while you brush your teeth, shave, and while you lather up when washing your hands.

Not a bank-owned or a short sale!

$8,000TAX CREDIT IN MORE DETAILS

Stay Tuned in June!

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AMAZING CONDO WITH 2 MASTERS FOR ONLY $420/M

New Housing Benefit for Culinary and Bartender Workers!

New Housing Benefit for Culinary and Bartender Workers!

If you are a worker covered by the Culinary and Bartenders’ union contract, then you are eligible for a new housing benefit that helps gaming workers obtain the dream of homeownership. Established as a result of the 2007 collective bargaining agreement, the new Culinary and Bartenders Housing Partnership provides the following benefits:

Homebuyer education and counseling

Workshops on foreclosure prevention

First-time homebuyer down payment loans

The State of Nevada Housing Division has joined with the Culinary and Bartenders Housing Partnership to provide up to $20,000 in loans for a down payment on a home. Key elements of the program include:

• The loan has a zero-percent interest rate and is repayable when you sell or refinance your home.

• You must live in the house you buy (no second homes or vacation homes).

• You must contribute 1% of the purchase price of the home.

• Your household income cannot exceed $76,680 for a 1-2 person household, or $89,460 for a household with three or more persons.

• You must complete an 8 hour homebuyer education course.

• You must qualify for a home mortgage from a lender.

• Funds for this down payment assistance program are limited. Down payment loans will be approved for qualified buyers on a first-come, first-serve basis.


TO GET MORE DETAILS,

PLEASE CALL ME WITH MORE QUESTIONS

WHAT IS A SHORT SALE?

A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency.

Short sale is not the guarantee that the bank will accept the offering price on the property and can take anywhere from 90-120 days to receive an answer from the lender whether they are or are not accepting the deal.

If you have any further questions, please don't hesitate to contact me directly.

STIMULUS BILL - $8,000 FOR HOMEBUYERS

Final score: $8,000 for homebuyers

First-time purchasers get a tax credit windfall if they buy before December.

By Les Christie, CNNMoney.com staff writer
February 16, 2009: 5:38 PM ET

NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
Not exactly. Billings won't get $8,000 on top of his current refund, but he would turn that small refund into a much larger one. If his total tax liability came to $6,000, but he had $7,000 withheld from his payroll, he would normally receive a $1,000 refund. With this credit, his refund would total $8,000. If the credit were non-refundable, as was originally proposed in the Senate version of the stimulus package, he would have only received $6,000, or the total amount he paid in.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
Instead, many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.

February Newsletter

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WHAT IS BANK-OWNED/ REO/ FORECLOSED PROPERTY?

What is an REO? REO means "real estate owned" and is a term used by the financial industry to describe properties (assets) that a financial institution has possessed by foreclosure, a deed-in-lieu of foreclosure, or other means. REO properties are also called "bank owned" or "corporate owned" because the owner of record is an institution instead of a natural person.

Is an REO property a "better" deal that other properties on the market? Only a willing buyer and seller determine the purchase price of a property. Just like other resale homes, REO properties have different amenities and are in various stages of age and repair. All of these factors influence the price that a buyer and seller are willing to agree on.

What kind of financing is available for an REO property? It is a sad truth that some properties have been vandalized. Certain loan products (for example, FHA loans) are not available for properties that do not have certain appliances, floor coverings and utilities. Check with your loan provider for complete and up-to-date details about your loan requirements.

How will you know if you are competing against other potential buyers? Listing agents may or may not have authority from the seller to disclose multiple offers. The REALTOR Code of Ethics requires a listing agent to have the seller's approval before disclosing the existence of other unaccepted offers on the property. A seller may respond to numerous offers with a "multiple counteroffer." This document alerts two or more buyers that they are in a competitive situation.

Can you choose the title company? Typically, the banks and lenders who have foreclosed on these homes have established business relationships with title companies, who often act as the escrow holder. Even before a home is put on the market, the title company may have opened a file and started its research on the title. Under federal law, a seller cannot require a buyer to purchase title insurance from a particular company, but if the seller is paying for the buyer's title policy then the seller may choose the title company. For a consumer's guide to title insurance, go to

What kind of disclosures will you receive from the seller? Federal and state laws require a seller to make certain disclosures to a prospective purchaser. The "Residential Disclosure Guide" provided by the Real Estate agent outlines these disclosures. Some disclosures, such as the Seller's Real Property Disclosure, can be waived according to state law. Others, such as the Common Interest Community resale package, cannot.If you close escrow without receiving a required disclosure, your right to sue for such a failure may be affected. If you have any concerns, consult with legal counsel prior to closing escrow.

Will the seller pay for repairs? A typical REO is sold "as is," meaning that the seller will not do repairs on the property or provide funds at closing for repairs. However, buyer's agents may still ask for repairs and attempt to negotiate that point. As the adage goes, "you won't know unless you ask." You may not receive multiple keys or garage openers.


Should you have home inspection? Although an REO seller may not provide a property disclosure or make repairs, the buyer is still entitled to have an inspector review the home. Buyers should consult whatever qualified professionals (such as home inspectors, mold inspectors, pest/termite inspectors) they desire to determine the state of the property and whether the property meets their needs.

This is general information and is not intended to provide information or advice on any specific transaction. Parties to any real estate transaction should seek competent legal and/or tax counsel to determine the legal, credit and tax consequences of buying or selling a home.

LOAN MODIFICATIONS ARE NOT WORKING!

According to the Thrift Supervision National Housing Forum that was held on December 8, the re-default rate of modified loans (which represent about 60% of all the loans), loans modified in the first quarter of this year after 3 months only nearly 36% of them defaulted again by being past 30 days late; after 6 months the re-default rate is 53% and after 8 months, it’s 58%. For the second quarter, the re-default rates are about the same. More than half of the modified loans are defaulting again, I believe it is an indication that loan modification is not working. Whether it’s due to the lack of principle reduction or simply economy in crisis, we wouldn’t be able to determine. Most likely, all of the above.

Source: CNBC.com
http://www.cnbc.com/id/15840232?video=955168734

HOW TO BUY A HOUSE WITH NO DOWNPAYMENT

How To Buy A Home With Zero Down

Las Vegas: A new home ownership program allows qualified buyers to buy a home with absolutely no down payment.

You may have owned a home before and are presently renting, or maybe you are a first time homebuyer and need a way to break into the housing market but are holding back because you think you require $10.000, $20.000 or even more for a down payment.

Well regardless of your present situation, if you want to get into, or re-enter the housing market without having to make a cash down payment, this new program may be just what you're looking for. Why pay your landlord's mortgage when you can be building your own equity.

Industry insiders have prepared a new special report entitled, "How to Buy a Home With Zero Down' which reveals how this new and innovative program can get you into the housing market immediately and with no down payment.

To get your FREE copy today visit

www.LVRealDeal.com

or call 877-583-1181 ID#712