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™

How long do you have to wait?

How long do you have to wait before you can buy again after a short sale, foreclosure or a bankruptcy? Well, that depends...

If you are planning on obtaining a conventional loan:
- Chapter 7 BK - 4-year waiting period from the discharge/dismissal date
- Chapter 13 BK - 2-year waiting period from the discharge date or 4 years from the dismissal date
- Multiple Bankruptcies - If there are multiple bankruptcies within a 7-year period, the waiting period is 5 years from the most recent discharge/dismissal date
- Foreclosure - 7-year waiting period from the completion date
- Deed-In-Lieu/Pre-Foreclosure Sale (Short Sale) - minimum 2-year waiting period

If you are planning on obtaining an FHA/VA Loan:
- Chapter 7 BK - 2-year waiting period from the discharge/dismissal date
- Chapter 13 BK - 1 year of the payout must have elapsed and the borrower's performance must have been paid as agreed. Document that the borrower's current situation is not likely to recur. The court must grant permission to the borrower to enter into a mortgage transaction
- Foreclosure/Pre-Foreclosure Sale (Short Sale) - 3-year waiting period from the completion date
- VA Loans ONLY - 2-year waiting period for Foreclosures

PLEASE REMEMBER THESE GUIDELINES ARE ESTIMATES AND EACH SITUATION IS UNIQUE. PLEASE TALK TO A LENDER TO VIEW YOUR OPTIONS REGARDING OBTAINING A MORTGAGE.

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

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.

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