Las Vegas real estate market, housing September 2016 video

Very low inventory of Las Vegas homes and condo listing in the current Las Vegas real estate market leads to price gains

So far we have been telling you what is happening in the Las Vegas real estate market for housing and why it is happening. However in this blog and video we will explain how the statistics that we discuss in the Greater Las Vegas real estate market affects homes, condos and town home buyers and sellers.

Forget what you read in news that our housing market has reached normal levels. There is nothing normal about the active inventory of Las Vegas condos and town home for sale listings in the Las Vegas MLS dropping to 2.3 months of active inventory. Or of Las Vegas homes that are priced below the FHA loan limit dropping to 1.7 months. We will show you how these numbers affect offers made on homes, condos or town home listings. We shall also discuss the wide gap between original asking list price and final sales price that hurts Las Vegas sellers.

Please play this video in full screen mode and 720HD to see the data better.

Video transcript for Las Vegas real estate market, housing September 2016

There is no end in sight for the tight inventory of Las Vegas homes, condo or town homes and prices will keep increasing. If you are looking for a home or condo that is priced around the median sales price in an area, you could pay 10% more by the same time next year.

Please find the data discussed in the video below

Video Transcript: How is the Las Vegas real estate market affecting buyers and sellers?

This is a video transcript of how is the Las Vegas real estate market affecting buyers and sellers?  To see original blog and video please click on the link in the bottom of this page. Video duration: 10:05

Low inventory of Las Vegas home and condo listing in appreciating Las Vegas real estate market

Our Las Vegas real estate market videos are one of the most comprehensive and accurate Las Vegas housing market reports available online. We not only tell you what is happening, but why it is happening. But this time, Instead of telling you why, I am going to tell you how these market reports impact Las Vegas homes, condos and town homes buyers and sellers. This is why you are watching these after all.

We sound like a broken record, repeating the same thing over and over again, and it is inventory is very tight in the Las Vegas home, condo and town home market, especially in lower price ranges. We will use the term condos to include town homes also for the rest of this report.

Let’s talk about increased sales activity of Las Vegas homes and condos.

Show Sales numbers for Las Vegas homes, condos and town homes for August 2016

As this graph shows 3,056 Las Vegas single family homes sold in August 2016. The percentage changes below the chart columns show changes from the previous year. For example home sales for August 2016 are 9% higher than the same month in 2015. Year to date figures show sales of Las Vegas single family houses up to August in each year and total sales in 2016 is 4% ahead of 2015.

As you can see August condominium sales are about 22% higher than August 2015 and 15% higher than total sales at this time in 2015. It is easy to see that sales numbers are higher than 2015 which in turn was higher than 2014. Now keep in mind that the median sales price of Las Vegas homes went up by about 10% in those years.

Decreasing inventory of active Las Vegas homes and condos listings

Show active Las Vegas homes and condos inventory

Let’s discuss decreasing inventory of Las Vegas homes and condos active listings, or listings that are not under contract.

This chart shows active inventory of Las Vegas home and condo active listings in the Las Vegas MLS. While the inventory of single family listings is about 24% below past year, condo inventory is down by an incredible 40.8% from 2015.

Show active Las Vegas homes and condos inventory by month

Increased sales activity and reduced number of active listings has led to the total inventory of active listings dropping to 3 months in 2016. The same for 2015 was 4.4 months. Active inventory of Las Vegas condo listings is now at a ridiculously low 2.3 months, the same for 2015 was at 4.6 months. Six months inventory is considered normal.

Now if you think these numbers are low, wait until we show you active inventory of Las Vegas homes for sale that are priced below the FHA loan limit. And newspaper articles say that the Las Vegas real estate market is entering a normal phase, ha.

Median sales prices for Las Vegas homes and condos keep going up in lower price ranges

Show median sales price for Las Vegas homes and condos

Couple increased demand and reduced inventory and you get price gains. This graph shows the median sales prices for Las Vegas homes and condos for August 2014, 2015 and 2016. As we have previously written, the median sales price for single family homes appreciated by about 5% from August 2015 while median sales price for condos and town homes appreciated by 12.4%. The year to date median price gain for Las Vegas houses has been 6% and for condos 9.5%.

Why is inventory of Las Vegas homes and condos so low?

Because prices keep going up and if one doesn’t have to sell, it would be unwise to do so. Our investors who purchased a home or condo before spring of 2015 have gained 15% in price appreciation in addition to 6%-6.5% in cash on cash returns after property tax and HOA fees. I am not sure where else they could get this kind of return on low risk investment.

What does the low inventory mean to Las Vegas homes and condos buyers?

Now as I promised, we will show you what this means for Las Vegas home and condo buyers and sellers, but buyers first.

Show North Las Vegas map

The City of North Las Vegas’s population is 226,000. If a buyer wants to buy a condo or town home for less than $200,000, there are only 44 listings in 16 condominium communities in the Las Vegas MLS to choose from. Let’s take a closer look at one of these listings.

Show Terrasini at Aliante condo active and sold listings

This Las Vegas MLS page shows search results for available listing and sold condos in Terrasini at Aliante in the past 3 months only. Check out the sales price for the 1454 square foot condos; they sold for $131,000 and $131,500 and both closed in the third week of August. Then check the asking list price for the one available listing on top, it is $11,400 higher than the highest comp. Most listings are more or less like this one, regardless of upgrades and property condition and this is what we see over and over again.

Show Henderson map

Let’s take a look at the same situation in the City of Henderson which is a Las Vegas suburb. Henderson’s population is 227,000 and real estate is much more expensive than North Las Vegas. Here a buyer has a choice of 25 condo communities with a total of 66 listings that are not under contract. Now imagine a city of more than 450,000 with 110 condo listings. What do you think will happen? Prices will go up due to nonexistent inventory.

Very low Inventory of Las Vegas homes that priced below FHA loan limit

Let’s discuss the inventory of Las Vegas homes for sale that are priced below the FHA loan limit.

Greater Las Vegas homes priced below the FHA loan limit of $287,000 are the most sought after due to the low down payment requirement and lower credit scores needed to qualify.

320 single family homes sold in August in North Las Vegas, 294 or about 90% were priced below the FHA loan limit of $287,000. 527 out of 658 of active listings in North Las Vegas are priced below $287,000 which makes the inventory of active listings at 1.7 months.

2860 houses sold in Greater Las Vegas in September, 1973 were priced below the FHA loan limit. The active listing inventory of homes for sale priced below the FHA loan limit stands at 3,282 or 1.6 months of inventory in this price range and they compromise about 70% of home sales in September.  Again initial asking list price for home listings in this price range are higher than all comparable sales and come down over time.

High initial asking list price hurts Las Vegas homes and condos sellers

Let’s look at the effect of the Las Vegas real estate market on Las Vegas home and condo sellers.

This graph shows original list price for homes and condos that have sold in the past year vs. the final selling price. It fluctuated between about $15,000 in the fall and winter of 2015, however started to widen to $30,000 in spring 2016 and stayed in $20,000 range since June.

We would initially list a home at $10,000-$15,000 over comparable homes with the same upgrades and property condition, not higher than all sold listings as we see now. The reason is that we have seen buyers overpaying for newly listed properties all the time, so why not take a shot at it.

This way we have a little room to cut the asking price in a couple of weeks depending on the number of showings and interest, and account for inevitable seller’s contribution to buyer’s closing costs if the buyer has to finance. Setting the asking price at $20,000 to $30,000 above comps will work against the sellers because their listing does not generate any interest and become dated. This leads to the property selling for less than it should. It also confirms the listing agent’s ignorance of the Las Vegas real estate market.

Conclusion:

Like we said in the beginning, like a broken record we repeat the same stuff month after month. The Las Vegas real estate market for housing will not see any changes unless the inventory of Las Vegas homes and condos go up significantly and there is no sign of that happening. So in lower price ranges for each area, homes, condos and town home prices will keep going up.

Finally, we will go on a limb and say: if nothing changes in Las Vegas real estate market and you want to buy a home or condo at or below the median sales price for that area, you will be paying at least 10% more by August 2017. By the way, we predicted a 6% price appreciation for Las Vegas homes for 2016 and so far we are EXACTLY on the mark. Like we said in the beginning, we have the most comprehensive and accurate Las Vegas real estate market reports available online.

If you want to buy or invest in Las Vegas, Henderson or North Las Vegas homes, condos or town-homes in the immediate future, please call us at 800-762-4917.

Please like and share if you find this information useful and subscribe to our Las Vegas real estate channel for upcoming videos.

On behalf of The Saber Team, this is Karen Saberzadeh of Realty

One Group and www.lasvegas4us.com wishing you a great day.

You can find the data in original blog and video page, back to the video page

Las Vegas foreclosures HOA investors lose again-real estate

Losing money is not a windfall for Las Vegas foreclosures HOA investors

Las Vegas, Nevada real estate investors who purchased HOA liens in real estate auctions and took advantage of the HOA lien super priority status to extinguish first and subsequent mortgages in order to purchase foreclosed homes at bargain prices have suffered another legal setback.

In a 2-1 decision the 9th Circuit court has ruled that Nevada law requiring mortgage lenders to be alerted of a foreclosure by a homeowners association only if the lender had requested notice is unconstitutional. The panel said the requirement of an “opt-in” request is a violation of the 14th Amendment requiring due process.

Now Nevada Supreme Court has to take up the case again and if this ruling is upheld it can nullify the sales so these homes would go back to the foreclosure process by the lender who holds valid mortgage loans.

Those who have been reading my blog are fully aware that I blame the whole foreclosure mess on the banks and am no fan of banks. However from a moral point of view, what Bourne Valley Court Trust did is at best immoral, because taking advantage a weakness to strip someone else of property is called a scam anywhere on Earth and getting an $800,000 home for less than $10,000 is no different.

I am NOT an attorney and don’t know Jack about legalities involved in this case but this is the United States and banks simply do NOT lose these kind of cases. Not because banks can’t write off the losses, but because it looks bad.

When these Las Vegas foreclosures HOA investors listed their homes for sale, or more accurately, their interest in those homes in the Las Vegas MLS at significant discounts, I did not even consider them. I believe that when it is all done, these real estate investors will lose the case and their homes and while they will receive some interest on their HOA liens it will be more than offset by their legal fees.

Easy come, easy go and if the banks can get away with bringing down the world economy, they can beat the tar out of these Las Vegas foreclosures HOA lien investors. We will see, I guess.

This blog is an update for

NEVADA SUPREME COURT RULING ON HOA FEES GUIDE

Las Vegas real estate market will not see any price gains for now

No double digit price appreciation for Las Vegas real estate market in 2016

Las Vegas real estate market has witnessed double digit appreciation for the past 4 years. However the median sales price appreciation has not been the same every month of the year; and as we explained in our last Las Vegas real estate housing market blog “at least in the past 3 years we have had a small price gain in February followed by bigger price appreciations in April through June and little fluctuations afterwards”.

In this video we provide a comprehensive discussion of the Las Vegas housing market in which we will not only tell you what is going in our market but the reasons for it.

One of the biggest factors in submitting an offer for a Las Vegas home or condo is the direction the Las Vegas real estate market is headed. Just knowing how much the median sales has increased or decreased per year doesn’t cut it. A Las Vegas Realtor should be well aware of the housing market in the client’s price range and adjust the offer accordingly. As we have shown here there are different market activities for different price ranges and months of the year.

So if Las Vegas homes or condos are priced below FHA loan limit and are the cheapest homes in the area, one can still expect to run into multiple offers situations. Higher priced homes or condos will take time to sell.

 

Dyslexia costs developer $365,000 in Las Vegas real estate auction

Las Vegas real estate investor makes $365,000 mistake in Las Vegas real estate auction

Las Vegas real estate developer over bids by $365,000 in Las Vegas real estate auction

The president of Walters Group accidentally overbid by $365,000 on a parcel of Las Vegas surplus airport land during the Clark County real estate auction which was held in Las Vegas on August 16th 2016.

85% of the sales proceeds go to the U.S. Bureau of Land Management, Clark County Department of Aviation gets 10% and the remaining 5% go to the State of Nevada.

The starting bid for these parcels of land is based on appraisals which are made available to the public. If there is only bidder, $5,000 higher than the starting bid wins the auction.

Only 3 parcels were selected for the auction and two had no interest. However The Walters Group was the sole bidder on a 36 acre parcel of land at the southeast corner of Durango Drive and Warm Springs Road.

Map for 3 parcels of Las Vegas land that were auctioned off in Las Vegas real estate auction
Map for 3 parcels of Las Vegas land that were auctioned off in real estate auction

The appraised value for this parcel was $4,591,000 and a bid of $4,596,000 would have been the winning bid. But Mr. Michael Luce swapped the 5 and 9 and submitted a sealed bid of $4,956,000 for the land. I suspect that dyslexia is to be blamed here.

Just imagine the sinking feeling in his stomach when he found out about his mistake during the Las Vegas real estate auction and announced it. However the Clark County Commissioner Mr. Sisolak told him that he couldn’t withdraw his bid without disqualifying himself from the auction. Mr. Sisolak gave him until 5 p.m. the next day to finalize the deal by submitting a non-refundable earnest money deposit (EMD) equal to 10 percent of its bid price.

Well I tell you, he did just that and submitted the EMD by the deadline. Why?

Before you cry your eyes out for poor Mr. Luce or Mr. Walters the owner, here are further facts underlying this case.

The parcel of Las Vegas land that he purchased had been previously leased to him by a ground-lease agreement where the county leases land to developers at zero cost in return for the developer bringing infrastructure to the surrounding area and developing the land.

Clark County can share in 50% of the developer’s profit only after the developer starts to see revenue or in some cases has recouped all his costs. The agreement lasts 50 years and begins as soon as a developer erects a building.

Given that Mr. Walters the owner of Walters Group had only 40 years left on the ground lease agreement it would be logical to buy the land underneath it. If he could buy it at the right price at the auction. This way he can keep all of the income without sharing 50% of it.

Additionally he got this parcel for the very low price of only three dollars and sixteen cents per square foot, which is very low for commercial zoned land in the area. But then again this parcel was tailored made for him and not other developers, so he got a great deal.

But then again they could have had this parcel of land for $365,000 less and man-oh-man if one has to mess up like that, it should be done in private and not in public.

Lastly: I can’t think of a Las Vegas real estate investor that is more qualified than Mr. Luce to represent himself at a real estate auction. However, if he was represented by a qualified commercial real estate agent, this would have not happened.

Related Link:Las Vegas Foreclosures and Short Sales Real Estate Auctions

Masoud 702-478-7800

Nevada Supreme Court ruling on HOA fees guide

Nevada Supreme Court ruled that only nine months of delinquent HOA payments can be included in super priority lien status.

Nevada Supreme Court HOA ruling is in favor of banks and distressed property buyers from Nevada Trustee Sale Auction where the act of foreclosing on properties takes place.  Home Owner Associations (HOA), and especially collection agencies who charged exuberant amounts in collection fees in addition to delinquent HOA fees.

Needless to say this problem led to many law suits and Nevada Legislation reacted by passing a bill in 2015 to fix this and while keeping the HOA fees in Super priority status modified how HOAS have to contact first lien holders and reduced collection fees and other charges to about $1350.

Here are some important points.

Other important changes:

  •  A first lien holder now has up to five days prior to the HOA sale to satisfy the super-priority amount, and must then record—at least two days prior to the sale—that such super-priority amount was paid.
  • The HOA or its agent must now record an affidavit indicating that proper notices were sent to the first lien holder. No such requirement previously existed.
  • The revised law caps the amount of costs and fees that an HOA can levy as part of the super-priority amount (essentially around $1,350), and it specifically prohibits attorneys’ fees from being included as part of the super-priority amount.
  • The revised law provides the owner of the property and the first lien holder a 60-day right of redemption.

What the Nevada Supreme Court did was to disallow collection costs and other fees to be included in the super priority lien status. However Nevada law applies from now on.

Las Vegas real estate housing market-homes April 2016

Las Vegas real estate housing market for homes has appreciated by 2% so far in 2016

In the past couple of years the median sales price for Las Vegas homes for sale has gone up by about 10%. However price gains are not uniform. February sees a modest price gain and then the prices shoot up in May-July and stay flat for the remainder of the year.

In this video we will discuss increasing sales activity for Las Vegas homes while the inventory remains lower than the past year. We will also talk about the increasing median sales prices and the decreasing effect of foreclosures and short sales on Las Vegas real estate market for single family homes.

The inventory of homes listings in Las Vegas MLS that are not under contract has dropped to 2.6 months; we discuss how it is affecting the market and when we expect further price gains.

We expect additional price hikes this summer and 6% or higher median sales price appreciation for 2016.

Las Vegas high rise condos market 2016-Las Vegas real estate

Las Vegas high rise condos market has appreciated since 2012, But by how much?

Las Vegas high condos prices started to appreciate in 2012, when our real estate market bottomed out. But not all high rise condos have appreciated the same. So, one can ask which high rise condos towers have done well or have failed miserably. To answer this we studied the median sales price of all high-rise and mid-rise condos that have been listed in Las Vegas MLS from 2012 through 2015 and then median sales prices in individual true high rise towers (higher than 11 floors) for the same period.

When we talk about price gains, we mean the median sales price appreciation. Some high-rise towers have appreciated by more than 50% and others less than 5%, one, namely Trump Tower appreciated by 0% since 2012.

As we have shown Las Vegas residential high rise condo towers have done much better than condo hotel towers and those in lower price ranges have higher percentage appreciations, luxury condo towers like One Queensridge provided for more than one million dollars in profit for some smart real estate investors that purchased foreclosure luxury condos in 2011 and sold them in 2014.

We have also made an interactive Las Vegas high-rise and mid-rise condo map for you

Interactive Las Vegas high rise and mid-rise condo map

Las Vegas high rise condos and luxury condominiums locations on and off Las Vegas Strip

The Las Vegas MLS mixes true Las Vegas high rise condos (taller than 12 floors) with midrise luxury condominium projects and puts them all in the high-rise category. In fact, what all these have in common is a pool, spa and some other resort amenities.

Since we couldn’t find an interactive map that separates Las Vegas high-rise condo towers from luxury mid-rise condo projects we made one.

True high rise condo towers are shown by a star icon, mid-rise condominium projects are shown by a diamond and Las Vegas MGM City Center condo towers are shown by an appropriate tear drop,  given what happened to them post real estate crash. Veer Towers, Residence at Mandarin Oriental and Vdara are shown here.

When you click on a high rise condo, you will see the project’s name, address, zip code and year built.

Please find the link for the map below:

Las Vegas high rise and mid-rise luxury condo map

We also have an awesome blog that shows how these luxury high rise condos have performed since the recovery starting in 2012 and the margins are wide  Las Vegas high rise condo market 2016-Las Vegas real estate

Overview Las Vegas commercial real estate market 2016

Even though Greater Las Vegas commercial real estate has been on the mend since 2012, the recovery has not been the same for all sectors. Industrial real estate has done better than the retail sector which in turn is faring better than office space.

In this video we give a summary discussion of historical vacancy versus asking rental rates, net absorption, new construction versus total inventory and other relevant information about the three main sectors in Las Vegas, Henderson and North Las Vegas.


Video by Las Vegas homes, condos, land and commercial real estate

In this video we provided an overview of the Greater Las Vegas commercial real estate market conditions for 2016. But please keep in mind that each situation is unique and should be evaluated on its own merit.

Different vacancy rates in Las Vegas commercial real estate

Discrepancy in vacancy rates in Las Vegas commercial real estate market reports

Vacancy rates in Industrial, office or retail sectors in Las Vegas commercial real estate market reports could vary by a few percentages depending on who is tracking the data and what they are tracking as we explain in this video.

For example UNLV measures vacancy rates for anchored retail centers and it stands at 11.4%. While total vacancy rates for Las Vegas retail is at about 9%.

As we explained we use University of Nevada, Las Vegas real estate studies data which we find the most authoritative.

Overview Las Vegas Real Estate Market-Condo, Town-Homes 2016

The median sales price for Las Vegas condos and town-homes appreciated by 8%-10% last year

In this video we take a look back at the Las Vegas real estate housing market for condos and town-homes in 2015 to show that the median sales price of Las Vegas Valley condos and town-homes, excluding high-rise condos have increased by 8%-10%. We also provide an overview the market for 2016.

We have shown that the median sales price of Las Vegas Valley condos and town-homes appreciated by about 8%-10% in 2015 and given the unusual market activity in December last year, barring surprises 2016 should be similar to past year.

We will talk about the varying vacancy rates in Greater Las Vegas commercial real estate.

This is Masoud for: Las Vegas homes, condos, land and commercial real estate

Overview of Las Vegas real estate housing market-homes 2016

We prove that median sales price for Greater Las Vegas homes appreciated by 9.6%-10% past year and overview of Las Vegas real estate market for 2016

In this video we take a look back at the Las Vegas real estate housing market for single family homes in 2015 to show that the median sales price of Las Vegas Valley houses have increased by 9.4%-10% and not 6.4% as published in the newspaper articles. We also provide an overview for 2016.

We have shown that the median sales price of Las Vegas Valley homes appreciated by about 10% in 2015 and given the unusual market activity in December last year, barring surprises 2016 should be similar to 2015.

We will discuss the Las Vegas real estate market for condos and town-homes next.

Discounts gained by buying Las Vegas short sale homes for sale

 Discounts gained though buying Las Vegas short sales homes

This is the fourth post in the Las Vegas Short Sale homes and condos for sale, buyer’s guide series. So far we have discussed different kinds of short sales listings that are listed in Las Vegas MLS

How long does it take to close different types of short sale deals?

And given the troubles inherent in short sales deals

In this video we will talk about where the largest discounts could be found and also what types of Las Vegas short sale listings offer the lowest discounts.

Please watch in full screen ode, the video will automatically play in HD

We showed that about 50% of Las Vegas, Henderson and North Las Vegas short sales home buyers ended up with less than $10,000 in discounts on their deal. Approved short sales in very good or excellent condition, in lower price ranges offer the least discounts. But luxury homes that need a lot of repairs offer the most discounts.

Our goal was to educate short sales buyers about the process, and even we can’t do a thorough job of it by a few short videos. However those who have seen this series know more about buying Las Vegas shorts ales homes and condos than most real estate professionals.
This is Masoud Saberzadeh, Las Vegas Realtor and commercial real estate agent at Realty One Group and Las Vegas homes, condos, land and commercial real estate.

Why do buyers make offers on and buy Las Vegas short sales?

 Large gap between asking list price and sold comp price for traditional sales is the reason for buyers considering short sales

This is the third video in Comprehensive Guide to Buy Las Vegas Short Sales.

In the first video we talked about the different ways of buying Las Vegas short sales that are listed in the Las Vegas MLS. They are approved short sales, unapproved short sales and short sales that sell through online auctions.
In the last video we also talked about how long does it take to close Las Vegas short sales deals?
And in the next video discounts gained by buying Las Vegas short sales homes for sale, we will show you that about half of the buyers have gained less than $10,000 in discounts.
Then why do buyers still make offers on Las Vegas short sale homes? In this video we will answer this question.

If you watch in full screen and select 720P to see in HD

In this video we showed that the main reason for making offers on Las Vegas short sales is the big gap between asking and sales prices for non-distressed homes.
Even though this gap is smaller for Las Vegas foreclosures, Fannie Mae and Freddie Mac listings are initially listed at far above comparable sales and that is the reason for the price gap between asking prices and sold comps being twice as large for short sales.
In the next video we will discuss discounts gained by buying short sales.

Las Vegas real estate blog, including homes, condominiums, high-rise condos, land and commercial real estate, plus Las Vegas real estate news, investment properties and more