In the next video called buying a home in July could cost 10% more than now. We even told our viewers when price gains will come and by how much and recommended that they buy before March. Those who heeded our advice to buy before March have saved thousands of dollars and much headache.
In this video we talk about the low inventory of active home listings which has resulted in 15.2% median price gain in the past 18 months. The inventory shortage is far more severe for condos and town homes resulting in eye popping ongoing price appreciation. In this video we discuss how long we expect this situation to go on and why one couldn’t drive any long term conclusions from this very abnormal Las Vegas housing market.
Before we discuss the Las Vegas real estate market for June, 2017 here are some mind boggling homes, condos and town homes median price appreciations since January 2016 and January 2017.
Single Family Homes
Median price appreciation
since January 2017
Median price appreciation
since January 2016
The median price of Las Vegas homes is up by 15.2% from January, 2016 and 6.4% from January 2017. But when it comes to town homes their median price has appreciated by 23.3% from January 2016 and 13.5% in the past 5 months. The median price of Las Vegas condos is up by an eye popping 30% from January 2016 and 19% since January this year.
In the rest of this video we will explain the reasons for these amazing price gains and talk about what we expect to happen in the Las Vegas real estate market in the future.
Let’s discuss the extremely low inventory of home, condos and town homes listing
This graph shows the historical inventory of Las Vegas homes and condos and town homes. See how the inventory of single family homes, which was tight already, has nosedived in 2017. While the inventory of home listings should rise in the spring and summer, as of June 15th it is at 5073 home listings in the MLS which is 34% less than January 2017 inventory.
As for condos and town homes we have 635 listings in all price ranges which is about half the inventory of only 5 months ago.
But the deal is that we are talking about abstract statistics, let’s translate it to English.
However if we combine the two, imagine a city with the population of 500,000 with less than 60 condo listings and 80 town home listing with strong demand. What do think will happen? The answer is double digit price appreciation in less than 5 months.
Now that we discussed the supply side, let’s discuss demand
Increasing demand in a tight Las Vegas real estate market
As you can see the year to date sales activity for homes is up by 10.6% from the past year while the same for condos and townhomes stands at 12.3%. However these numbers are much higher for May because now we are starting to get a rush due to escalating prices.
Put the much lower inventory with stronger demand and you get rising prices.
Spectacular median price appreciations for Las Vegas homes, condos and town homes in the past 18 month
This graph confirms what we showed in the beginning. The median price of Las Vegas homes is at $250,000 which is 9.2% higher than past May. However the combined median prices of condos and town homes is 24% higher than May, 2016.
Please check the bottom graphs, there is no letup in escalating prices and if anything they are accelerating. As we discussed above, this is due to a seemingly biblical listing famine.
If these price gains were based on normal inventory levels, we would tell you buy all you can. But these price appreciations are based on a starving market. In short term, we shall see more price hikes and another 10% by next June is not out of the question, but long term is suspect.
The reason that we don’t publish a housing market report every month is that there are only so many ways of explaining price gains due to shortage of listing inventory.
In that video we talked about how buyers who want to buy a home that is priced below the FHA loan limit of $287,500 will run into a buzz saw fight with multiple offers and rejected offers. Well, the Las Vegas real estate market got ahead of us and if you can buy a home that was selling for $200,000 in 2016 for $220,000 now, you have done very well.
Please like and share if you find the information useful.
On behalf of Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.
In this video we will talk about Las Vegas high rise condos median price appreciation rate since the recovery of 2011. This way we show how each individual tower has performed and the margins are wide, from 76.7% for the best appreciating tower to 11.3% for the two condo hotel projects.
Given that past performance is the best measure of future performance, towers that have appreciated best so far will probably do better than those that have not.
This table shows the median price per square foot for Las Vegas high rise condominiums sold through the Las Vegas MLS in 2011 through 2016 for projects starting with A-P. It also shows the median price gains from 2011 and from 2015.
Best appreciating high rise condo tower in Las Vegas
Let’s introduce the winner, and the winner is:
Metropolis: A little known boutique off-strip tower, which in our opinion has the best views of any tower in Las Vegas, comes first with a 76.7% price gain since 2011.
Closely following Metropolis are 2 loft style buildings which are located near the North Las Vegas Strip towards downtown Las Vegas.
The median price of Soho Lofts and Newport Lofts have gone up 72% and 64.3% respectively. These are some of the cheapest high rise condos for sale in Las Vegas and witnessed a lot of investor activity in 2011-2013. However, both lost value in 2016.
The next best performers were Panorama Towers at 57%, followed by One Queensridge Place, the most luxurious Las Vegas high rise condo towers, located in Summerlin at 54%. The rest of Las Vegas residential towers have appreciated from 23% to 47%.
You can find the link for the video transcript with the embedded table in the video as well as our contact form in the description below the video.
Deeper look at the median sales prices
Unfortunately this table doesn’t tell the whole story and a deeper understanding of underlying facts is necessary. For example:
Projects like One Las Vegas had sold a handful of condos before it was purchased by investors who rented their units until recently. On the other hand Park Towers have been selling just a few units and the sale of two more expensive condominiums raised the median price by 26%. Given that nothing happened to justify this one time price gain, we will ignore it.
Additionally, the playing field wasn’t even for all these projects and 3 towers had to sell new units while the rest were selling foreclosures and short sales at deep discounts.
The median sales price of Panorama Towers has appreciated by 57% from 2011 and the neighboring The Martin by 23%. Check out the sales prices in 2011, it was $172 for Panorama Towers in which 95 out of 130 units sold were foreclosure or short sales. However, The Martin was selling new units for $277 per square foot. The Martin gained value in 2016 while Panorama Towers lost value.
MGM City Center Mandarin Oriental Residences and Veer Towers sold a few luxury condominiums at introductory prices, and then price cuts came in 2012 and 2013. So we have calculated the median sales price gains for these from 2013.
The median prices for Mandarin Oriental and Veer Towers have appreciated by 21% and 21.7% since 2013. Barring the best performing Metropolis, their median price gains are far higher than all other projects since 2013.
The lowest Las Vegas high rise condos median price gains belong to condo hotels
The worst performing condo hotels were Trump International Hotel and Platinum Hotel with only an 11.3% price appreciation since the recovery of 2011. In both cases the median prices in 2016 have been lower than 2012 which is pretty bad.
With the exception of MGM Grand Signature Towers at 26.6%, other condo hotels did not surpass 15% in appreciation rates.
Don’t you think that the above information is necessary if you are planning to buy or sell? To our knowledge we are the only Las Vegas Realtors that have taken the time to research and make it available to public.
We hope that you find our video about Las Vegas high rise condos appreciation rates since recovery useful.
If you want to invest in, sell or buy Las Vegas high rise condos for sale please call us at 800-762-4917 or e-mail us. You can find our contact info below the video.
Please like and share 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.
Getting a great real estate deal is comprised of two equally important parts
1: Getting a great deal on the Las Vegas home, condo or high rise condo
2: Getting a great deal on the mortgage loan
The best possible real estate deal fails if the buyer is paying 1% higher interest than he/she should have.
Because one percent increase in interest rate roughly equals 10% price gain in real estate deals.
So buyers who need to finance should exercise due diligence in getting a mortgage loan as well as buying a property. In this video we talk about:
1: When real estate buyers should start the process of obtaining a mortgage loan in Las Vegas
2: Difference between pre-approved and under-written approved and why Las Vegas real estate buyers who need financing should become underwritten approved contingent on appraisal
3: The difference between simple interest rate and Annual Percentage Rate or APR
4: Why you should avoid out of state or online mortgage companies
5: Restrictions on financing a mortgage for Las Vegas condos and high rise condominiums
Let’s talk about underwritten approved contingent on property appraisal mortgage status
When Las Vegas real estate buyers start the mortgage process is as important as how they go about doing so. One of the deadliest errors buyers make is that they get a pre-approval from a mortgage officer before making offers and start the underwriting process under deadlines and with a gun to their head after getting their offer accepted.
Buyers who want to get the best possible deal from the seller should become underwritten approved contingent on appraisal for their deal or get as close to it as possible.
Let’s discuss the difference between pre-approved and under-written approved
Pre-qualification or pre-approval means there have been loan calculations made that show how much you “may” be able to borrow. While pre-approval can shorten processing time for home loans, indicating how much house you can afford, it doesn’t provide any leverage in bargaining with the home seller and it doesn’t necessarily guarantee that such a loan will in fact be made by the lender.
Under-written approval contingent on appraisal means you actually have a mortgage loan waiting “Subject only to finding the home, condo or high-rise condominium in Las Vegas and appraisal at the sales price”. The “underwritten-approval” letter represents an actual commitment on the part of the lender.
In order to secure such a letter it is necessary to complete a formal loan application and have your credit, salary, tax returns and bank funds checked. If the loan is a good investment, the lender will issue an underwritten-approval letter that provides a commitment for a limited period of time, subject to a satisfactory property appraisal and title search.
This way the buyers know how much they can afford and only need to meet the appraisal deadline, because they know they can close the deal quickly and without complications shortly after the appraisal report arrives.
Many mortgage officers refuse to do this but not the best ones. We have made it clear to mortgage officers whom we recommend to our clients, that this is what we want and a few are willing to do so. At any rate, one should try to get as close to underwritten approved as possible.
Let’s talk about different mortgage loan products
Mortgage loans have been designed for different groups of buyers and an FHA mortgage may not be the best option for some and a conventional loan may be better. It is usually best that US active Military and Veterans use a VA mortgage. You need an expert mortgage officer to explain all your options.
There have been changes to private mortgage insurance for FHA loans. Borrowers must pay MIP or (Mortgage Insurance Premium) for the life of the loan unless they put 10% down. And even with 10% down the borrower must pay it for 11 years. Home owners can save thousands in MIP by refinancing to conventional loans after they have paid down 20% of the loan.
Your choice of a great and knowledgeable mortgage officer in Las Vegas can save you thousands over the lifetime of your loan and we know a few that close deals quickly and can help you know which loan product will work best for you.
Let’s talk about advantages of becoming under-written approved
The reason that cash offers beat higher financing offers is the uncertainty on the seller’s part about the outcome. While prequalifying is easy, problems usually show up in the underwriting part of the mortgage process. This is the reason that many real estate deals fail, but cash offers close the deal.
Being underwritten approved removes much of this uncertainty, prevents problems at the time of escrow and gives your real estate agent or Realtor an effective weapon against competing cash buyers or other financing buyers who have not done so as well as the ability to ask for concessions from the seller. You better believe that we make sure that the home seller knows that our buyer is underwritten approved.
If you get nothing else out of our web-site and follow this one piece of advice, we have done our job as 90% of all problems that arise during escrow are mortgage related.
In one case we were assured by our client’s mortgage officer whom we advised our client to avoid that his loan will be funded in 48 hours only to find out later that it was a blatant lie and the loan papers were actually lost. This resulted in our buyer’s losing his earnest money deposit. Masoud had to go as high as Fannie Mae’s vice president to get half of our clients deposit back by forcefully begging for it repeatedly and he hates to beg.
Difference between simple interest rate and Annual Percentage Rate or APR
Needless to say when looking for mortgage loans the buyer should pay particular attention to Annual Percentage Rate or APR instead of simple interest rate, as APR includes other fees that are included by the lender and shows the total cost of the loan.
Why you should avoid out of state or online mortgage companies
One last issue about mortgage loans, do not go for online mortgage companies or out of state lenders and always follow your Realtor’s advice on who to pick. Foreclosure listings inventory in the Las Vegas MLS has been under 7% for the past couple of years, however an out of state lender asked one of his clients to put down 60% of the home price as down payment due to the high rate of foreclosures in the Valley. We gave them a list of five good mortgage officers in Las Vegas, they picked one who closed the deal with a 3.5% down payment FHA loan.
We have dealt with many mortgage officers and know who can close deals and more importantly who can’t. We refer many clients to mortgage officers and if something goes wrong we can pick up the phone and yell at them and they usually listen, since a loan officer would not care much about losing one person’s business but will care about losing many referrals from a good real estate agent.
Restrictions on financing Las Vegas condos and high rise condominiums
Lastly, while financing single family houses and town homes is easy, this is not the case for condos or high rise condos for sale in Las Vegas. Only a few banks finance high rise condos and in order to get a mortgage on a condominium the condo project has to meet strict guidelines like less than 50% of the units have to be owned by real estate investors and less than 15% of units should be 30 days delinquent in paying their home owner association fees. We know which condo communities are approved for a mortgage and better yet which lender will finance any condos in town including luxury high rise condos.
How recent changes in the Las Vegas Residential Purchase Agreement or RPA affect buyers who need to finance a mortgage
Greater Las Vegas home, condo or high rise condo buyers who need to finance a mortgage are now facing appraisal and mortgage deadlines due to recent changes in the Las Vegas Residential Purchase Agreement or RPA.
Up to October 2016 buyers who wanted to finance their mortgage did not face any deadlines to finalize and fund their mortgage loans until a few days before the contract expiration. If the mortgage was not ready, they would go to the seller and try to get an extension to the contract. If problems persisted, they obtained a rejection from the bank and canceled the deal while getting their earnest money deposit back. The home seller wasted a long time and ended up with nothing.
This is no longer true and the latest changes to the Greater Las Vegas Residential Purchase Agreement (RPA) require the buyer to give the seller a deadline to provide appraisals and to finalize the mortgage loan. Failure to meet these deadlines will result in the loss of earnest money deposit (EMD) if the buyer doesn’t renegotiate or cancel the deal before the deadline.
This is the appraisal contingency clause in the Las Vegas residential purchase agreement
As you can see in this appraisal contingency, buyers are required to set a deadline for the probability that the appraisal comes below purchase price. However, the buyer has to have an appraisal to begin with in order to see whether or not the appraisal is or isn’t lower than the offer price.
This is the loan contingency clause in the Las Vegas residential purchase agreement
“Buyer shall remove the loan contingency in writing, attempt to renegotiate, or cancel the RPA by providing written notice to the Seller no later than __a certain number of ____calendar days after Acceptance of the RPA; whereupon the EMD shall be released to the Buyer without the requirement of written authorization from Seller. IF this Residential Purchase Agreement is not cancelled, in writing on or before the Loan Contingency Deadline, Buyer shall be deemed to have waived the Loan Contingency.”
Now a buyer or their real estate agent, who has no control over the mortgage process, has to set deadlines that depend on an underwriter who answers to no one. This makes for big complications, for example it takes 8-10 days to get an appraisal for a VA loan, but if things go wrong no one is allowed to even contact them for 15 days. A bad solution is to be conservative and set longer periods to obtain the appraisal and finalizing the mortgage, except that sellers do not look kindly on this and could accept a contract with a shorter deadline.
Our solution is much better and it is getting under-written approved before making offers on a Las Vegas home for sale, condo or high rise condo. We will discuss this and much more in the next video called Mortgage Guide for Las Vegas homes, condos and high-rise buyers.
Please find the video blog post with embedded video here
Needless to say actions taken prior to making a good offer on Las Vegas homes, condos or high rise condominiums greatly influence how offers are written and their chances of success. In this video we assume that the buyer has followed our advice about what to do before making an offer. Especially getting close to underwritten approved if the buyer plans to finance.
In this video we will discuss:
Should the listing Realtor or the buyer’s agent put a value on the property?
Difference between asking price and property value, which the offer should be based on
Factors influencing the offer price
Our policy regarding making offers on behalf of our clients
Let’s talk about who should put a value on a Las Vegas home, condo or high rise condo
As far as buyers are concerned, we must be clear that it is the buyer’s agent and not the listing Realtor that should decide the property value and if the price is right come up with the best way to get the offer accepted. On several occasions we beat higher offers because our offer could appraise and we wrote a good clean offer with the situation and seller in mind.
Let’s talk about the asking list price:
The first issue is asking price: Putting an asking price on a property involves a strategy on the part of the seller and his listing Realtor to arrive at an acceptable sales price which is hopefully based on property value. Asking price could be unrealistically below market value in order to get an offer for an unapproved Las Vegas short sale home or condo which has no chance of getting approved at list price, or a bit higher than appraisal value in order to allow for discount or seller concessions asked by the buyer.
However this is not always followed, especially in Greater Las Vegas custom built luxury homes. We see highly unrealistic asking prices followed by hundred thousand dollar price drops. What it tells us is that the listing agent is clueless about putting a correct value on the luxury home. That is the reason that we do quick comps on all properties that we e-mail to our buyers in order to eliminate these.
In a market such as Las Vegas where prices have been going up at double digit rates due to tight inventory until 2016, when it appreciated by 7%, the majority of asking prices are higher than the property value and sellers play hardball due to continuing price appreciations.
In a depreciating Las Vegas real estate market there is obviously not going to be a lot of competition on offers made and we need to protect the buyer, thus the upper limit on the offer would be COMPS minus expected price decline and discount for a good deal. If the market is appreciating then COMPS become the lower limit for the offer.
Factors to take into account while making an offer
Let’s talk about what we take into account when preparing an offer on Las Vegas home, condo or high rise condominiums.
As the buyer’s Realtor we decide the property value based on comparable properties that have been sold recently while taking into account additional factors, such as:
1: Property condition: If the home or condo requires extensive repairs then a premium for buyer’s repair expenses and effort should be deducted. Additionally fixer uppers don’t qualify for a loan unless the buyer applies for a 203k construction loan to fix it. Fixer uppers or Las Vegas auction homes that have to sell for cash because they need repairs provide for some of the best deals to be found today.
2: Upgrades: The most important upgrade is flooring in living and wet areas, upgraded kitchen and pool. Depending on the age of the house we add about 25% to 35% of upgrade cost to the base price of the home or condo.
3: How many offers a property has: If the property has multiple offers, forget about low balling.
5: Attributes: Could be tangible like city, mountain or Strip views or a home fronting a golf course or intangible like a private backyard and in case of condos, a pool view.
6: Who the seller is. Is the seller willing to get into protracted negotiation? This depends on how many offers the property has and whether the seller is a private individual or a bank. Banks do not negotiate much especially on recently approved short sales or newly listed foreclosures.
Calculating the correct property value is easy in a calm real estate market which we have not seen for the past 10 years in Las Vegas.
How to write a purchase contract to get an offer accepted is another issue.
Given that only accepted offers lead to deals it is important to cover all bases in writing the contract.
So here is our policy regarding making offers on behalf of our clients.
We try to make the lowest possible offer for a Las Vegas home, condo or high rise that gives the buyer a good shot at getting the offer accepted.
We decide the property value and write a good, clean offer while being fully aware that we do not have any control over other buyers and their agents. If we get an acceptance then our buyer has gotten a good deal. If someone else decides to pay more than property value and we lose, too bad. We did the right thing and it didn’t pan out, that is life, we move over to the next home or condo or high rise.
If you want to buy, sell or invest in Las Vegas condos for sale please call us at 800-762-4917 or e-mail us. You can find our contact info below the video.
Please like and share 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.
Why buying Las Vegas homes in July could cost 10% more than February 2017 in the one of the tightest Las Vegas housing markets ever
Waiting on buying Las Vegas homes until summer when kids are out of school could cost the buyers at least 10% more than February 2017.
In this video we will show that historically the median price of Las Vegas homes for sale start to appreciate in February and stop appreciating in June. Then, home prices stay in a narrow range until the end of the year and actually going down a bit in December.
But 2016 was a little different and there was a significant gain in median price of Las Vegas homes in November and again in January 2017.
In this video we explain the reasons behind these unusual price gains and why this was the first signs of an upcoming perfect storm, starting in March 2017.
We didn’t discuss condos and townhomes because their appreciation pattern through the year is different than single family houses. However the Greater Las Vegas housing market has become much tighter for condos and townhomes as well.
We currently have about 900 condos and townhome for sale listings in Greater Las Vegas which has 1.8 million residents. This is an unbelievable 60% below past February’s listings inventory. Extremely low supply, in addition to a rush by real estate investors helped push the median price of town homes and condos up by 20% in the past year.
Las Vegas housing market will not change unless we get thousands of additional listings, so median price gains will continue.
Buying your home, condo or townhouse in Greater Las Vegas now could save you thousands of dollars. Call us at 702-478-7800 and we will help you start on the right path.
Please like and share buying Las Vegas homes in July could cost 10% more than now, if you find the information useful. It would help us in the rankings. Masoud
We are willing to bet that most home buyers don’t know that buying a home in Greater Las Vegas in July, when schools are out could cost them about 10% more than if they bought it in February 2017.
To show why, we discuss:
1: Inventory of active Las Vegas home listings in the MLS is down sharply in the past few months in a very tight Las Vegas housing market. Listings that are not under contract are called active listings.
2: We show the median price of Las Vegas houses versus sales activity for 2014, 2015 and 2016 to show that median prices for Las Vegas homes for sale start to appreciate in February and end in July after which prices remain flat.
3: We talk about why home prices below $300,000 should be up by 10% by July, 2017.
Let’s briefly discuss Las Vegas housing market statistics for January 2017
Active inventory of Las Vegas home listings in February, 2017
End of January 2017
All home listings
Homes priced below
Active inventory of Las Vegas
Home sale in Las Vegas
Active inventory by month
January, 2017 numbers are in and the median sales price of Las Vegas homes came in at about $240,000 which is the highest since the real estate recovery. Active inventory of houses for sale listings in the Las Vegas MLS was 6465 listings at the end of January, but dropped to 5840 listings by February 10th. 2093 houses were sold in January which puts our inventory at 2.8 months.
However 70% to 75% of home sales are priced below $300,000. And the active inventory of home listings for these is at about 1.7 months which is extremely low. This is a very scary number for buyer’s agents here.
Median price of Las Vegas homes versus active home listing inventory in the Las Vegas MLS
This chart shows the median price of Las Vegas homes since 2014 versus the number of active home for sale listings in the Las Vegas MLS.
Please note how the active inventory of Las Vegas home listings in the MLS has nosedived in the past few months and the inverse relationship between median sales price and listing inventory.
Now let’s talk about why buying a home in July should cost at least 10% more than now
Next graph shows the median price of Las Vegas homes versus home sales in 2014. Please pay attention to median home price appreciations. Also, note that sales for each month mostly represents offers that were accepted 30-45 days prior to closings.
Median home prices in Las Vegas was at $185,000 and after price appreciations in the subsequent 4 months it reached $200,000 and then prices fluctuated in a narrow range for the rest of the year.
Also note that home sales in Las Vegas increase significantly in March and start decreasing in October. March is coming.
The next chart shows the same in 2015. Again, we started the year with median price of $200,000, first price gain was in February, followed by bigger price gains until June when the median home prices in Las Vegas reached $220,000 and then it stayed in a narrow range. Buying in June cost the buyers about 10% more than it would have in January.
This chart shows the median price of Las Vegas homes versus home sales in 2016. Like the previous years the first home price gain came on time in February to $224,000 and by June it reached $235,000 and stayed in a narrow range until November 2016 and then we had what some call an unexpected price gain in November 2016 to $240,000 which was repeated in January 2017.
For an explanation see the median price of Las Vegas homes versus active inventory of listings in the Las Vegas MLS. This was due to a significant reduction in Las Vegas homes for sale listings since October 2016 and is responsible for this unexpected significant median price gain.
The demand for Las Vegas homes for sale will go up significantly in March as in the past couple of years. However the number of active listings is far below past February.
Las Vegas home buyers that want to buy a home that is priced below $300,000 will run into a buzz saw. Multiple offers are guaranteed for houses that are priced correctly and it will take an experienced Las Vegas Realtor who has been through this situation before and we have. We know how to get offers accepted in this kind of market.
Given the above facts, we see very quick home price appreciation for the next 4-5 months culminating in at least 10% home price gains for homes that are priced below $300,000 that cover most of FHA mortgage deals. Remember we said at least 10%, higher price gains are probable.
More expensive luxury homes that need jumbo loans will appreciate as well. However it will be much less than houses that can be purchased with an FHA loan.
We didn’t even mention probable increases in the interest rate for mortgage loans. Be warned that if interest rates increase by 1%, it is like home prices appreciating by 10% as far as mortgage payments are concerned.
Now you can see why we say that if you want to buy your home when the kids get out of school, it will cost you an extra arm and a leg. If you want to buy a home in Las Vegas do it now. Just pick up the phone and call us at 702-478-7800, we will handle the rest.
Please like and share if you find the information in Buying Las Vegas homes in July could cost 10% more than now useful.
Neighborhood LIFT down payment assistance program can be used in addition to other programs like WISH Funds
Yesterday I attended the Realtor event Wells Fargo put on to explain their re-launched Neighborhood LIFT down payment assistance program. LIFT stands for Let’s Invest for Tomorrow and is helping thousands of people get into homes with down payment assistance. This program was originally started in 2012 but has been re-launched with some modifications.
On March 3rd and 4th Wells Fargo is putting on an event for people to get qualified and put a reservation on down payment assistance money available through the program. You must be pre-approved for a first mortgage either through Wells Fargo or one of the other lenders that is certified with the program.
There is a list of documents you will need to bring to the event on www.wellsfargo.com/lift. They started taking reservations yesterday for the 500 spots available at the event to meet with them and get the reservation for your down payment funds and are filling up fast. They had 80 registered by yesterday afternoon. They held a press conference yesterday so you need to register quickly to reserve your funds.
You may be eligible for $2500-7500 depending on how much money you have to contribute for the down payment. It is a matching funds program similar to the WISH Funds. Your income must be under 80% of the area median income except veterans can be at 100% of the area median income to qualify.
The money you get acts as a silent second mortgage but it is forgivable over a three year period. First year 1/3 is forgiven, 2nd year 2/3 is forgiven and after the 3rd year it is 100% forgiven. Active military (attention Nellis Air Force base) that are transferred within the first three years are 100% forgiven.
You can layer this with the Home is Possible or WISH Funds down payment assistance programs also and get even more money for your closing costs. You can also use gift funds from family for your contribution to the down payment. You can buy a home or condo anywhere in the Las Vegas Valley including North Las Vegas, Las Vegas, Henderson and Clark County.
Contact us today for more information and we’ll be happy to explain the process and help you in any way we can.
Please like and share Neighborhood LIFT Event in Las Vegas offers down payment assistance.
This is Karen Saberzadeh of Realty ONE Group wishing you a great day.
PS: This is special blog post since I am not the author, Karen is. Masoud
$200,000 Mortgage loan Terms to buy Las Vegas home
For our example we picked a Las Vegas home with $200,000 mortgage and also picked the interest rate, Annual percentage Rate or APR and insurance from Las Vegas mortgage sites that are offering them today. Here is the 200,000 mortgage loan terms.
We found a $199,755 mortgage loan which we rounded up to $200,000. The mortgage loan terms are 30 year FHA loan with 3.25% interest rate, and we rounded 4.236 APR to 4.25% APR. Payment for interest and principal are $885 per month.
Total Monthly payments for $200,000 mortgage loan
The insurance rate for a $200,000 home is about $1800 which we added to the loan payment in addition to $1300 per year property tax and came up with about $1200 per month in total loan payments. Property tax for Las Vegas homes that are priced about $200,000 are in the $1000 to $1800 range, however the majority fall in the $1200-$1400 range, so we picked $1300 as a good estimate.
We made the following assumptions:
A: The average home price appreciation for Las Vegas homes in the next 10 years will be 3% per year
B: The average rental rate appreciation will be 4% per year
These rates are far below the appreciation rates for the past three years which we will discuss later.
Mortgage loan’s amortization table Plus home appreciation and rental rate escalation
The first column is the payment number, the second column shows 3% appreciation rate adjusted home value which we have added, beginning balance, ending balance, payment for interest, payments that go towards principal reduction, cumulative interest, cumulative payments, estimated total loan payment and finally 4% rental rate appreciation adjusted payments for years zero through ten. We stopped at year ten because the life of an FHA loan is about 7 years and many buyers are better off changing the loan to conventional after a few years.
Formula to calculate savings from buying a home in Las Vegas VS renting one
In order to figure the savings see the formula above the table.
Selling a house or condo will cost the seller about 8 to 10% of the home price, so if a home owner intends to hold the home for one year, then it is definitely better to rent than buy. If the owner intends to keep it for 2 years, then he/she is neither better off to rent or buy Las Vegas homes, however can save much headache by renting.
The home buyer is definitely better off buying a Las Vegas home instead of renting one if they intend to keep it for 3 years or more.
Total savings from buying a home surpasses $30,000 in savings if the seller wants to sell it after five years, including the 10% seller’s costs.
However, it should be noted that higher interest rates will cut down on the savings gained from buying a home and it will take longer to break even or to make a profit.
What if Las Vegas homes prices appreciate by 5% annually?
If home prices go up by 5% per year in the next three years, the home value at the end the third year raises to $231,525 for $42,085 equity in the home and total savings of $43,865 and even if the borrower sells it at the end of the third year they will end up with $20,686 in profit, while deducting $23,150 in seller’s costs.
To simplify the example of whether it is better to rent or buy Las Vegas homes or condos we assumed that the home is initially worth the loan amount which is not correct as down payment adds to the home value, however the difference in calculations is negligible. We did not take into account HOA fees or repairs as not all homes have a HOA fee or need repairs; however we neglected the renters insurance as well, because not all renters will get it.
We only assumed 4% rental rate escalation per year, while rental rate escalation for Las Vegas homes has been 6.7% and 6.3% in 2015 and 2016. We also conservatively assumed only 3% home price appreciation per year in Las Vegas while prices went up by 10% in 2015 and 6% in 2016 and we believe that 2017 will see more than a 6% price appreciation.
We wanted to give an updated and realistic example of whether it is better to rent or buy Las Vegas homes , however if you can get a better deal on the APR, put down more down payment or buy a $200,000 house that rents for more than $1200, then the savings become much bigger.
In our example the rental rate in year zero was equal to total rent payment, this is not true in lower price ranges. The difference between mortgage payments and rental rates are increased, so it takes much less time to be worse off renting than buying a Las Vegas condo or home..
Our table was mostly a mortgage amortization table that any mortgage loan officer can provide, we added the 3% per year appreciation adjusted home value and total rental costs ourselves.
So if you wanted to know should I rent or buy a home in Las Vegas, the answer is that if you plan to stay for more than 3 years, you should definitely buy. If you are going to stay for less than 2 years, you may be better off renting.
The reason that many rent rather than buy in Las Vegas is lack of down payment money, bad credit or ignorance of the benefits of buying versus renting. There are many programs that help first time or repeat home buyers which we explain in our Nevada first time home buyer assistance pages. For example Wish Funds can provide for up to $15,000 in down payment and closing costs. We can’t do much about bad credit, however there is free help available to help fix it and lastly those who do not want to make a commitment to buy a home or condo will not reap the benefit of ownership either.
We hope that you find this video about is it better to rent or buy Las Vegas homes or condos useful. If you are not sure about your situation call us and we will put you on the right path.
If you want to buy or invest in Las Vegas, Henderson or North Las Vegas homes, condos or town-homes, please call us at 800-762-4917. You can find the links for web-site and blog in the video description.
Please like and share.
On behalf of The Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.
Las Vegas high rise condo market in 2017 is a buyer’s market
In the Las Vegas high rise condo market in 2017 we have decided to only include high rise buildings that are taller than 12 stories.
Greater Las Vegas Realtor Association mixes regular condominiums and high rise condominium towers in their Las Vegas real estate market reports and provides one median price for all which is useless in both cases.
We have tried to fix this by only discussing only the 21 true high rise projects. You can find their name in the left column of our interactive Las Vegas high rise and mid-rise luxury condominium map . True high rise towers are shown with a star, City Center Veer Towers, Vadara and Residences in Mandarin Oriental Hotel are shown with tear drops and luxury mid-rise condos are shown by a diamond.
In this video we talk about:
The active inventory of Las Vegas high rise condominium listings in the Las Vegas MLS, including foreclosures and short sales
Las Vegas high rise condos active listings in Las Vegas MLS
The inventory of Las Vegas high rise condos listings in MLS which are not under contract stands at 459, the median asking list price for these listings is $446,000. Only 3 listings are foreclosures or bank owned and 3 are short sales in lower price ranges.
This table shows the median sales prices for Las Vegas high rise condo towers since 2011, which is really when the Las Vegas real estate market bottomed out, to 2016.
Las Vegas high rise condo sales
Median sales price
Foreclosure (bank Owned)
First, please note the large difference between the median asking list price at $446,000 and median sales price of $280,000 for high rise condominiums which is $166,000. This means that cheaper condo listings are selling in 2016 and this helps lower the median sales prices.
This table shows the median sales price of Las Vegas high rise condominiums that have sold through the Las Vegas MLS since 2011. As you can see, the median sales prices appreciated by 71% from 2011 to 2013 and then pretty much got stuck in the $320,000 to $330,000 range for 2014 to 2015 and went down in 2016.
Also note how foreclosure and short sale listings in the Las Vegas MLS evaporated like a puddle of water in Death Valley. The foreclosures and short sales share of high rise condominium sales has been 5.4% and 5% of total sales for the past two years. Most of these have been in lower price ranges and no one really talks about the negative effect of foreclosures and short sales on the Las Vegas high rise condo market in 2017.
There are many reasons for the lack of price appreciation in this sector. Chiefly among them is the competition from single family homes. Those who prefer condos can get an upgraded regular condominium that includes all the amenities, with condo fees that are less than a third of high rise condos.
Las Vegas high rise condominiums are the best fit for either a very wealthy buyer who uses it to declare Nevada residency to escape high state income taxes of other states like New York and California. Or high income professionals that work in or just love the excitement of the Las Vegas Strip and want to be close to it.
The Las Vegas high rise condo market is a buyer’s market and good deals are abundant.
In the next video we will talk about how much each of the high rise condominiums has appreciated since 2011, when Las Vegas real estate bottomed out.
This study is far more illuminating than this Las Vegas high rise condo market report and will show how each tower has performed and the margins are wide. The best appreciating Las Vegas condo tower is Metropolis at about 76.2% and the lowest was Trump International Hotel at 10.8% median price appreciation since 2011.
If you want to buy or invest in Las Vegas high rise condos for sale, please call us at 800-762-4917 or use the contact form.
Please like, share and subscribe to our Las Vegas real estate channel for upcoming videos. We no longer put all our videos on You Tube, so please visit our web-site and blog for our latest videos.
On behalf of The Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.
In this video we discuss what we do to find the best Las Vegas investment real estate for residential investors.
We talk about why looking in a small area of Greater Las Vegas doesn’t work as there may be better investment opportunities a block or mile away and what we are doing about this problem.
After finding the best priced listings, they have to evaluate further for rental income to sales price ratio as Las Vegas homes, condos and townhomes that are priced the same do not rent for the same amount. Different home owner association (HOA) fees and property taxes affect the cash flow, which we discuss here.
Lastly we talk about the Rent-Ability factor concept which you will not find anywhere else. Rent-ability factor measures how quickly homes in a sub-division rent. This is essential for cutting down on vacancy given that each month of vacancy drops the cash flow by 8.3% per year.
In this video we talked about how much work goes into finding the best Las Vegas investment real estate as far as homes, condo and townhomes are concerned. Additionally after all the work most listings go under contract at higher prices that we want. But listings that remain give the Las Vegas real estate investor the best priced home, condo and townhome with great rental income to sales price ratio and very little vacancy.
If you want to invest in Las Vegas real estate please call us at 702-478-7800.
In this video we will talk about how to find the best Las Vegas investment real estate as far as homes condos or townhomes are concerned.
The question every Las Vegas residential real estate investor has to answer is what is your expectation from investing in Las Vegas homes and condos?
Some may say I want to maximize my rental income since I want to hold on to my Las Vegas investment home or condo indefinitely, some may say future appreciation is more important to me because I want to cash out in a few years, or both.
However, what all investors will agree that they want is:
1: They want a good deal, they do not want to over pay for the investment property
2: They want the best net rental income to sales price ratio
3: They want to avoid vacancy
It took Masoud about 3 months of research to devise a system to satisfy all of the above which we will discuss with you below.
Let’s talk about how does one make sure that he or she is getting the best possible deal?
Not all homes are priced the same, some are priced at or may be a bit below current market value which is sometimes erroneously called appraisal value, and many far above it. Then, if a Las Vegas real estate investor finds a listing that seems to be good deal, how does he/she know that there isn’t a better listing a block, mile or 5 miles away?
To find the best Las Vegas investment real estate, one must look at a wide area. We track all home and condo listings that are suitable for investment in about 50% of the Greater Las Vegas Valley and filter them through a two-step process.
A: First we take a quick look at all listings that meet our criteria on a daily basis as we have done since 2011. Our familiarity with our area enables us to quickly eliminate the majority of these listings which are priced out of the current real estate market and keep listings that are priced right or close to it for the second step.
In the current Las Vegas real estate market homes or condominium listings that are initially priced right are hard to come by. We usually look for listings that have dropped out of escrow, keep track of borderline priced listings and wait for the price drop. The majority of these go under contract while we wait, however good listings can be found.
B: We do a careful comprehensive market analysis on the listings that are priced correctly to see which are priced the best.
So far we have discussed finding the best deals.
Step number two is evaluating Las Vegas homes or condominium listings as Las Vegas investment real estate
We take a careful look at rental comps for the listings, which is done to evaluate rental income for these listings. Las Vegas homes for sale or condos that are priced the same do not rent for the same amounts. Additionally home owner association or HOA fees could vary greatly and the ratio of rental rate to sales price varies. Only listings that generate the highest income pass this stage.
This allows us to compute a good estimate for rental income generated by a property.
Estimated rental income is used to compute a very good estimate of cash on cash return on the money after HOA fees and property tax .This separates us from any other real estate agents in Las Vegas and the United States.
We did not use the term cash flow because expenses and income tax rates vary with investors and to compute cash flow, expenses have to be known beforehand.
Let’s talk about the rent-ability factor concept
Rent-ability factor is a term that we have coined, and it measures how quickly a Las Vegas home or condo can be rented because not all homes or condos rent in the same time. Some rent very quickly and it takes other months before they can be rented.
A home that is rented in 15 days provides for 16.6% more cash flow than a home that is priced and rent for the same money which rents in 2.5 months. Additionally there is reason for some sub-divisions renting much faster than others; they offer something that others don’t. A home or condo that rents in 15 days get more stable renters than one that rents in 3 months, which frees the owner from going through the rental process and all expenses that come with it every year. We only email listings from sub-divisions that rent at least 50% of the listings in less than a month. This maximizes the investors chance of renting their property quickly thus avoiding vacancy and maximizing cash flow.
To our knowledge and amazement we couldn’t find this anywhere else as far as residential real estate investments are concerned.
How do we find the best Las Vegas residential investment real estate in Las Vegas?
The listings that pass all the stages are some of the best residential investment homes, condos or town homes in Las Vegas.
Needless to say it takes a great deal of time and effort on a daily basis to check out and keep up with all listings that are suitable for investment. Thus, these are highly propriety and will only be e-mailed to investors that register with us and want to buy right now.
Let’s discuss two video tutorials about investing in Las Vegas homes or condos that we have made for investors
If you are a Las Vegas residential real estate investor, we have two other videos that explain the whole process which you will find enlightening. These videos were recorded in 2011; but they are timeless because basic math is timeless. However, refrain from crying your eyes out when you see home prices back in 2011.
In the first video Masoud goes over a few home listings in the Las Vegas MLS that are priced similarly. These are the listings that Las Vegas Realtors e-mail to their clients. The point is that the information contained in these listings is totally insufficient to pick the best investment property.
In the second video we show the necessary information needed to pick the best listing and you will be surprised by the findings. We also debunk the fact about the best investment areas in Greater Las Vegas, like Summerlin and show that two condos, with the same floor plan and built by same builder across the street from each other offer totally different investment opportunities, one is great and the other not so good.
You can find the link for these in the blog post of this video.
If you want to buy, sell or invest in Las Vegas, Henderson or North Las Vegas homes, condo, town home, or high rise condominiums please call us at 800-762-4917 or e-mail us. You can find our contact info and web-site and blog URLS in the video description.
We hope that you liked our video about How do we identify the best Las Vegas investment real estate.
Please like, share 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.
Our prediction for Las Vegas real estate market in 2017: Double digit price gains for lower priced homes and condos, townhomes in a strong housing market
Our prediction for Las Vegas real estate market in 2017 is that it should be like 2016, except a bit stronger. The inventory of Las Vegas homes, condos and town homes in the Las Vegas MLS has been decreasing for the past couple of years and has reached the lowest levels.
This along with increasing sales numbers has resulted in the increasing median sale prices, especially for condos and town homes which are up by an incredible 20%. We explain why this happened and why we expect prices to increase further in 2017.
The reason that Las Vegas housing market should be better than 2016 is that banks are loosening lending restrictions and there is even discussions about Freddie Mac planning to buy subprime notes.
The fact that the median sales prices of Las Vegas homes is going up doesn’t apply to houses in all price ranges. We show why Las Vegas homes for sale that are priced higher than $425,000 which is the conventional loan limit are not appreciating.
This was a comprehensive discussion and our predictions for the Las Vegas housing market in 2017, where we not only tell you what is going to happen, but why it is happening.
The current web-site is 8 years old and obsolete, so I have decided to replace it with a cutting edge site that is far better than the current one. I do everything myself and that has taken all my free time. It should be done in about a month and then I will become much more involved in blogging and social media.
Please like and share if you find our article about the overview of Las Vegas real estate market in 2017 useful and subscribe to our Las Vegas real estate channel.
Belated Merry Christmas and we wish you the best year EVER. Happy New Year. Masoud