Video transcript: Overview of Las Vegas high rise condo market in 2017

This is video transcript of Overview of Las Vegas high rise condo market in 2017 Video

Overview of Las Vegas high rise condo market in 2017

In Overview of Las Vegas high rise condo market in 2017 we discuss:

1: The active inventory of Las Vegas high rise condos listings in the MLS that are not under contract

2: Number of foreclosure and short sale high rise condominium listings

3: Median sales prices of Las Vegas high rise condo towers from 2011 to 2016

4: Big discrepancy between median asking list and median sales prices

5: Why high rise condos prices haven’t been increasing

6: Conclusion

Please note that in order to separate true towers from midrise luxury condos in Las Vegas; we call buildings that are taller than 12 stories high-rise and shorter than 12 stories mid-rise.

This market report is concerned with true high rise towers and you can see their list in the left column of the Interactive Las Vegas high rise and midrise luxury condo map.

All Listings Median asking list price Traditional sale Foreclosures Short Sales
Las Vegas high rise condos active listings in Las Vegas MLS 459 $446,000 453 3 3

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 All Listings Median sales price Traditional sale Foreclosure (bank Owned) Short Sale
2016 681 $280,000 647 20 14
2015 607 $320,000 574 15 18
2014 575 $330,000 513 32 32
2013 678 $322,000 567 31 80
2012 724 $227,000 480 82 162
2011 755 $188,000 265 180 310

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.

Turnberry Towers median price has appreciated by 36.8% from 2011
Turnberry Towers median price has appreciated by 36.8% from 2011

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.

This was an update on Las Vegas high rise condo market 2016

How to identify the best Las Vegas investment real estate? Video

This is the third video in the invest in Las Vegas real estate series

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.

Click To see video transcript of how do we identify the best Las Vegas investment real estate? With all embedded data

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.

Video Transcript: How do we identify the best Las Vegas investment real estate?

This is a video transcript of How do we identify the best Las Vegas investment real estate?

This is the third video in invest in Las Vegas real estate series

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.

Image of a Las Vegas investment home
Las Vegas investment home
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 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.

Back to the How do we identify the best Las Vegas investment real estate? video page

Overview of Las Vegas real estate market in 2017-Video

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 homes that are priced higher than $425,000 which is the conventional loan limit are not appreciating.

This is the video transcript for overview of Las Vegas real estate market in 2017-Video with all embedded data.

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

Video transcript: Overview of Las Vegas real estate market in 2017

This is the video transcript of overview of Las Vegas real estate market in 2017

In Overview of Las Vegas real estate market in 2017 video we will discuss:

1: Decreasing inventory of Las Vegas homes, condos and town homes listings that are listed in the Las Vegas MLS.

2: Significant increase in sales activity for homes and especially condos and town homes.

3: The effect of decreasing inventory of active listings and increasing market activity on the median sales prices of Las Vegas houses, condominiums and townhomes , especially for condos and townhomes.

4: Median days on the market for lower priced homes versus homes that are priced above $425,000 which is the conventional loan limit to show that competition for luxury homes is not as fierce as lower priced houses.

4: Why the median sales price gains are not universal and don’t apply to luxury homes.

5: Finally our prediction for the Las Vegas real estate market in 2017.

A few years ago foreclosures and short sales were the dominant factor in the Las Vegas real estate market. But in the past couple of years the shortage of active Las Vegas homes, condos or townhomes listings in the Las Vegas MLS along with severe shortage of auction properties has been the controlling factor in the Las Vegas housing market. Active listings refer to listings that are not under contract.

Active Inventory of Las Vegas homes, condos and townhomes in Las Vegas MLS is hitting record lows in December 2016
Active Inventory of Las Vegas homes, condos and townhomes in Las Vegas MLS is hitting record lows in December 2016

We are writing this report on December 26th and active inventory of Las Vegas home listings stands at 6,150. At the end of November we had 7,252 listings and that was 30.3% below November of the previous year. We currently have 980 condo and townhome active listings in the Las Vegas MLS. At the end of November we had 1,141 and that was 49% below the past November.

Needless to say, Las Vegas home sellers are not rushing to sell their property, especially in November and December and these numbers will go up starting in January, 2017. However, the 12 months rolling averages for single family homes is down by 13% from 2015 and condo inventory is down by 23% as well.

The inventory of active listings for Las Vegas homes is at 2.6 months and townhomes and condos stand at 1.6 month in end of November 2016
The inventory of active listings for Las Vegas homes is at 2.6 months and townhomes and condos stand at 1.6 month in end of November 2016

6 months’ supply of homes and condo listings that are not under contract is considered normal. By the end of November the inventory of single family homes in Las Vegas at 2.6 months was down by 36.6% from November 2015 and the same for condos and townhomes was at 1.9 months and was down by an unbelievable 56.8% from the past year.

As we discussed in the Las Vegas real estate market September 2016, about 70% of Las Vegas real estate market activity goes to Las Vegas homes that are priced below the FHA loan limit of $287,500. Of 6,150 listings that are not under contract on December 26th, only 2,600 are priced below the FHA loan limit.  1,700 out of 2,535 homes sold in November were priced below the FHA loan limit. That puts the active inventory of these at about 1.5 months which is extremely low.

Sales numbers for Las Vegas homes, condos and townhomes have been higher than 2015
Sales numbers for Las Vegas homes, condos and townhomes have been higher than 2015

The next number that seriously got our attention was the 2,535 home sales in Greater Las Vegas in November. This number is 31.8% higher than November 2015. Condo and townhomes sales are closely behind with 31.2% increase in market activity.

We have seen too much up and down to really get excited about these numbers. However, this is a strong signal about the strength of the Las Vegas housing market in 2017.

Year to date rolling averages for Greater Las Vegas single family home sales are 6.7% ahead of the previous year and condos and townhomes are 16% ahead of the previous year.

At the end of November 2016 the median sales price of Las Vegas homes is up by 7.8%, condos and townhomes appreciated by 20%
At the end of November 2016 the median sales price of Las Vegas homes is up by 7.8%, condos and townhomes appreciated by 20%

Needless to say the laws of supply and demand rule supreme and shortage of listings along with stronger demand has resulted in increasing median sales prices of Las Vegas homes, condominiums and townhomes.

The median sales price for single family homes at $240,000 is up by 7.9% so far in 2016, however the median sales price for under-performing condos and town homes at $120,000 is up by an incredible 20% in the past year.

Aside from the chronic shortage of Greater Las Vegas condos and townhomes, increased Las Vegas real estate investor activity has pushed prices up. Las Vegas condos and townhomes still provide for 1% to 2% higher cash flow than good single family homes. They are far cheaper than houses as well and investors who are shut out of the single family home market due to higher prices are buying condos and townhomes.

Let’s talk about why the median sale price gains don’t apply to all price ranges

The median sales prices that we have discussed include all homes in all price ranges. One of the biggest mistakes that less knowledgeable Realtors make is to think that median sales price gains are universal and if it is up by 7%, they need to raise asking list prices for more expensive houses and condominiums.

We see $100,000 price drops for some of these listings, followed by more price drops. All that tells us is that the listing Realtor had no idea how to price their listings. When a home or condo is on the market for a while and has several price drops, all it attracts is vultures with seriously lowball offers, thus losing the seller tens of thousands of dollars.

Median days to sell Las Vegas luxury homes is 3 to 4 longer than houses priced $150,000 to $250,000
Median days to sell Las Vegas luxury homes is 3 to 4 longer than houses priced $150,000 to $250,000

This graph shows days on market before going under contract for Greater Las Vegas homes. Check out how quickly homes that are priced below $300,000 which is close to the FHA loan limit go under contract. Houses that are priced from $150,000 to $250,000 have been going under contract in less than 20 days and if priced right with multiple offers.

The next price point is $425,000 which is the conventional loan limit. Houses that are priced in the $450,000 range sell in about 40 days and days on the market go up to 60 days for luxury homes that priced $900,000 to 1 million dollars and 80 days for multimillion dollar mansions.

Given the lack of fierce competition, Las Vegas homes that are priced over the conventional loan limit do not appreciate like the former.

Next graph shows median sales price gains for homes that are priced below the FHA loan limit for 2016. It started at $194,250 and ended at $206,000 for a 6% price gain.

Median sales price for homes priced below FHA loan limit of $287,000 has increased by 6% in 2016
Median sales price for homes priced below FHA loan limit of $287,000 has increased by 6% in 2016

Now check out the median sales price of homes that sold for more than the conventional loan limit. It was at $548,000 in January 2016, went down to about $520,000 in the summer of 2016 went up to $550,000 for one month and is right back in the $525,000 range. As you can see there is very little price gain in this range.

Median sales price for homes priced higher than conventional loan limit of $425,000 has not appreciated in 2016
Median sales price for homes priced higher than conventional loan limit of $425,000 has not appreciated in 2016
What is the overview of the Las Vegas real estate market in 2017?

Barring a significant increase in the number of active listings in the Las Vegas MLS, which there are no signs of, the Las Vegas real estate market in 2017 will be similar to 2016.

If you are planning to buy a home that is priced below the FHA loan limit, especially in the $150,000 to $250,000 price range, then we predict that you will be paying at least 10% more by the winter of 2017.

However, homes that are priced above the conventional loan limit will see little price appreciation. If financing is involved, the FED has raised the interest rates by a quarter of a point and is planning further interest rate increases this year. Beware that a 1% increase in interest rates roughly equals 10% sales price appreciation.

As far as Las Vegas condos and town homes are concerned, prices will keep appreciating until cash flow gained from investing in them comes down a couple of points. Another 10% or more in price gains in 2017 will not be surprising at all. We have discussed the Las Vegas high rise condo market separately.

Lastly if the previous Las Vegas real estate markets are a guide, the first price gain will come in February 2017, followed by bigger price gains in April through July. So if you want to buy a house, condominium or townhome, you will be far better off buying before March 2017.

We hope that you LIKED our video about the Overview of Las Vegas real estate market in 2017 and find us worthy of your business.

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.

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 Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.

Back to the  Overview of Las Vegas real estate market in 2017 Video Page

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 720 HD to see the data better.

Click To see video transcript of Las Vegas real estate market, housing September 2016 with all embedded data

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.

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

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.

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

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.

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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.

Foreclosure home in Henderson, Las Vegas
Foreclosure home in Henderson, Las Vegas

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 Las Vegas real estate housing market April 2016 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

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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.

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