No double digit price appreciation for Las Vegas real estate market in 2016
Las Vegas real estate market has witnessed double digit appreciation for the past 4 years. However the median sales price appreciation has not been the same every month of the year; and as we explained in our last Las Vegas real estate housing market blog “at least in the past 3 years we have had a small price gain in February followed by bigger price appreciations in April through June and little fluctuations afterwards”.
In this video we provide a comprehensive discussion of the Las Vegas housing market in which we will not only tell you what is going in our market but the reasons for it.
One of the biggest factors in submitting an offer for a Las Vegas home or condo is the direction the Las Vegas real estate market is headed. Just knowing how much the median sales has increased or decreased per year doesn’t cut it. A Las Vegas Realtor should be well aware of the housing market in the client’s price range and adjust the offer accordingly. As we have shown here there are different market activities for different price ranges and months of the year.
So if Las Vegas homes or condos are priced below FHA loan limit and are the cheapest homes in the area, one can still expect to run into multiple offers situations. Higher priced homes or condos will take time to sell.
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.
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 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.
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 for homes has appreciated by 2% so far in 2016
In this video blog we talk about the Las Vegas real estate housing market for single family homes including Las Vegas foreclosures and short sales. 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 has appreciated since 2012, But by how much?
Las Vegas high condo 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.
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.
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.
Discrepancy in vacancy rates in Las Vegas commercial real estate market reports
acancy rates in Industrial, office or retail sectors in Las Vegas commercial real estate could vary by a few percentages depending on who is tracking the data and what they are tracking as we explain in this video
As we explained we use University of Nevada, Las Vegas real estate studies data which we find the most authoritative.
The median sales price for Las Vegas condos and town-homes appreciated by 8%-10% last year
In this video we take a look back at the Las Vegas real estate housing market for condos and town-homes in 2015 to show that the median sales price of Las Vegas Valley condos and town-homes, excluding high-rise condos have increased by 8%-10%. We also provide an overview the market for 2016.
We have shown that the median sales price of Las Vegas Valley condos and town-homes appreciated by about 8%-10% in 2015 and given the unusual market activity in December last year, barring surprises 2016 should be similar to past year.
We will talk about the varying vacancy rates in Greater Las Vegas commercial real estate.
We prove that median sales price for Greater Las Vegas homes appreciated by 9.6%-10% past year and overview of Las Vegas real estate market for 2016
In this video we take a look back at the Las Vegas housing market for single family homes in 2015 to show that the median sales price of Las Vegas Valley houses have increased by 9.4%-10% and not 6.4% as published in the newspaper articles. We also provide an overview for 2016.
We have shown that the median sales price of Las Vegas Valley homes appreciated by about 10% in 2015 and given the unusual market activity in December last year, barring surprises 2016 should be similar to 2015.
We will discuss the Las Vegas real estate market for condos and town-homes next.
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We showed that about 50% of Las Vegas, Henderson and North Las Vegas home buyers ended up with less than $10,000 in discounts. Approved short sales in very good or excellent condition, in lower price ranges offer the least discounts. But luxury homes that need a lot of repairs offer the most discounts.
Our goal was to educate Las Vegas properties buyer about short sales and even we can’t do a thorough job of it by a few short videos. However those who have seen this series know more about short sales than many real estate professionals.
In the first video we talked about the different ways of buying Las Vegas short sales that are listed in the Las Vegas MLS. They are approved short sales, unapproved short sales and short sales that sell through online auctions.
In the last video we also talked about how long does it take to close Las Vegas short sales deals?
And in the next video we will show you that about half of the buyers have gained less than $10,000 in discounts.
Then why do buyers still make offers on Las Vegas, Henderson or North Las Vegas homes or condos? In this video we will answer this question.
In this video we showed that the main reason for making offers on short sales is the big gap between asking and sales prices for non-distressed homes.
Even though this gap is smaller for Las Vegas foreclosures, Fannie Mae and Freddie Mac listings are initially listed at far above comparable sales and that is the reason for the price gap between asking prices and sold comps being twice as large for short sales.
In the next video we will discuss discounts gained by buying short sales.
We are Masoud and Karen Saberzadeh, Las Vegas Realtors and commercial real estate agent at Realty One Group and lasvegas4us.com.
We Are All One.
How long it takes to close different types of Las Vegas short sales homes deals?
This is the second blog post in the Las Vegas short sale home and condo buyer’s guide series.
In the last video we discussed the three types of Las Vegas short sales listings in the Las Vegas MLS, their difference with each other and with foreclosure or bank owned homes, condos and high-rise condos.
When a short sale offer is accepted by the seller, the buyer deposits the earnest money deposit or EMD and opens escrow. When the short sale is fully approved by the lender, the deal is consummated and escrow is closed.
In this video we talk about how long it to close the deal for pre-approved, unapproved and approved short sales. This includes those who run in online real estate auctions and the two combinations; bankruptcy short sales and probate short sales which require approval by courts in addition to the lender.
In this video we showed that regardless of the type of Las Vegas, Henderson or North Las Vegas short sale, the average escrow times are close to or longer than 3 months. We also showed that two out of three of the longest full approval or escrow times, both longer than one year, belonged to pre-approved short sales.
In the next video we will discuss why do Las Vegas home, condo or high-rise condo buyers still make offers on and buy short sales.
This is Masoud Saberzadeh, Las Vegas Realtor and commercial real estate agent at Realty One Group and lasvegas4us.com.
The difference between approved, un-approved Las Vegas short sales, auction short sales and Las Vegas foreclosures
Las Vegas short sales are the most misunderstood type of real estate deals and many Las Vegas homes, condos or high-rise condominium buyers or their Realtors do not really have a good understanding of the process, let alone were to look for the highest discounts or how to avoid the short sale trap.
Additionally there has been much talk about pre-approved short sales or how the process has become streamlined which is absolutely not true. So we have decided to do a series of blog and videos about the subject. In this first video we discuss the three different ways to buy Las Vegas, Henderson and North Las Vegas short sale homes, condos and high rise condos that are listed in Greater Las Vegas MLS, and the difference with buying Las Vegas foreclosures.
The main difference between Las Vegas short sales and foreclosure listings in the Las Vegas MLS is that in the case of the foreclosure, the lender has the title in hand. Other differences depend on the type of short sale which we will explain in this series. However the average escrow time which is the time from the acceptance of an offer by the seller to close of the deal are much longer than foreclosures.
In the next blog and video we will discuss the average wait time to get approval from the lender for each type of short sale listing.
This is Masoud Saberzadeh, Las Vegas Realtor and commercial real estate agent at Realty One Group and www.lasvegas4us.com.
Is it better to buy a Las Vegas home or condo or to rent one?
One of the hardest questions for perspective Las Vegas home or condo buyers is a simple one. Are they better off buying or renting? Well, the answer depends on several factors like how long they intend to stay at their residence, the direction of the Las Vegas real estate market, mortgage loan rates, affordability, etc. We discuss them all.
In this video we provided a short discussion of issues that should be considered in order to make an educated decision to buy or rent a home, condo, or townhome for sale in Las Vegas, Henderson or North Las Vegas as owner occupied buyers. We discuss investing in Las Vegas residential real estate separately in its own page.
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