July Las Vegas Market Condition Report

HAPPY SUMMER EVERYONE!!

I hope you all had a wonderful 4th of July celebrating another year of freedom. Dana, Carter and I went to San Diego for the weekend to visit family and saw almost an hour of fireworks on the bay. Carter (2 1/2) declared that he "loves firecrackers."

I have the July report for your viewing pleasure. If you'd like me to send it, please e-mail me back. What we're seeing is inventory that's almost as low as our boom years. We now have below 9000 single family homes for sale. Buyers are scrambling to get into a property since prices have become so affordable and rates are still very low. Investors are also competing with these buyers because rents are far exceeding the cost of the property. Bank owned homes still comprise the majority of our sold properties (over 80%), with short sales selling about 10% and non-distressed homes making up the difference.

We're unsure how many homes in Las Vegas are being held by the banks and not yet released to the market. We know they have them because we can monitor how many are in the NOD (notice of default) stage. We're unsure why they wouldn't release them in a steady manor except to generalize and say the more they release the lower the prices. With all the government programs and funding being thrown around, I'm sure there's something going on that's more beneficial to the banks, but there's no consensus on what that is. If you have your theories, I'd love to hear them. It's a dialogue I have almost daily with people.

We do believe that the banks are working more diligently with homeowners who are upside down. This problem seems to be getting worse as layoffs increase and homeowners are frustrated with being underwater 30%-50% in our market. If you or anyone you know is having thoughts but is unsure of what to do, I have a couple of suggestions. We know two lawfirms that have an excellent track record and they will consult with the homeowner. One charges $200 for the initial consultation. The idea is you want advice that benefits you, not the lawyer, loan mod company or real estate agent. Advice that is clear with an action plan that you can feel good about. If you're having trouble sleeping at night because you're worried about your future, give me a call to at least discuss some of your options. You do have options. If you're a buyer or investor and you're sitting on the sideline waiting for the masses to declare NOW is the time, why are you waiting, what sign are you looking for? Investors, if it cash flows, isn't that what you're looking for? Yes, it may drop another 5% or maybe even 10% but at these prices, we think you can make that up by the interest rate you'll be getting if you buy today compared with next year.

Anyways, enjoy your summer with family and friends, and consider me as your real estate advisor in these difficult times.