Chris Miller Mesquite Nevada Real Estate Agent

The Confusion Continues in the Mesquite Market

11-18-08

Banks like Citigroup plan to renegotiate loans for those not yet behind.

Countrywide said today wait to contact us until you are three months behind.

During my most recent conversation regarding a listed short sale Countrywide said "we don't want any involvement until you have an offer" with no discussion of pricing the property.

The Tarp plan has changed directions and no one understands where it is going or who it will help. As the de-leveraging continues and prices fall, foreclosures and defaults increase and it remains impossible to know the full extent of the losses or how long this will continue. Unemployment is a looming nasty wildcard. Banks vow to help millions of families, but can they really make those high dollar mortgages affordable or will they just prolong the pain and postpone the inevitable? Renegotiating much of the secondary market paper will be impossible.

Some banks continue to take weeks to respond to offers, and list REO properties at above market value prices. No one knows for sure who is holding all the bad assets or how bad they will become. Some banks will just write off the losses while others plan to pursue collection efforts and default judgments after short sales and foreclosures. Many second position lenders and PMI companies are exposed to (100%) loses. Wall Street is clearly worried along with the economies around the entire world.

Prices are coming down dramatically on some properties, and yet some cash buyers continue to pay 2006 prices on other properties. It must be either; buyers who are completely uninformed about the market and unrepresented or else they found the only home that fits their exact needs and makes them feel the best. With such erratic prices dual agency for agents will become far more dangerous.

Many properties will have to be sold now to raise cash. All this uncertainty is paralyzing most buyers at a time when they should be laying out their plan to take advantage of the margin call properties going on sale.

The one thing that does make sense right now is that the lenders do have money to lend at very favorable rates for those with a down payment, good credit, and the ability to repay.

Chris W. Miller

ERA Brokers Consolidated

Mesquite NV 89027

702- 346-7200

435-862-5951

Mesquite Market Quarterly

10-31-08

39 total single family homes closed with an average sales price of $271,986 or $151 per square foot, 26 of these were existing homes at an average price of $263,968 or $153 per foot. The balance of 13 was listed as new homes and averaged $288,023 or $146 per foot. The builders have taken out 303 building permits year to date, while Mesquite MLS shows less than 150 homes sold and closed. Inventory of all property types remains at historic highs.

10 condominium units closed and 9 town home units closed during the quarter. No single family lots sold. No commercial lots sold. No vacant land parcels sold. One commercial building sold to the City of Mesquite. It appears there is roughly 200,000 square feet of vacant office/retail/light industrial warehouse type space available all over town as builders continue to add to the supply. The number of total pending units as listed in the Mesquite MLS was around 13 at the end of the third quarter; during 2005 and 2006 it was averaging around 100 at any given time.

58 Notice of defaults were filed with Clark County, representing every property type in the city, from small condo units to large luxury golf front homes and whole subdivisions. Banks are not putting this inventory into the market at any where near the pace they are getting it back, and asking prices do not reflect true write downs, yet! The rental market remains soft as vacancy rates remain high and rents come down on all property types.

Looking forward buyer sentiment will be the key; it is tough to put a value on personal financial security. Many retiring buyers are reluctant to make large financial commitments or mortgage their futures. While nationally the ratio of income to home price reached 3.6 times last year, Mesquite was 5 to 7 times local median income on the average home. I expect nationally this number will drop back below 3, as underwriting standards tighten and buyers realize they must live within their means. Every trend line points to lower future prices across the board.

Please remember to call me when planning a visit to Mesquite. I will give you a current market update and a tour, Thanks Chris Miller 435-862-5951

Chris W. Miller

ERA Brokers Consolidated

Mesquite NV 89027

702- 346-7200

435-862-5951

Do You Take It Personally?

10-05-08

Real Estate, Wall Street, Washington DC, Capitalism, Free Markets, Families, and Business.

All are caught up in the current market crisis and all are made up of individuals.

What foundations do they all stand on? What can we really count on, for sure?

The Boy Scouts Oath says "On my honor, I will do my best To do my duty to God and my country and to obey the Scout law; To help other people at all times; To keep myself physically strong, mentally awake, and morally straight".

Scouts Law says; "A Scout is Trustworthy, Loyal, Helpful, Friendly, Courteous, Kind, Obedient, Cheerful, Thrifty, Brave, Clean, and Reverent".

As the financial crisis deepens the greed turns to fear, creating real pain, and hopeless individuals. Information and miss-information travel at the speed of light. The world has become a very complicated, fast moving, scary place.

We may be headed into challenges that could bring us to our knees. There are few places worse than being hopeless. Right now it is tough to be honest because things look bad, uncertain, and fearful. So many fronts, so many issues, so much of the bad in men, the bible is clear about these things.

Our strength and future as a Nation and as a World can be nothing more than the strength and future of us all collectively, each individual is responsible. Every company employs individuals, each company is run by individuals, Washington and the government is made up of individuals. The Boy Scouts take it personally as individuals.

The real estate cycle will settle down, this cycle will hurt the largest number of people by the largest amount of money ever, for at least a few years, around the entire Globe. It was driven by greed and fueled by money supply. Real estate values were clearly inflated in value by fed policy, risky speculative investing, and leverage. Consumers waded deep into debt believing it was real estate appreciation and that it would never end. Excessive everything has become perceived as a necessity. The price tag will be high.

It is estimated we need to add at least a million homes per year to the supply just to keep up with new demand each year. The markets will absorb the supply. The money lenders will come back into the free market and find the fair market of the time value of money. There are plenty of dollars around the world that need to be put to work.

We regularly see natural disasters that literally take everything from families, and there is a world of people who literally have nothing. Some will say, nothing is far better than the debt Americans are faced with today. The up coming election is about spending our money as much as it is any other issue.

We as individuals must accept personal responsibility for our debt, both personally and as a nation. It is OUR country, OUR national debt, and OUR future.

Perspective about the worth we place on things like our cars, and homes. Do we value them as shelter and transportation? Do we covet them for other reasons? Is appearance more important than prudence?

Values in the Boy Scouts are about character. Values in our lives are not about dollars or gold, they are about taking it personally. If the market is getting you down or the world is scaring you, take heart the Boy Scouts are here.

We may disagree on many things, but few can disagree with living our lives individually based on sound values, one and all. They can not legislate our personal values, it is an individual thing. Washington, DC and clearly Wall Street seem to suffer from a lack of personal values.

The alcoholic prays "God grant me the serenity to accept the things I can not change, the courage to change the things I can, and the wisdom to know the difference". They take it personally, they knew hopeless.

Many of the families facing foreclosure and bankruptcy were bathing in the excesses not long ago. Many more innocent people are caught up in this mess. The market and the news surrounding it, is likely going to get worse.

Perspective is needed on values, what is really important, valuable, necessary, and required to be happy and productive. A page from the Scouts, being helpful to others and humility will help us all.

The world can be a better place, we can solve the problems, and we can all do a better job at living our lives by our own values. Children can be taught personal values. We have faced much bigger challenges.

If you are feeling hopeless, count your blessings and go find someone who needs a hand.

Chris W. Miller

ERA Brokers Consolidated

Mesquite NV 89027

702- 346-7200

435-862-5951

Water Rights

09-27-08

Water for sale in bottles has become as common as soda pop. If you stop in at the corner convenience store you will pay around $2 for a quart of plain old water. That is $8 a gallon, and we thought gas was expensive!

Nevada water rights are currently available for sale at around $6000 per acre foot, an acre foot is 325,829 gallons per year.

For more information about water rights in Nevada and the opportunity to own this limited resource, which is selling for more than oil already at the convenience store, contact me!

Chris W. Miller

ERA Brokers Consolidated

Mesquite NV 89027

702- 346-7200

435-862-5951