Nevada heads population growth once again

Nevada has been in the news a lot lately for problematic reasons related to the mortgage industry and residential real estate issues. But after a long drought it again has something to cheer about. It once more is the fastest-growing state in the union, after being edged out last year by Arizona. The official growth rate is 2.9% for the calendar year closing out July 1, bringing its total population to over 2.56 million, as was reported by the Census Bureau.

The trend is expected to follow the same path in the coming years. Clark County, home to Las Vegas, holds well over 70% of the state's population and is its growth engine. Currently there are several mega resorts and condominium projects under construction or will soon break ground on or near the Strip that will add thousands of jobs and bring more people to the valley, according to UNLV's Center for Business and Economic Research.

In the national growth picture Arizona claimed second place with 2.8% rate, leaving it only a half step behind Nevada, so the race is close. Western states continued to show their attraction power as Utah and Idaho took the next two spots on the list.

Las Vegas housing market has been suffering lately from overbuilding and this favorable population growth trend will undoubtedly provide a catalyst to pull it out of the morass. As builders are cutting back the supply is diminishing and new arrivals will help improve the demand side which then will bring more balance to the equation. And perhaps even start putting upward pressure on prices.

Platinum Condominium

http://www.buyintovegas.com/Listing/VirtualTour.aspx?ListingID=1200449

Buy this Platinum Condo/Hotel minutes from the Strip and the owner will contribute $130,000 towards your next 2 years payments and still enjoy the rental income.

Price $600,000

Fed might cut rates next week

The next phase of the subprime workout plan could come next week, when the U.S. Federal Reserve Board is widely expected to cut its benchmark federal funds rate to 4 per cent.

In a statement, Fed chief Ben Bernanke called the mortgage rate freeze a “welcome step

One Las Vegas

• Location: South Las Vegas Blvd
• Bldg. Type: Condo/High Rise
• No. of Towers: 5
• No. of Stories: 18-20
• No. of Units: 961
• Unit Sizes: One, Two. And Three bedrooms
• Price Range: $275K -$1 million
• Square Footage: 831 sf -2857 sf
• Status: Pre Construction sales – Phase II
• Estimated Break Ground Date: Broke Ground APRIL 2006
• Estimated Completion Date: Phase I (TOWER I AND II) LATE 2007, Phase II (TOWER III) Early 2008, Final 2010
• Developer: AmLand Development B.S.R. Group
• Renderings: Click Here
• Official Website: http://www.one-lasvegas.com


Project Amenities
• On-site concierge service and valet service
• On-site maintenance personnel
• Two guard gated entrances with 24/7 attendants and roaming security
• Two pools with lush tropical landscaping, private cabanas and outdoor hot tubs
• Lighted tennis and basketball court
• half mile fitness trail perfect for walking or running
• Landscaped open spaces with event areas
• State-of-the-art health and fitness facility
• Party and special event rooms
• Billiards room and multi media theater room
• Controlled access to assigned garage parking
• Large garage accessed storage units available

Project Status
• SALES: FINAL SALE TOWER I AND II
• CONSTRUCTION: grading, excavation and underground utility work at the site
• RESERVATIONS START AT: $450k WITH AVERAGE PRICE AT $500 TO $520 PER SQUARE FOOT
• AGENT CO-OP: 3%
• DEPOSIT SCHEDULE: 15% DEPOSIT IMMEDIATE CONTRACT
• HOA FEES:Estimated at $0.37 per square foot/per month



Developer Bio
AmLand and B.S.R. Group have come to together to create their vision, with both International and Local reputations behind them.
B.S.R Group has nearly four decades of building and engineering experience in the international real estate market. B.S.R Group has a strong reputation for making large-scale real estate projects a reality. Their accomplishments include Waterfront Square in Philadelphia, the Icon Toyota Tower in Tel Aviv, and the Osiedle Europejskie in Krakow, Poland. B.S.R Group has entered the US market with plans to build high rises on an even grander scale.
Wayne Krygier and Chet Nichols of AmLand Development are established in the Las Vegas market after successfully pioneering urban condo living in the South Las Vegas Strip area with the development of Park Avenue. The success of this project has prompted expansion with additional buildings under construction. AmLand Development is also responsible for the Vila di Lago project at Lake Las Vegas, which was recognized by the National Association of Home Builders as the official New American Home Partnered, AmLand's expertise and local resources and B.S.R Group's engineering strengths and financial resources form a strong alliance. Added to the probable success of this project, is the phenomenal growth of the South Las Vegas Boulevard. area with residential, retail, commercial and casino projects underway and a projected population growth of over 37% over the next five years.

Project Description
The master plan calls for five 18- to 21-story private residential towers, 200-room boutique hotel and 200-unit condo-hotel to be operated by the same company, a 20,000-square-foot health club and spa, two restaurants and retail services.
ONE Las Vegas is designed with balance, creating a community that caters to the uniqueness of Las Vegas and the lifestyles of people who live here.
ONE Las Vegas, planned in one of the fastest growing areas in Las Vegas, is expected to provide its homeowners the luxury of living on the Las Vegas Strip while also offering the convenience of community services, shopping and the airport. Urban living with resort style pools, health and fitness club, and lush gardens, the ONE Las Vegas community is designed with luxury inside and out for balance in life.
Residents of ONE Las Vegas will enjoy spacious and sophisticated lifestyle condominiums in a superior location, featuring a wealth of luxury resort style amenities and contemporary designs.

Project Financing
$142 million first phase financing for One Las Vegas has been in place for weeks with Corus Bank of Chicag

Builders Say "yes"

Builders are sparing little expense in a bid to entice hesitant buyers into a soft housing market.

Virtually every major builder in the Las Vegas Valley has pushed big sales this fall, and the price breaks have been steep.

Pulte Homes marked down prices 15 percent on certain models, with discounts of up to $80,000 on some completed new homes during one October weekend. The builder's Del Webb subsidiary sliced $55,000 from some of its asking prices. Rhodes Homes has offered as much as $100,000 off on finished houses. Lennar Corp. has slashed prices on some models by about a third; Lennar cut the cost of a 5,000-square-foot home in its Earlstone community from $911,490 to $662,490, and a 4,498-square-foot home in its Silver Creek subdivision went from $807,290 to $612,290. Centex Homes has clipped $25,000 to $100,000 off the prices of some of its existing homes, and is ponying up as much as $21,000 in closing costs on some models. American West Homes' valleywide "liquidation sale" on Nov. 10 and Nov. 11 featured savings of up to $143,000.

So are the sales boosting traffic and clearing inventory?

Builders say yes.

After Astoria Homes dropped prices on standing inventory by as much as $200,000, or 27 percent, Oct. 12-14, traffic at least doubled across the board at Astoria communities, and even tripled in some cases, said Tom McCormick, the company's president.

The sale helped make October Astoria's best sales month since 2005. The builder averaged about four sales per neighborhood during its discount weekend, compared with an average of half a sale to a sale per week before the price cuts.

Astoria's available inventory dropped from eight weeks or 10 weeks of supply to around four weeks or six weeks. The sales are "sticking," too, McCormick said, with a cancellation rate of 10 percent, down from about 30 percent before the sale.

Astoria hedged its bets by accepting only buyers who didn't need to sell existing homes to close the deal.

Pulte Homes had an "exceptional" weekend during its "Monster Sale" Oct. 19-21, said Nick Parks, the builder's local director of marketing. Sales doubled when compared with the four prior weekends.

"It's a new market, and you need to provide the consumer with new value propositions to be successful today," Parks said.

"There are people out there who need homes and want to buy homes, and I think our success with the Monster Sale demonstrates that there is consumer confidence in the market if they're provided the right value proposition.

"Generally, it's a positive indicator that the market isn't as depressed as some want us to believe."

Numbers from tracking and consulting firm Home Builders Research show steady increases in new-home sales in the fall, as builders intensified their cost cutting.

The local market moved nearly twice the number of homes during the week ended Nov. 11 as it sold the week ended Aug. 12, an increase Home Builders Research President Dennis Smith attributed to widespread, continuing sales.

Companies that haven't held or advertised sales are not reporting significant increases in purchases.

D.R. Horton, which hasn't publicized any sale-price reductions, has 42 local new-home subdivisions and posted net sales of just four homes in the week ended Nov. 11 and two homes in the week ended Oct. 14, Home Builders Research found. And despite total traffic through models of between 500 and 600 people weekly, Toll Bros., a luxury builder that also hasn't marketed any discounts, had zero net sales in the week ended Nov. 11 and a negative net-sales rate of two homes in the week ended Oct. 14.

That means the company, whose homes are priced from $345,975 to more than $1 million, had two more cancellations in Las Vegas that it had sales.

Toll officials declined to discuss local sales volume, noting that they release regional data only quarterly. Spokeswoman Kira McCarron said sales of new homes and standing inventory "are consistent with current marketing conditions."

D.R. Horton didn't respond to an e-mail seeking comment on its low sales volume and whether it's planning special pricing events.

Ken Perlman, vice president of Sullivan Group Real Estate Advisors, said builders might skip sales for various reasons.

The cost of land might prohibit lower price, or perhaps a builder has met sales quotas for the year and doesn't need to push for additional closings.

Also, national companies could find that strong sales in some markets allow for more-sluggish sales in other cities.

For most local builders, though, lower prices were the last frontier in ginning up home sales, and Smith said builders are telling him the discounts are drawing out reluctant buyers.

"They tried incentives and they tried financing," Smith said. "Now, they've gotten to the price, with sales to get rid of inventory, and it's working."

Sales generate traffic and closings more effectively than incentives do, so builders are wise to drop prices, even temporarily, Perlman said. The consumer who can't qualify for a $350,000 house won't have an easier time getting a mortgage just because the builder tosses in a free swimming pool and a trip to Hawaii. The buyer still can't afford the home. The only solution: a lower price, Perlman said.

While those price breaks help buyers afford homes, they don't add to a company's bottom line.

McCormick declined to discuss his private company's profits. He acknowledged, though, that construction and land costs mean Astoria couldn't replace the discounted homes for the low prices they commanded during the builder's sale. He added that builders across Southern Nevada are experiencing a similar disconnect between sale prices and building costs. Yet, the earnings sacrifice is essential to keeping the doors open.

"As much as we may be selling homes below replacement cost, we're in the business of building and selling homes," McCormick said.

"We aren't like the homeowner who can decide to wait six months or a year to sell. It's hard to justify keeping everyone employed when you're not selling and building homes. Like everyone else, we've been through layoffs. We want to minimize that as much as we can."

Builders' drive to survive could translate into more price drops.

Most local builders no longer have several months of standing inventory, Smith said, so gains in available homes are coming mostly from cancellations, as jittery consumers back out of the market or stricter lenders tighten loan-qualifying criteria.

Smith believes sales will "pop up continually, off and on" over the next 12 months to 18 months, as cancellations wax and wane along with the performance of the market or changes in bank guidelines.

At least one local builder is already considering another sale.

Pulte is contemplating an event near the beginning of December with price breaks and incentives similar to the October reductions.

"It's important to provide the consumer with confidence, and when we offer them these limited buying opportunities, it gives them confidence to make a decision," Parks said. "If you give the customer an exceptional opportunity, it helps them feel good about their purchase and make wise decisions about their home."

Prudential Americana files bankrupcty

Prudential Americana Group, one of the largest residential real estate firms in the Las Vegas Valley, is filing for Chapter 11 bankruptcy so it can reorganize its debts while continuing operations.
The company, which had not filed the paperwork by press time Tuesday, has 1,200 sales executives operating under its auspices and has positive operating cash flow. Owner Mark Stark, however, said Prudential Americana Group -- the seventh-largest real estate firm nationally in the Prudential network -- needs bankruptcy court protection so it can restructure its debt.
"We are focused on business as usual," Stark said. "This is a debt restructuring. We continue to grow market share."
The bankruptcy filing will not affect the 3,000 exclusive listings that Prudential Americana has in Southern Nevada, he said. Stark estimated that the company is probably the biggest residential real estate company in the area, with a 15 percent share of all local home resales. Brokers who operate under the Prudential Americana umbrella also sell new homes and commercial real estate.
Prudential Americana is the second big Las Vegas realty firm to seek bankruptcy protection in recent months.
Jimmy Dague, president of Vision Properties doing business as Century 21 Advantage Gold, filed for Chapter 11 bankruptcy protection in August.
At the time of the filing Vision reported $1 million in assets and $1.8 million in liabilities. The company said it had $54.6 million in gross income in 2005. Vision reported its gross income fell to $40.3 million the following year and to $15.8 million in the first eight months of 2007. The brokerage's Web site says it has 500 agents.
Prudential Americana's problems started in October 2004.
Stark borrowed money to buy the company when residential real estate was booming and home prices were soaring.
Stark bought the 75 percent of the company he did not already own from his partners and Prudential Real Estate, the national franchisor. To finance the buyout, Stark borrowed $22.5 million from Salt Lake City-based Zions Bank, an affiliate of Nevada State Bank, and Peninsula Capital Partners of Detroit.
Zions, which is owed $4.9 million of $10 million originally borrowed in 2004, is in first position among the company's lenders. Peninsula is an unsecured lender and was receiving only interest payments, pending a later balloon payment.
When he bought the company, Stark said he expected a slump in the local real estate loan market would follow the boom that sent home prices soaring, but he was stunned by the magnitude of the drop.
"I did not see a 67 percent downturn coming to the Las Vegas market," he said, referring to the drop in existing home sales over the past two years.
Because of the real estate market, Zions pulled the trigger on a loan agreement provision and ordered Prudential Americana to stop making payments to Peninsula, Stark said.
Peninsula executives in turn pumped up the interest rate on their loan to 19 percent from an average of 15 percent, Stark said.
Prudential Real Estate, the national franchisor, offered to assume the Las Vegas real estate company's debt, but Peninsula was unwilling to accept the company's terms.
The national company intends to provide financing to Prudential Americana during the bankruptcy, Stark said.
"It's probably a good strategy," said Lanis O'Steen, who owns a residential real estate brokerage in Pahrump and is a business turnaround professional.
The real estate firm, O'Steen said, can ask the bankruptcy judge "to do what's reasonable and maximize returns and recoveries for all of the creditors."
O'Steen said the bankruptcy filing is further evidence that small businesses are getting hurt because of the popping real estate bubble. Small businesses are key economic drivers, O'Steen said, and their problems could lead to further economic declines.
Prudential Americana operates as an umbrella company for independent real estate brokers who agree to pay a flat fee or a percentage of their commissions for administrative, legal and other support.
Stark told about 600 real estate sales workers on Tuesday morning about the bankruptcy and plans to reorganize the company.
"We had a standing ovation of support from the sales executives," he said.
Stark hopes the company will be able to emerge from bankruptcy protection in about six months.

High Rise industry terms

Approved project - An approved project has gone through the necessary approval stages with the county and/or city and the FAA (for height concerns). The fact that a project is approved is no indication that it will be built.

Boutique Hotel - A term originating in North America to describe intimate, usually luxurious or quirky hotel environments. Boutique hotels differentiate themselves from larger chain/branded hotels and motels by providing personalized level accommodation and services / facilities. Sometimes known as "design hotels" or "lifestyle hotels", boutique hotels began in the 1980s in major cities like New York, London, and San Francisco.

Casino Hotel - A casino hotel is a smaller hotel with a casino. These properties do not usually have all the amenities of larger resorts of casino resorts. The Westin Casuarina is a good example. It has a small casino and one restaurant.

Casino Resort - A casino resort is a full-service resort with a casino. Generally, casino resorts have several restaurants, retail, lounges, showrooms, convention facilities, nightclubs, spa facilities and a large casino. There are 22 casino resorts on the Las Vegas strip and many more scattered around the valley. Condo,

Residential Condo - A development where individual units are owned, but common areas and amenities are shared equally by all owners. These are designed to be used as a permanent residence.

Condo-Hotel, Condotel - This genre of residential building meets several needs that make it attractive. As development costs increase, the cost of hotel development can make developing new hotels difficult, especially in major cities. By selling the units as condos, the developer moves much of the development cost to the condo owners. By owning units that can be rented as hotel rooms, the owners are able to get a r eturn on their investment allowing them the ability to own a residence in a resort or major city. Owners may also elect to keep the units to themselves, adding personal art items, and not allowing the renting of the unit to strangers in their absence.

Crown - The crown is the top of a high-rise building. Usually a decorative architectural element that disguises electrical, mechanical and other unsightly devices.

Dark Towers - These are residential condo towers near the strip. The majority of the owners are rarely there as they use them as a vacation home instead of a permanent residence. In the evenings, only a few of the windows are lit.

Green Buildings - A whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, energy efficiency, water savings, materials selection, and indoor environmental quality. Several new buildings in Las Vegas are "green", these are marked with a green "G" on the Construction Stats page.

Groundbreaking - While this term used to signal the beginning of construction, it is more of a ceremonial ritual these days. Groundbreaking ceremonies as of late, have been held months before and, in some cases, after construction actually begins.

Land Flippers - In Vegas it has become rather commonplace for a company to; purchase a plot of land (or several parcels as an assemblage), hire an architect to render an image of a high rise building on that land, put up a convincing website about the development, present their proposal to the county for approval, hire a bulldozer to clear the land, and build a chain-link fence around the property (usually with banners advertising the new development. Although this seems like a real project, the land (now approved for high rise construction) is worth many times what it was worth from the start. The company then flips (sells) the land and building permits for a healthy profit and the original project never gets built. This practice has lead to the misreporting (by the media) regarding a failing high rise market.

LEED Certification - The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high performance "green buildings".

Live/Work - A live/work is residential condo project that is zoned so that the resident can run a business from their residential unit.

Loft - Although many definitions exist, for our purposes a loft is a residential condo (single or multi-level) which has exposed utilities (plumbing pipes, electrical conduit, heating and AC ducts, etc.) and minimal interior walls. This allows the resident to be more creative and have more flexibility when designing their living space. Lofts are (obviously) less expensive to build than conventional condos.

Mixed Use - A mixed-use project will have many different elements i.e. hotel, condos, office buildings, shops, markets, theaters, entertainment venues, night clubs and more. Although many of the casino-resorts seem like they should fit into this category, they generally do not have food-markets and office-space which are two of the qualifying elements.

NIMBY - An acronym of (Not In My Back Yard) describes the phenomenon in which residents designate a development as inappropriate or unwanted for their local area, even if the development is clearly a benefit for many. Often, these NIMBYS own desirable property and block developers by refusing to sell it to them.

Podium - The low-rise building out of which the high-rise tower projects. Podiums usually house lobbies, casinos, restaurants, etc.

Soft Opening - The soft opening of a project is a short, break-in period when the project opens its doors to the public without any announcement or fanfare. This helps the developers get a better idea of how the spaces work and allow them some time for adjustments before the grand opening. Often, some of the shops, venues and restaurants are not yet open during the soft opening.

Strip (The) - The Las Vegas Strip is a contiguous 4.17-mile stretch of Las Vegas Blvd. bounded on the south by Mandalay Bay and on the north by Sahara. That’s the official definition. An interesting side note is that none of the official strip lies within Las Vegas city limits (which starts north of Sahara Ave.)

Timeshare - Timeshare is a business model whereby a company sells small time-slices (usually one week) of a resort to customers. This concept is most frequently used for vacation condominiums/homes. Timeshare owners may elect to: Use their usage time - Rent out their owned usage - Give it as a gift - Exchange internally within the same r esort or resort group - Exchange externally into thousands of other timeshare resorts

Topped-out - A building it topped-out when the top floor is completed. the facade and/or windows are not a factor to the status. In some cases, an American flag or pine tree is attached to the top, signaling the topping-out of the building. On steel structures, The last beam is often painted white and signed by all the ironworkers. Topping-out of a major structure is often accompanied by a celebration with food and drink.



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City Center Las Vegas

Location: Las Vegas Strip (Harmon)
Bldg. Type: Condo/Hotel/Mixed-Use
No. of Towers: Depends on Property
No. of Stories: Depends on Property
No. of Units: Depends on Property
Unit Sizes: Depends on Property
Price Range: Depends on Property
Square Footage: Depends on Property
Status: Under construction- reservations set for January 2007
Estimated Breakground Date: 2006
Estimated Completion Date: 2010
Developer: MGM-Mirage


Project Details
The Residences at Mandarin Oriental, Las Vegas
Private Owners Lobby
Residental Club Room
Private Owner area at Hotel Pool
Exclusive Owner Locker room on Fitness Level
24 hour fully staffed lobby
Valet Parking for all vehicals
The Harmon Hotel and Residences
Destination restaurants and shops
Private Owners Retreat
State-of-the-Art conference facility
Luxurious Spa and Pool Deck
Housekeeping Service
Valet parking for all vehicals
Veer Towers
Condo Club Room
Rooftop pool in each tower
24 hour concierge, security, bellman
Valet parking for all vehicles
Vdara Towers
Spa and Branded Salon
Coffee Bar and Lobby Lounge
Access to Hotel Services - in-room dining, housekeeping
24 hour concierge, security, bellman, doorman
Valet parking for all vehicles
Option to participate in MGM Mirage managed hotel rental program

Project Status
STATUS: Reservations List/
CONSTRUCTION: Currently in initial construction phase
RESERVATIONS START AT: Depends on Property
AGENT COOP: 3%
DEPOSIT SCHEDULE: Depends on Property
HOA Fees:

Developer Bio
MGM-Mirage is the developer and with 831 acres owned on or near the las vegas Strip, they have plenty of collateral and financial backing to make this project along with others under way a success.

Project Description
Project City Center is a $7 billion mixed used project planned on 76 acres between the Monte Carlo and the Belligo Earlier this year (2006) this was the site of the Boardwalk Hotel and Casino which closed it's doors and was imploded to make way for the construction of project City Center.

In order to plan CityCenter, the nation's most expensive private construction project and its largest collaboration of name-brand architects, MGM Mirage split the project into three components, with the final piece - the retail and condominium area - coming together more recently.

Described as a city within a city, this project will be yet another reinvention of Las Vegas. Blvd.

Project Update:

The Mandarin Oriental Hotel will have approximately 227 condominium units above the 400-room hotel tower, with the 4,100-square-foot penthouses coming with the highest price in Project CityCenter at $8 million.
The Harmon, will be operated by MGM Mirage. It will have 228 condominiums above its 400 hotel rooms.
The Veer Towers, twin 37-story condominium high-rises, will be CityCenter's only pure residential-only development with units ranging from 500 square feet to 2,600 square feet.
Vdara, a 1,543-unit condominium-hotel with units ranging from 500 square feet to 1,850 square feet. Vdara will be built between Bellagio and the CityCenter hotel-casino.


Developer Financing
The MGM-Mirage conglomerate is privately funding this project, which is considered to be the largest private ly funded construction project in in the nation, employing over 7000 construction workers.

Holy Cow ! Ivana sells for $47Million

Ivana Trump Las Vegas real estate sold to Arizona man for $47 million. The old Holy Cow Casino, Cafe and Brewery two acre site on the Las Vegas Strip has been sold.

The very expensive land is located across the multibillion dollar mega resort by MGM Mirage, Dubai World, Kerzner International Holdings Ltd and north of the Sahara casino. A casino license is possible at this location.

The 58 year old Arizona businessman and Las Vegas land owner is Steven Johnson. He is from Desert Mountain Renegade Golf Course community and doesn’t have a definite plan for the site.

The purchase has been place through Aspen Highlands Holdings LLC. This company is owned by Johnson and has made large purchases in Las Vegas for over two decades.

Dick Chaney takes a nap

Cheney takes a nap.“Vice President Dick Cheney gets caught napping yesterday as Defense secretary Donald Rumsfeld and other White House aides leave a press briefing by President Bush and Chinese leader Hu Jintao. The veep’s people later insisted he was reading his notes.”

Its Time to Buy Into Vegas

Selection, selection, selection. There are about 28,000 resale homes on the market in Las Vegas. Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 3,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.


No Bidding Wars. In 2004 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.


You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.


Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.


Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2004 many buyers waived these contingencies in order gain an advantage with multiple offers.


There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.


Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.


Few, if any investors. It is estimated that one third of all sales in 2004 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.


Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers and police officers are back in business. It's a great time to buy real estate!

First Time Home Buyers

When you set out to buy your first house, you certainly want to buy a piece of real estate you can consider to be "home" and not just an investment. At the same time, the best real estate purchase is one that can fill both of these roles. Therefore, when you begin the search for your home, there are a few things you should keep in mind in order to make the best purchase possible. These include:
• location,
• house size and
• lot specifications.
By carefully considering these three areas, you will be more likely be happy with your real estate purchase for years to come.
Considering the Location
Everyone has heard that location is the most important aspect of real estate – and for good reason. After all, if the real estate you buy is in a poor location, you are not likely to be happy living there and you will have a difficult time selling the property later.
When considering a piece of real estate, you will want to look into the area's crime statistics. Just looking up the numbers for the area is not enough, however, as this does not paint a clear picture of the specific neighborhood you are considering. Find out as much as you can about your neighbors before moving in, as living next door to the wrong people can make your life miserable and can significantly decrease your property value.
You can learn more about your neighbors by driving through the neighborhood at night on a couple of different occasions. You can also ask your local police station to provide you with a list the calls they received within a one mile radius of the home over the past two years. This list will tell you when the calls where made, where the police were dispatched and why they were called in the first place.
Considering the Size of the Home
The size of the house you are looking to buy is another important consideration. Obviously, the houses in the neighborhood will vary somewhat is size, but most should be pretty similar. When it comes to resell value, you don't want to buy the largest home in the neighborhood. Because, if the homes around the one you are looking to buy are smaller than yours your home most likely will not appreciate in value as quickly. At the same time, purchasing a home that is smaller than the other properties in the neighborhood will help to increase its value faster. Of course, you need to purchase a home large enough for you and your family. Therefore, when making your decision, you will have to weigh your needs against the potential resale value of the home.
Considering the Lot
Although most of the value of your real estate purchase will be tied up in the actual home, you certainly want to consider the lot as well. Don't worry too much if the lot does not have a great deal of landscaping done to it. You can add your own landscaping later, which will give the value of the home a nice boost. More importantly, you want to select a lot that is not overly crowded, oddly shaped or situated in a strange position. All of these factors can make it more difficult for you to sell the home later.
When you buy a house, you definitely want to get a place you can call "home." At the same time, you want to shop smart and purchase a piece of real estate that will increase in value and serve as a wise investment.

Las Vegas Facts

Las Vegas ranks #1 of the world’s most dynamic cities. (Newsweek International Magazine)
· Las Vegas ranks 4th in the State Business Tax Climate Index 2007. (Tax Foundation)
· Las Vegas ranks #1 as “Where the jobs are going ... hottest job growth for this decade 2003-2013.” (Business 2.0)
· Boomtowns ‘06: Hottest Large Cities, Growing Your Business Ranks Las Vegas #1. (INC.com)
· Nevada ranks #2 for Policy Environment for Entrepreneurship Across the Nation. (Small Business Survival Index 2006)
· Nevada ranks as the state with the lowest risk of natural disaster. (USA Today)
· 8,000 people per month move to Las Vegas but some of the biggest industries in the world like technology and biotech are coming as well.

Time to Buy in Southern Nevada

Time to Buy in Southern Nevada



The Greater Las Vegas Association of REALTORS® offers the following position paper on why its members believe it is an ideal time to buy a home in Southern Nevada.

Mortgage interest rates remain at historically low levels, effectively lowering the cost of buying a home. It is not clear when interest rates will begin to rise. However, economists and other experts generally agree that rates are unlikely to fall significantly in the near future.

Southern Nevada’s economy remains stronger than most metropolitan areas, with steady job and population growth. According to Las Vegas Perspective, Clark County added more than 96,000 new residents in 2006. This bodes well for the long-term strength of the local housing market. The Las Vegas valley continues to be a leader in job creation and has one of the lowest unemployment rates in the nation. Over the next three years nearly 20,000 hotel rooms will be added to our city, representing approximately 41 billion dollars worth of new construction. Of course, these economic factors fuel demand for housing and offer more opportunities for newcomers and existing residents to own their own home. For every hotel room added, the Las Vegas Convention and Visitors Authority estimates 1.8-1.9 new employees will be needed.

Recent increases in foreclosures present opportunities for buyers as well. When lenders are forced to foreclose on a property, they typically are motivated to sell that property as quickly as possible to recoup their investment. This presents bargains for buyers.

The unprecedented housing boom of a few years ago may never be duplicated, but Southern Nevada still offers attractive real estate investment opportunities. Examples include high-profile residential properties being built as part of MGM MIRAGE’s CityCenter and similar billion-dollar developments on and near the Las Vegas Strip.

The history of the local housing market suggests long-term growth. More than most markets, the history of steady housing and real estate appreciation in Southern Nevada suggests the value of property will rise as long as the nation’s boomtown continues to grow. All markets are cyclical. But with privately owned land being scarce in the rapidly growing Las Vegas area, history and the laws of supply and demand suggest that prices will appreciate in the coming years.

Americans have never been more informed about the housing market than they are today. However, one byproduct of the well-publicized national real estate boom is the temptation to view real estate as a short-term investment, similar to the stock market. This perception has had unhealthy impacts on the housing market. The GLVAR believes buying a home is a long-term investment and should be thought of that way

FHA steps into help

As millions of homeowners lie bleeding in the Subprime Corral, the feds ride in on an old mare to rescue a few borrowers suffering from scratches.
The bailout plan, called FHA Secure, is designed to prevent foreclosures among homeowners who fell behind because the rates went up on their adjustable-rate mortgages. About 60,000 "delinquent-yet-creditworthy" mortgage borrowers will be able to refinance into FHA-insured home loans in the next year or so, an official with the Federal Housing Administration says.
It's a triage operation, with the FHA aiding the delinquent borrowers who are easiest to patch up. The rescued borrowers will be dwarfed by the number of struggling homeowners who won't qualify for FHA refinances. "Unfortunately, we think there will be some families that we won't be able to help," the FHA official says.
People who refinance under the FHA Secure program will end up with fixed-rate mortgages, which are quite popular nowadays among people who were burned by rising rates on ARMs. The FHA doesn't lend money; it insures mortgages made by lenders. The agency's Web site has a search engine to find FHA-approved lenders.

Key factors of the FHA bailout plan:

• FHA Secure is geared toward the homeowner with an ARM who was paying on time until the rate was reset and the monthly payment went up.
• There are loan-size limits that make these mortgages unworkable for high-cost markets, such as most of California.
• Borrowers will need at least 3 percent equity, the FHA won't help people who owe more than their houses are worth.
• The application deadline is the end of 2008.

Is it déjà vu all over again?
The FHA is a 73-year-old packhorse that was foaled during the Great Depression. In 1934, foreclosures were skyrocketing, house values were plummeting, and house sales and construction were at a standstill. In those days, people got balloon mortgages that lasted for five years, and then they were expected to refinance at a new rate. In that respect, those home loans were somewhat similar to today's adjustable-rate mortgages. Like today, many homeowners back then had trouble making their payments and they couldn't find refinancing.
"The housing industry was still flat on its face with mortgage money frozen, 2 million men unemployed in the construction industry and properties falling apart for lack of money to pay for repairs," says the FHA's self-published history of its first 25 years. The FHA was created to insure mortgages, reducing the risk to lenders and making them more likely to lend. The agency carried a lot of cargo during the decades after the Depression. But after the 1980s, the FHA grew feeble. As recently as the mid-'90s, more than one-tenth of mortgages were FHA-insured; this year, its share is around one-fiftieth. As the FHA shed its burden, piggyback loans and uninsured subprime mortgages took it up.

Hoover Dam by pass

Every day, more than 14,000 cars and trucks travel the steep and winding approach roads to Hoover Dam. There, they cross the Colorado River, driving across the dam on a two-lane highway. Built in the early 1930s when there was much less traffic, the approach roads have now become a major bottleneck and safety hazard for travelers and those dam tourists waking on and near the dam highway. To solve this problem, the Federal Highway Administration has commissioned the Hoover Dam Bypass Project. The centerpiece of the project is a concrete arch, steel deck bridge with 1500 feet of clear span, 890 feet above the river, that will carry four lanes of traffic. It will be the largest concrete arch bridge in the US. Gee, another record.

Work on the $234 million bypass and four-lane bridge is on-budget and in line to be finished by 2010.

Cosmopolitian Resort and Casino Las Vegas

Cosmopolitan Resort and Casino
Cosmopolitan Resort and Casino located next to the Bellagio is urban luxury at its best. Located on 8.5 acres, the two twin towers will rise 600 feet high in glass-and-concrete towers that rise-up from a five-level podium , with a glass-fronted entrance and rooftop pool and include 1000 hotel rooms and roughly 2000 condo-hotels with spectacular views of the Strip and the Bellagio fountains.
The steel-framed, glass low-rise will contain a 75,000-square-foot casino, a 150,000-square-foot convention center, a 50,000-square-foot spa and a 1,800-seat theater. There will also be 300,000 square feet of brand-name retail shops and restaurants accessible from the Strip
This $3 billion project showcases stunning architecture with panoramic view of the Strip and Red Rock canyon. Featured as Las Vegas “beachfront” property, Cosmopolitan offers the opportunity to “own it all, in the middle of it all.”
From you residential condo/hotel you'll reside in complete luxury in the heart of the Las Vegas Strip. Boasting to be just an elevator ride away from the casino, retail shopping, five star restaurants, theatres, and an on site beach club, Cosmopolitan Resort and casino also boasts Location, Location, Location….
Project Amenities
This mixed used development is truly in the heart of the Vegas Strip excitement combining all the luxuries of an urban high rise with the benefit of a strong hotel management, amazing architectural design, and every amenity and attraction of the Las Vegas strip at you door step
• Phase I Spa Tower has over 1200 condo hotel units
• All units with balconies and Views
• Fully furnished units with flat screen televisions and Jacuzzi tubs
• 80,000 sf full Casino
• Over 4 million sf of pedestrian-friendly urban cityscape
• Over 150,000 sf of business, convention, and conference space available for meeting and special function
• Over 300,000 sf of brand name retail boutiques, fine dining establishments, and entertainment venues
• 1800 seat theatre featuring world clad productions
• Cosmo Beach Clue over looking the Strip
• 4 Pools including sand beach and sundeck, lap pool, infinity edge pool, and featured pool with water wall
• 2 level Fitness and Spa
• Tennis Courts
• Outdoor dining areas
• Full Service Concierge and Valet Parking





Current Status
• CURRENT STATUS: Steel and concrete up approx 8 floors
• CONSTRUCTION: Cosmo is behind schedule due to the excavation needed for the project, but as of April 9, 2007 the first vertical steel girder was placed April 9 2007
• RESERVATIONS START AT: Effective April 2007
• each Club Tower Availability : Studios
o Hudson South View (Beach area and strip southward)
 585 $777,733
 688 $723,936
 188 $741,301
o Hudson North View (Bellagio Fountains)
 1799 $796,779
o Hudson East (direct view onto Strip)
 5279 $810,447
 6079 $820,596
o Hudson West ( mountain view)
 Currently sold out
o Madison North View (Bellagio Fountains)
 Currently sold out
o Madison South View (Beach area and strip southward)
 1887 $693,273
 3587 $742,321
 5086 $771,991
o Madison East View (direct onto Las Vegas Blvd)
 3280 $781,687
 5280 $802,423
o Corner One Bedroom Units “The Park”
o Southwest corner
 5082 $1,563,930
 1682 $1,424,596
o Northwest corner
 5082 $1,675,226
o Southeast corner
 5082 $1,563,930
 1682 $1,424,596
o WEST TOWER (casino/spa)
o ADA Units:
 Hudson South View: Unit 5104 $701,900
 Unit 2216 $669,500
• AGENT CO-OP: 5%
• DEPOSIT SCHEDULE:
o 10% At contract
o 10% 90 days later
o 10% July 1, 2008
o ALL UNITS ARE FULLY FURNISHED, TOTAL TURNKEY.
• HOA FEES:
o We refer to as “The Shared Component Fee” is approximately $370 per month for the studios and approximately $780 for the One Bedroom units




Project Description
Cosmopolitan Resort and Casino located next to the Bellagio is urban luxury at its best. Located on 8.5 acres, the two twin towers will rise 600 feet high in glass-and-concrete towers that rise-up from a five-level podium , with a glass-fronted entrance and rooftop pool and include 1000 hotel rooms and roughly 2000 condo-hotels with spectacular views of the Strip and the Bellagio fountains.
The steel-framed, glass low-rise will contain a 75,000-square-foot casino, a 150,000-square-foot convention center, a 50,000-square-foot spa and a 1,800-seat theater. There will also be 300,000 square feet of brand-name retail shops and restaurants accessible from the Strip
This $3 billion project showcases stunning architecture with panoramic view of the Strip and Red Rock canyon. Featured as Las Vegas “beachfront” property, Cosmopolitan offers the opportunity to “own it all, in the middle of it all.”
From you residential condo/hotel you'll reside in complete luxury in the heart of the Las Vegas Strip. Boasting to be just an elevator ride away from the casino, retail shopping, five star restaurants, theatres, and an on site beach club, Cosmopolitan Resort and casino also boasts Location, Location, Location….
This mixed used development is truly in the heart of the Vegas Strip excitement combining all the luxuries of an urban high rise with the benefit of a strong hotel management, amazing architectural design, and every amenity and attraction of the Las Vegas strip at you door step

Fun Facts about Las Vegas

Here are some useless bits of information that I found about Las Vegas. They can be accessed in the Avant Guide to Las Vegas.


Visit Their Web Site for more interesting ideas about Las Vegas.



Stupid Facts

Year first casino was licensed 1931
Current number of licensed gambling places in Las Vegas 1701
Approximate number of Las Vegas city residents 500,000
Approximate number of Clark County residents 1,500,000
Number of slot machines in the city 197,144
Annual visitors to Las Vegas, in millions 36.7
Percentage of visitors from Southern California 25
Percentage of visitors who say they come to Vegas mainly to gamble 5
Percent of visitors who end up gambling during their stay 87
Hours per day average visitor spends gambling 3.9
Annual state gaming revenue, in billions of dollars 9
Percent of Nevada's general fund fed by gaming-tax revenue 43
Average gambling budget per trip, in dollars 559
Number of people moving to Las Vegas annually 60,000
Average monthly apartment rent, in dollars 631.22
Average price for an acre of land in the Valley, in thousands of dollars 161
Price for a prime acre of land on the Strip, in millions of dollars 11
Number of hotel rooms 124,270
Average number of pillowcases washed daily at MGM Grand 15,000
Average nightly room rate, in dollars 66
Average length of stay, in nights 3.7
Number of conventions hosted annually 3749
Average number of Vegas weddings per day 315
Number of local golf courses 37
Amount in miles of lighted neon tubing on the Strip and Downtown 15,000
Percentage of county's population over 24 years old with college degree 13.8
Percentage of residents who claim to be religious 82.2
Percentage of population registered to vote 42.2
Percent of Nevada land owned by the federal government 87
Paved roads in Nevada, in miles 5429
Dirt or gravel roads in Nevada, in miles 33,010
Nevada's population growth since 1990, in percentage 83.3
Nevada's prison-population growth since 1990, in percentage 100.4
State's nationwide rank in gold production 1
Cost of Nevada marriage license, in dollars 35
Average cost of filing for divorce in Nevada, in dollars 450

Mortgage Rates

How Adjustable Rate Mortgages Work
During the last decade, Adjustable Rate Mortgages (ARMs) have increased in popularity among consumers. These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years. In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7-year fixed portion, since they won't have the loan long enough to be concerned about rate fluctuation.

Adjustable Rate Mortgages have three main features: Margin, Index, and Caps. The Margin is the fixed portion of the adjustable rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.

It's important to understand that there are many different indices: The 11th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc. Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.

The third and final component of Adjustable Rate Mortgages is Caps. Caps limit how much the rate can fluctuate over time. Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.

Summerlin features new Boulder Ridge project

Summerlin features Boulder Ridge
Christopher Homes is selling a limited collection of 46 residences in Boulder Ridge in The Ridges Village of the master-planned community of Summerlin. Homes range from 4,000 to more than 6,000 square feet and are priced starting at $1.7 million.
According to Chris Stuhmer, chief executive officer and owner of Christopher Homes, each of the 46 home sites has been designed to optimize both front and rear views.
"Boulder Ridge features amazing views of the city, golf course and Red Rock Canyon National Conservation Area," he said.
"To maximize those views, we have added generous outdoor living areas on every home, such as sky decks, rooftop gardens and terraces. These areas will serve as a great place for entertaining as well as relaxing," Stuhmer said.
Residences at Boulder Ridge offer a standard option package that exceeds most custom home features, he said.
Standard amenities include disappearing doors, a stainless steel pivot front entry door, marble or travertine bath countertops and bath surrounds, Kohler fixtures and Viking stainless-steel kitchen appliances.
"We've combined the finest materials with the latest technology to offer our home buyers the highest standard of living," Stuhmer said.
Home buyers interested in Boulder Ridge will soon have the opportunity to visit one of three showcase homes, which is scheduled to open in November.
Boulder Ridge is one of several neighborhoods in the exclusive village of The Ridges.
The 800-acre village is home to multiple custom home neighborhoods; Club Ridges, a 10,000-square-foot clubhouse that features a fitness center, aerobic room, steam rooms, five lighted tennis courts, a lap and play pool and a park area; and Bear's Best Las Vegas, a golf course.
"The Ridges is a coveted address for those seeking unparalleled luxury in the Las Vegas Valley," said Peggy Chandler, senior vice president of community development for The Howard Hughes Corp.
Developed by The Howard Hughes Corp., an affiliate of General Growth Properties, Inc., Summerlin began to take shape in 1990 and is currently home to more than 95,000 residents.
With about 7,500 acres still to develop, including its urban core, Summerlin Centre, Summerlin is continuing to unfold.
Summerlin is home to more than 100 neighborhood and village parks, more than 150 completed miles of the Summerlin trail system, houses of worship, shopping centers, medical facilities, cultural facilities, business parks and more than 100 actively selling floor plans.
Single-family homes, townhomes, condominiums and lofts are available.
Prices range from the low $200,000s to more than $2 million.
Custom home sites in The Ridges are priced from the $500,000s. Luxury apartment homes offer monthly rents starting from the low $1,000s

Fed Cuts Rate What Now ?

WASHINGTON, Sept. 18 — The Federal Reserve today lowered its benchmark interest rate by a half point, a forceful policy shift intended to limit the damage to the economy from the recent disorder in the housing and credit markets.

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While an interest rate cut was widely expected, there had been profound uncertainty about whether the Fed would choose a more cautious quarter-point reduction. But the bolder action and an accompanying statement, both approved by a unanimous vote of the central bank’s policy-setting committee, made it clear that the Fed had decided the risks of a recession were too big to ignore.

“Developments in financial markets since the committee’s last regular meeting have increased the uncertainty surrounding the economic outlook,” the central bank said. Signaling that it might cut rates more if necessary in months ahead, it said it would “continue to assess” the economic outlook and “act as needed to foster price stability and sustainable economic growth.”

The decision, which reset the overnight lending rate between banks to 4.75 percent, was the Fed’s first rate cut in four years.

Stocks immediately soared. The Dow Jones industrial average registered its biggest one-day gain in almost five years, closing at 13,739.39, up 335.97, or 2.5 percent. The Standard & Poor’s 500-stock index rose nearly 3 percent.

For consumers, the Fed’s move could mean lower borrowing costs on for mortgages and automobile loans. But the impact may be muted, because investors remain deeply anxious about the credit quality of mortgages and other long-term loans. The main problem in the past month has not been high rates so much as the availability of capital to complete deals.

In a separate move to bolster the banking system, the Fed also said today that it had cut its discount lending rate, which applies to short-term emergency loans to banks, to 5.25 percent — also a half-point cut.

This was the Federal Reserve’s most abrupt reversal of course since January 2001, when it suddenly slashed rates at an unscheduled emergency meeting because of signs that the economy was slipping into a recession. The last half-point cut in the federal funds rate came in November 2002.

Economists said that the Fed’s move today was similarly pre-emptive. “Monetary policy makers are worried about growth being seriously compromised and are prepared to take whatever prudent steps they can to avoid a deep slump,” said Joshua Shapiro, chief United States economist for MFR.

Some aspects of today’s Fed’s move could fuel inflation fears. Gold, a traditional investment safe haven in times of inflation, soared immediately after the Fed’s decision was announced. As United States interest rates became less attractive for investment, the value of the dollar against the euro touched a new low before recovering slightly, and oil prices continued to climb even further above $80 a barrel.

In the stock market, financial stocks posted the biggest gains, reflecting the fact that banks now will face lower borrowing costs, which should help drive profits higher.

“Shock therapy,” was the assessment of Ethan Harris, chief economist at Lehman Brothers.

But Mr. Harris cautioned that the Fed stopped short of signaling a firm commitment to more rate reductions. While it dropped its previous statement that inflation was still the “predominant concern,” which would argue against using lower rates to stimulate the economy, the Fed said that “inflation risks remain” and that it would “monitor inflation developments carefully.”

David Rosenberg, chief North American economist at Merrill Lynch, said the Fed appeared deliberately ambiguous about its readiness to cut rates even further at its policy meetings in October and December.

“The Fed kept its cards much closer to its vest than anyone would have guessed,” Mr. Rosenberg said. “It’s not at all clear they think they have more to do.”

As recently as six weeks ago, the central bank was still predicting “modest” growth for the economy and warning that inflation remained its “predominant concern.” As in 2001, the Fed’s move today came after a panic in financial markets and the collapse of a speculative bubble. This time, the panic is in credit markets spooked by dubious mortgages on inflated housing prices. Back then, it was the stock market that crashed, initially because the air went out of inflated dot-com stocks.

When will my house sell

To hear people whine about the Las Vegas housing market, you'd think they were cats taking a bath.
Sure, home prices have receded from their all-time peak, which was just a year ago and followed a period of blistering appreciation. Las Vegas led the nation with quarterly appreciation of 40 percent and 50 percent in 2004.
Increased housing demand from mid-2003 through 2005 resulted in record numbers in both the new and resale home market.
The market has backed off, but the gains remain, he said.
Nine ZIP codes in Las Vegas Valley with depreciating home values in 2006 show net gains of anywhere from 9 percent to 81 percent since 2003, according to a midyear report from Coldwell Banker Premier Realty.
One sample neighborhood gained 16 percent in 2003, 45 percent in 2004 and 13 percent in 2005, appreciating more in three years than it would have in 20 years by historical standards.
Before 1999, Las Vegas was among the slower U.S. housing markets with annual appreciation of 1 percent to 4 percent. That's what made it one of the best housing values in the nation. Homes in master-planned Summerlin were selling for $66 a square foot at a time when a comparable home in Phoenix was selling for $115 to $120 a square foot.
Giving back 1 percent last year is a drop in the bucket.
"Few of us would pass on a stock market investment with a three-year return on investment of 73 percent," he said. "With the onslaught of negative press, many of us have forgotten about these record-breaking gains."
Two of the three worst-performing ZIP codes in 2006 have had a price increase and two areas had an equal or higher number of sales.
ZIP code 89044, near Henderson Executive Airport, has an average sales price of $386,135 this year, compared with $381,209 in 2006. The high-end west Summerlin neighborhood of 89135 saw a slight increase from $654,620 to $656,320. In the 89084 area of Aliante in North Las Vegas, prices declined from $330,971 to $314,103.
ZIP code 89086, a new area of North Las Vegas, had the lowest net gain of more than 50 ZIP codes in the valley at 9 percent for the 12-month period from 2005 to 2006. Before 2003, 9 percent appreciation for 12 months would have been exceptional, Hamrick said.
Larry Murphy, president of SalesTraq, said he compared first-half prices of 2007 to first-half 2006 at his midyear housing outlook and every area was negative.
"Everybody is whining and crying in their soup about the market being down and they're losing equity in their home. That's true for the last 12 months," Murphy said.
He compared home prices in master-planned communities from 2003 to 2007 and found that average appreciation was 68 percent. Spanish Trail had the greatest appreciation at 93 percent.
Some areas of the valley depreciated by as much as 16 percent in 1984, making last year's 4 percent depreciation in 89044 seem trivial by comparison.
Home prices have risen so high in Las Vegas that the city is now ranked among the 10 least-affordable U.S. real estate markets by Forbes.com. Los Angeles is No. 1, followed by San Francisco, San Diego, New York, Miami, Sacramento, Calif., and Las Vegas. Rounding out the top 10 are Seattle, Boston and Orlando, Fla.
Affordability has a great deal to do with where a city is in its growth cycle.
"Five years ago, Las Vegas was one of the nation's most affordable cities, thanks to a rash of development," Forbes.com reported. "Today, growth has slowed enough that less than 20 percent of home sales last quarter were available to households at the median income level."
The median price of a "traditional" new home in Las Vegas, excluding high-rise and mid-rise condos and apartment conversions, was $314,551 in July, down 6.2 percent from a year ago, Dennis Smith of Home Builders Research reported.
With the number of homes on the market topping 30,000, including condos and townhomes, absorption rates have increased and will continue to do so until homeowners, banks and mortgage companies adjust to the importance that list price is playing in this market.
The inventory of homes in the $150,000 to $250,000 range was absorbed in 2.3 months in 2006; in 2007, it's 10.5 months. Home inventory in the $250,000 to $400,000 range took 5.8 months to sell in 2006; now it's 10.8 months. Absorption of $400,000 to $600,000 homes went from 9.2 months last year to 15.1 months this year.
About one out of every 16 homes that come on the market will sell, Some of them are only on the market for a few days or a few weeks.
"These are the properties in the best condition and priced correctly with little or no room for negotiation," he said. "Houses are still selling, but we have to be realistic about what other units have sold for. Frankly, most appraisers are looking at only the last two or three months. In some neighborhoods, we have sellers who are willing to price below comparables."
Murphy of SalesTraq said Las Vegas has a 15.3-month supply of homes by his count. Supply continues to go up as it has for the last two years and prices have been gently sliding, an indication that the housing market has not yet reached bottom, he said.
Price is one factor in home sales, but it's not the only factor, Hamrick said. With all these homes on the market, buyers can choose from a selection of 10 to 20 homes, not two or three, so "staging," or presenting the home for sale, is critical.

What Bubble

This makes me mad every time I see it. Either the National Association of Business Economists is full of people with no real business experience or fools.
This is a headline from a major online Real Estate publication,
"Economists See Credit Problems as Bigger Threat than Terrorism."
I know they were all alive just seven years ago when terrorism cost the lives of three thousand American citizens. That headline goes beyond sensationalism. It is rude and insensitive.
The article goes on to say that one in three members of the NABE, "...Said the housing boom can be described as a 'serious National bubble." Then later in the article three in four said they would "buy a house today if they intended to use it as their primary residence."
Would someone please tell these academic fools that housing is local in nature? While many major markets suffered and are suffering from the over-zealousness of investors followed by the over-zealousness of foolish sub prime lenders; there are many markets that are healthy and many more that are suffering a softening but nothing close to a collapse.
These gloom and doom headlines supported by a minority of questionable economist opinions feed the problem they are describing. While the facts support the opposite conclusion. Even the economists own research supports the opposite conclusion.
In the same article, "Asked to look five years into the future, 42 percent expected US home prices to remain flat, 41 percent said prices would rise." How did 34 percent of the same group call this a bubble that is fed by a threat bigger than terrorism.
Let's give credit where it is due. "59 percent still say there is no national housing bubble, only significant local bubbles. Another 8 percent said there's no bubble at all and that the market is functioning correctly."
Hooray for those groups. They got it right. There are some local bubbles where there were hundreds and thousands of development parcels and homes developed and built in anticipation of future sales and the sales that were feeding that demand was investor speculation (Boise and Sarasota to name two).
In late 2005 and through 2006 the investors realized that the boom was being fed by their own demand so withdrew. This left a tremendous inventory in some cities or areas of cities.
Unfortunately, in 2006, the secondary market lenders realizing that they had allowed a foolish combination of underwriting standards for the previous five years or so immediately followed this. They were buying loans that allowed buyers to have both, little or no down payment and marginal credit. How this happened (and who should be prosecuted for it) is a mystery that will likely to remain such.
The result was that in some communities around the country, particularly where there were high priced homes and with less sophisticated buyers; many of these mortgages were used to purchase homes. That created additional pockets of excess inventory which stalled prices in those areas.
Now in the fall of 2007 the majority of lenders loaning jumbo loans, over $417,000 have stopped funding these high-end loans for some period. This will further increase inventory and dampen prices in some areas.
Notice the language, dampen prices in some areas. Most of the country is experiencing a normal buyer's market that normally follows a long healthy seller's market.
The latter group of economists put it perfectly. The market is functioning correctly. In 1986 after two to three years of a soft buyer's market not unlike what we are experiencing now (Although it was driven by different causes.) there was a long strong period of a healthy seller's market with steady appreciation.
There was a momentary softer buyer's market around the Gulf War in 1991 (although not caused by it) followed by over a decade of a healthy buyers market that lasted until 2006. If we learn from history strong seller's markets last longer than softer buyer's markets.
So again, the economists got this right. The same article said 58% of the economists predicted a 'meaningful' recovery in U.S. housing markets before the second half of 2008 or in the second half of 2008. The majority of the other 42% predicted the recovery in 2009.
This is completely consistent with history. This two or three years of soft buyer's market with slightly flattening prices will likely be followed by five or more years of a healthy seller's market with equally healthy price appreciation.
REALTORS® all learned in their first Real Estate class that the market is driven by supply and demand. As long as there is an increasing population of people with reasonable or better incomes, the demand will keep the market healthy.
Add to that the fact that the Federal government repeatedly states that they realize that the Real Estate market is critical to the health of the economy and they will do whatever is necessary to keep mortgage money available.
It all adds up to a principle residence continuing to be the safest and smartest investment for a person living in this fabulous nation. (Just be careful of areas that have experienced rapid appreciation for more than twenty-four months. There could be a windfall or just a fall looming.)
If you are associated with Real Estate, please separate the sensationalism from the truth. If you are in most communities in this country, everything is pretty normal. Prices are appreciating a little slower but still appreciating. Houses are on the market longer. Buyers are fussier. Yes, it is tougher to sell Real Estate. But you still have one of the best jobs in the world with more personal freedom and opportunity for success than any other business person or professional on earth.
If you are in one of those tougher markets, my heart is with you. You do have an uphill battle for another twelve to twenty four months. You have my strongest wish that you can survive and succeed through this. If not, come back to the business in a couple of years. I feel comfortable promising you that the good times will roll again in the not too distant future.
I love this business for what it provides to our society, the people in it, and the strong bright professionals that make me proud to be a part of it.

Has The Market bottomed out?

There is some truth to the statement the market has finally bottomed. Over the last few months we have seen mortgage companies pull back, change programs and then ultimately close their doors. Unfortunately, we may see a few more failures but as far as programs available we have bottomed out. "So what is left?" If you were in the business like I was in 2000 the average buyer had money down, good credit, wanted a 30 year fixed and could verify their income. Today we have come full circle. This is the ideal candidate for those investors that remain.The difference from then to now is that we still have 100% financing loans. The requirements for approval are considerably different then they were three months ago but they are still there. Regrettably, foreclosures and short sales will continue and it may be some time before we are able to determine what the true value of a home is. We can move this process along if you are familiar with which clients qualify and for what amounts. For the time being it would be prudent to inquire about income verification. If a client has to go stated then I would make sure they have at least 10% down payment. If they have had challenged credit then be prepared to use the FHA. In Clark County, the maximum loan limit for FHA loans is $304,000.00. If you want to use one of the 100% loans offered for lower income clients then make sure their income does not exceed $59,050.00. If your client is looking for interest only then they should have high FICO scores. Lastly, if your client is considering a jumbo loan which is a loan amount greater than $417,000.00, be prepared to pay a higher rate. Currently these rates are being quoted at 7.5% for a 30 year fixed.