Majority of August home sales were cash purchases

A new report shows a sustained high level of cash and investment sales in Nevada’s housing market.

California-based research firm Realty­Trac said Wednesday that 62 percent of all August sales in the Silver State were cash purchases. The vast majority of people who buy with cash are investors.

Nationally, 45 percent of all sales were cash buys in the month.

Big institutional investors, such as Wall Street-based private-equity firms, made up 14 percent of purchases, compared with 10 percent nationwide. Short sales were 34 percent of closings, more than twice the national average of 15 percent. Nevada led the nation in share of short sales, besting Florida at 29 percent and Ohio at 23 percent.

Nevada was also tops in foreclosures, at 22 percent of all sales. That was well above the 10 percent share across the United States.

Sales fell statewide in August, dropping off 6 percent year over year. U.S. sales ticked up 12 percent in the same period. Las Vegas in particular has struggled for much of the last year with below-average numbers of listings, with less than two months of for-sale inventory. That’s about a third of the six-month supply a balanced market has.

But that shortage has helped prices bounce back from their recession-era lows. Among cities of 1 million or more, Las Vegas tied with Los Angeles for third-biggest price gain, with an increase of 26 percent year over year. RealtyTrac pegged August’s median local sales price at $155,000. The national median was $175,000.

Are you living in fear of your home!

Notice of Defaults are up in Las Vegas, Nevada!

Are you a homeowner who has received a Notice of Default?  Do you live in fear of what this means to you.  Amanda Brown, Las Vegas real estate professional has helped hundreds of homeowners get out of their difficult situation.  Watch to learn more on how Amanda Brown can help you and than call 702-496-7416 for a free consultation.

Why you want to hire Amanda Brown!

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The update on the Las Vegas Market

Watch Las Vegas Real Estate Professionals Amanda Brown and Steve Hawks talk about the changes in the Las Vegas Real Estate market and how it can affect you!

What's happening in the Las Vegas Real Estate Market!

Call now to schedule a free consultation to see how we can help you.  702-496-7416

Financing available for past homeowners who short sold, foreclosed or filed bankruptcy, in Las Vegas, NV

Previous foreclosure, short sale or bankruptcy!  Feel you can't buy a house!

Well now you might be able to in Las Vegas.  If you have lost a home to foreclosure, short sale or filed bankruptcy because of reduced income lasting over six month, you could qualify to buy again.

How does it work?  There is a 12 month waiting period, your down payment can be as low at 3.5%, no income restriction and gift funds are permitted.

To qualify you must has experienced an economic event, which is any occurrence beyond your control that resulted in a loss of employment, loss of income or a combination of both.  The event must have caused a reduction in household income by 20% or greater and lasted at least 6 months or longer.

You must have recovered from the economic even with the re-establishement of credit for a minimum of 12 months.  You also have to attend housing counseling form an approved HUD Housing Counseling Agency for at least 30 days, but no more than six months, prior to submitting the loan application.

Call Real Estate Professional, Amanda Brown at Platinum Real Estate Professionals to find out more about the program, 702-496-7416

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Why hire Amanda Brown for your Las Vegas, Short Sale

http://www.lasvegasshortsalesnow.com This client testimonial shares why Amanda Brown should be selected as your Las Vegas Short Sale expert. Cash Back at Closing and firm negotiations with the Bank.. Call Amanda Brown before Paying High Attorney Fees for your Las Vegas Home. 702.496.7416

http://youtu.be/p_EJ9_NsfIw

Feel there are no options to get a loan!

Has It Been A Year Since You Filed For Bankruptcy Short Sale or Foreclosure? Then This Mortgage Is For You

There was a time when those who defaulted on their debt, especially mortgages, had to wait 3-5 years before they became eligible for any form of new credit, let alone a brand new mortgage. That, however, was in the Old Normal. In the New one things are different: so different, that for anyone who filed a bankruptcy short sale or foreclosure on or before July 2012, we have good news for you - the FHA (subject to an explanation and several almost painless conditions) will be happy to provide you with a brand new mortgage.

So Call Amanda Brown at 702-496-7416 to see how she can help you get the home of your dreams!

Prices are going up in Las Vegas

Prices are on the rise in Las Vegas!  Don't pay high commissions, call now and we can sell your home for 1%!!, 702-496-7416

Take advantage of the BUBBLE!

GLVAR report shows 18-month run of rising home prices

     LAS VEGAS – An 18-month run of rising local home prices showed no signs of slowing down in July, according to statistics released today by the Greater Las Vegas Association of REALTORS®(GLVAR).

“Local home prices have been going up since February of 2012 and are now rising faster than anyplace else in the country,” said GLVAR President Dave Tina, a longtime local REALTOR®. “Looking back, the median price of an existing single-family home sold here in Southern Nevada bottomed out at $118,000 in January of 2012. Now it’s up to $180,000. We keep expecting these price increases to slow down at some point, but it hasn’t happened yet.

The median price of an existing single-family home sold in Southern Nevada during July was $180,000, up 2.9 percent from $175,000 in June and up 35.3 percent from $133,000 one year ago. Even with this recent appreciation, Tina pointed out that “home prices still have a long way to go to catch up to where they were during our peak,” when the median local home price hit $315,000 in June 2006.

Meanwhile, the median price of local condominiums and townhomes sold in July was $91,500, up 6.4 percent from $86,000 in June and up 37.6 percent from $66,500 one year ago.

Like last month, Tina welcomed a modest increase in the number of homes listed for sale, though he said the local housing supply is still far too tight to meet demand. GLVAR has also been tracking an increasing number of homes sold by “traditional” sellers – as opposed to lenders, who are responsible for the short sales and foreclosures that dominated the market a few years ago. In July, Tina said “traditional” sales accounted for a recent high of 64 percent of all local home sales.
As in past months, GLVAR has also been reporting fewer foreclosures and short sales – which occur when a lender agrees to sell a home for less than what the borrower owes on the mortgage.

In July, 28.0 percent of all existing home sales were short sales, down from 31.0 percent in June. Another 8.0 percent of all July sales were bank-owned properties, down from 9.0 percent of all sales in June. The remaining 64 percent of all sales were the traditional type, up from 60 percent in June.

Tina expects short sales to continue being a factor in the local housing market this year, primarily because the federal Mortgage Forgiveness Debt Relief Act is set to expire Dec. 31, 2013. Barring any further extensions, any amount of money a bank writes off in agreeing to sell a home as part of a short sale starting in 2014 may become taxable when sellers file their income taxes.

GLVAR said the total number of existing local homes, condominiums and townhomes sold in July was 3,633. That’s down slightly from 3,642 in June, but up from 3,572 total sales in July 2012. Compared to June, single-family home sales during July decreased by 0.7 percent, while sales of condos and townhomes increased by 1.9 percent. Compared to one year ago, single-family home sales were up 1.8 percent, while condo and townhome sales were up 1.3 percent.

The total number of properties listed for sale on GLVAR’s Multiple Listing Service increased in July, with 14,133 single-family homes listed for sale at the end of the month. That’s up 2.8 percent from 13,750 single-family homes listed for sale at the end of June, but down 16.6 percent from last year. GLVAR reported a total of 3,479 condos and townhomes listed for sale on its MLS in July, up 0.9 percent from 3,448 listed in June, but down 7.4 percent from one year ago.

GLVAR also reported more available homes listed for sale without any sort of pending or contingent offer. By the end of July, GLVAR reported 4,681 single-family homes listed without any sort of offer. That’s up 22.3 percent from 3,828 such homes listed in June and up 9.0 percent from one year ago. For condos and townhomes, the 1,609 properties listed without offers in July represented a 9.9 increase from 1,464 such properties listed in June and a 31.5 percent increase from one year ago.

In July, GLVAR reported that 54.5 percent of all existing local homes sold were purchased with cash. That’s down from 55.3 percent in June and down from the peak of 59.5 percent set in February. Since 2011, cash buyers have accounted for more than half of all existing local home sales.

The median price of bank-owned homes sold in July was $172,950, up from $163,750 in June. The median price of homes sold as part of a short sale in July was $149,000, up from $145,600 in June.

These GLVAR statistics include activity through the end of July 2013. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners. Other highlights include:

• The monthly value of local real estate transactions tracked through the MLS during July decreased by 0.7 percent for homes to nearly $649 million. For condos and townhomes, the total value of all sales in July was more than $110 million, up 21.4 percent from June. Compared to one year ago, total sales volumes in July were up 31.0 percent for homes and up 70.0 percent for condos and townhomes.


• In July, 77.9 percent of all local homes and 76.3 percent of all condos and townhomes sold within 60 days. That compares to June, when 76.6 percent of all local homes and 71.6 percent of all condos and townhomes sold within 60 days.

Changes happening with Bank of America Loans

Bank of America is transferring loans!  If you are considering a short sale, read below.  This is important.  You want to make sure you hire a Las Vegas Professional agent to help you.  Call Amanda Brown now to find out why over 1000 homeowners have trusted her!  702-496-7416


Recommended Action: Real estate professionals should advise homeowners that a servicing transfer may occur at any time during the short sale process.

Bank of America services mortgage loans for hundreds of investors. As a part of normal servicing,investors may decide to release or transfer servicing from Bank of America to another company. The transfer of loan servicing is a common practice across the industry, and occurs for a variety of reasons. At certain times investors choose to partner with other servicing companies to help meet the needs of the investor.

Servicing may be transferred on first, second or stand-alone liens. You should contact the new servicer to determine what steps need to be taken to continue with the short sale.

Some key activities that may occur during servicing transfer:

• Bank of America will send the homeowner a letter 15 days before the servicing transfer date.
• Bank of America may call the agent to advise them of the impacts to the short sale.
• The new servicer will send a letter or statement advising the homeowner where to send payments.

Recommended Action:

• Review the recently updated Frequently Asked Questions document.
• Advise the homeowner to maintain all contact information and letters related to the servicing of their mortgage.
• Frequently collect all servicer contact information and letters, from the homeowner, throughout the short sale.

Court Rules Borrowers Can Fight Bank's Decision to Deny Modification

You have right's, don't let the bank take advantage of you!

Homeowners who are denied a modification under the Home Affordable Modification Program (HAMP) even after completing a trial period plan (TPP) have legal standing to sue their lender, the 9th U.S. Circuit Court of Appeals in San Francisco ruled Thursday.

The ruling reversed a lower district court dismissal that concluded Wells Fargo was not required to offer borrowers a modification if the bank did not send a signed modification agreement.

The federal appeals court decision, however, ruled that Wells Fargo actually was contractually required to offer the plaintiffs a permanent mortgage modification since the plaintiffs submitted accurate financial documents and completed their trial period plan.

“The panel held that the district court should not have dismissed the plaintiffs’ complaints when the record before it showed that the bank had accepted and retained the payments demanded by the TPP,” the court opinion stated.

The ruling was based on two lawsuits from borrowers who filed separate actions against Wells Fargo. In Corvello v. Wells Fargo Bank, NA and Lucia v. Wells Fargo Bank, NA, the plaintiffs alleged that the bank offered them a trial period plan with the promise of a permanent modification, but after they completed the trial, the bank did not offer them a permanent modification or send them a notification of ineligibility.

The panel in the federal appeals court also cited a prior case,Wigod v. Wells Fargo Bank, NA, in its ruling. In Wigod, the 7th Circuit Court of Appeals found Wells Fargo’s interpretation of the trial period plan could allow banks to avoid obligations to modify borrowers simply by deciding not to send a signed modification agreement even if the borrower submitted accurate financial documents and the required trial payments.

Recent Articles

Economic Update - August 12, 2013

I am licensed to originate mortgage loans in the following state(s): CA, NV

To ensure continued receipt of this email, please add sean.uyehara@prospectmtg.com to your address book!

Sean Uyehara Senior Loan Officer Prospect Mortgage 2370 Corporate Circle, # 190 Henderson, NV 89074 Office: (702) 492-4664 Cell: (702) 336-4980 Fax: (877) 801-9423 sean.uyehara@prospectmtg.com NMLS# 338525  • Learn about home loans • Use loan calculators • Apply for a home loan Referral Request:  Please forward my contact information to anyone you know with a need for real estate financing!   Like Prospect on Facebook Follow Prospect on Twitter Follow Prospect on LinkedIn In the News Non-manufacturing activity rose to 56 in July from 52.2 in June. A reading above 50 signals expansion. It was the 43rd straight month of expansion in the services sector. The trade deficit decreased from $44.1 billion in May to $34.2 billion in June. It was the lowest trade gap in more than four years. Exports rose $4.1 billion to $191.2 billion. Imports decreased $5.8 billion to $225.4 billion. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 2 rose 0.2%. Purchase volume rose 1%. Refinancing applications were unchanged. According to the Federal Reserve, monthly consumer credit debt rose $13.8 billion in June for a total credit debt level of $2.848 trillion. Revolving debt, which includes credit cards, decreased $2.7 billion to $853.6 billion. Non-revolving debt, including loans for cars, rose $16.5 billion to $1.994 trillion. Wholesalers decreased their inventories 0.2% to $499.7 billion in June. Sales at the wholesale level rose 0.4% to $425.9 billion in June. On a year-over-year basis, sales were 5.6% higher than June 2012. The seasonally adjusted wholesale inventories/sales ratio in June was 1.17, the leanest reading since April 2012. Retail sales rose 0.3% for the week ending August 3, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.5%. Initial claims for unemployment benefits for the week ending August 3 rose by 5,000 to 333,000. Continuing claims for the week ending July 27 rose by 67,000 to 3.018 million. The less volatile four-week average of claims for unemployment benefits was 335,500. Upcoming on the economic calendar are reports on retail sales onAugust 13, the housing market index on August 15 and housing starts on August 16. Share:   Click here to visit my website and apply online: http://www.myprospectmortgage.com/SUyehara

Cash Remains King in Las Vegas Housing Market

LAS VEGAS -- More than six of every 10 residential properties sold in the Las Vegas metropolitan area in June involved cash transactions, one of the highest rates in the nation, RealtyTrac.com reported Wednesday night.

The real estate analytics company from Irvine, Calif., reported that cash transactions made up 62 percent of all residential sales in Las Vegas, third highest behind only Cape Coral-Fort Myers, Fla. (70 percent) and Miami (64 percent). The national average was 30 percent.

It was also reported that median housing prices in Las Vegas climbed 26 percent in June versus the same month a year ago, far exceeding the 5 percent price hike nationally. Only the California cities of Sacramento (35 percent), San Francisco (30 percent) and Los Angeles (27 percent) experienced better results.

The median sales price of a residential property in Las Vegas was $145,600 in June, $22,400 below the national average.

Of all residential sales in Las Vegas, 22 percent in June involved bank-owned properties, fourth highest behind Modesto and Stockton, Calif., and Detroit (all at 24 percent).

RealtyTrac also reported that short sales accounted for 30 percent of all residential sales in Nevada last month, tops in the nation. Institutional investor purchases, defined by RealtyTrac as those involving non-lending entities that bought at least 10 properties in the past year, accounted for 16 percent of all residential sales in Nevada in June. That was second behind only Georgia (23 percent).

"The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas," RealtyTrac vice president Daren Blomquist said. "Rising home values should continue to unlock more non-distressed inventory while also pricing institutional investors out of more markets, which, combined with rising interest rates, will cool off the pace of price appreciation.

"Still, lingering distressed inventory in many markets will continue to provide fodder for institutional investors and cash buyers in those markets."

Equity in your home, call Amanda Brown now to sell!

Patricia called Amanda Brown thinking she was going to have to short sale her home.  She had tenants in her property in Las Vegas, NV  and had to pay out of pocket each month to keep her mortgage current.  Well after meeting with Amanda, Amanda suggested to list her home a little higher and sale it as a normal sale.  Within days because of Amanda's aggressive internet marketing Patricia has a full list price offer on her home that closed in 30 days.  She was happy to profit $23,000 from selling her home with Amanda Brown.  What a blessing she felt when she thought she was going to have to loose her house as a short sale.  Call Amanda now at 702-496-7416 to see how she can help you. 

My first home sale was a great success thanks to Amanda Brown, Realtor and her team. The process from start to finish was handled with high efficiency and professionalism. Amanda and her team continually offered their help and support and were easily accessible to answer all my questions. My home listed, sold, and closed - all in less than the anticipated time frame. I confidently recommend Amanda and her team to anyone in need of selling their home. THANK YOU AMANDA and TEAM!!!

Patricia A.

Las Vegas Home Price Increases Lead Nation

Las Vegas home prices are on the rise, Call now to get your equity back in your pocket!  Amanda Brown, 702-496-7416

By WPC Staff

Single family home prices in Las Vegas are up 35.3 percent from a year ago, making Sin City the fastest growing residential market in the country, according to data released today by the Greater Las Vegas Association of Realtors.  

The median price of an existing single-family home sold in Southern Nevada in July was $180,000, compared to $133,000 a year earlier, a 2.9 percent increase from $175,000 in June, the association reports.

Condominium prices are up 37.6 percent from a year ago, with the median sale price at $91,500 in July, up 6.4 percent from $86,000 in June.

"Local home prices have been going up since February of 2012 and are now rising faster than anyplace else in the country," said GLVAR President Dave Tina in a statement.

Las Vegas was one of the markets hardest hit in the downturn and it has been one of the fastest to recover, in large part due to investors looking for distressed property. In July, 54.5 percent of transactions were all cash, down from 59.5 percent in February, GLVAR reports.

GLVAR also reports a decrease in the number of short and bank-owned sales. In July, 28 percent of sales were short sales, down from 31 percent in June. Traditional sales represented 64 percent of transactions in July, compared to 60 percent in June. The median price of bank-owned homes sold in July was $172,950, up from $163,750 in June.

The association also reports an increase in inventory, with 14,133 single-family homes listed for sale at the end of the month compared to 13,750 at the end of June. But the inventory was still 16.6 percent below last year.

Even with the recent activity, Las Vegas home prices are still far off the peak of $315,000 in June 2006. - See more at: http://www.worldpropertychannel.com/north-america-residential-news/las-vegas-home-prices-greater-las-vegas-association-of-realtors-condominium-prices-residential-market-7196.php#sthash.ya7CIxeN.dpuf

House bill would extend tax break on forgiven mortgage debt

By STEVE TETREAULT
STEPHENS WASHINGTON BUREAU

WASHINGTON — A bill offered Tuesday in the House would extend a tax break for homeowners who obtain adjustments on troubled mortgages or complete short sales for their homes.

The measure by Rep. Joe Heck, R-Nev., would continue through 2015 a law that waives taxes on mortgage debt that is forgiven through various forms of loan assistance.

The tax break, which was created in 2007, otherwise expires at the end of this year. Under previous law, the Internal Revenue Service regarded the money saved through loan forgiveness as income and taxed it.

“Struggling homeowners who are underwater cannot afford to be taxed on money they never actually receive,” Heck said “Many of these distressed homeowners are going through refinancing and short sale proceedings because they can no longer afford to stay in their homes.

“This additional tax on shadow income would only prolong their suffering and make it all the more difficult for the Nevada economy and housing market to fully recover,” Heck said.

A similar bill has been introduced in the Senate by Sens. Dean Heller, R-Nev., and Debbie Stabenow, D-Mich.

Gov. Brian Sandoval this week urged Congress to pass the legislation, as Nevada this fall will begin its “Home Means Nevada” program that will offer homeowners a chance to reduce the principal on troubled mortgage loans.

Extending the federal tax break “will ensure those Nevadans are not penalized for their participation in the program,” Sandoval said.

“It simply does not make sense to tax Nevadans for income they never earned, especially when they are already struggling with overwhelming mortgages,” the governor said.

Contact Stephens Washington Bureau Chief Steve Tetreault atstetreault@stephensmedia.com or 202-783-1760. Follow him on Twitter @STetreaultDC.

Foreclosure starts reach lowest level since 2005

For the first six months of 2013, RealtyTrac reported a total of 801,359 U.S. properties with foreclosure filings, which include default notices, schedules auctions and bank repossessions. This is down 19% from the previous six months and a 23% drop from the first half of 2012. 

The RealtyTrac report also revealed that 0.61% of all U.S. housing units — one in 164 — had at least one foreclosure filing in the first six months of the year.

In June, a total of 127,790 U.S. properties had foreclosure filings, down 14% from the previous month and a 35% decline from one-year prior. This marks the lowest monthly level since December 2006. 

What's more, foreclosure starts in June fell 21% from the month before and were down 45% from a year ago, falling to the lowest monthly level since December 2005. 

Year-to-date, 409,491 foreclosure starts have been filed throughout the country, on pace to reach more than 800,000, which would be down from 1.1 million foreclosure starts in 2012. 

"Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process," said Daren Blomquist, vice president at RealtyTrac. 

In June, foreclosure starts dropped from the month before in 38 states, with the biggest declines being Nevada and Colorado, down 84% and 62%, respectively.

REOs in June dropped 9% from the previous month and were down 35% from one-year prior. In the first six months of 2013, a total of 248,538 bank repossessions have occurred nationwide. This is on pace for nearly 500,000 for the year, which would be down from more than 671,000 in 2012. 

In June, REOs fell from one-year prior in 34 states, but there were some notable exceptions, where bank repossessions actually increased from a year ago. The biggest exceptions were Arkansas and Oklahoma, up 143% and 103%, respectively.

Judicial foreclosure auctions increased less than 1% from May, with 28,296 judicial foreclosure auctions scheduled in June. However, this was up 34% from June 2012. New Jersey and Florida were the most notable increases, up 103% and 100% annually.

Blomquist added, "The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion. Given the rising home prices in most of these markets, it is an opportune time for lenders to dispose of these distressed properties, either at the foreclosure auction to a third-party buyer, or by repossessing the property at the auction and subsequently selling it as a bank-owned home."

Florida, Nevada, Illinois, Ohio and Georgia posted the top five state foreclosure rates for the first half of the year, while five Florida cities posted the top five metro foreclosure rates: Miami, Orlando, Jacksonville, Ocala and Tampa.

Las Vegas, Amanda Brown real estate prices going up, 702-496-7416

Median single-family home price in Las Vegas continues to rise

LAS VEGAS BUSINESS PRESS FILE PHOTO

---LAS VEGAS REVIEW-JOURNAL FILE PHOTO

LAS VEGAS REVIEW-JOURNAL

Statistics being released today by the Greater Las Vegas Association of Realtors show existing home prices continuing to rise as the supply of houses available for sale also increased. 

The median price of an existing single-family house sold in Southern Nevada during June was $175,000, up 2.9 percent from $170,000 in May and up 32.8 percent from $131,785 one year ago.

In a statement, Realtors Board President Dave Tina said the median existing local home price “is still a long way from our peak” of $315,000 in June 2006.

The median price of local condominiums and townhomes sold in June was $86,000, down 3.4 percent from $89,000 in May but up 24.6 percent from $69,000 one year ago.

In June, 31 percent of all existing local home sales were short sales, down from 31.8 percent in May. An additional 9 percent of all June sales were bank-owned properties, down from 10.3 percent of all sales in May. The remaining 60 percent of all sales were the traditional type, which was up from 57.9 percent in May.

The total number of properties listed for sale on GLVAR’s Multiple Listing Service generally decreased in June, with 13,750 single-family houses listed for sale at the end of the month.

That’s down 0.5 percent from 13,814 single-family houses listed for sale at the end of May and down 18.8 percent from last year.

The Realtors group reported a total of 3,448 condos and townhomes listed for sale on its MLS in June, up 1.8 percent from 3,386 listed in May but down 7.1 percent from one year ago.

The group reported more available houses listed for sale without any sort of pending or contingent offer. By the end of June, it reported 3,828 single-family houses listed without any offer. That’s up 16.1 percent from 3,297 such houses listed in May and up 3.7 percent from one year ago.

For condos and townhomes, the 1,464 properties listed without offers in June represented a 14.6 percent increase from 1,277 such properties in May and a 35.2 percent increase from one year ago.

The group reported that in June, 55.3 percent of all existing local houses sold were purchased with cash. That’s down from 57.9 percent in May and down from the peak of 59.5 percent set in February. 

It reported that the median price of bank-owned single-family houses sold in June was $163,750, up from $154,900 in May.

The median price of single-family houses sold as part of a short sale in June was $145,600, up from $140,100 in May.

GLVAR statistics include activity through the end of June.

The Realtors group distributes the statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners.

Anyone else hear housing bubble inflating?

State and federal policies that were supposed to support home ownership have backfired and become anti-homeowner. The policies have locked out future Las Vegas homeowners.

AB 284, enacted in 2011, had good intentions, but the results have been disastrous for the Las Vegas real estate market. Most bank servicers have not been able to file notices of default since October of 2011. This has created an artificial shortage that is unprecedented.

There are now 380 bank-owned homes available on the market, 466 short sales on the market and 2,290 traditional sales. These traditional sales are mostly flips and investors unloading near the peak. Fifty-nine percent of mortgages are still underwater in Southern Nevada.

What’s so astonishing about those figures is there is no real shortage. There are 50,000 vacant homes in the valley and average owner-occupants have slim to no chance of winning their offers.

After the passage of AB 284, many homeowners realized they could live for free for long periods. Thousands of homeowners are on years three and four without making a mortgage payment. Lender Processing Services reported a few months ago that the average person who stopped paying has been in his home more than 24 months.

The banks were slow to foreclose before AB 284. Now, it has come to a virtual standstill. The mortgage bankers association report showed that more than 74,000 homeowners were 30 days late or more. According to a recent report from the Federal Reserve out of Atlanta, laws that delay the foreclosure process actually decrease successful loan modifications and short sales because “Homeowners find it more lucrative to live for free for years than participate in a program.” This is why the short sale figures have begun to fall and strategic defaults are increasing.

It’s quite obvious the state law has artificially reduced the supply. Now we can add something else to the mix: Major hedge funds have swept into Las Vegas with cash to buy as many homes priced below $250,000 as possible and rent them out, stomping on any owner-occupant offer in their path. Traditional residential real-estate had no interest from Wall Street, but because of the extremely low interest rates engineered by the Federal Reserve, investors are starving for a return on their money. The cash flow from rentals are filling a void that the low-interest environment has created.

The ironic part of this policy is the Fed pushed down rates intending to promote home ownership by allowing homeowners affordable mortgages. Instead the policy has fueled the major hedge funds to purchase homes with cash above current market value. Then the funds will rent the home to the same people who were trying to buy the home. The result is renters pay twice what their mortgage payment would be if they had access to inventory.

There is no hurry to fix this problem anytime soon.

The flip side of the coin? Las Vegas is enjoying a miniboom again. Having close to 80,000 homeowners not paying their mortgages has given a big boost to our local economy. Approximately 80,000 x $1,200 (average rent or mortgage) = $100 million a month going into our economy. This money ordinarily would not be disposable income. That’s $1.2 billion a year being pumped into our economy, and that is far more efficient than any government stimulus. It goes directly to retail, new cars, restaurants, etc. No red tape in the way.

Ninety days after AB 284 became law, retail sales were up 13 percent, even with a slightly smaller job base than 90 days previous. That shows the boost in spending from locals that stopped paying. Builders’ sales doubled six months after AB 284 and values have shot up, a la 2005.

It’s not rocket science to predict what will happen next. We will see another 20 percent appreciation in prices over the next nine months. AB 284 will be amended, the national settlement servicers will have sold most of their loans to new servicers who don’t have to follow the same guidelines. Vacant homes and delinquent loans will be converted to available inventory in the second half of 2014. The second bubble pop in less than a decade will begin.

And what of those hedge funds that are buying up homes with cheap money? Well, with tens of thousands of homes being converted to rentals, rents will drop, making the rent-to-price ratio fall. Housing yield will become far less attractive. The funds will find the homes are not generating the cash flow they had told their investors they would. The next step will be to sell off quickly and cash in on the higher price and 40 percent capital appreciation. Nobody wants to be holding the last bag when the sell button is hit.

If that all sounds familiar, it should. The mortgage-backed securities exaggerated the borrowers’ income during the first bubble. This time the rents on the homes are being exaggerated. Just as there was a fire sale on the mortgage-backed securities to get top dollar before they dropped, so it will be with the homes. In fact, most funds are predicting to sell in 18 to 45 months.

Nevada has an opportunity to capitalize on the great California Exodus. This is a once-in-a-generation event. Companies are fleeing California to Arizona and Texas. This is happening now. Nevada has taken itself out of the selection process. The lack of available housing is a top factor in corporations relocating, and we finish last in that category.

The first step in this process is to open the closed housing market. Release the 50,000-plus vacant homes now. Make housing available to the average American again. Allow Nevada to diversify, and unleash the state’s pent-up economic capacity before it’s too late.

This valuable information is brought to you by Amanda Brown, Platinum Real Estate Professionals, 702-496-7416. 

Silverado Ranch, Las Vegas short sales with Bank of America

Is your loan with Bank of America?  Call now to see how we can put money in your pocket!
702-496-7416

Bank of America offer's relocation asst.

Las Vegas Homeowners Get Cash on Bank of America Short Sale with Realtor...

Is your loan with Bank of America?  Call now to see how we can put money in your pocket!  702-496-7416

Principle Reductions are here in Las Vegas

In today's market more home owners are getting principle reductions than loan modifications.  Call now to get your principle reduction.  With the prices going up a principle reduction can mean the difference between short sale or sale for equity on your home!

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Call Amanda Brown at 702-496-7416 to learn more
Lasvegasshortsalesnow.com

Equity sale in Centennial Hills, Las Vegas

Call us now to see this ready to move in 2 bedroom, 2 bath condo in Centennial Hills, Las Vegas.  All appliances are staying, osmosis water system, new carpet (one year old) with upgraded padding. custom paint, fans in master bedroom and living room.

9303 Gilcrease Ave. - click for tour of condo


http://www.lasvegasshortsalesnow.com 9303 Gilcrease Avenue is a Las Vegas Home for sale and ready for move in. There are no banks involved in this traditional sale. Call Amanda Brown for more information about this home and other Las Vegas Real Estate for sale

Amanda Brown
Platinum Real Estate Professionals
702-496-7416
brownnvrs@gmail.com

Economic Update - June 24, 2013

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Sean Uyehara Senior Loan Officer Prospect Mortgage 2370 Corporate Circle, # 190 Henderson, NV 89074 Office: (702) 492-4664 Cell: (702) 336-4980 Fax: (877) 801-9423 sean.uyehara@prospectmtg.com NMLS# 338525  • Learn about home loans • Use loan calculators • Apply for a home loan Referral Request:  Please forward my contact information to anyone you know with a need for real estate financing!   Like Prospect on Facebook Follow Prospect on Twitter Follow Prospect on LinkedIn In the News The National Association of Home Builders/Wells Fargo monthly housing market index rose eight points in June to 52. This marks the first time the index has been above 50 since April 2006. An index reading above 50 indicates positive sentiment about the housing market. Consumer prices rose 0.1% in May, following a 0.4% decrease in April. Compared to May 2012, consumer prices have risen 1.4%. Consumer prices at the core rate — excluding volatile food and energy prices — were up 0.2% in May. The combined construction of new single-family homes and apartments in May rose 6.8% to a seasonally adjusted annual rate of 856,000 units. Single-family starts increased 0.3%. Volatile multifamily starts rose 21.6%. Compared to the previous year, housing starts were up 28.6% in May. Applications for new building permits, seen as an indicator of future activity, fell 3.1% to an annual rate of 974,000 units. The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 14 fell 3.3%. Purchase volume fell 3%. Refinancing applications also decreased 3%. Existing home sales rose 4.2% in May to a seasonally adjusted annual rate of 5.18 million units from 4.97 million units in April. Compared to a year ago, existing home sales were up 12.9% in May. The inventory of unsold homes on the market rose 3.3% to 2.22 million in May, a 5.1-month supply at the current sales pace, down from a 5.2-month supply in April. Initial claims for unemployment benefits for the week ending June 15 rose by 18,000 to 354,000. Continuing claims for the week ending June 8 fell by 40,000 to 2.951 million, a new recovery low. The less volatile four-week average of claims for unemployment benefits was 348,250. Upcoming on the economic calendar are reports on the housing price index on June 25 and pending home sales on June 27. Share: