May 16, 2019

But Is The Sky Actually Falling?

It makes me crazy to hear reporters crying that the housing market is going to hell in a hand basket simply because prices are no longer skyrocketing. I guess it sells newspapers (I know, that's not really a thing now, but that's not the point). These stories cause buyers and sellers to sit on the fence waiting to see what will happen next, and thereby contributing to - what happens next!

Housing prices in Nevada are among the fastest-rising of the top 20 markets in the country, yet because the trajectory has slowed our own Las Vegas Review Journal just stated, "resales have tumbled, the once-depleted inventory of available houses has soared, and price growth has slowed." I'd share a link to the story, but I don't want everyone to be forced to pay the LVRJ 99 cents to read a lame story that I find somewhat difficult to follow. The headline blares a problem, but the numbers in the story belie the headline.

(Picture and referenced story Courtesy of the Las Vegas Review Journal)

Las Vegas does have a serious issue with a lack of affordable housing, and that's slowing sales - but it's hardly time to say slowing price increases are a problem. Las Vegas home prices are up 9.7% from February, 2018 to February, 2019, according to the S&P CoreLogic Price-Schiller Index. That is more than double the national average price increase of 4%. Winning.

Los Angeles, San Diego, and San Francisco are very possibly about to see home prices decline for the first time since 2012, according to CoreLogic. So when I read that our market "likes to tout it's cheap prices compared to California," it makes my blood boil just a bit. Our median home price is still at $300,000 - so, yeah, we have boasting rights.

What I can't figure out is why more Californians are moving to Washington, Arizona and Texas than to Nevada, where we pay no state income tax. But that's just an aside.

According to the Greater Las Vegas Association of Realtors, 2872 single homes sold in April. That's up 9.6% from March. Sales are down 0.2% year-over-year, so the LVRJ writer manufactures a crisis?

Inventory has risen to 7435 homes; although inventory is up 4.9% for April, we have less than a 3-month supply. This is a healthy market other than the affordability problem. If that changes substantially, I'll don the LVRJ's Chicken Little mascot costume and announce it's time to panic. I do not see that happening.

Local homebuilder Larry Canarelli just sold his homebuilding business to Pulte Homes, which plans to retain Canarelli's America West brand. Pulte picked up 1200 building lots, which total about 200 acres, for $150m. Mr. Canarelli still owns about 6000 acres. I am available for adoption, Mr. C.

(Photo courtesy American West/Story Courtesy ProBuilder.com)

As always, feel free to call or text me at 702.279.2466, or shoot me an email at Robin@NeighborhoodLV.com, if you have any real estate questions.

Robin

April 23, 2019

Retiring to Nevada

Las Vegas is seeing an influx of retirees looking for a temperate climate. With a median home price of $300,000, it's no wonder - retirees moving here from California can afford to downsize here. According to the recent United Van Lines National Movers Study, 29% of people moving to Nevada are coming for retirement-related reasons. New Mexico topped the list.

(Image and story courtesy of FOXBusiness.)

I was shocked to see that the Notre Dame Cathedral did not have property insurance. This weighs on my mind as a homeowner who nearly lost a home to a fire. After this and a high-speed chase that totaled my car, I swear by replacement value coverage for homes and gap insurance for cars. We never expect these things to happen to us, and always question why we are paying for insurance we never use. I'm a big believer now, and encourage you to check your coverage.

(Image & story courtesy of Bankrate.com.)

Speaking of Las Vegas growth, Clark County was the second fastest growing county in 2018. And speaking of Clark County - kudos to Clark County Commissioner Tick Segerblom for bringing the County's weight to bear on dilapidated properties. Eastsiders are fuming, having been largely left behind as the area has recovered from the recession. Dilapidated buildings abound as out-of-state landlords ignore their holdings and collect rents without maintaining the buildings. However, I urge the Commission to demand the same of vacant buildings that are a blight on this area. Targeting occupied properties makes sense; so does targeting buildings that attract squatters and give the area a neglected appearance.

(Image and story courtesy of News 3 Las Vegas.)

I would love to discuss where these circumstances leave you in your real estate world. Call or text me. 702.279.2466 - Robin

 

April 17, 2019

The times, they are a-changin'.

After starting off the year at a very slow pace, real estate sales in the Las Vegas Valley are picking up. With interest rates .6% lower since November, buyers are no longer standing on the sidelines. Inventory is high with 7,091 single family homes on the market today - looks like the market is no longer favoring sellers for now. The median home price of $300,000 means those coming from California can still get a lot more house for their money.

(Image and story courtesy of the Las Vegas Review Journal)

Rents are rising - whether this is good or bad depends on whether you are an investor/landlord or a tenant. Apartment rents are up 7.7% - the highest increase in 79 metro areas over the past year.

(Image and story courtesy of the Las Vegas Review Journal)

Jobs are growing at a faster pace than the population growth in Henderson. Hmmm - will higher pay follow when employers need to compete for employees?

(Statistics courtesy of RCG Economics Las Vegas.)

On a sad-but-not-unexpected note, downtown’s Eclipse Theater is facing foreclosure. I love this place, but it generally feels like a ghost town. At $18 per seat, you need to offer more variety than just superhero movies. Beautiful theater, and perhaps the investor who is able to pick it up once it’s REO will be able to drop the price to attract more locals.

(Image and story courtesy of News 3 Las Vegas.)

 

I would love to discuss where these circumstances leave you in your real estate world. Call or text me. 702.279.2466 - Robin

April 8, 2019

Online E-Buyer Platforms

I'm back! In what the L.A. Times deemed a "Las Vegas story" I had a wild time that kept me busy for a bit. You may have seen the national news story: escaping felon on his way to Court for sentencing hijacks a truck while under fire from the police officer that let him escape, rams 4 cars, and leads cops on a high-speed chase in DTLV - until he runs out of gas.

Uh, no, I'm not the felon. My beautiful red Cadillac was one of the 4 cars this jackass rammed. It was completely totaled. The escapee was sentenced to life in prison with no possibility of parole the next day. My son was driving, and for me this begs the question: why would Metro have ONE 25-year old officer with 2 years experience guarding a repeat and violent felon? A perp so bad that he was going to prison for life. Metro has decided to start assigning two officers when transporting criminals. Ya think?

Meanwhile, back at the farm...

I grimace every time I see a solicitation from one of these online "e-buyers". I'm sure you've seen the marketing - there are numerous companies trying to buy your home, cheap. Their warm, fuzzy messages belie the fact that these buyers are charging the seller 6-7% to take their home off their hands.

(Zillow.com/Offers  Ad courtesy of YouTube. Click image above to watch ad.)

Okay, for the ease of selling your home without showing it to buyers - you know, real people - you are asked to pay a "fee" instead of a Realtor's commission. Sounds easy enough; save a little time and hassle. But how likely is it that an e-buyer can pay the same price for your home as someone buying their dream home when they plan to flip it for a profit? The e-buyer needs to sell the home for more than they just paid you - how can they do that unless they pay you less than market value?

Realtor's commissions aren't fixed - they are negotiable. For that commission, you have someone representing you and trying to get you the best price and terms - not to buy your home for under market value to resell! A good Realtor seeks to expose your home to as many buyers as possible, with the goal of attracting the best offers possible.

Full disclosure: Yes, I'm a Realtor. This just rubs me the wrong way. Please think twice before selling YOUR home for less than it's true value.

Zillow is a great example of the e-buyer platform, and I'm not picking on just Zillow. Because the seller skipped the whole process, this home will be "new" or "fresh" on the market to buyers. That's when the home is likely to fetch the best price. Sweet deal for the company that just picked it up under market.

Image & story courtesy of Inman.

Zillow is now offering direct mortgage services. They will list the home they just bought, and collect the profit. In the process of reselling the home they will offer buyers their in-house mortgage services, for a fee of course. While all of this makes great business sense for Zillow, consumers need to do business with their eyes open. Be aware of all of the fees you are paying for the convenience of a streamlined process.

One-stop-shopping may not be worth the price. Selling your home the traditional way should help you keep more of your hard-earned money in your pocket. Sometimes the e-buyer's quick, "less-hassle" process makes sense. Sometimes, due to life's circumstances, this speedy process legitimately matters to a seller more than money.

If you ever need help making sense of YOUR real estate world, I'm here to help.

Robin

 

Posted in Buyers, Sellers, Technology, Tips
March 28, 2019

"Life is like a box of chocolates..."

"Life is like a box of chocolates - you never know what you're going to get." -  Forrest Gump

We intended to have a new blog post for you all today; However Robin is out for a few days thanks to an escaping inmate ramming her car repeatedly. She'll be back soon, and asked us to share this important news.

"The Department of Housing and Urban Development has filed charges against Facebook for housing discrimination, escalating the company’s ongoing fight over discrimination in its ad targeting system. The charges build on a complaint filed in August, finding that there is reasonable cause to believe Facebook has served ads that violate the Fair Housing Act."

Click HERE to read more at www.theVERGE.com.

(Image & Story courtesy of THE VERGE)

 

Also, if you're in the market for a new home, mortgage rates are not only at an all time low overall, but mortgage rates have seen the biggest weekly drop in a decade! Check out the story at CNBC.com.

(Image and story courtesy of CNBC.com)

 

Lastly, here is why Robin is out for a few days. Thankfully, Robin is fine but her car wasn't so lucky. Click the picture below to read more.

(Images, video and story courtesy of KTNV Channel 13 Action News)

 

There is also dash cam video of the incident, Watch the video HERE, the red Cadillac is Robin's vehicle. 

 

Robin will be back next week. Until then, be safe!

March 4, 2019

Opportunity Zones & Opportunities Abound

How about that VGK win a few nights ago?! Took it in the shoot-out. I'm sad to say I wasn't there - we lost the shoot-out at the game I attended recently. Donuts for all for last night's shut-out, too. Sweet.

Speaking of the Vegas Golden Knights - and who isn't? - they are opening a second practice arena on Water Street in Henderson. I'm opening a restaurant just 3 short blocks from the arena, and I'm super excited. I think I'll layout some of those wire traps and try to lure Marc Andre Fleury in. Maybe use a little poutine for bait?

I'm looking into the new Opportunity Zones so I can bring you some information on these. My Water Street restaurant happens to be in an Opportunity Zone. I'm a little bummed that our upcoming downtown tavern isn't in an OZ, but that would have just been icing on the cake. What I know at this point is what everyone else knows - investors can get capital gains tax deferment by investing in businesses in these zones  through an Opportunity Fund. Beyond that, there is a lot of misinformation being passed around. I'll keep you apprised when I know more.

(Data mapped by PolicyMap, an online GIS mapping tool.)

For you fence-sitters: WTH? Mortgage rates are low, there is ample inventory, yet homes are still sitting on the market too long. Maybe it's the weather, and we'll see an uptick quickly. Stop with the "it feels like 2008" talk - your favorite restaurant server doesn't own 6 homes, and stricter lending standards have created more stability in the market.

Prices are not decreasing, if you're waiting for that. Price appreciation has slowed, and this is the market you've been waiting for. Get off the fence now so you'll look brilliant to your friends when you're paying 4.3% interest in a few years.

In other news - Downtown Las Vegas is a great area to invest as well as to live. Price appreciation for 2018 was 20% in the 89104 zip code. (2018 Las Vegas appreciation) This area includes John S. Park, Southridge, Beverly Glen and many other vintage neighborhoods. The core of downtown, 89101, saw appreciation of 18.3%. Downtown Las Vegas is largely inside the Opportunity Zone. I'm just sayin'...

( Interactive SalesTraq 2018 Las Vegas appreciation zip code map.)

As always, text or call my team if you have a real estate question or need. 702.291.8766.

Robin

 

Posted in Neighborhood, Sellers, Tips
Feb. 14, 2019

Millenial Exodus?

What’s up, California? 63% of your state’s millenials say they are considering leaving the Golden State. Could it be because they can buy a typical $630,000 LA home for $300,000 in Las Vegas? These numbers represent the median home prices for Los Angeles and Las Vegas today.

The answer is - pretty much so. Many millennials in California feel home ownership is out of their reach due to the high cost of housing, and are beginning to question whether the higher salaries are a reasonable trade-off. Of course, there are other factors than home price, such as California's state sales tax, that are putting a home for their family out of their reach. There is even more disparity in the luxury home market, where a buyer might pay 2 to 3 times as much.

(O'Bannon Estate courtesy of GLVAR MLS ; Offered for $10.5 Million according to ABC News 13 Las Vegas)

 

How's the Market? Inventory has been steady, hovering around 8000 homes for sale for the past 5 months. Home prices in Southern Nevada are up 9.2 percent year-over-year, but you can expect to see appreciation grow at a slower rate. Sales are picking up after a slow December, but buyers shouldn't see multiple offer situations any time soon.

Interest rates hit a 12-month low today. It’s a great day to buy that move-up home - plenty of inventory means less competition for your dream home, and rates are hovering around the very low 4% range. With fewer buyers out shopping, it's a good time to sell and put your money in that move-up home. And while you're at it, pick up a few rental homes. You can thank me later.

(Mortgage rates as of 2/14/2019 according to  Bankrate.com)

 

Speaking of the Market. With dozens of new marijuana licensees looking for a location before their licenses expire, there is a demand for suitable dispensary locations. I’m looking for a building in the City of Las Vegas for a client - shoot me an email or text if you have a commercial property larger than 2200 s/f that you need to sell. Dispensaries must be located at least 300 feet from the nearest school, church, park or other public facility. My colleague listed a 15,000 s/f building in the County suitable for a dispensary and a cultivation or production facility.

 

Feb. 1, 2019

Is it Time to Buy?

Will the news coming out of the Fed yesterday spur more activity in the real estate market? With the Fed surprising nearly everyone by holding steady on the interest rate, this could go one of two ways. It could be the catalyst that gets buyers off the fence and out shopping for homes, or it could result in buyers thinking they have all the time in the world to buy.

Las Vegas area home sales were down roughly 5% for December while both buyers and sellers sat scratching their heads, uncertain as to their next move. While sales have slowed and many sellers have dropped their prices, that doesn’t equate to prices falling - prices are increasing, but at a slower pace than 2018.

Prices are still up 9% year over year for December. According to SalesTraq, inventory  over the past 4 months is still at 3.3% in Vegas. The healthier inventory is helping to curb the rapid price increases.

(Credit SalesTraq)

Prices are expected to rise 4.9% across the country in 2019. That’s a national projection; as I always say, real estate is local. Las Vegas area prices are projected to rise 7.9% in 2019. I tossed out my crystal ball in 2008 - but I’m still certain if the pace of sales pick up enough, we could see prices rise even higher than many experts predict today. After all, sellers generally react to what buyers are doing.  It's that supply and demand thing.

So is it a good time to buy, or is it wise to wait? If interest rates remain relatively steady, buyers sitting on the fence are still going to pay more for the same house if they wait to buy. And those buyers will lose out on building that equity in their home that increases their net worth. At 7.9%, Joe Buyer spending $500,000 on a home today would pick up $39,500 in the first year if the 7.9% holds true. That's a chunk of change, and a good return on investment on a 20% down payment.

The good news is no increase in the interest rates this month. The great news is that future increases in 2019 are no longer a certainty; the Fed has decided to exercise patience.

For December, the average sales price of residential properties including vacant land rose from $305,283 to $307,042 per the MLS. Real estate always appreciates over time. Buy low, sell high. Or just buy low and brag to your friends as your net worth increases from your real estate. I LOVE real estate.

Coming in 2020

According to the Las Vegas Review Journal the World Market Center will add 315,000 s/f of additional downtown convention space. This convention space will accommodate community events and trade shows that no longer use Cashman Center for their events.

(The first day of the Las Vegas Market at the World Market Center in Las Vegas. Sunday. Jan 27. 2019 Rachel Aston/Las Vegas Review-Journal)

The new convention center will be more than 3 times the size of Cashman Center. More events near Symphony Park will equate to more customers for local hotels, restaurants and businesses in DTLV. Best of all, those godawful big white tents you see from the highway are going away!

Jan. 24, 2019

We're Going to need a Bigger Boat

My jaw just hit the floor.

How is Wednesday’s discovery of a huge breach of sensitive personal information not front page news today? I think we’re all becoming desensitized when it comes to a new data breach. It seems like a major corporation is spilling our candy all over the lobby every day.


This isn’t AshleyMadison.com airing your naughty behavior. Well, okay, bad example. Things might have been very uncomfortable around the house for a few days if you were a victim of that one. This was information that could very easily lead to identity theft and the ensuing mess that can create.


TechCrunch revealed that this breach, sourced back to Ascension, contained “highly sensitive personal information, including people’s names, addresses, dates of birth, Social Security numbers, and other sensitive information typically found on mortgage documents." If you got a mortgage with such firms as Wells Fargo, Citigroup, Capital One and others— even HUD documents were exposed—you need to keep an eye on this one.


In other less-devastating news, homeowners are staying in their homes longer. Just a few years ago the average American stayed in their home for 3 to 5 years. By 2017, Americans were sitting put for 7 years. Just in the past year, that’s up another 10% and at the highest level in 18 years. Could this be a contributing factor to the unusually high decrease in home sales recently?


For those of you who requested those tips for selling your home for top dollar—I haven’t forgotten you. I’ve been wearing my other hat all week and will get this information to you today.


Text or call my team if you have a real estate need. 702.291.8766.

Robin

Posted in Tips
Jan. 11, 2019

By the Numbers: Fall Market Update 2018

We've pulled the numbers for last fall's market outlook in downtown Las Vegas and Sunrise Manor and we'd like to share them with you today!

Remember, while numbers are fun, they aren't a replacement for the insight and expertise of an experienced agent so if you have any questions, we're always here to add context.

Downtown Las Vegas Fall 2018 Market Update

Single Family Homes Average Sales Price: $259K
Selling at 98.5% of List Price
26.3% Increase Year-Over-Year
Average 16 Days on the Market
More than 635 Homes Sold

Sunrise Manor Las Vegas Fall 2018 Market Update

Single Family Homes Average Sales Price: $361K
Selling at 98.6% of List Price
3.2% Increase Year-Over-Year
Average 20 Days on the Market
More than 230 Homes Sold

1,000+ Homes Sold By Neighborhood Realty. Data Provided by MLS.

Posted in Neighborhood