It seems the media is trying a new message instead of their usual doom and gloom—hope. Today Dr. Phil had money guru Jim Kramer on his show. He was helping advise a couple going through a very tough spot and gave out some advice to the audience as well. His take on the real estate market—buy in the next 6 months.

He isn’t the only one that noticed the absolute steals available in real estate. The Las Vegas Review Journal published an article on a report by Massachusetts forecasting company IHS Global Insight and Ohio bank holder National City Corp. The report suggested the market’s worse price declines have passed…something that anyone who has been following the market could have told you. Home sales have surpassed the prior year and inventory has not been growing by leaps and bounds like it has in the prior year.

An interesting tidbit in the report were their findings on Las Vegas home values. Values have been in a sustained slide and six month ago home prices here were 3.1 percent below the values historic fundamentals warrant. (The historic normal values are calculated by using median prices from 2000, population density, interest rates and household income). Granted that’s not enough of a shortfall to qualify as undervalued, at least at that time. However, when you look at today’s numbers that figure is more than 14 percent according to the report and Las Vegas ranks at number 287 out of the 330 markets IHS Global Insight and National City track. While not at the very bottom of the barrel, we can certainly see if from where we’re at.  So how did the market get to where its at? Mainly due to overbuilding, a lot of speculative investments and home buyers buying more home then they could comfortably afford with a loan that adjusted later on. Sales started to slow down, but builders kept on building and real estate investors and home buyers became overextend, flooding the market with homes, pushing prices well below equilibrium value.

Aside from a normal market correction of an overabundant inventory, Las Vegas is the foreclosure capital of the US and foreclosures often depress home prices. Builders have had to compete against bank owned properties in several Las Vegas communities, forcing them to lower their prices in order to stay competitive. Bank owned properties account for over 65% of all home sales at the moment. According to Sales-trac, the overall resale median in Las Vegas is $184,000.

According to the report, the devaluation of the housing market should slow down in 2009. Actually Las Vegas home prices have already stabilized in several areas around the valley and some areas have actually gone up in prices, although most of those areas have few bank owned properties. The report forecasts a bottom at a median of around $182,000. Richard DeKaser, chief economist of National City said “for consumers, undervaluation should signal purchasing opportunities. Real estate is now a good buy in Las Vegas”. Before you dismiss the report as Realtor optimism, DeKaser also predicted that housing values would fall back in 2005.

Yet, history shows that markets experiencing significant undervaluation provide a “strong likelihood that buyers will be rewarded over the longer term,” DeKaser said.

That doesn’t mean anyone will make money flipping local homes in the next 12 months. But it does mean buyers with time horizons of five years or longer are likely to realize “lucrative” returns on homes they buy today, he said.

There are some great deals out there. If you are thinking about making a plunge into the Las Vegas real estate market, call me at 702-493-8033 or send me an email with your contact information and the type of property you are looking for. Thanks for stopping by.

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I received an interesting email today from Lennar Homes advertising a “certified pre-owned” Lennar home! Apparently they have some homes that were repossessed and have decided to handle the sales of those homes. One of the things Lennar is touting is reliability by buying from them. Here is a quote from their email:

• These like new homes are priced thousand’s below new home value
• Lennar conducts a meticulous wall to wall inspection
• Any items that need repair or replacing are taken care of!  Including electric plumbing, windows, appliances, drywall, roof, flooring, etc.

They are competing against a lot of bank owned properties in the valley as well as regular listings. It will be interesting to see if this foray into the resale market works out for them. The email also listed one of their Antelope homes for sale, floor plan 1775. If you are thinking of buying a home in that neighborhood, you might want to consider this one. The house has been upgraded to GE stainless steel appliances, granite slab kitchen counter tops, cat 5 wiring and comes with the Lennar 1-2-10 warranty program. All of the homes in Antelope are Energy Star certified and come with low e windows, Honeywell programmable thermostat and a 13 seer ground mounted air conditioning unit.

If you would like to see the property, call me at 702-493-8033 and arrange for you to take a tour.

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Tis the season for holiday sales and Ryland Homes has jumped on the bandwagon. Ryland Homes’ Red Bow Event is their holiday sale on all move-in ready and fully upgraded homes in neighborhoods all over Las Vegas.

Get 4.875% (5.239% APR) 30 Year (Fixed-Rate) financing on any standing inventory.

Ryland Homes has communities all over the Las Vegas Valley, including homes in two communities in Providence and three communities in Mountain’s Edge. The homes range from one to three story models with two to five bedrooms. Prices start in the high 100’s to the low 400’s. Call us at 702-493-8033 and we’ll send you a current list of the homes for sale and arrange for you tour the Las Vegas homes you are interested in.

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When it comes to having sales this year, the hands down winner is Lennar. Lennar is having a new promotion, 30 homes in 30 days. Their goal is to have all of these properties close before the end of the month. There are 30 selected homes at Lennar communities around Henderson and Las Vegas, including one home in Mountain’s Edge and another in Silverado Ranch. There are some terms and conditions of course.

If you use their preferred lender UAMC, you can receive up to $10,000 towards non-recurring closings costs and the best financing programs available. Call me at 702-493-8033 for a list of the homes on sale and to schedule a tour of the homes you are interested in.

With the end of 2008 rapidly approaching, many homebuilders are looking to reduce their inventory. As I had posted earlier about Lennar incentives, Pulte Homes is offering incentives on any of its move-in ready homes at select communities in Las Vegas. From right now through Monday, December 15th, homebuyers can get a 4.99% (5.373% APR) fixed interest rate on 2008 Pulte move-in ready home that closes by the end of the year.

Of course, certain restrictions and conditions apply. One of the great things about Pulte homes are their energy efficiency. All new Pulte Homes are roughly 30% more efficent than the Energy Star rating requirements. That means big savings on your utility bills, especially during the Summer months.

If you are interested in taking advantage of Pulte’s special pricing, call me at 702-493-8033 and I’ll send you a list of the move-in ready homes Pulte has for sale and arrange for you to tour those Las Vegas homes you are interested in.

Lennar homes had a “special” sale on their remaning inventory last month. The sale has been exteneded and buyers can take advantage of a 3% downpayment (Jan 1st downpayment requirement increases to 3.5% on an FHA loan). One thing to remember is that the FHA loan limits will be changing for 2009, so if you are thinking of buying a new home using an FHA loan, you’d better hurry to take advantage of the current loan requirements.

Lennar has homes in several of their neighborhoods around the valley, here are a few examples of their best deals:

• In Henderson
  Summit Ridge - Summit Plan
  2,458 sq ft, 4 bedroom, 2.5 bath, 2 bay garage
  WAS - $290,990
  NOW - $274,990
• Mockingbird - Calistoga Plan
  1,900 sq ft, 3 bedroom, Loft, 2.5 bath, 2 bay garage
  WAS - $250,490
  NOW - $232,490
• In the North
  Canyon Springs - Laguna Plan (single story)
  2,201 sq ft, 4 bedroom, 2 bath, 3 bay garage
  WAS - $288,990
  NOW - $253,990

All homes that close before the end of the year can qualify for special financing (Lennar year end sale financing). If you would like to tour the standing inventory that Lennar has to offer, call me at 702-493-8033. I’ll send you a list of the homes available and arrange for you to tour the homes you are interested in.

The city of Las Vegas has proposed a plan allocating $20.7 million in housing funds to help get people into an estimated 298 foreclosed properties. Granted, that is a drop in the bucket for Las Vegas which has one of the highest foreclosure rates in the country.  How much will it really help? I guess that depends if you are one of the lucky few that will qualify to participate. There is a sunny side. The funding is coming from Las Vegas’ share of the Neighborhood Stabilization Program to help redevelop and repopulate foreclosed homes. Not everyone is a fan of the program.

Not only does it not go far, but it really doesn’t address the vital issue of helping people who are going into foreclosure,” said Las Vegas Mayor Oscar Goodman.

Mayor Goodman makes a very good point. It doesn’t address those people that are facing foreclosure. Basically the plan is threefold. It will provide financial assistance to those qualifying individuals to buy a home. The plan will back a lease to own program for people that can’t get a mortgage (the homes for lease will be foreclosures, 27 homes is the current goal). And lastly, the city will buy homes in targeted nine ZIP codes where foreclosures and pre-foreclosures are the highest at a price 15 percent below the current appraised values, operating them as low-income rental housing in the city’s affordable housing pool for 15 years.

While not thrilled with the plan, Mayor Goodman isn’t looking a gift horse in the mouth. Reducing the amount of foreclosed properties and providing affordable housing can only help the market. But I can’t help but think that the money could be better spent. What are your thoughts?

Pulte homes is having a year end sale on Easton Place real estate, located in the master planned community of Providence. Incentives include backyard landscaping, refrigerator, window treatments, a washer and driver and $12,000 to pay all closing costs for homes that are completed by the end of this year. In addition Pulte is offering $20,000 to $35,000 off of the final sales price.

All homes also come loaded with an array of Signature Standards™ such as:

• Granite counter tops

• Tile flooring in entryway, kitchen, bathrooms, and laundry room

• GE® appliances

• Front and rear covered stucco balconies (on a per plan basis)

• Covered stucco rear patios

• Courtyards

There are certain restrictions that apply. In order to qualify for the incentives, home buyers must use Pulte Mortgage, LLC and close escrow through Pulte Homes title services. Currently there are five homes available for immediate occupancy. Remember, when buying a new home you should always have your own agent. Contact me for free representation at 702-493-8033. I’ll arrange for you to tour the Easton Place homes you are interested in and can send you current floor plans by email.

A recent article on CNN.com listed the top six cities for the best real estate bargains. The article stated some of the things I’ve been saying for the last several months on my different blogs: there are great real estate bargains to be had in the Las Vegas real estate market.

Miami Florida came in number one due to its extremely high level of inventory (about three year’s worth), a 40% price drop since last year and almost non-existant sales for homes and condos. A perfect buyer’s market to the extreme.

Las Vegas came in at the number two spot. According to the S&P/Case-Schiller home price index, home prices drop 22.8% in a year. There are also massive foreclosures as well due to heavy investing by flip-oriented investors and consumers getting adjustable rate mortgages. The article recommends Vegas for two specific markets, high rise condos and retirement. Most high rise projects were announced years ago either during or right before the real estate boom and are just being completed. Prices for most Las Vegas high rise condos are down compared to last year. The lure for retirees is the lack of state income tax, mild winter weather and wide range of entertainment options. CNN recommends buying a new home but not necessarily in one of the many Las Vegas retirement communities that have sprung up over the last several years.  Interestingly enough, they recommend outlying areas like Summerlin or the planned community of Providence.  Personally, I would add to that list based on the homes that I have just shown the communities of Anthem and Tuscany in Henderson.

Other cities to the make the list are Phoenix, San Diego, Tampa and Denver. If you are thinking about buying a home in the Las Vegas valley, feel free to contact me at 702-493-8033 or by email.

Lennar is holding a year end inventory closeout sale on 29 different communities in the Las Vegas valley on November 8th and 9th. Prices will be reduced up to 25% on standing inventory homes. Lennar is also offering financing through UAMC with 2.99% fixed for the first year, 3.99% fixed for the second year and then 4.99% fixed (5.70% APR) for the life of the loan.

There are some restrictions (naturally) to qualify. Buyers must put down a minimum of 10% and have a credit score of 680 or higher. The offer is valid for purchase offers before November 20 for Las Vegas homes closing before November 26th. Call 702-493-8033 for details.

The sales event has been extended to November 15th and 16th on standing inventory. Contact me for details and communities.