The Las Vegas housing market showed a slight uptick in September after losing ground in August, the Greater Las Vegas Association of Realtors reported Oct. 9.

Realtors sold 3,358 homes during the month, a 4 percent increase from August and 20.7 percent increase from the same month a year ago.

The median price for a single-family home rose 1.8 percent to $138,000, a gain of $2,500, though it remains down 29.2 percent from a year ago. Condominium and townhome prices dipped to $65,720, down about $500 from August.

Inventory declined 0.9 percent to 20,801 in September. Excluding contingent and pending sales, the inventory fell to less than a three-month supply with 7,909 units available without offers.

Two groups of buyers are driving home sales today, Realtors association President Sue Naumann said. First-time homebuyers are rushing to capitalize on the $8,000 tax credit and cash-talking investors are snapping up most of the lower-end deals. Investors, who were partly to blame for the run-up in Las Vegas home prices, now account for about 44 percent of monthly sales.

Bank-owned properties continue to play a huge role in the local housing market. Nearly 80 percent of sales were foreclosures at one time, but that percentage is declining, Naumann said.

“I don’t know if it’s banks holding back or if it’s the president’s workout plan,” she said. “I think a lot of people are able to file to have a modification and that’s why we’re seeing less of them. I think there are other options for people who have the wherewithal to pay their mortgage, but not at the interest and terms of their loan.”

Surprisingly, the avalanche of foreclosures predicted to hit Las Vegas has failed to materialize, said Larry Murphy, president of SalesTraq, a Las Vegas-based housing research firm.

The number of actual foreclosures dropped to 1,944 in August, down 21 percent from July and the second straight monthly decline. Also, the number of bank-owned dispositions exceeded the number of acquisitions for the sixth consecutive month, SalesTraq reported.

There’s still a lot of pain left for homes in the $300,000 to $400,000 range, said Mark Baker, mortgage broker for Meridias Capital in Las Vegas. He’s taken two new loans recently in which the bank had the property for more than two years and just now put it in escrow for sale.

“With the REO agents I’ve been talking to, the inventory is growing with the banks, but they are not releasing it to the agents,” Baker said. “One of them just told me that it will not be until the first of the year (that) we start to see some more inventory. The interesting thing is going to be what the government replaces the $8,000 tax credit with. I bet it will be bigger and better and next year is going to be a frenzy.”

The government has extended the tax credit for military personnel serving overseas.

Home prices won’t return to peak levels of 2006 for at least another decade, probably not until 2020, Moody’s Economy.com housing analyst Celia Chen said in September.

“The correction will be not only deep, but also lengthy,” Chen said, noting that it took 20 years for home prices to return to their peak after the Great Depression.

Standard & Poor’s Case- Shiller housing price index will fall 40 percent from the 2006 peak with housing bottoming out in second quarter 2010 before rebounding, she said.

Condo and townhome sales rose to 859 in September, up 6 percent from 810 in August and more than double the 386 sales in September 2008. Inventory of attached units for sale dropped 6 percent to 5,180 in September.

Total value of local real estate transactions tracked through the Multiple Listing Service during September increased 6 percent to nearly $564 million for single-family homes.

Realtor statistics are based on data collected through the Multiple Listing Service and do not account for homes sold by owners, newly constructed homes and other transactions not involving a Realtor.

The Realtors group revised its inventory statistics in August to take out homes that have contract offers on them. These homes are pending or contingent upon some other action such as bank approval on short sales, or homes sold for less than the mortgage balance owed.

When “loan modifications” became big news, it seemed that the new “loan mod” companies started coming out of the woodwork, especially here in Las Vegas. Unfortunately after some time it became apparent that many were taking consumers money up front and not helping their clients one bit, essentialy scam. 

I’ve written several articles on the subject in an effort to help troubled homeowners distinguish between good and bad companies, what to look for and how to sort through them.  Don’t get me wrong, there are several good companies out there as well as several reputable law firms willing to take on the daunting challenge of getting a loan modified, however there are just as many bad ones.

It also amazes me, that most of the public is unaware of the Fed’s huge accomplishments over the last two years of prosecuting many of these fraudulent companies as well as thousands of fraudulent lenders over the last few years.  And it doesn’t matter how big or small they are, yes they are actually sending hundreds, if not thousands of people to jail!

Read the full artice.  http://www.msnbc.msn.com/id/32894059/ns/business-real_estate/

Regulators seize Corus Bank, plan sale of Vegas projects

By Steve Green (contact)

Saturday, Sept. 12, 2009 | 11:48 a.m.

Sun Coverag

Corus Bank, known as the nation’s poster child for aggressive condominium development lending during the economic boom, was closed and seized by regulators Friday due to mounting losses.

They now plan to sell the bank’s loans and inventory of foreclosed properties, which include some high-profile Las Vegas projects.

The Federal Deposit Insurance Corp. said Corus was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. MB Financial Bank of Chicago assumed all of the deposits of Corus Bank and about $3 billion in assets comprised mainly of cash and securities.

“The FDIC will retain the remaining assets for later disposition. The FDIC plans to sell substantially all of the remaining assets of Corus Bank in the next 30 days in a private placement transaction,” the FDIC said.

As of June 30, Corus had loans and other assets of $7 billion and deposits of about $7 billion.

In a regulatory filing this summer, parent company Corus Bankshares Inc. of Chicago said that as of March 31, it had $2 billion in non-performing — or bad loans — in which the borrowers were not expected to pay all the principal and interest due. These included three condominium loans and a commercial loan in Las Vegas totaling $182 million.

As of March 31, Corus said three of the troubled Las Vegas projects it financed had a total of 825 condominium units remaining to be sold.

“Corus is suffering from the extraordinary effects of what may ultimately be the worst economic downturn since the Great Depression. The effects of the current environment are being felt across many industries, with financial services and residential real estate being particularly hard hit. The effects of the downturn have been particularly severe during the last 180 days of 2008, and have continued into 2009. Corus, with a portfolio consisting primarily of condominium construction loans, many in the hard-hit areas of Arizona, Nevada, south Florida and southern California, has seen a rapid and precipitous decline in the value of the collateral securing our loan portfolio. Thus, we are experiencing significant loan quality issues,” Corus said in its first quarter financial statement disclosing a loss of $301 million for the quarter, including a charge of $209 million for credit losses.

The bank’s Las Vegas borrowers include the downtown Streamline Tower condominiums. In July, records indicated Corus was owed $108 million on that property, which had been taken into bankruptcy and was later foreclosed on by Corus. Of 275 condominiums there, just 27 had sold, Corus said in a court filing.

Another big project Corus has foreclosed on is the One Las Vegas condominiums at 8255 Las Vegas Boulevard South, at Blue Diamond Road/Windmill Lane. Corus extended $140 million in credit to the project in 2006.

Besides a lack of condominium sales for the twin-tower, 359-unit development, it’s mired in litigation involving unhappy condominium buyers.

In a lawsuit pending in U.S. District Court in Las Vegas, buyers of eight condos claim the developer Midbar Condo Development L.P. and Corus subsidiary 8255 Las Vegas Marketing Corp. failed to provide promised amenities at the project including:

–A “massive palm grove pool”

–”Lush, beautiful landscaping”

–A multimedia theater room

–A conference room

–A business center

–Valet service

–An outdoor event center

–Two guard-gated entries, including an elaborate entrance from Las Vegas Boulevard

–Tennis/basketball courts

–Outdoor hot tubs

–A boutique hotel including a 20,000-square-foot health club and spa

–A half-mile perimeter fitness trail

–Multiple dining venues

–Five residential towers

–Retail shops

“None of the above amenities and improvements have been constructed and/or completed,” the buyers charged in their lawsuit. Those claims have been disputed by the defendants.

Other local projects financed by Corus include Meridian ($111.3 million), Platinum ($87.6 million), Loft 5 ($56.5 million), Juhl ($106.2 million), Newport Lofts ($67.1 million), Panorama Towers ($236.3 million), Village Green ($60 million), the Residence Las Vegas ($56.8 million), Soho Lofts ($49.3 million), Copper Canyon ($43 million), Boulders at Lone Mountain ($40.2 million), Verano ($39.5 million) and Spanish Palms ($28.2 million).

Other than the One Las Vegas and Streamline developments, it wasn’t immediately disclosed if Corus held any unsold condominium units in these or other local projects.

The Wall Street Journal reported that potential buyers of the Corus condominium assets around the country are Related Cos., Lubert-Adler Partners LP and other investors; a venture of Miami-based developer Crescent Heights and Dallas-based investor Lone Star Funds; Colony Capital LLC, iStar Financial Inc. and Starwood Capital Group. Las Vegas investment groups had earlier expressed interest in the Streamline Tower. google_protectAndRun(”render_ads.js::google_render_ad”, google_handleError, google_render_ad);

In this mess of an economy and despite all of the bad media hype, the Las Vegas housing market continues to forge ahead.  The big news (according to some) is that the median home price fell again this month.  The big news according to me, is record home sales month after month.  If fact, for the last two months (June/July), we have had more closing than any month since 2001. 

In a balanced Las Vegas Real Estate market, we would expect to to see an average of 7500 available homes and an average of 5000 closings in any month. A little concerning considering we were maintaining over 24,000 available listings through the first quarter of the year.  But lower home prices and the $8000 tax credit has brought the buyers out in droves!  In June we saw 4732 closings, July 4638 and August 4082 and we sit today on an inventory of only 9100 Single family homes, most of which already have multiple offers, not to shabby!

Despite all of this, there are still uninformed buyers who think the Las Vegas market is dead, (and I said uninformed not uneducated, buyers are very very smart now a days) that think the homes are just sitting vacant and there for the picking.  It actually has been very challenging over the last few months getting buyers into a home.  When combining the lack of inventory, with the high number of buyers, and believe it or not, the high number of CASH buyers it is tough!

This doesn’t mean that you shouldn’t buy if you want to, it can be done and can still be fun and exciting!  My advice to anyone seeking out the perfect home in todays market would be………

1. More now than ever you need a Realtor to guide you through the process.  Try finding a house on your own and almost everything you see will be in escrow or have multiple offers and it’s just too late at that point.  Save yourself the frustration and disapointment, this is what we do.

2. Interview your Realtor before choosing an agent to represent you, not just any Realtor will do. 

3. Look for a Realtor who is working FULL TIME as as agent, anything less will leave you disappointed in today’s competitive market.

4. Look for a Realtor who has closed transactions recently and who has experience with the “bank owned” homes.  If your offer is not written correctly, you’ll only be spinning your wheels. 

5. Find an agent who WANTS your business not one that NEEDS your business, they may not have your best interest in mind. 

Well that’s it for now and remember, I welcome comments, questions and concerns and don’t forget about your $8000.00 tax credit!

Beware of the home inspector you choose!  So I’m representing the seller, who happens to be a bank as their listing agent and I’ve put this great home, in one of the most desirable areas in Las Vegas into escrow.  The seller (bank) spent $7000.00 in making this home beautiful before putting it on the market, and it was a hot item once listed. (keep in mind most banks and/or agents do not do this and put crap on the market).  Anyway, the buyer chooses to find his own home inspector (typically the buyer’s agent would recommend someone he knows and trusts) and the inspection begins.  Over five hours later (there is no way it should have taken more than two hours) he is done and with a several page laundry list of ridiculous things “he feels” are defective.  (again, this home is in great! condition and in better shape than 99.9% of the homes on the market. 

With that being said I feel the need to explain to this inspector what his job REALLY is!

 1. The listing and selling agents are not the enemy, quit trying to be the “hero”.

 2. Your buyer is counting on you to point out any defects in the home and to do so in an effective manner that will inform  him/her yet still make him/her feel comfortable (should the case be) about purchasing a home, not for you to put the fear of god into them about buying a fantastic home.

 3.  If this was an attempt to do a “great” job and get more business, well remember…..you may think you did a great job for your buyer and in turn you will get more business, but he isn’t going to buy another house for at least five years, the agents do this every day!!!!!!  You should think about doing a “great” job for us, and we will get you the business!

 4. You ALMOST cost your buyer a fantastic house, because you wanted to be the “hero”.  There is no doubt the buyer does and will enjoy this home for many years to come, you almost took that pleasure away from him!

 5. You ALMOST cost two professional Realtors who only want the best for their clients, who have already put countless hours into this transaction, thousands of dollars.

 6. You ALMOST kept one more home on the market when we should desperately be trying to clear out inventory!

So to you I say, great job! You should re-think your business plan, profession and motivation for what you do and I can assure you that your “great” job will never get a referral from this agent.

O.K. So I staretd emailing my weekly newsletter to all of my contacts.  I hope everyone is enjoying it, or at least reading it, or at least not sending it to junk mail, or at least not reporting me as spam.  Hey, sorry for the spelling mistakes, it’s getting better!

It is alarming to me the number if clients who say, “It’s impossible to get a mortgage in today’s market”, or “the mortgage industry isn’t lending money to any one”.  It scares me to think where people are getting their information.  Yes, two years ago you could present your high school report card and get a loan for 125% of the value of the property, with no money down, using a 1st, 2nd, and 3rd to qualify and keep your payments on that $500,000 home below $1000 per month.  Well, that wasn’t reality and we are now paying the consequences.

The bottom line today is that BANKS ARE LENDING MONEY to qualified borrowers.  What does “qualified” mean you ask????  It’s simple, you need a job, any job, with minimal income, that you can prove.  You need to have a less than average credit score, say 600 or better.  Is that too much to ask to borrow $2,3,4 hundred thousand, for thirty years at a fixed interest rate below 7%, well I don’t think so.  And the best part is, with a 720 or higher credit score, there are still 100% programs available.  Don’t believe me, again, you might be talking to the wrong people, give me a call.

 J

Well, here is some good news………  Home sales in Southern Nevada have been increasing every month since December of 2007.  We reached almost 2000 sales in March which is up from a low of 900 in December of 2007.  It would seem that with low interest rates and home prices falling, buyers are realizing NOW IS THE TIME TO BUY. 

I have many clients ask me if they should wait for the bottom, well the challenge here is two fold.  One, who knows were the bottom is?  Once you’ve realized they have hit bottom, it may be to late to capitalize on the ”great deals”.  Two, by the time the market does hit the bottom, interest rates will most likely have gone up, yes you might have saved another $5000.00 - $10,000.00 on your initial investment by waiting, but figure in that higher interest rate and you’ll see it cost you much more than you’ve saved.