Here is an article that I find to be of interest due to the past history of the Las Vegas Market. Las Vegas has rebounded quickly to the last two recessions of 1987 and September 11th, 2001. This article describes the future growth of the Las Vegas Valley as having strong positive momentum. The downward slide of the Real Estate market is not going to last forever so interest rates are again at historic lows and the Treasury Department announced today actions that are targeted to lower interest rates to as low as 4.5%. Today’s interest rates are attached to this blog from my preferred lender Aaron Gordon at Countrywide Home Loans.
Here are two factors to consider: how long will Buyers be able to buy homes at $100 per square foot and at 5% or lower interest rates? I strongly believe the bottom of the market is here, the window of opportunity is now. Buyers need to get off the fence and take advantage of home ownership while these two factors remain.
Please call me with any questions or concerns. Remember Countrywide’s rate sheet is attached below. If you would like to be updated weekly on the interest rates for home loans please contact our office and we would be glad to add you to our rates update emailing list.
Happy Holidays!

Dulcie Crawford
The Dulcie Crawford Group
Realty ONE Group
9089 S. Pecos Rd., Ste. 3400
Henderson, Nevada 89074
Office 702.588.6842
Direct 702.285.1990
Fax 702.447.2800 DIAL AREA CODE
http://www.blogger.com/WWW.DulcieCrawford.com
Dulcie@DulcieCrawford.com
http://freehomevaluehenderson.com/
http://freehomevaluelasvegas.com/


Which cities will weather the downturn best?
Study shows metros entering slow period with most positive momentum
Las Vegas is one of the nation’s cities entering this recessionary period with the most positive momentum.

Gabriel Bouys / AFP - Getty Images file

By G. Scott Thomas
updated 5:08 a.m. PT, Wed., Nov. 12, 2008
This sentence — or one like it — can be found in almost any prospectus: "Past performance is no guarantee of future results."
But that doesn't mean history is a worthless indicator. Consider, for example, the nation's metropolitan areas. The link between their past and future performances is often a strong one.
The 10 fastest-growing metros in the prosperous 1990s have continued expanding in the present decade, despite the erratic nature of the economy. All 10 of these hot markets registered population gains of at least 13 percent between 2000 and 2007, led by Las Vegas' seven-year increase of 33.5 percent.
The 10 biggest laggards of the '90s, on the other hand, have continued to struggle. Seven of these cold areas also lost population from 2000 to 2007, with Youngstown, Ohio, suffering the worst decline, 5.4 percent.
Recent growth trends offer an advance look at the markets best positioned to weather the current economic downturn — and the ones that have the most cause for concern.
Bizjournals analyzed recent performances to identify the nation's current growth centers — the metros entering this recessionary period with the most positive momentum. Las Vegas, Raleigh, and Cape Coral-Fort Myers, Fla., led in bizjournals' new rankings of America's growth centers:
· Las Vegas sits in first place because of its broad-based record of economic expansion. It was among the three fastest-growing markets in population, employment and income during the past five years, the only metro to do that well in all of those categories.
· Raleigh, which is second in the overall standings, picked up considerable steam between 2005 and 2007. Its population soared 9.6 percent over that span, outgaining all other metros. It also led the nation in private-sector employment growth during the same two years.
· No. 3 Cape Coral-Fort Myers, Fla., has been a powerful population magnet. It set the pace for all of America in the past half-decade, growing by 24.4 percent. No other market increased its population by more than 21.2 percent between 2002 and 2007.
Bizjournals analyzed five years of demographic and economic data for the nation's 100 largest metropolitan areas, looking for markets that have been experiencing strong, steady growth.
The study focused on changes in four key indicators — population, private sector employment, per capita income and gross metropolitan product.
Bizjournals calculated growth rates for five different time spans within each category, seeking to detect both long- and short-range trends. The spans ranged in length from five years to a single year, all ending in the most recent year for which official statistics were available.
These were the top performers in each category:
· Population: Cape Coral-Fort Myers was the long-range winner, enjoying the strongest population growth over the three lengthiest time spans. Raleigh was powerful over the short haul, posting the fastest growth rates for intervals of two years (2005-07) and one year (2006-07).
· Private sector employment: The unlikely leader for job growth over periods of five and four years was McAllen-Edinburg, Texas, an area of extensive poverty along the Mexican border. Raleigh was the best for three and two years, New Orleans for one year.
· Per capita income: New Orleans scored a clean sweep, registering the fastest rates of income growth for all five time spans. The devastation wrought by Hurricanes Katrina and Rita in 2005 actually increased the per capita income in New Orleans, as tens of thousands of poor people fled the area and never moved back.
· Gross metropolitan product: Baton Rouge, La., was the leader for three different intervals (five, three and two years) in this category, which measured growth in the output of goods and services. The other top markets were Las Vegas for a four-year period and Wichita, Kans., for one year.
Joining Las Vegas, Raleigh, and Cape Coral-Fort Myers in the top 10 of bizjournals' overall standings are Austin; Phoenix; McAllen-Edinburg, Texas; Houston; Salt Lake City; Wichita; and Charlotte. All would appear to be well situated to confront the recessionary challenges ahead.
Population growth between 2002 and 2007 in these 10 growth centers was 16.2 percent, coupled with an increase of 16.6 percent in private-sector employment. The averages for all 100 metros in the study group were 6.3 percent and 7.6 percent, respectively.
Two states dominate the bottom of the rankings. Five markets from Ohio and two from Michigan have the worst growth records in America, an unfortunate foreshadowing of the economic problems they may face in the coming year.
Both states are in the midst of protracted slumps triggered by the decline of their automaking and heavy manufacturing sectors.
Those problems are especially acute in last-place Detroit, which lost 119,500 private sector jobs from 2002 to 2007. Its gross metropolitan product grew by just 8.8 percent over the same five years, roughly one-quarter the national growth rate of 31.8 percent.
Grand Rapids, sixth-worst in the overall standings, is the other Michigan entry at the tail end of bizjournals' list. The five Ohio markets in the bottom seven are Toledo, Youngstown, Dayton, Cleveland and Akron.

Countrywides Rates Sheet

"RATE DROP ALERT!!!" - THURSDAY DECEMBER 4
The Treasury Department is considering a plan to drive down mortgage rates as low as 4.5% for a 30 yr fixed. This would be the lowest interest rates SINCE THE 1960's!!!
If this happens or not, rates have dropped further. This is the lowest they have been in 2008.
Has there been a better time to buy a home in the last 10 years?? Or to refinance one if you can??
CONFORMING 30 YR FIXED (does not include adjustments for lower credit scores)
4.625 - 2.500 points
4.750 - 1.875 points
4.875 - .875 points
5.000 - .250 points
5.250 - 0.000 points
FHA / VA
4.875 - 2.375 points
5.000 - 1.500 points
5.125 - 1.375 points
5.375- 1.000 points
5.625 - 0.000 points
Now is a great time to LOCK!!

Initial Effects of the Federal Bailout Program

The market is seeing transition as the Federal Bail Out program begins to trickle in to the many sectors of the credit and housing economy.

I have personally seen a trend from the mortgage note holders on my short sale listings to start to pull back from approving short sale transactions. Instead now they are approving loan modifications which were initially turned down the first time the homeowner/seller called the Home Retention Department for assistance in a loan modification. This is a frustrating experience for me as a Listing Agent, as I end up losing listings that I have managed to market and get viable offers for. This of course depends on the lender with whom we are dealing with, some lenders are still co-operating with us towards a successful short sale transaction. This new trend for short sales is beginning to show that they will not be the 1st priority of the lender/mortgage note holder until they have exhausted the new options of the Loan Modification departments that now have federal subsidies to buy down the original mortgage note to what the actual current appraised value is, which is an incredible deal for the financially strapped homeowner.

I have one client that was nine months behind on their mortgage, was initially turned down for loan modification. We had several viable short sale offers in to the bank for approval and the seller tried one last time to see if the new bailout program gave them a second chance. They have been given the wonderful news that they have been accepted to have the loan modified and the original note amount reduced to current appraised value. This family deserved this, I was happy to hear the news, despite my losing a transaction. They truly loved their home and tried desperately to keep it despite their worsening financial conditions.

The upside of this is that I see that the government’s recent actions to promote stimulus for the mortgage lenders to negotiate with homeowners to retain properties in default or that are likely to go into default has begun to work and move in the right direction. I feel that the inventory of short-sale and foreclosure properties will be coming to an end. This new housing trend is something I look forward to in the near future. As a professional Realtor dealing with the banks and mortgage lenders on these financial issues it is a time consuming and sometimes challenging process.

I have included below the Interest Rate update report from my preferred lender Aaron Gordon at Countrywide Home Loans. This last Wednesday we again saw a large drop in the interest rates to 5.75% with one point paid to the lender; an incredible deal in this market when home prices are at historic lows. To be able to buy during the perfect storm of low rates and low home prices is one that I know will not last forever. I recommend that buyers that have been on the fence to buy, take the time to get online and keep updated of the market conditions so that they can take advantage of the incredibly priced deals available today. If we all had crystal balls we would have known exactly when the last market upswing was going to peak, but we don’t and so looking back we should learn that even the media is usually late to report when the market conditions have changed, usually the news is late to report on average six to eight months.

Morgan Stanley just announced this week to its international investors that it was time to get back into the stock market again. It is a New Year coming and a whole new government will take over on January 20th, 2009. I feel a new optimism for the coming year. I just purchased a bank owned home that I feel was a super steal for the quality of home that I was getting. The home I purchased was selling for $850K in 2004, and I bought it for $529K including closing costs that included rate buy down and money for repairs as well. I invested in new carpet, paint and appliances; and my appraisal came in at $590K at close of cscrow. I feel that the home is worth $650K already due to the rehabilitated condition. I made this investment NOW as I believe the time is right to invest again and that I will not be saying to myself next year that I wish I had, but I am glad I did!

I again will adjust my business to adapt to the changes of this evolving market, and continue to keep myself updated and educated on the changes still to come, so that I can serve my clients the way they deserve to be represented.

Please feel free to call and discuss any questions you may have with me. I always appreciate any referrals you have for buyers and sellers that need professional assistance in the Las Vegas and Henderson Real Estate Market.

I also have a new Website dedicated to understanding the Foreclosure Market, please visit or refer it to anyone that is in need of clarification of this complicated Foreclosure Market. http://www.understandingforeclosureslasvegas.com


Gordon Team - Weekend Rate Report – November 7, 2008
"INTEREST RATE DROP ALERT!"

Here we go again!! Rates have come down substantially since Monday.
CONFORMING 30 YR FIXED RATE
5.500% with 2 points
5.625% with 1.5 points
5.750% with 1 point
5.875% with .250 points
6.000% with no points

FHA / VA - 30 YR FIXED
5.500% with 2 points
5.750% with 1.5 points
5.875% with 1 point
6.000% with .250 points
6.125% with no points

NOW is a great time to lock or shop around for a better rate!! Let's hope they stay this way for a while but don't chance it. LOCK TODAY!!

WEEKLY RATE REPORT:
Rates are down from last week. Consumer spending is down and we are facing a weaker job market. This made rates go down. However, don’t plan on them staying that way long. Lenders are tightening lending standards due to a soft economy and record foreclosures. The risks are rising. When risk increases, the price of money reflects the risks. A recent survey of senior loan officers found that about 70% of banks raised their lending standards for prime mortgages. About 90% of banks that offer nontraditional mortgages raised theirs too. Find a rate you like and lock!!

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:
Construction loans are back in soft markets like Las Vegas. If you have a client who bought a lot but could not secure financing, he can now get a construction loan to finish his dream home. This is great news. Since this is a specialized product, it may not help your business directly. However, it’s one of the more risky loans there is. Bringing it back is a great sign. It shows a measure of lending confidence coming back to our market.

TIP OF THE WEEK:
Escrow Holdbacks Allowed for Repairs and Improvements on Bank-Owned Properties You can now do escrow holdbacks on existing Countrywide REO properties when using conforming loans programs (not including FHA) and a Countrywide loan officer. These holdbacks are allowed in financing of Countrywide-owned properties purchased at either an REO auction or non-auction sale where there is a certain amount of rehabilitation work needed. An escrow holdback is a portion of a loan held in escrow until an additional requirement, usually repairs or unfinished work, is completed. The loan may close and the borrower may occupy the home while incidental work is in progress. Common examples of improvements that may involve holdbacks include exterior painting or flooring, where the property is livable. The cost to make repairs or rehabilitation is placed in an escrow holdback account, along with reserve funds (20% of the repair budget) to ensure completion of work. In all cases, the property must be habitable or livable, and the 20% reserves are required to be escrowed along with the cost to complete.

• Detached SFRs only (no PUDs)
• Owner-occupied only
• Conforming conventional programs only
• Purchase transactions only for Countrywide REO properties
• New and existing construction allowed
• Maximum 95% LTV Allowed
• Mortgage Insurance is required on loans over 80 LTV
• Full appraisal required
• Property does not need to be purchased at an auction
• The property must be livable and must have evidence of working utilities, bathrooms, etc.
• Items such as paint, floor coverings or minor wall damage does not affect livability
• Health or Safety Hazards Escrow Holdbacks are NOT allowed for properties with Health or Safety Hazards
• Minimum Escrow Withhold Amount 120% of the total estimated cost to complete the required work must be held in escrow
• Completion of Work Must be accomplished within 120 days from the loan closing

Why Short Sales Make Sense Even if You Have to File a Bankruptcy

Many bankruptcy attorneys are telling their clients to not do short sales. This may make sense from the attorney's point-of-view, but there are reasons why you might want to consider a short-sale even if you have decided to file bankruptcy:

BUT if you factor in the long term goals of most people, like owning a home, it makes sense to do everything you can to ensure you have a clean credit file. Short sales look better on your credit in the long run, but sometimes people just cant deal with more stress, thats just how it is and they will simply deal with the resulting consequences later when they are in a better state of mind.

It should be noted here, because I'm sure some guy that's been doing short sales, or mortgages or selling Hyundai's for a tenth of the time I have...(I've never sold Hyundai's, just the other stuff) will make some comment about how despite my opinions short sales are still a negative item on your credit.

He would be correct, its just like settling a credit card for less than you owe, it will most likely report on your credit that you did not fully pay the debt. Sometimes we are successful at getting the lender to report it as paid in full, but you shouldn't rely on that as any kind of a certainty...if it happens its a nice bonus, but don't plan on it. So it is BAD, but it IS NOT as bad as a foreclosure nor is it as bad for as long as a foreclosure.

By law, foreclosure stays on your credit for 7 years. Bankruptcy also remains 7 to 10 years depending on what chapter you file under. The major CRA's or Credit Reporting Agencies such as Trans-union, Experian and Equifax do not release to the public how they calculate credit scores, however there are ways out there to simulate how events like bankruptcy and foreclosure factor in to your score, and typically a settled account such as a short sale or a credit card settlement, will affect your credit score negatively for 12 months. After that first year these simulators suggest that the negative impact begins to greatly diminish.

Read more...

===========================
If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Nevada Department of Business & Industry Names Short Sales as One Alternative to Foreclosure

There are a number of ways that upside-down homeowners can avoid foreclosure. Short Sales are an important alternative among them.

SHORT SALE

In a short sale, you sell the house for less than you owe. You can't do a short sale without the lender's permission.

With a short sale, you make necessary repairs to the house; pay the real estate commission, taxes and government fees; and give the lender whatever money is left over -- a partial payment.

Read more...

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

FHA Relief Program HOPE Starts Today--October 1, 2008

As part of the Relief Program, passed by Congress and signed into law on July 31, 2008:

The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.

The program is effective from October 1, 2008 to September 30, 2011.

As many as 400,000 homeowners could avoid foreclosure through this program over the next three years. If you are having trouble making your mortgage payments, HOPE for Homeowners may be able to help you, by refinancing your loan into a new 30-year fixed rate loan with lower payments.

=====================================================
If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Myths about Foreclosures from Home Ownership Preservation Foundation

The Home Ownership Preservation Foundation helps home owners stay out of bankruptcy. Their site is worth visiting. We especially liked the Myths:

MYTH: My mortgage company would rather foreclose on my home than keep me in it. The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline™ at 888-995-HOPE, we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure.

MYTH: I’m getting many offers of “help” from a variety of different people. Are they all scams?

Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams:

1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice.

2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevtention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.

3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.

=========================================================
If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Short Sales and Your Credit Score

From a great article on Short Sales & Credit:

It is quite possible to do a short sale and still have decent credit afterwards. When you do a short sale, you can sometimes negotiate with the bank about two major issues: how they report your credit, and how whether they can go after you later for their financial losses.

The reason you can sometimes negotiate this is that you are not letting your house go through the foreclosure process and leaving it to the bank to deal with. When you do a short sale you are helping the bank. You are getting rid of a problem for them.
Most people don't realize that when they tell the bank that they are not going to be able to pay their mortgage anymore, the bank has a problem. And by selling the house, you are saving the bank tens of thousands of dollars they would otherwise spend going through the foreclosure process, getting the house back and fixing it up, marketing it and selling it.

Since you are doing this for the bank, you can make some requests in return. Especially if you have someone sharp helping you with the short sale.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Short Sales Help Homeowners Avoid Foreclosure

This is an article from last year about Short Sales. While the market has change, the concept is still the same: Selling Short hurts, but not as much as foreclosure.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Foreclosure and Bankruptcy

RealtyTrac has great information regarding how bankruptcy can sometimes save your home from foreclosure:

If you file for personal bankruptcy under Chapter 7 a so-called "automatic stay" is placed on all your creditors, including the foreclosing lender, by the court. HOWEVER, the stay is only a temporary fix to the situation.

Chapter 7 never permanently stops home foreclosure. It only gives you relief from unsecured creditors like credit cards and prevents certain creditors from pursuing collection action against you. It does NOT discharge debts such as taxes, child support, alimony or student loans, nor can it give you relief from other secured creditors — like your lender — whose debt is secured by the home you're living in.

In fact the "automatic stay" is only effective so long as the court wants it to be in place. At any time the court can grant your lender's motion for "relief from the automatic stay." Once the court grants that motion the foreclosure against your home can proceed to conclusion.

One viable exception does exist, however, by filing for a Chapter 13 bankruptcy. Under Chapter 13 you are allowed to sit down with your creditors and arrange a payment plan to pay back what you owe them over a given length of time and usually on a lower payment schedule. Once accepted, the creditors, like your lender, must abide by the terms of the plan.

…In essence, then, through a Chapter 13 debt reorganization plan you can cure the default and save your home. However, you must realize up front that not everyone qualifies to file for bankruptcy. There are certain threshold qualifications that must be met which were tightened up when the U.S. Bankruptcy Code was revised a few years ago.

Read more...

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Nevada Foreclosure Laws

RealtyTrac has a great resource on understanding forclosure laws in Nevada.

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

Recession Talk and Buyer's Concerns

It has been said that a recession is when my neighbor loses his job and a depression is when I lose mine. Lately one can substitute the word "house" for "job" and probably echo the sentiments of a number of people in the current economy.

Experts seem to be having trouble deciding if we are or will be soon in a recession.

But whether we are or not, talk of recession can make homebuyers weary. So below we are addressing five concerns that buyers might have in this market.

Concern # 1: Bad Market Conditions

Everyone knows the housing market is facing challenges, but what many people may not understand is that homebuilding is a cyclical business. The last housing downturn occurred in the late 1980s and early 1990s. New home sales began recovering in 1992 and continued growing until the next peak in 2005.

Most people have heard the saying "Buy low, sell high." Right now it is a buyer's market -- that means you can get more for your money! You have more choices, more value, more design features, lower interest rates and more loan programs to choose from.

Keep in mind though that the market can change at any time. Waiting could mean missing out on opportunities. We are already seeing an increase in competition for buying homes in the Greater Las Vegas area. Why wait for prices and interest rates to go up when you could be living in the home of your dreams right now?

Concern #2 -- Dropping Home Values

Despite short-term market cycles and fluctuations, long-term home values have increased historically. On average, the value of a home nearly doubles every ten years, according to research from the National Association of REALTORS®. And the Federal Deposit Insurance Corporation reported that between 1978 and 2003, the nationwide House Price Index grew an average of 5% per year.

These statistics are sound reminders that home-buyers should keep their long-term goals in mind. While today's market may not be optimal for investors seeking a quick turnaround profit, it could be an ideal window of opportunity for people seeking a place to live out their lives and build memories, dreams and futures.

In addition, by having so many choices in this market, you can enhance your investment by choosing features that will add re-sale value later. The current market provides opportunities for creating a lot of "sellability" into your home that will not only make it easier to re-sale later, but will make it enjoyable to live in now.

Finally, if you are an investor, this market provides a nice basis for long-term investments with an opportunity to take advantage of tax shelters and a growing rental home market in the meantime. Quick-flip investments are not advised in this market, but the long-term picture is still advantageous for the portfolio.

Concern #3 Selling Current Home

Although selling a home can be difficult in today's market, there are many things you can do to help your home stand out from the rest. Staging a home is a great place to start. From strategically arranging furniture to adding warm and stylish accents, staging is all about making the home feel inviting an allowing others to imagine living there.

Home inspections are also important. Addressing problems before putting a home on the market can add value way beyond the cost of the inspection and the fixes.

If you want to wait out the market and sell later, turning your home into a rental might be the best way to go. This doesn't work for all properties, but most homeowners are not aware of the potential their homes have to rent or the tax advantages of doing so. Finding the right tenant is key.

In any case, working with a professional Realtor® who has experience in turning homes into investments can make all the difference. If you want to take advantage of the market by moving into a home more in tune with your dreams, selling your current home doesn't have to be a hindrance.

Concern #4 Negative News Coverage

Homebuyers today are flooded with national economic news that is not necessarily representative of their local market. Every area is different. Even neighborhoods within a given area are different. Las Vegas has been and remains very different from the nation.

Realtors® know local markets and relying upon one with that knowledge can make the difference between a good or bad investment. We know and can educate you in local economies, employment, schools, transportation, amenities and communities.

Concern #5 Making a Bad Investment

If you are currently renting, you should learn about the potential tax benefits of homeownership. Paying rent each month makes no financial investment in your future. Buying a home invests in your future.

There are also many lifestyle benefits drawn from homeownership. When you buy a new home, you're investing in something far more valuable than any stock or bond can offer. You're investing in memories. A home is a place to throw dinner parties, hold game nights and host sleepovers; it is a place to play a game of catch in the backyard or sit on the front porch and watch the neighborhood kids play.

In this market, homeownership is more affordable than it has been in years. First-time buyers may not be able to take advantage of these prices for long. Now is a good time to move from rental to homeownership.

THE DULCIE CRAWFORD GROUP has considerable expertise in the Las Vegas/Henderson real estate market. 2008 is a great year to buy a house in our area. Feel free to contact us if you want to know more about the local market and explore whether it is time to buy, sell or convert a home.

Our thanks to Richmond American Homes as a major source for this article.

Credit Crunch Puts Squeeze on Specialized Mortgages

While the fact is that this is a buyer's market and a great time, especially, to invest in housing in Las Vegas, it is no fiction that lending has changed due to recent downturns and challenges in the banking industry. The LA Times had a great article yesterday discussing ways in which mortgages have changed in the past couple of years.

Highlights:

In a move scheduled to take effect for all loans delivered after Aug. 8, Freddie Mac will restrict financing to second-home and investment purchasers who already have "individual or joint ownership" interests in multiple properties. In the case of second-home buyers, they will be ineligible for new mortgages through Freddie if they have ownership interests in more than four properties securing debt, including the one they propose to finance.


Why the continuing rollbacks, and how long could they continue? Lenders and insurers are carefully studying the sources of their greatest losses from mortgage vintages between 2003 and 2007. In the areas where they see inordinate risk, they are reacting by eradicating that risk. Some of those high-loss loan products -- mass-marketed option ARMs with minimal down payments and "stated" incomes, for instance -- probably never will be seen again. Others are likely to return only with tougher underwriting standards and higher fees tied to credit and geographic risks.

DON'T OVERPAY... FILE A PROPERTY TAX APPEAL

Property taxes seem to jump up year after year. Unfortunately, we've become so accustomed to rising taxes that it's no longer a surprise. But here's something that may surprise you. Did you know that over the last eight years, property taxes have actually outpaced even inflation? Those rising taxes - combined with the recent plateau in home values in some areas - mean you may be paying more than your fair share.

In fact, the National Taxpayers Union estimated that as many as 60% of home values were assessed too high, resulting in an incorrectly larger property tax bill.

Based on recent market activity and the rising property taxes across the country, there's a chance you may be in the group of people paying too much. In fact, homeowners in declining markets are receiving solicitations from companies that charge up to $250 to help lower property taxes. But with the steps below, you can work with your local County Assessor to lower property taxes for free...and save yourself the $250!

The good news: it's easy.

First, contact your local tax assessor's office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works.
Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don't be surprised if the assessed value is lower than what you think the market value for your home is--many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is... because an assessment that is less than market value still might be too high.

If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one--just call me for a referral to a great appraiser. You can also visit the local assessor's office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. They will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

More good news...

According to the National Taxpayers Union, about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home.

Thanks to Paula Clark for this valuable information

NAHB Testifies before US House Committee

United States House Small Business Committee Subcommittee on Finance and Tax Hearing On
“The Effect of the Credit Crunch on Small Business Access to Capital”

Scott Eckstein testified yesterday (April 30, 2008), on behalf of the National Association of Home Builders, before a U.S. House of Representatives committee looking at the current credit situation and its effect on the smaller home builders across the country.

Their recommendations to the committee have implications for all real estate investors. Here are some highlights:

Broader Sources of AD&C Credit (acquisition, development and construction)

The current financing quagmire for home builders vividly illustrates the importance of developing additional sources of AD&C credit. ... A viable secondary market for AD&C loans would directly benefit builders and lenders by: (1) transferring risk away from lenders; (2) increasing availability of funds so that projects can be
more reliably completed; and (3) mitigating the devastating impact of equity calls on builders, or transfers of partially completed projects to banks under capital and/or regulatory pressure.

Balanced Regulation

The approach of the regulators in overseeing institutions involved in AD&C lending will be an important factor determining the length and severity of the current housing and economic recession as well as the vigor of the subsequent recovery. It is crucial for the banking regulators to take a balanced approach when evaluating bank lending, especially in regard to AD&C loans. The regulators should continue to encourage institutions to pursue sound loans on viable projects. In addition, the regulators should provide additional guidance to lenders on dealing with outstanding
AD&C loans to ensure that losses are minimized through flexible and prudent loan accommodations. Such actions are just as critical in a nascent recovery as in the current downswing.


Federal Home Loan Bank Guarantees of Municipal Bonds

S. 1963, introduced in the Senate by Senators Rockefeller, Crapo, Stabenow and Carper, would address this impediment. The bill would amend Section 149(b) of the Internal Revenue Code by adding FHLBanks to the list of government agencies and government-sponsored enterprises (GSEs) authorized to provide credit enhancement for tax-exempt municipal bonds. Fannie Mae, Freddie Mac, Ginnie Mae, the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) have been permitted since 1984 to provide such credit support. A similar provision was included in the Housing Assistance Tax Act of 2008 (H.R. 5720) that was recently approved by the House Ways and Means Committee. Enactment of this measure would help to significantly lower financing costs on public infrastructure and other projects that are the foundation for meeting community housing and economic development needs.


Home Buyer Tax Credit

Two causal factors in the current housing downturn and the related credit crunch are
declining house prices and excess inventory. These elements are equally central to the outlook for the broader economy and the financial markets. Policies that stimulate home purchases in the immediate future can pay huge dividends. The biggest bang for the buck most likely would be provided by a temporary homebuyer tax credit, such as the credits approved recently by the Senate in the Foreclosure Prevention Act of 2008 and by the House Ways and Means Committee in the Housing Assistance Tax Act of 2008. Indeed, the recent revival of interest among prospective buyers suggests that temporary credits could stimulate a wave of home buying that could quickly reduce excess supply in housing markets and halt the dangerous erosion of house prices and mortgage credit quality. NAHB applauds the Congress for its efforts to create a homebuyer tax credit, and stand ready to work with Congress in crafting the most effective credit to help solve the current economic crisis.

Expand the Net Operating Loss Deduction Carryback

Home builders, like many businesses, are now reporting financial losses when a few years ago they were generating jobs, providing local development and paying taxes. For home builders large and small the importance of the ability to claim and carry back net operating losses (NOL) deductions to years when significant taxes were paid cannot be overstated. The inability to do so will result in the need to either increase high-cost borrowing or further liquidate land and homes, which
will only compound the existing inventory problem.

Expand the Mortgage Revenue Bond Program

The existing Mortgage Revenue Bond (MRB) program also offers a method of increasing
housing demand. A special allocation of bonds to be used for either purchase or refinancing would be beneficial for housing.

Expand Small Business Expensing

Section 179 of the tax code allows small business to expense the cost of investment for business property. The Economic Stimulus Act of 2008 temporarily expanded the rules so that small businesses may expense up to $250,000 of qualified investment for tax year 2008 ($128,000 would have otherwise applied in 2008, with that amount indexed for inflation through 2011). The expensing benefit is phased-out for business incurring more than $800,000 in qualified investments in 2008 ($510,000 would have otherwise applied in 2008, with that amount indexed for inflation
through 2011).

Click Here if you want more information on this committee and its work.

From Doom and Gloom to Make Room for the Boom

Mark Twain once penned: “A lie can travel halfway around the world while the truth is putting on its shoes.” A half-truth probably goes even faster.

It seems almost daily we hear that foreclosure rates are soaring throughout the country as the effects of shifts in both housing and mortgage industries continue to be felt. But if you dig deeper than the headlines and sound bites, you might find that another phrase attributed Mark Twain would be even more appropriate: Reports of the demise of the housing industry are greatly exaggerated.

In order to understand how exaggerated, we need to understand exactly where such reports originate.

Most media reporters rely upon RealtyTrac, a real estate data aggregator that regularly reports various numbers relevant to the housing industry. RealtyTrac data is accessible and seemingly straightforward.

Data, however, are only as good as the methods used to collect them. And there’s where the problem begins. Housing data is usually collected at the county level. Specifically, foreclosures follow a procedure that requires filing paperwork with the county recording offices. There is no single system or procedure followed by each county. There are 3,140 counties in the United States and almost as many procedures which have to be followed in order to foreclose on a single property.
Also adding to the problem is that most foreclosures involve more than one bank, so in addition to multiple filings due to different steps in the foreclosure process, there may be up to as many as 5 entities making those filings, including HOA’s, 2nd, 3rd, & 4th lien-holders. It should be noted that, in some neighborhoods, there can be as many as 3 Home Owners’ Associations for a single unit.

In addition to requiring different filing procedures, which can include multiple “filings” for a single property, counties track their filings differently. Many are automated and digital, but many are still pretty much a paper, copy machine and microfiche. This means that one county might have real-time data, where another country might not be reporting their filings for 3 to 6 months after they are made.
The upshot of all this is that gaining a clear picture of exactly how many properties are really foreclosed is not as easy as it might seem at first. Up until late 2007, RealtyTrac was using the number of filings to count foreclosures. When they started using property addresses as part of their data collection, the effect was to reduce foreclosure counts by 20-30%. In other words, for most of 2007, the foreclosure rates that were reported in the media were inflated by at least 20-30%.
But even after adjusting for the multiple filings per property, the numbers are exaggerated. Foreclosures take time. The process can take 90 to 120 days. During that time, things can happen, including a buyer might be found. So some filings can be made that never end in a foreclosure.

RealtyTrac is reporting the number of properties on which foreclosure proceedings have begun, not the number of properties that are foreclosed.
Of course, none of this makes glamorous or sexy headlines. Doom and gloom sell papers and raise ratings. With the advent of the Internet, media outlets face a competitive market like they have never seen and content has been sacrificed for sensation. So rather than responsibly digging into the deeper story and helping consumers understand what different numbers really mean, many (not all) media reports remain negative.

This is why the savvy investor doesn’t pay attention to the headlines. According to Andrew Waite, in the January-February 2008 issue of Personal Real Estate Investor, the picture is not nearly as bleak as one might guess from the local evening news in your hometown. After examining the data and the ways in which the data is collected and counted, Waite asserts that as of 12/06/07, .078% of all homes in the U.S. had gone into “absolute foreclosure” in 2007. Less than 1%. Hardly a horrific crisis.
So if the data on foreclosures is difficult to follow and often reported poorly, what can the savvy Real Estate Investor do to understand when is a good time to invest and when is a good time to sell?

Probably the most important statistic to watch is population growth. The relationship between housing and population is an obvious and natural one. Currently in Clark County, we have a housing glut. This is due to many factors, including the recent shifts to stricter mortgage qualification requirements, the rise of bank-owned properties and fear-mongering that misleads both buyers and sellers from following more rational courses in pricing and buying/selling decisions.

These factors will adjust under the pressure of the coming population growth.

“The only action necessary to change the market is to change our expectations. We have been and will most likely remain the envy of the country for one reason alone … we create jobs. Employment is the engine that drives the economy and for the past 20 years or so, we’ve had the most powerful engine in the race.” – Patrick Egger, Understanding the Las Vegas Marketplace

Las Vegas is growing and is expected to grow by 50% in the next 12 years. This means the demand for housing will be huge. The current glut, and its suppression of prices, will not last.

Doom and gloom may sell papers and raise ratings, but when considering an investment like real estate, facts are more likely to increase profits than rumors.
Understanding a local market requires a local source of knowledge. The role of the local Realtor® can be much more valuable than the local newscaster. Our jobs as Realtors® are to keep abreast of the local economy neighborhood by neighborhood.

The Dulcie Crawford Group has accumulated a lot of knowledge about local economies and we are keeping up with the many changes current conditions are creating. Please feel free to ask us anything that will help you better understand how to reach your goals in the current market. We will be happy to help.

FIRST SEMINAR A SUCCESS!

Our thanks to the participants who came our first seminar, Where Should I Invest in 2008? held last Saturday at Windermere. We had a great turn out and a great discussion.

A special thanks to tax attorney, Jim Sexton, who reviewed the tax benefits of rental investments with a special eye for the current market.

Also, a special thanks to Eric Torres whose impromptu information on securing financing for rentals which greatly enhanced our discussion.

Look for more seminars soon. If you'd like to be notified of future seminars, please email us at Dulcie@DulcieCrawford.com and we'd be happy to put you on our mailing list. OR stay tuned for announcements right here!

Las Vegas Real Estate Market is Starting to Warm Up

The Las Vegas Board of Realtors (MLS) reported that, as of April 15, 2008 there were approximately 21,971 home listings throughout the greater Las Vegas valley, which includes the cities of Las Vegas, North Las Vegas and Henderson. This figure, one of the lowest numbers of monthly listings reported in the past year, is the result of the overall increase in pending and contingent transactions, now reported to be approximately 5,301.

Based on the current rate of monthly sales, this translates into about an 8-month supply of inventory, a definite improvement over any period in 2007, during which typical supply averaged about 20 months. This change represents a buyer increase of approximately 140% over similar periods in 2007 and is considered a good market indicator that the bottom has or will arrive soon.

If you take 2007 figures we averaged 1,077 sales per month. In 2008, over the first three and a half months we are averaging 1,393 sales per month which is an increase in sold properties of 29%, which is another indication that the market is improving. Furthermore, multiple offers on foreclosures are being reported, another good sign that buyers believe we are at or close to a market bottom.

The general market softened over the past 1.5 years due to the oversupply of available inventory and diminishing demand. This softening was the direct result of unrealistic sellers, a large portion of which were investors, and the lessening of credit programs formally available. In a typical market, if a property is priced appropriately, it will sell within a reasonable period of time. In a soft market, however, sellers have a tendency to be very unrealistic in pricing in order to minimize losses.

They do not take into consideration the dynamics of supply and demand.

Builders in the city believe that a full market correction will occur sometime in 2009. In adjusting to the downturn, they have lowered prices by 20%-30%, have less standing inventory and are constructing homes on an "as needed" basis. Its hard to imagine our local housing market will not right itself and come into balance, given the over $35 billion dollars worth of construction taking place on the Las Vegas "Strip." To date, approximately 6,000 people continue to move to the Las Vegas valley every month. This can only lead to an ever-increasing demand for housing. In their reluctance to buy, the ongoing major concern of buyers is whether or not we are truly at the end of a declining market.

Thanks to Paula Clark for this information.

Where Should I Invest in 2008?

SEATS ARE GOING FAST! BE SURE TO RSVP BY THURSDAY, APRIL 17TH!*

THE DULCIE CRAWFORD GROUP PRESENTS

Where Should I Invest in 2008?
Tax Advantages of Real Estate Investments
in Today's New Market

Speakers:
James Sexton, Tax Attorney
Esquire Group

Dulcie Crawford, Realtor®
Windermere Prestige Properties

Saturday, April 19, 2008
10AM to Noon

2200 Paseo Verde Parkway
Suite 160
Main Conference Room
Henderson, NV 89052

Limited Seating
RSVP 702-432-4600, Pattie Thomas, Marketing Coordinator
OR
Email: Dulcie@DulcieCrawford.com
BY Thursday, April 17

"Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside--a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it." -- Best and Worst Places to Buy a House by Danielle Babb, Entrepreneur.com, January 23, 2008.

Cyber-Shopping Revolutionizing Real Estate

Nothing short of a revolution is occurring in Real Estate. In the past few years, homebuyers have discovered the Internet and now most of them turn to cyberspace to start their home searches.

Henderson, NV (PRWEB) April 11, 2008 -- Clouded by headlines of bursting bubbles, subprime crises and economic stimulus packages, one may not have noticed that nothing short of a revolution is occurring in Real Estate. In the past few years, homebuyers have discovered the Internet and now most of them turn to cyberspace to start their home searches.

The largest and most visited site is Realtor.com®, which, according to Alexa's web statistics, sees an average of 500 million visitors a month. Las Vegas and Henderson zip codes are among the most searched on that site as well as a number of other sites available for home searches, with an average of 4.9 million homes viewed per month for Henderson/Boulder City alone.

"We have changed our advertising significantly in the past few years. It is a global economy now. Las Vegas is a place of major interest around the world and the Internet is where investors and homebuyers from all over the world can narrow their search and find the agent who can help them understand the local market," says Dulcie Crawford of Windermere Prestige Properties, recipient of Realtor.com®'s "Real Estate Online Marketing Award of Excellence."

The Award of Excellence recognizes top agents who consistently provide great marketing services on behalf of their buyers and sellers.

"There are always some real estate agents who distinguish themselves from other agents by doing a little more for their sellers. In particular; when the home they are selling is placed on a well trafficked site such as the 1st ranked REALTOR.com®, even simple efforts like having more photos displayed, crafting better descriptions or adding a full motion video, can make a home stand out from competing properties," says Max Pigman, Vice President of REALTOR.com®.

Pigman presented the excellence award to Crawford and other Las Vegas area Agents at a recent real estate marketing and technology seminar that demonstrated cutting edge techniques for leveraging the Internet and technology in real estate marketing.

"The extra steps agents like Dulcie are taking on behalf of their clients is the reason we thought it worthwhile to call out the effort we have seen these agents make online and to recognize them for providing these added value services," says Mr. Pigman.

"Internet marketing can make all the difference for sellers who are facing stiff competition in the current market," says Crawford, a native Las Vegas, who has had over 10 years experience in Real Estate. "My job has always been to help buyers and sellers find each other so that they both can benefit from the transaction. Buying and selling homes can be overwhelming at times, but when the right buyer finds the right home, the transition for both seller and buyer can be smooth and satisfying. A tool like Realtor.com® makes that job easier for me because it opens up the possibilities for both the seller and the buyer."

For more information on the award: http://www.rdcworkshop.com/

Credit Score Truths and Tax Myths of A Short Sale Vs. Foreclosure

A Great Summary by Aaron Gordon of some of the issues regarding the decision between selling short and going into foreclosure.

Some Highlights:

#1) WILL MY CREDIT SCORE DROP LESS IF DO A SHORT SALE INSTEAD OF A FORECLOSURE?

The short answer is "don't count on it." No one can answer this question for you correctly and that is because every case is different.

#2) WILL I BE ABLE TO BUY ANOTHER HOME QUICKER IF I DO A SHORT SALE INSTEAD OF A FORECLOSURE?

Once again, chances are no. Keep in mind, lenders make mortgage loans based on your ability and willingness to repay the loan. We determine this based, primarily, on your past credit history. Especially your past mortgage history.

#3) IS IT TRUE I AM NOT RESPONSIBLE FOR DEBT FORGIVENESS IN A SHORT SALE BECAUSE OF THE NEW MORTGAGE FORGIVENESS DEBT RELIEF ACT OF 2007?

First let say, IN BOLD, I am not a tax professional. It's of the utmost important that you seek the advice of a tax professional before proceeding with a short sale or foreclosure.

The Mortgage Forgiveness Debt Relief Act of 2007 was primarily started so that people, who were upside down in their homes, could refinance their home using an FHA loan and then the second mortgage holder would write off some of their loan to enable this. This kind of loan hasn't caught on because most lenders didn't go for it.

...The bottom line here is before you do this, meet with your accountant to discuss the ramifications. There are too many possibilities to go over here.

If you get a 1099-C form in the mail, after a short sale that looks like this, http://www.irs.gov/pub/irs-pdf/f1099c.pdf, you need to head to your accountant immediately.


#4) BASED ON ALL OF THIS, WHY WOULDN'T I JUST LET MY HOME GO INTO FORECLOSURE?
For one, because you are giving the lender a chance to recoup some of their money. It is far cheaper for a lender to negotiate a short sale with you and your buyer than it is to rack up attorney fees and other costs in a foreclosure.

Foreclosure can take eight months to a year and in a declining market, your decision could cost them $100,000's more than a short sale.

The next reason is because some believe, as we discussed earlier, it may be easier to rebuild your credit after the process. Your credit will likely be destroyed either way, but the road back to a respectable credit score may be shorter in a short sale, according to many experts.

Finally, and probably the top reason for a short sale, is depending on what kind of loan you have, and in what state, the lender may be able to go after you personally for a deficiency judgment at a later date. In Nevada, where I live, lenders have three months after the sale to try and obtain a deficiency judgment.

Click here to read the full article.

Dulcie Crawford Receives Award of Excellence in Online Marketing

On March 25, at their Marketing & Technology Workshop in Henderson, Nevada, Realtor.com named 22 Las Vegas area Realtors® as excelling in Online Marketing. We are proud to announce that Dulcie Crawford and The Dulcie Crawford Group were among those honored.

Feds are Lowering Rates, Again

Treasurys fall on rate cut, bank earnings
Bond prices sink as Wall Street cheers fed rate cut, stronger-than-expected earnings from beleagured banks.

NEW YORK (CNNMoney.com) -- Bond prices fluctuated Tuesday after the Federal Reserve cut interest rates and surprisingly strong earnings from Wall Street banks coaxed investors back into the stock market.

Read article here.

Economic Indicators are Stronger than Expected

There are some signs of hope that the banking & housing crises are passing...

Treasurys fall on rate cut, bank earnings
Bond prices sink as Wall Street cheers fed rate cut, stronger-than-expected earnings from beleagured banks.


Last Updated: March 18, 2008: 4:44 PM EDT
NEW YORK (CNNMoney.com) -- Bond prices fluctuated Tuesday after the Federal Reserve cut interest rates and surprisingly strong earnings from Wall Street banks coaxed investors back into the stock market.

The central bank lowered the fed funds rate, a key overnight bank lending rate, by three-quarters of a percentage point to 2.25%. The Fed has already slashed the fed funds rate by 2.25 percentage points since September to help stabilize the economy and ease conditions in the credit market.

Bonds were lower throughout the session Tuesday as stocks rallied. Shortly after the Fed's announcement, stocks trimmed gains as some investors were expecting a more dramatic rate cut, and bond prices rose modestly in response. Since then, bond prices have eased.

Earlier Tuesday, investment banks Lehman Brothers (LEH, Fortune 500) and Goldman Sachs (GS, Fortune 500) both reported earnings that beat Wall Street estimates, sending stocks sharply higher. The rally comes just one day after Bear Stearns (BSC, Fortune 500) shocked investors by agreeing to be sold to rival JP Morgan Chase (JPM, Fortune 500) for $2 a share.

Bears' dramatic fall raised fears Monday that the financial system was in serious danger. But the stronger-than-expected results from Goldman and Lehman helped to ease some of the concerns about the health of the financial services sector.

Investors tend to favor the security of government-backed bonds in times of economic uncertainty. Conversely, when there are signs that the economic climate is improving, investors prefer stocks.

The benchmark 10-year Treasury note fell 1 11/32 to 100 9/32 with a yield of 3.46%, up from 3.30% late Monday. Prices and yields move in opposite directions.

The 30-year long bond lost 1 7/32 to 100 12/32 with a yield of 4.35%, up from 4.28% late Monday.

The 2-year note dropped 13/32 to 100 26/32 with a yield of 1.57%, up from 1.35%.

Elsewhere, the government said Tuesday that initial construction of new homes fell in February, though by a smaller number than expected. Still, the housing report showed further decline in the number of single-family homes, which analysts say are the core of the housing market, undergoing initial construction in February.

The Labor Department's Producer Price Index (PPI), a key measure of inflation at the wholesale level, rose as expected in February. But core PPI, which strips out volatile food and energy prices, came in higher than expected.

First Published: March 18, 2008: 2:37 PM EDT CNN Money

NEW FHA LOAN LIMITS FOR CLARK COUNTY

This is big, big news! It opens the door to home ownership without having to have a lot of money to put down.

Here's a great article from Aaron Gordon (published with permission):

"FHA LOAN LIMIT RAISED TO $400K AND HOW THIS HELPS YOU"
March 6, 2008 (newsletter sent via email)

Today, the announcement came that the FHA loan limit in Clark County was raised to $400,000. This is great news for all of us and the market. In Nye County, it was raised to $325,000.

This makes 100% loans, all the way up to a sales price of $412,000, readily available for most buyers once again.

I know many of you haven’t done an FHA deal in years. It’s time to get a refresher course.

Some experts locally are predicting that 50% of all loans this year will now be done FHA.

If your preferred lender doesn’t do FHA today, you need to find one who does as a back-up. We have two designated FHA underwriters in our branch.

In my opinion, it is very important for your business today to have a lender who knows FHA and has local underwriting. Many FHA loans, that seem challenging, are ultimately decided by the underwriter.

I was asked to speak on FHA recently. I compared the process to how you would imagine lending was back in the day when you knew your banker, he knew you, and he made the loan based on his belief in you to repay the loan.

FHA underwriters usually look at the overall merits of the loan. If they believe in the borrower’s ability to repay, regardless of the borrower’s past, they usually have the leeway to make the loan.

If you would like someone to come speak to your office on FHA, please let me know and we will arrange that for you.

Here is what else you need to know.

FHA loans have very competitive interest rates because the Federal government insures the loans for lenders. In today's credit crunch, this single issue may outweigh all others.

FHA loans have lower down payment requirements. Plan on around 3%. You can get 100% gifted to you from a family member or seller for down payment and closing costs.

There is no “soft market” rule on FHA. 100% financing and gift can apply.

The mortgage insurance is usually less on FHA loans than conventional loans.

Primary residence only. Full documentation of income only.

Bankruptcy and foreclosure are looked at far differently.

You can be in a Ch. 13 bankruptcy and possibly buy a home or refinance so long as you have been making your BK payments on time for a year.

FHA wants to see you two years out of Chapter 7 BK. However, if you can show that it was an extenuating circumstance and prove that you have been solid since, you can sometimes get the loan only one year out of the Chapter 7.

Same with foreclosures. They want you to be three years removed from foreclosure before you are qualified. However, if the foreclosure was the result of circumstances beyond your control, you may be able to get a loan a year later.

Medical collections have to be addressed but usually not paid.

You can have a non-occupant co-borrower help you qualify.

You can get up to 6% seller help, on top of the 3% gifted down payment, for closing costs.

FHA isn’t credit sensitive. You don't have to have perfect credit to get an FHA mortgage. You don’t even have to have a credit score.

In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan. You can have credit scores as low as 500, still put just 3% down, and get the same rate as someone with a 700 credit score.

Declining market areas do not affect FHA mortgages as they do conventional mortgages. There is no "soft market" appraisal rule that reduces loan to values by 5% or more.

FHA debt to income ratios are aggressive. Although the guidelines say they are at 31%/43%, these can go up to sometimes up to 40%/50% with good compensating factors like a good rental history, low payment shock, more down payment, lots of reserves, etc. I have even seen some go to 55% on a strong loan.

If your borrower has compensating factors, they can make even the most challenging borrowers acceptable.

There are a few things to be cautious of.

Many of the homes sold today are those owned by a bank that the bank acquired in a foreclosure. FHA currently has an anti-flipping rule in the first 120 days of acquisition and, although many banks are exempt, some transactions can be affected by this.

In addition, some banks won't accept offers from your FHA buyers.

The bottom line is today’s announcement clearly makes FHA the preferred loan choice for nearly every buyer unless they are looking for a home over $412,000 or they have to go with a stated income loan. It’s important to know.

Nehemiah Wins Court Support for Down Payment Assistance

Good news. The lawsuit brought by Nehemiah fighting a proposed US ban on seller-gifted down payment assistance won court support yesterday. Such down-payment assistance, a huge benefit for many homebuyers, will continue.

Mortgage Forgiveness Debt Relief Act 2007

In December, Congress pass the Mortgage Forgiveness Debt Relief Act to provide some relief through loosening the tax laws and empowering FHA to help with refinancing. This will help a number of homeowners who are in trouble. Here are three sources that explain the law and its implications for homeowners:

Library of Congress Summary

IRS Summary

Article from Las Vegas Review Journal

If you want more information on Short Sales & Bank-Owned Properties, visit Understanding Foreclosures Las Vegas.

BUYERS & SELLERS BE READY!

2008 LAS VEGAS HOUSING MARKET OUTLOOK

As anyone who follows the daily media knows, the entire Country felt the effects of the Housing/Mortgage Crisis as it spiraled out of control last year. The Housing Market of 2007 was one that took some major adjustments for anyone who owned a home or wanted to buy or sell a home.

As we entered the New Year, we came with High Hopes for a Recovery from the Doom and Gloom of 2007. In Las Vegas, January has brought cautious optimism that market adjustments and projections of continued growth will make 2008 a much better year for our local market.

I truly believe the Worst is over and recovery is on its way. How can I be so sure?

As a native Las Vegan, I know the economy of this town is quite resilient compared to the rest of the country. I have witnessed spectacular growth first hand both while growing up and while working for over a decade in the Las Vegas Real Estate Industry. We have weathered recessions and still managed to grow in directions that amaze the entire World!

Over the past 6 months, I have been watching the markets and obtaining information, staying on Top of market conditions, posting the most informative articles on my blog, Las Vegas: Fact and Fiction.

In December 2007, I attended a conference discussing Housing Supply and Demand for Nevada and Clark County. A report, compiled by Applied Analysis, an economic advisory group, for Home Builder’s Research, predicts that housing demand in Clark County over the next few years will increase greatly. Applied Analysis believes that despite the current overstock, the Vegas Valley is on the verge for what will become a Peak into one of the largest growth spurts for our City. By 2009, when these Mega-Casino projects come on line, Las Vegas will find itself in short supply of housing. There has been a highly predictable pattern in the Casino industry relating to the growth spurts of the Las Vegas Valley.

I have personally watched the same cycles in the Las Vegas Casino Industry over the past 30 years. I found the conference and research extremely convincing.

However if all this data does not seem convincing, just take in to account that the entry level market has begun to move again, now that homes in the $200-300k price range have become affordable to the average household. Example: According to the US Census Bureau’s 2006 Fact Sheet for Clark County, Nevada, the median household income was $60,859. If you take into account that a $250k home purchased now on a FHA program at a 5.75% interest rate, the principal & interest payment for that home would be $1460 a month. This is very affordable for a typical 2-person household in our area.

Much of the media focuses on the re-sale market. However, to understand Las Vegas Real Estate, you must be aware of what is happening with the new home market. A local executive for Richmond American Homes (one of the largest builders in our area), told me that once they made one big price decrease in mid Nov 2007, they immediately began to sell-out the standing inventory, and have continued steady sales to date. So, please remember, to look at the New Home stats separately from the resale stats. Please see the Sales volumes below for Nov and December sales from Sales Traq, showing closing records for the new Home product:

According to the Clark County Tax Assessor’s records, the last quarter 2007 Resale-Housing Stats shows that the percentage sold was up in November and December despite the usual Holiday Slow Down. Henderson, in particular, showed a significant increase in percentage sold from 4.3% in Oct 2007 to 5.3% Dec 2007.

Personally, I have received a large increase in calls from interested buyers and have increased my sales in the December and January compared to October and November. My Listings are also seeing more showings as well.

I believe that as soon as the Federal Government gets the housing portion of their Economic Stimulus approved and implemented, with the expected increases in the FHA and Conforming loan limits, we will see an even greater response from the market with buyers coming off the fence. The Federal Reserve has cut rates and is expected to continue to do so until the economy shows significant recovery. The only way the economy will start to recover will be if the Housing Market begins a recovery as well.

All these factors will make 2008 the year to take advantage of the best bottom-of-the market deals.

But what does this mean for sellers? Now, more than ever, an aggressive marketing campaign coupled with a strong understanding of local neighborhoods, is needed to sell a home at the best price possible in an optimum amount of time. An experienced Realtor® with established marketing connections can mean the difference between taking weeks to months to sell your home versus months to years. While many have run from this market, wringing their hands in worry, I have spent the past six months strengthening and upgrading my marketing to ensure technologically advanced coverage for my listings.

The Internet has become the number one way buyers and sellers find each other, but not because it is a do-it-yourself market. Far from it, the real estate professional is one of the most important sources of information for home buyers and sellers. I have worked towards becoming that source for you. I can help you get your home into the global network and I can make sure that it gets noticed there.

2007 brought many challenges to Real Estate, even in Las Vegas. But my most important bottom line has not changed: I continue to be committed to serving my clients with the Best Representation. My Client comes first always!

I know my Business and I know the communities I serve. My brokerage Windermere Prestige Properties is a team of successful and experienced Real Estate consultants that are ranked the Top Internet Company from the National Association of Realtors and voted the People Choice Award for Customer Service in the Las Vegas Valley. I also manage my own team of Real Estate experts that make sure your Real Estate transaction runs smoothly every time, The Dulcie Crawford Group.

House Passes GSE and FHA Loan Limit Increases, Senate to Consider This Week

Realtor.org Washington Report

On January 29, 2008, the House of Representatives passed H.R. 5140, the economic stimulus package. This bill, agreed to by the Administration includes several important housing provisions. These include increases in the loan limits for Fannie Mae and Freddie Mac and also FHA. The bipartisan vote of 385-35 demonstrates the overwhelming support for this proposal.

The House and the administration view strengthening the housing market as key to improving the national economy. Here is what was included in the package:

• The FHA limit will increase to as much as $729,750 in high cost areas (to 125% of local median home prices). This is a one year increase, pending final passage of FHA reform (which passed the House and Senate last year).

• The GSE limit will be increased up to $729,750 for one year. Currently Fannie Mae and Freddie Mac are capped at $417,000. It appears that there will be a formula similar to that of FHA, with GSE loan limits increasing to 125% of the local median home price, but not to exceed $729,750.

In addition, the package includes a bonus depreciation provision for leasehold improvements. This will allow 50% of the cost of a leasehold improvement placed into service in 2008 to be deducted in 2008. The remainder of the cost of the asset will be amortized over the remaining 38 years of the structure's life. The Senate is expected to consider HR 5140 early this week.

comScore Ranks REALTOR.com(R) Most Visited Real Estate Site in December 07

Move Web Sites Achieve 14 Percent Traffic Increase in
December 07 as Compared to December 06 (1)
January 16, 2008: 08:00 AM EST
LOS ANGELES, Jan. 16 /PRNewswire-FirstCall/

-- comScore, a leader in measuring the digital world, ranked REALTOR.com as the most visited real estate website in December 2007(1). Zillow.com ranked number ten, falling three positions from November to December 2007(1).

This news comes on the heels of a recent release of industry-wide rankings from Hitwise reporting that REALTOR.com and Move.com were the most visited real estate sites in December 2007(2). Hitwise is a leading online competitive intelligence service.

"REALTOR.com remains the leading real estate resource for consumers because we deliver the freshest, largest and most comprehensive online collection of listings," said Lorna Borenstein, president of Move, Inc. "We're pleased consumers continue to cast votes of confidence in our content through their traffic counts. As we prepare to launch many new and exciting resources in 2008, we're confident consumers will continue to choose REALTOR.com and Move.com as their most trusted online resources when pursuing the American dream of homeownership."

Earlier this month, Hitwise also released industry-wide rankings of more than 100 sites reporting that REALTOR.com retained first place with an 8.03 percent market share in December 2007(2), while Move.com moved up from fourth place to second place with a 2.73 percent market share.

Read Full Article

US Census Bureau 2006 Fact Sheet for Clark County Nevada

Check out this interesting information regarding our community.