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.