Archive for February, 2012

Quarterly Economic Business and Activity Report from the Nevada Secretary of State

Posted on: February 28th, 2012 by Mary Kennedy No Comments

Please see the the Quarterly Economic & Business Activity Report put together byApplied Analysis here in Las Vegas, NV.

It says that the new business entity growth figures posted throughout the majority of 2011 suggest increased employment is likely to prevail in the coming quarters. Find all of the latest statistics sourced to the Nevada Secretary of State’s office by downloading the full report.

Although these numbers pertain to our economy, there is no doubt that our Real Estate Market is directly affected by our Economy and Business Activity.

One point that I would like to make to anyone who reads this, is that the Economy and Business Activity are slowly getting better.

Your comments and feedback on this report are invited and will be greatly appreciated. If I can help, please let me know.

Mary Kennedy

National Association Of Home Builders Predict Recovery

Posted on: February 27th, 2012 by Mary Kennedy No Comments

Chief economist, David Crowe, of the National Association of Home Builders, stated recently that the US housing market will begin a recovery turnaround in 2012. This forecast predicts that we will have a solid housing recovery by 2013. The sales of NEW single family homes are predicted to increase 19% this year; in numbers that equates to 360,000 NEW home sales this year up from 306,000 in 2011.  The prediction for 2013 is NEW home sales of 505,000!  That is an increase of 40%.  Other economist are not so optimistic but only time will tell. 

The NEW home building industry in Las Vegas

Home builders in the Las Vegas valley have been purchasing residential land at bargain prices over the past 3 years.  The cash rich builders have been purchasing land from the financially drained builders.  What this means is that NEW home prices will be affordable since the cost of the land is reasonable.  NEW home prices were soaring prior to 2008 due to the rising cost of the land which became outrageously high and the high cost of labor and materials.

Las Vegas will be ready for the NEW home buyers.

The IDEAL Investment

Posted on: February 21st, 2012 by Mary Kennedy No Comments
Rental homes can be the IDEAL investment in today’s real estate market because they offer a much higher rate of return than alternatives without the volatility of ups and downs that you see in the stock market.

IDEAL serves as an acronym to identify the advantages of rental properties:

  • Income from the monthly rent contributes to paying the expenses and a return on the investment.
  • Depreciation is a non-cash deduction that contributes a tax shelter.
  • Equity grows monthly as the mortgage amortizes due to some of each payment being applied to the principal.
  • Appreciation is achieved as the value of the property goes up.
  • Leverage can increase the return on investment by using borrowed funds to control a larger asset.
The combination of these characteristics working together makes rental real estate a very good investment for today’s economy and years to come. Increased rents, high rental demand, good values and low non-owner-occupied mortgage rates contribute to positive cash flows and very favorable rates of return.
Contact me for more information about actual opportunities in the Las Vegas Valley Real Estate  market.

Borrower Risk Determines Interest Rate

Posted on: February 13th, 2012 by Mary Kennedy No Comments

Regardless of what a lender quotes on mortgage rates, the actual rate paid by a borrower is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction.

Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.

  • Loan amounts – conventional loans for more than the conforming limits set by Fannie Mae are considered jumbo loans and generally have a higher interest rate.
  • FICO score – the lowest interest rate is reserved for the highest credit scores; the lower the score, the higher the rate borrower will pay.
  • Occupancy – borrowers occupying a home as their principal residence are considered a better loan risk than second homes and investment properties.
  • Loan purpose – purchase transactions generally have the lowest interest rate while refinancing a home is generally higher.
  • Debt-to-Income ratio – a borrower’s monthly liabilities divided by their gross monthly income develops a ratio that helps lenders to assess the borrower’s ability to repay the mortgage.
  • Loan-to-Value ratio – the lower the percentage of the loan to the appraised value of the property will generally lower the interest rate.
Any combination of these factors could limit a borrower’s ability to secure a mortgage at the rate initially quoted. Being pre-approved by a trusted mortgage professional is the best way to know what rate you can expect to pay. For more information, contact me! I can get you in touch with one of my Preferred Service Providers in the Las Vegas Valley

11 Signs of Good News for Las Vegas Real Estate in 2012

Posted on: February 11th, 2012 by Mary Kennedy No Comments

The Economy is Growing in 2012

While the country has experienced the worst recession in our recent history, the real estate market shows signs of rebounding in certain areas of the country. Las Vegas is definitely one of those areas. Driving the steady rebound are the low interest rates and historic low home prices. Investors and first time home buyers are fueling the sales numbers.

At a glance, here are the top 11 reasons for buyers, sellers and real estate agents to be optimistic about Las Vegas real estate in 2012:

  1. Interest rates continue to be low
  2. Home prices are stabilizing and/or starting to rise.
  3. Home sales are increasing.
  4. Distressed properties continue to be the majority of sales.
  5. The short sale processes have improved and will help reduce foreclosures.
  6. Investors will continue to purchase Las Vegas homes and provide housing for the displaced homeowners.
  7. New home builders continue to provide huge incentives for buyers of new homes.
  8. Many cities around the country are experiencing a steady rebound, which is good for Las Vegas.
  9. Las Vegas continues to be a desirable place to live with a lifestyle unlike any other city.
  10. People from other climates and lifestyles move here when their homes sell in other parts of the country.
  11. The U.S. Housing economists are predicting recovery, too.

Las Vegas is poised to grow. Has the past 3 years set the stage for future dynamic growth? It appears so!

In Search of an Honest Man

Posted on: February 1st, 2012 by Mary Kennedy No Comments

Similar to Diogenes’ search for an honest man, homeowners want someone to do quality repairs at a fair price.  The task appears reasonably easy but if you’ve ever tried to locate someone to fix something, you know just how difficult it is.

Finding a list of companies from a phone book doesn’t mean they’ll be reasonable and reliable, it just means they have a phone and are willing to pay for an ad.  Searching on the Internet may direct you to a website that appears to be a local company but really is a marketing company who will sell the lead to a repairman or company who will pay a referral fee.

There are consumer organizations like Angie’s list who rate repairmen and contractors but they usually require an annual membership fee to be able to access the information.  There are also services like Renovation Experts or Service Magic that are registries for contractors but they may not be the most competitively priced.

Your best recommendations are going to come from friends, family and neighbors you trust who have actually used the repairmen before and would use them again.  The problem here is that you might have to make multiple calls before you can find a friend who can recommend the type contractor you need.

Repairs are a normal part of selling homes and we certainly come in contact with lots of contractors.  This experience leads us to understand who is reputable and reasonable as well as who to avoid.  As part of our commitment to helping you be a better homeowner from the time you buy your home until you sell it, we’re more than happy to make a recommendation of good repairmen or other professionals you might need.  Give us a call…we want to help.

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