Las Vegas Sees Steady Appreciation in 2013

Here's an article from the Las Vegas Review Journal about the overall appreciation for the Las Vegas Valley during 2013. In addition, I have posted a list by zip code of the price changes between 2012 and 2013 for all the zip codes in Las Vegas.

Most ZIP Codes in Las Vegas Valley see growth in home values

By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL

After spending years deep in the red, Las Vegas home price appreciation rates returned to the black in 2012 in all but three of the valley’s 58 ZIP codes, SalesTraq housing research firm reported.

The largest gain was in ZIP code 89030, an area of North Las Vegas around Interstate 15 and Cheyenne Avenue, where median home prices increased 21.1 percent last year, to $45,000.

Ironically, 89030 was also one of the hardest-hit ZIP codes for foreclosures, not just in the Las Vegas Valley, but in the nation. That same turnabout is reflected in many of the ZIP codes that posted double-digit appreciation in 2012.

“In terms of rate of price appreciation, select areas that were hardest-hit have seen some pickup in the last year as prices over-corrected in those areas,” SalesTraq housing analyst Brian Gordon said. “They experienced greater-than-average depreciation and they now have some of the greatest demand and lowest availability, which have helped to drive prices north.”

The negative numbers came in outlying areas such as 89085, the northern-most ZIP code in the Aliante master-planned community of North Las Vegas. Prices dropped 3.5 percent there, from $168,000 in 2011 to $162,100 last year.

Buyers are less willing to pay higher prices for homes that are farthest away from their place of employment, shopping centers, parks and schools, Gordon said. Areas closer to the Beltway in Aliante, such as 89084 and 89086, showed 3.5 percent and 2.9 percent appreciation, respectively.

Home values in Boulder City (89005), which was not included in previous ZIP code reports, depreciated 8.5 percent to $151,000 in 2012.

“If you look at the Las Vegas Valley, you’d see that nearly every ZIP code showed positive appreciation,” Gordon said. “The areas that experienced the most significant growth are ZIP codes in and around master-planned communities like Summerlin and Anthem.”

ZIP code 89052, which includes Anthem, posted the second-highest appreciation rate at 20.8 percent, with a median price of $232,000. That’s up $40,000 from 2011.

Read the entire article in The RJ

Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?

"Where have all the homes gone?!" In the Las Vegas real estate market it's like the clock has suddenly been turned back to the year 2004. Within hours there are multiple offers on everything listed under $250k, often sight unseen, and most accepted contracts are going above list price. New home builders are warning real estate agents about imminent price increases.

At the beginning of November there were approximately 11,500 single family homes actively on the market that were not yet under contract. Today, less than 6 months later, there are only 5,074 active single family listings in the Las Vegas MLS. That's about a six week supply at the current rate of absorption.

This is a direct result of Assembly Bill 284, which effectively stopped the non judicial foreclosure process in Nevada. Before AB 284 became law, lenders were filing around 5,000 Notices of Default per month. Now that figure is down to about 300 a month. Actual foreclosures are down to about 800 per month, and even that figure is dwindling rapidly. REO teams are downsizing staff and services, as there doesn't seem to be an end to the drought any time in the near future.

So where is the "shadow inventory" we keep seeing in the news? Since Nevada lien holders can no longer foreclose on properties non-judically, they have gotten much more aggressive about encouraging and approving short sales. Many owner occupants with true hardships that don't qualify for loan modifications are receiving cash incentives from $3k up to a whopping $30k for cooperating in a short sale.

Lienholders are also modifying many borderline loans, often unsolicited. I had a call from one of my clients last week. He had been trying to refinance his home through a new lender. (He was just barely upside down and had excellent credit.) Out of nowhere, he got a call from his existing mortgage lender, Bank of America, offering an interest rate reduction that saved him more than the refinance would have, at no cost, and without extending the life of the loan!

So in the foreseeable future, the "shadow inventory" in Nevada is a myth. And with the Las Vegas economy recovering, by the time AB 284 expires, many Nevada homeowners will be able to achieve a work out solution with their lien holders.

For more news on Nevada's improving economic situation and rapidly shrinking inventory, check out this week's recent news articles:
Single Family Homes Down to Six Week Supply
Las Vegas is a Seller's Market Again

And don't forget, legalized medical marijuana is also coming to Las Vegas. That will mean quite a few people moving to the state (especially the ones that don't like the cold in Colorado!) to take advantage of the new laws shrinking inventory even further. For the latest on the marijuana situation, go to our new site at Las Vegas Marijuana Real Estate today.