week in review

Financial Markets

The Dow Jones ended all five trading sessions up, and for the week the Dow ended up over 500 points, closing at 11,509.  US stocks appear to be the lesser of two evils as European debt issues continue to take center stage.  At the moment, US stocks appear to be the safer play with more upside than foreign markets, in the eyes of investors.

Mortgage rates lost nearly 100 bps for the week, and rates have begun to trend upward.  Inflation numbers released on Thursday came in hotter than expected.  As a reminder, a fixed rate of return investment, such as a mortgage-backed security, is not a prudent investment in the face of inflation.  Investors sell their position, which drives the yield (rate of return) up, which is essentially our client’s mortgage rate.  Mortgage rates will continue to climb as concerns of inflation continue to materialize, which is why I will continue to recommend locking in the interest rate early on in the transaction.

Southern Nevada Real Estate and Economy

The Brookings Institute released its 2^nd quarter Metro Monitor Economic Report this past week, and Las Vegas ranked among the highest metro areas for improvements in unemployment as well as Gross Metropolitan Product (like GDP but for the city) from 2^nd quarter of 2010 to 2^nd quarter of 2011.  Las Vegas improved its “MPD” by 1.1% and improved its unemployment rate by 1.5%...For anyone that played sports, “Most Improved” isn’t always the most admired award to win because it means you stunk at one point, but it is certainly another step in the right direction. 

Also, the report points out a glaring coincidence that markets with the most anemic economic conditions also have the hardest hit real estate markets. 

http://www.lasvegassun.com/news/2011/sep/14/brookings-las-vegas-slight-economic-job-growth-are/

week in review

We will be accepting loan applications for FHA loans up to $400,000 until September 16^th.  We are required to have credit approval by September 30^th in order to secure the financing.  After September 15^th, we can only accept loan applications for loan amounts up to $287,500…

Financial Markets

The Dow Jones held its own all week, reaching 11,500, only to give all of its gains, and then some, back on Friday.  Investors sold stocks amid fears of Europe, and in particular Greece, defaulting on its debt.  The Dow dropped over 300 points for the day and landed at 10,992. 

Earlier in the day, President Obama initiated a proposal to help stimulate job growth.  The proposal would cost 447 billion.  Included in the proposal is a reemphasis for improvements to the “HARP” refinance program.  While no details have been given, the speculation is that Fannie Mae and Freddie Mac would enable refinances of its own portfolio without an appraisal.  This would be huge for Nevada, as so many Nevadans that could refinance from a credit standpoint, cannot because of the lack of equity in their homes.

Southern Nevada Real Estate and Economy

August home sales for Southern Nevada boasted another strong month.  4,693 sales took place, of which 987 of the sales were townhomes and condos.  The median priced home slumped slightly to $120,000, however, the 3,706 single family residence sales are up 17% from July 2011 and up 31% from the same month last year. 

http://www.lvrj.com/business/las-vegas-home-resales-surge-in-august-129453263.html

Below is an article in the RJ that discusses how the low real estate prices provoke companies to relocate to Southern Nevada. 

http://www.lvrj.com/business/cheap-homes-may-spur-companies-to-move-to-valley-129608588.html

week in review

I want to wish you and your family’s a relaxing and safe Labor Day weekend!  (ok…how about we settle for busy!)

We will be accepting loan applications for FHA loans up to $400,000 until September 15^th.  We are required to have credit approval by September 30^th in order to secure the financing.  After September 15^th, we can only accept loan applications for loan amounts up to $287,500…

Financial Markets

The Dow Jones experienced more chop as it rose roughly 400 points by mid-week, only to give it all back on Friday, ending the week down 46 points at 11,240.  The catalyst for the drop was the August employment report, which showed a net 0 jobs gained for the month.  This adds to the fuel of the double-dip recession fire, and all eyes will be on President Obama and his upcoming speech on unemployment.  The unemployment rate held steady at 9.1%.  

Southern Nevada Real Estate and Economy

Below is an article ranking the top home builders in Southern Nevada for the 1^st half of this year.

1.      DR Horton 220 homes closed

2.      KB Homes 197 homes closed

3.      Richmond American Homes 143 homes closed

4.      Lennar 136 homes closed

5.      Harmony Homes (largest privately held builder) 127 homes closed

As a whole, the home building industry closed 1669 homes during the first 6 months of the year.  The median priced home was $197,903.  The top 3 master plan communities were:

1.      Mountain’s Edge (average priced home = $195,911)

2.      Providence (average priced home = $210,033)

3.      Summerlin (average priced home = $238,178)

http://www.vegasinc.com/news/2011/aug/29/dr-horton-kb-home-top-home-sales-list-first-six-mo/