Financial Markets
The Dow Jones had a relatively quiet week and ended up for the week slightly, but the big mover for mortgage interest rates had little to do with the European debt crisis or the beginning of earnings season. The Guarantee-Fee, (aka the G-Fee) is a new fee that is charged by Fannie Mae and Freddie Mac to mortgage companies, for all conventional loans. A recent bill passed by congress to extend payroll tax cuts included a provision that allowed the GSE’s (government sponsored entities, Fannie Mae and Freddie Mac) to increase fees in an effort to increase revenue. This fee goes into effect April 1st, but loans being locked today are being affected, so you will notice mortgage rates increased by .125% to .25%.
Southern Nevada Real Estate and Economy
Southern Nevada set the record in home sales for 2011, with 48,186 sales for the year. 38,153 of the sales were single family residences while 10,073 of the sales were townhomes and condos. Roughly 50% of the sales were sold to cash buyers. Nearly 50% of the sales were bank-owned properties and another roughly 25% of the sales were short-sales. 2011 was not so kind to builders, as new home sales attributed to just under 4,000 for the year, this down from 39,000 new home sales in 2006.
The inventory of homes on the MLS is falling and according to the article below, sits under 20,000 homes for sale, with a little over 45% of the homes classified as “contingent”, which is a positive sign for builders and equity sellers. (Amazing to think that individuals selling a home in which they have equity, have their own category now…”equity sellers”…like unicorns…)
