Product Announcement!
Nevada State Bond has become
relevant again, making wide sweeping revisions to its Down Payment Assistance
Program, below the highlights for yet another nearly 100% financing option for
home buyers:
· No longer need to be a
first time home buyer
· Household income can
be up to $91,140 (with household head count of 3 or higher)
· Not restricted to
geographic location
·
Lend
up to 3% of sales price towards down payment and closing costs
Financial Markets
The Dow Jones ended the closing bell this past Friday topping out
at 16,321, up 170 + points from two weeks ago.
Investors have been shrugging off weaker than expected economic data in
recent trading sessions as many predict the soft numbers are predominantly a
result of the miserable weather across much of the country for much of the
winter. Many expect a pent up demand to
create for robust sales across all goods once the Polar Vortex has released its
deadly grip!! The Fannie Mae 3.5 MBS
(mortgage-backed security) improved roughly 50 basis points (often equivalent
to an improvement in mortgage interest rate by .125%) during the same time
span.
Southern Nevada Real Estate Related Data
Home sales for January support that Southern Nevada’s real estate market is stabilizing and giving the appearance of normalcy for the first time in nearly 15 years, as the data becomes more closely aligned with markets nationwide. Institutional investors consisted of roughly 6.5% of sales (down from 11% in January 2013), nationwide institutional investors consisted of nearly 6% of home sales. Cash buyers still dominate the market, with 56.7% of home buyers paying cash for homes, compared to 44% nationwide. Zillow chief economist Stan Humphries predicts real estate to appreciate by roughly 3%, nationally for 2014, which is consistent with historical averages….
Despite how ridiculously volatile Nevada’s recent real estate
market has been in the past 15 years, we are currently on pace with very boring
and historically traditional value appreciation trends. Take a look at the last link. In 1940 the median priced home was $20,000
for homes in Nevada. Today, the median
priced home is roughly $185,000, an approximate 925% increase in values over
roughly 75 years computes to about 1-2% appreciation per year….Now, stay with
me here, take from 2000 to today, $142,000 to $185,000…Current prices are up
13%, or roughly 1% per year…We happened to have taken the road never
traveled….Up 100%, down 60%, up 35%....But as Siri would say “ you have arrived
at your destination”…..and for the first time in a very long time, prices for
Las Vegas real estate are right where they need to be.
For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html
