Tsunami of foreclosures finally here? We are about to find out.

PRODUCT ALERT! (Listing Agents, you’ll like this!)

First Cal Mortgage is proud to release “Listing Marketing” to our preferred business partners.  We create websites for each of your listings that you can post on the various social media sites, provide sign riders to capture perspective buyers, and give you access to slick flyers!  Take a look at the link and contact me if you are interested!  http://matthewmaltese.mysalebook.com

 Financial Markets

Friday capped the Dow’s biggest weekly loss in 7 weeks, ending the day at 16,960 (according to the app on my I phone).  The Dow lost over 100 pts during the first hour of the opening bell Friday, after Visa and Amazon released disappointing earnings reports.  2^nd Quarter earnings reports season has turned out to be a positive one thus far, as nearly 70% of the companies in the S and P 500 have either met or topped earnings estimates. 

The Fannie Mae 3.5 and GNMA 3.5 coupons have avoided turbulent trading over the past 2 weeks, with only a variance of just 40 basis points between the high and low.  This basically means that 30 yr fixed rates haven’t moved more than .125% one way or the other.  It appears to be a stale mate between a positive earnings season and geopolitical unrest, and as a result the mortgage-backed securities are sailing through calm waters. 

Southern Nevada Real Estate Related Data

According to a report recently released by Auction Control Systems, notice of defaults are on the rise and will continue to do so over the upcoming months, and would more than likely lead to a dip in sales prices in the upcoming months.  NODs for the month of July project to be nearly 1,000 (less than 200 in January of this year) and the company expects “2,000 notices monthly by fourth quarter”.  The report goes on to state that the banks have navigated through State Senate Bill 321, and are finally able to properly  execute the foreclosure from a legal stand point. 

http://vegasinc.com/business/real-estate/2014/jul/25/banks-moving-more-aggressively-against-delinquent-/?_ga=1.62522280.564569733.1395507077

Below is a thorough, interactive real estate sales report for the month of June.  Most of the data has been covered in previous update, but is still a useful report if you are interested in keeping current with trends.  Thanks Chicago Title!

http://jamielewis.rereport.com/market_reports?formSubmit=1&searchtype=search&emailtype=search&period=1&area=113&cities=0&locations=0&yearmonth=2014-6&proptype=1&mailer=1&redirected=1

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

Cash Buyers and Investors Gambliing Less on Las Vegas Real Estate

PRODUCT ALERT!
Fannie Mae recently released the notes for its August DU release (when Fannie Mae makes changes to its automated underwriting system, DU, it announces the changes in advance).  It appears that Fannie Mae will require 4 years to pass before someone with a short sale can qualify for a conventional loan.  Currently the wait time is 2 yrs for a borrower with 20% down.  It is scheduled to take place on August 16^th, so all borrowers under contract by August 15^th will still be able to close with just 2 years after a short sale.  First Cal is still waiting for the official announcement from the VP of underwriting.

Financial Markets

The Dow continued to lurch forward in recent weeks, this past Friday closing at 16,943.   The markets have been relatively stable, the Dow’s high point (nearly 17,100) and low point (above 16,800) over the past month is less than 300 points or less than 2% in fluctuation in either direction.  The Dow is up roughly 1,000 points from 1 yr ago, or up nearly 6%. 

The bond market, and in particular, the Fannie Mae 3.5 coupon (The instrument that consumer’s mortgage rates are most directly tied to) has been equally stable.  The instrument hasn’t traded higher than 102.8 or lower that 101.7 in the past month.  A little more than 100 basis points separated the high and low, which is equivalent to about .25% in interest rate to the consumer. 

In short, both stocks and mortgage rates have been very stable and we have enjoyed very calm waters so far this summer.  Earning season for 2^nd quarter has begun and we can expect some volatility in the next several weeks as a result. 

Southern Nevada Real Estate Related Data

June home sales for Southern Nevada highlight two continuing trends.  The median home price of $199,900 is up 2.5% from May 2014 and up 14% from the same month last year.  Cash buyers are down to under 35%!  In February of 2013, nearly 60% of the home buyers were paying cash.  Simply put this means less investors are scooping up homes and renting them out.  This is a much more healthy number as home owners that occupy the home will typically spend more in home improvement projects, which stimulates the local economy significantly more than an investor would.    http://www.vegasinc.com/business/real-estate/2014/jul/08/investor-impact-wanes-las-vegas-home-prices-climb-/

According to a recent poll, Nevada jumped over 18 states for “Best states for business”, that’s the good news.  Bad news is we are still ranked in the lower half, 29^th.  According to the poll and scoring system, Nevada’s Achilles’ heel is education.  The state ranked dead last in education in 2013 and inched up to 49^th this year.  http://www.reviewjournal.com/business/economic-development/nevada-moves-18-places-ranking-best-states-business

As many of you have already heard, a new ubber-luxury development is zoned for Southern Summerlin.  One word…Holy Smokes!  http://shar.es/MgTVr

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html