View From The Top, vol7

By Nat Hodgson
Executive Director
Southern Nevada Home Builders Association

 

It’s not just buyers and builders who benefit from the sale of a new home in our community.

The positive impact of new residential construction is far-reaching, bringing immediate and long-term benefits to families, businesses and services throughout our area.

According to economists at the National Association of Home Builders, the one-year estimated local impacts of building 100 single-family homes in a typical metro area include $28.7 million in local income, $3.6 million in taxes and other local government revenue, and 394 local jobs.

But there are other, perhaps less dramatic, economic benefits.

When a person or family buy a new home, they will likely shop at local stores to buy furniture and accessories to decorate the home. They will fill their car’s gas tank at local gas stations so they can get to the stores, have local mechanics work on the car when it breaks down or needs the oil changed, or buy a new car at a local dealer when it’s time to replace the old one.

They may need to hire local companies for regular services to maintain their home, such as landscaping, house cleaning, pet sitters or pool upkeep.

The children will enroll in local schools. This increases enrollment, which means more teachers, janitors, cafeteria workers and other school support staff must be hired. Those children will also join sports leagues and other activities, buy equipment and pay registration fees that provide stipends for referees and coaches.

All of this economic activity puts income into the pockets of local business owners and their families, who can then afford to go out and spend money themselves, which recirculates even more money into the community’s economy.

The new household also pays local and state taxes. These tax revenues help pay for a wide range of government services, including school teachers, police departments, refuse collection, parks maintenance and road repairs.

Word On The Street, vol7

What Buyers Look For in A New Home

The feeling of being rooted and an opportunity to build equity are among what most respondents say made them buy a home.

Home building giant Lennar asked its buyers about what they are looking forward to in their new homes.

Respondents to Lennar’s survey said that “one of the best parts of a new home is the pride of ownership. Plus, you’re investing in your future and building equity in your property, not your landlord’s.”

Additionally, many newly-minted homeowners look forward to having more space, and the ability to add personal touches to the home they call their own.

http://theopendoor.lennar.com/house-to-home/10-things-buyers-look-forward-new-home/

We asked Lennar home buyers what they are most looking forward to in a new home. From building equity to reducing expenses and more, these were the top 10 answers.

Owning & building equity

When we ask Lennar home buyers the number one thing they are looking forward to, they said owning and building equity in their new home. One of the best parts of a new home is the pride of ownership. Plus, you’re investing in your future and building equity in your property, not your landlord’s.

word-on-the-street-1

Minneapolis/St. Paul, MN

More space

Home buyers may find themselves growing out of their current home or feeling a little cramped. Depending on your lifestyle, maybe you need an extra bedroom, home office or an open great room perfect for entertaining.

Las Vegas, NV

Las Vegas, NV

New neighborhood

Location is incredibly important when it comes to real estate. Our home buyers share their excitement over moving to a new neighborhood, whether it be for the schools, shorter commute time, or being closer to friends and family.

Miami, FL

Miami, FL

Backyard

A place to entertain, relax in privacy or let the kids and pets run around, literally in your own back yard. Doesn’t that sound nice?

Palm Springs, CA

Palm Springs, CA

Energy efficient features & latest technology

Lennar homes are built with energy efficient features and the latest in technology and design. Wiring, appliances and windows are just a few features in homes today that have improved greatly compared to older homes.

Energy efficient features

Energy efficient features

Adding a personal touch

Making a home uniquely yours is one of the many benefits of new homeownership. Home buyers look forward to selecting paint colors, picking out furniture and adding their own style to their new space.

Fresno, CA

Fresno, CA

Landscape

Similar to interior décor, landscaping allows you to add a personal touch to the outside of your home. Whether you have a green thumb or are looking to go low-maintenance – your lawn is your canvas!

Seattle, WA

Seattle, WA

Community amenities

Golf, clubhouse, community pool, or walking trails – many Lennar communities are designed with activity and community involvement in mind. Taking advantage of community amenities is also a great way to meet your new neighbors!

word-on-the-street-8

Orlando, FL

Reducing expenses

Can you save money by buying a new home? The answer may definitely be YES. You may pay less for a new home than you did renting, and don’t forget abut potential tax benefits. Saving money? That’s really something to look forward to!

Combining households and sharing a mortgage can also reduce your living expenses. That’s why Lennar’s Next Gen® – The Home Within A Home® is a great solution for so many families. Two homes under one roof can mean less money spent on utilities, childcare costs, landscaping and much more. Learn more about the benefits of Next Gen living.

Next Gen – The Home Within A Home

Next Gen – The Home Within A Home

Sense of permanence

The feeling of finally being home and settled is hard to describe. Our homebuyers tell us they look forward to putting down roots, making memories, and starting new traditions while maintaining old ones. We call that the joy of homeownership.

Happy Homeowners

Happy Homeowners

What are you most looking forward to in your new home? Let us know.


Source: http://www.probuilder.com/what-buyers-look-forward-new-home?eid=253018236&bid=1129633

Photos courtesy of Lennar via theopendoor.lennar.com

By The Numbers, vol7

by-the-numbers-1

Nationally, the unadjusted June single family permit total was up 11.4 percent year to year, according to the Housing Research Center, LLC (HRC). Builders are opening new communities at a 12 percent higher pace year to year. The “take away” in the June HRC report says the single family permits totals are still being affected by “lack of affordable housing, tight credit and tough underwriting standards, low credit scores, incomes and savings levels. This is combined with the builders’ hesitancy or unwillingness to build entry level affordable homes, and expensive land prices that make it tough to make money.” That pretty much “hits the nail on the head” in metropolitan Las Vegas.

Nationally, the multifamily segment has been dominating the permit numbers. The multifamily permits are making up a much larger share of the total permits. In fact, the June totals indicate the multifamily sum is almost the same as the single family, a very rare occurrence.

The resale segment in June is pretty much the status quo … a tight and shrinking inventory of “good” listings. This is especially the case in the most active sub-markets for homes listed under $300,000. An existing home that is in good clean condition, in a nice community, and priced at the market level will probably have multiple offers and be sold within 2 weeks.

There were 4,120 recorded resale transactions in June. It put our 2015 total at 21,600, which is a year to year increase of 2,865, or 15.3 percent. Again, the annual change is very acceptable. The median price of the June resale closings was $195,000. This is a 1-month small decline ($4,000), but it is an annual rise of $30,000, or 18 percent.

by-the-numbers-2

If there were more available homes in good condition and priced at market level, there would definitely be more resale activity. Granted, if the supply was greater we would see less upward price movement. Therefore, it depends which side of the equation one is standing to understand their preference.

We have read a few articles from the president of the Greater Las Vegas Association of Realtors (GLVAR) who has been asking the members to price their listings at the market level by educating their clients on what the correct price should be. However, many homeowners believe they can price it well above the market and “see what happens”. Chances are the listing will linger and then need price reductions. It may eventually sell for what it should have been priced from the beginning.

According to one of the sources that is regularly quoted regarding foreclosure activity, RealtyTrac, during the first 6 months of 2015 Nevada ranked 4th in the U.S. in foreclosure activity during the first 6 months of 2015. If the number of foreclosures has “taken off” in our area, it sure hasn’t been reflected in the existing for sale inventory, or much change in the number of homes going to auction. They estimate there are nearly 20,000 empty homes in Clark County. Frankly, we don’t expect to see much change in the foreclosure activity unless there are future legislative changes that loosen the potential penalties to the lenders during the foreclosure process.

 

 

By The Numbers, vol6

HBRLogoIn May, there were 527 recorded new home sales. This places our 2015 sum at 2,360, which is a year to year increase of 8.9 percent. There were 14 new high rise units included in the total. When they are omitted, the annual change becomes a very respectable 11.7 percent.

The following graph illustrates the upward tendency of the monthly new home closings since January, 2014. The trend line is going in the right direction … albeit a little flatter than most would like to see.

btn-chart-1

The median price of the new home closings in May was $315,250. The upward pressure of new home prices continued, the monthly increase was $9,546, or 3.1%. Year to year the May median price was $35,350, or 12.6 percent. It certainly looks like at the end of 2015 we might see double digit price increases in most parts of the new home segment.

The next chart compares the market share of various price segments during three separate periods of time … 2013, September 2014, and May 2015. The affordable segment(s) continues to lose market share of new home sales. The market share of the new home closings that were under $300,000 in May was 43.6 percent. This is a decrease of 32.7 percent since 2013, and 17.9 percent since September 2014. The share of new home closings priced less than $200,000 has declined most noticeably since 2013, from 18.3 percent down to only 2.7 percent in May.

btn-chart-2

There were 680 new home permits pulled in May. This puts our 2015 tally at 3,289, which is a year to year increase of 621 permits, or 23.3 percent. That is an impressive annual gain in permit activity. We knew that based on the data from our Weekly Traffic/Sales Watch Report that new starts were on the horizon. Although the weekly net sales have been up and down week to week recently, the overall trend during 2015 has been pretty strong.

The builders who pulled the greatest number of permits in May were the following:
Lennar Homes – 96
DR Horton – 81
Ryland Homes – 80
KB Home – 63
Pardee – 56
Richmond American – 41
American West – 39
Woodside – 37
Century Communities – 29

btn-chart-3

There were 4,394 recorded resale transactions in May. It bought our 2015 sum to 17,480, a year to year increase of 2,633 closings or 17.7 percent. The May resale sum was a noteworthy month to month increase of 525 sales.

The median price of the May resale closings was $199,000. The existing home median price continues to rise; it was a 1-month change of $12,000 and is a year to year increase of $29,000 or 17.1 percent.

btn-chart-4

The number of existing condo closings in May was 640, a share of 14.6 percent. This is the third consecutive month there have been over 600 existing condo closings. Although the sales of resale condos have been strong recently, the prices haven’t changed very much. The May median price was $96,500. It has fluctuated each month in 2015 from $96,500 – $102,500.

The resale prices have been consistently trending upward during the last 12 months. It is due to the tight inventory of listings. We have been regularly showing the amount of SFR listings and how the number has been relatively flat for many months. This is an important factor in new home demand, as many potential resale buyers can get frustrated at the limited number of a type of home they might be trying to find. The depth of the shortage of listings will vary considerably by sub-market area and product type. It is pretty extreme for certain product types in some parts of the valley, and it will push potential consumers to the new home segment. This has been great for the home builders in Las Vegas, but if the number of listings all at once grows quickly, some new home sales could be lost to existing homes.

The median price “gap” between the new and resale homes was $116,250 in May. This difference might not mean much with new home buyers, but we suggest that most of them were at least made aware of it by a realtor. The bottom line is that new home sales have benefited from the overall tight supply of existing homes listed for sale. It certainly now appears the resale inventory won’t improve too much during the next 12 months … and maybe longer. The supply of distressed homes certainly doesn’t appear ready to overwhelm the housing market. There appears to be sufficient demand from investors and owner occupant home buyers, to keep the supply in check.

Even though the “traditional” listings now make up 82 percent (source – Residential Resources) of all SFR listings, the total is not enough to satisfy the demand in the most active parts of the metropolitan area.

More inventory isn’t arriving, because there are still too many mortgages underwater, or near underwater. According to a recent presentation by Dr. Frank Nothaft, senior VP & Chief Economist at Corelogic, there are still 25.6 percent of the mortgages in NV underwater. Most of those are in the Las Vegas area. If the loans that are “nearly underwater” are included, the percentage gets close to 30 percent. As a result, there are still a lot of homeowners in the Las Vegas vicinity who are unable to move for 5 or more years because of their negative equity. There are a lot of potential listings in this group, but their situation is SLOW to improve, so they will not have a big impact on the supply of listings in the near term.

Dr. Nothaft also said that the number of seriously delinquent (90 or more days delinquent, or in a foreclosure proceedings) loans in metropolitan Las Vegas was at 5.5 percent at the end of March, and still falling. This is especially impressive when we are reminded that in 2011 the number was 21 percent. In 2013 it was about 12 percent. Nationally, it is now near 3.5 percent. So, by the end of 2015 Las Vegas may be very close to the national average.

We have listened to and read a number of economic forecasts regarding the national and local economic outlook. Almost all of the predictions for the Las Vegas area are pretty positive. It is easy to suggest that the local economic atmosphere will keep improving when there is positive job growth. In fact, Las Vegas now is at or near the top of most national rankings for annual job growth for major metropolitan areas. Of course, we must remind folks that the current statistics are compared to some very weak numbers. The number of unemployed is improving steadily (although it was flat the past couple of months) suggesting Las Vegas has turned the corner on the recovery and growth is imminent.

On June 25th , we attended the “2015 Midyear Economic Outlook” Conference by The Center for Business & Economic Research (CBER) at UNLV. There were a lot of positive statistics regarding the recovery of the Nevada and Las Vegas economies, but also some “headwinds” that could cause a retreat in some parts of the economy. Gross gaming revenue in Clark County was down 1.2 percent year to year in 2014, however, has increased 2.2 percent so far in 2015. Visitor volume was up by 3.7 percent in 2014, and is projected to rise by another 2.5 percent in 2015. When the number one industry reports these kinds of revenue figures, it will cause some concerns. More people are visiting Las Vegas, but they are gambling less. More time (and money) is spent at shows or other forms of entertainment.

There was some discussion from Dr. Stephen Brown, outgoing Director of CBER, about the absence of many millennial age group home buyers. Student debt and the difficulty of obtaining financing are the primary reasons given for this large group of consumers not being a major part of current home sales. These issues for this large collection of potential home consumers will not leave for some time. The housing industry needs the millennial buyers to become a major part of the market. They could make up for the loss of investor sales, from which the existing home segment hasn’t fully recovered.

The Las Vegas Quarterly Condo Report was recently updated with data from the first quarter, 2015. We have teamed with Northcap to provide this great quarterly report of the high rise condo market segment. You can see samples and download the report from our web site, homebuildersresearch.com.

Volume 253 of our next Las Vegas Land Report and Interactive Land Report will be sent to those subscribers this week. There were some very interesting purchases listed, like the large assemblage in the southwest part of the valley by American West Homes that averaged $500,000 per acre. A purchase like this by one of the most respected builders in Las Vegas can “reset the bar” for others in the this submarket area.

You can check out samples of most of the weekly, monthly, quarterly, and annual reports that we publish at Home Builders Research, Inc. at homebuildersresearch.com. Many of the reports can be downloaded right from the web site.

Thank you,
Dennis Smith
President

Word On The Street, vol6

danger-reportThe DANGER Report, a report commissioned by NAR’s Strategic Thinking Advisory Committee and authored by Stefan Swanepoel, documents the threats and challenges that agents, brokers, associations and multiple listing services may confront in the next 3 to 5 years. Based on interviews with top real estate industry leaders, wide-ranging research and member surveys, the report provides one of the most comprehensive assessments of the residential real estate landscape available.

Download Report Now

Legal Ease, vol6

logo-black-lobelloDebt Collection in the Social Media Age
By Kevin Hernandez, Esq.
July 2015

In an age where social media is ubiquitous, some debt collectors are catching on to its wide-spread use to assist in collecting debts, and sadly, to threaten and harass consumers. “Normally, collectors use social media to locate people or see if there are any assets that might be collectable,” notes Joel Winston with the Federal Trade Commission. “But we have received a few complaints about collectors who are using social media to either impersonate the person’s friends or otherwise use it for harassment.”

For debt collectors looking for an (illegal) edge, social media can be a powerful way to intimidate someone into paying a debt. Collectors can post messages that let the world know you are in collections, or contact specific persons about your debt, such as your employer, friends, or colleagues.  These communications represent clear violations of the Fair Debt Collection Practices Act, which prohibits, among other things, harassment of debtors, and contacting third parties concerning a debt (under most circumstances).

Both Facebook and Twitter implement limited protections against harassment, such as the ability to ban a user or remove posts. However, this limited authority is often too late to protect a debtor from the embarrassment associated with a debt-related post or other harassing information released to the public through social media. And savvy debt collectors will simply open another account under a different name to continue the unlawful activity.

The terms and conditions for most social media outlets, such as Twitter and Facebook, are used primarily to protect themselves, rather than their users. However, included below are some applicable terms and conditions, which may be used in conjunction with federal consumer laws to protect you against unfair or harassing debt collection efforts on social media:

Facebook
3. Safety.
We do our best to keep Facebook safe, but we cannot guarantee it. We need your help to do that, which includes the following commitments:

6. You will not bully, intimidate, or harass any user.
7. You will not post content that: is hateful, threatening, or pornographic; incites violence; or contains nudity or graphic or gratuitous violence.

9. You will not use Facebook to do anything unlawful, misleading, malicious, or discriminatory.
5. Protecting Other People’s Rights
We respect other people’s rights, and expect you to do the same.
1. You will not post content or take any action on Facebook that infringes or violates someone else’s rights or otherwise violates the law.

7. If you collect information from users, you will: obtain their consent, make it clear you (and not Facebook) are the one collecting their       information, and post a privacy policy explaining what information you collect and how you will use it.
8. You will not post anyone’s identification documents or sensitive financial information on Facebook.

Twitter
You are responsible for your use of the Services, for any Content you post to the Services, and for any consequences thereof.
Impersonation:  Impersonation is a violation of the Twitter Rules. Twitter accounts portraying another person in a confusing or deceptive manner     may be permanently suspended under the Twitter impersonation policy.
Privacy: You may not publish or post other people’s private and confidential information,    such as credit card numbers, street address or Social             Security/National Identity numbers, without their express authorization and permission.
Violence and Threats: You may not publish or post threats of violence against others or promote violence against others.
Unlawful Use: You may not use our service for any unlawful purposes or in furtherance of illegal activities. International users agree to comply     with all local laws regarding online conduct and acceptable content.

In addition to harassment, debt collectors often use social media to locate debtors and their assets. What you post on Facebook or Twitter, such as contact information, location of assets, and admissions concerning your debts is fair game for anyone to see and use, especially during litigation. If you are in collections or facing a lawsuit, you should limit your social media posts to innocuous subject matter, unassociated with your assets, the alleged debt, or the ongoing litigation.  Under federal and state rules of evidence, these messages will almost certainly be used against you, so post with caution.

Although social media has increased our overall connectivity and allowed millions to share their thoughts and ideas with the world, it may also be used to harass, abuse, and intimidate.  This is especially true in the context of debt collection.  Consumers should be aware of their rights under the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and Telephone Consumer Protection Act to ensure unscrupulous debt collectors follow the law, and avoid illegal, harassing collection tactics.

 

View From The Top, vol6

By Nat Hodgson
Executive Director
Southern Nevada Home Builders Association

It’s not just buyers and builders who benefit from the sale of a new home in our community.

The positive impact of new residential construction is far-reaching, bringing immediate and long-term benefits to families, businesses and services throughout our area.

According to economists at the National Association of Home Builders, the one-year estimated local impacts of building 100 single-family homes in a typical metro area include $28.7 million in local income, $3.6 million in taxes and other local government revenue, and 394 local jobs.

But there is other, perhaps less dramatic, economic benefits.

When a person or family buy a new home, they will likely shop at local stores to buy furniture and accessories to decorate the home. They will fill their car’s gas tank at local gas stations so they can get to the stores, have local mechanics work on the car when it breaks down or needs the oil changed, or buy a new car at a local dealer when it’s time to replace the old one.

They may need to hire local companies for regular services to maintain their home, such as landscaping, house cleaning, pet sitters or pool upkeep.

The children will enroll in local schools. This increases enrollment, which means more teachers, janitors, cafeteria workers and other school support staff must be hired. Those children will also join sports leagues and other activities, buy equipment and pay registration fees that provide stipends for referees and coaches.

All of this economic activity puts income into the pockets of local business owners and their families, who can then afford to go out and spend money themselves, which recirculates even more money into the community’s economy.

The new household also pays local and state taxes. These tax revenues help pay for a wide range of government services, including school teachers, police departments, refuse collection, parks maintenance and road repairs.

Over the long term, as the people who move into new homes become part of the community, their positive impact continues. NAHB estimates that those 100 new homes also provide the community with additional, annually-recurring impacts of $4.1 million in local income, $1 million in taxes and other revenue for local governments, and 69 local jobs.

People who buy a newly built home enjoy benefits such as safety, amenities, energy efficiency and floor plans to fit a modern lifestyle. The advantages of new homes extend far beyond the buyers and the builders – residential construction has a positive, direct impact on the local community for years.

 

Sponsor of the Month: Alpine Mortgage Planning, Vol 6

logo-alpine-mortgage-planningAlpine Mortgage Planning, a division of Pinnacle Capital Mortgage Corp., has been the proud host and sponsor for TrainNTour from its inception together with SNHBA and the GLVAR.  We are happy to assist in bringing the Builders and Realtors in the Las Vegas community together.  We are also happy to assist those clients and Realtors that have chosen to use Alpine Mortgage Planning as their chosen mortgage banker.

Dan Means, MLO-252113, is the branch manager of the Southern Nevada Alpine Mortgage Planning offices – our Las Vegas office is located off Sunset & Durango and our Henderson office is located off Eastern and Coronado Center.  Dan has been in the mortgage business since 1996, managing three other mortgage company/branches prior to opening Alpine Mortgage Planning in June 2013.  With over 50 employees, not only do we have over 25 Mortgage Advisors in our 2 branches combined, but we also have licensed Production Assistants for the Mortgage Advisors, an in-house Marketing Coordinator, in-branch Processing, 9 in-branch Underwriters and Doc Drawing.

Our success has been awarded in 2014 not once, but twice!  We first received the Groundbreakers award from the Las Vegas Metro Chamber of Commerce in October, then Association Member of the Year 2014 Award from the Southern Nevada Home Builders Association in November.  We are proud to be members of both these great organizations and look forward to working with them again in 2015.
For more information on Alpine Mortgage Planning, please visit our website at www.alpinemc.com/lasvegas or call our office at 702.534.6100.  Equal Housing Lender, NMLS-81395.