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Old 04-04-2013, 12:12 PM
 
47 posts, read 212,741 times
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Hello All,
This is my understanding of AB300 and SB321:

AB300(aka changes to AB284): if passed, becomes easier for banks to foreclose. More short sales may be seen in market.
SB321: if passed, makes it much more difficult to short sale or foreclosure. House Prices keep climbing up.

I understand that nobody has a crystal ball to predict what’s in store for LV real estate market.
Please make an educative guess and share your thoughts.

My questions:
1> When will either of these become effective?
2> If you are a prospective buyer looking for a house in green valley area (around 4000 sq. ft), will you wait a few months to see where the market is headed or buy fearing that prices and interest rates will go up? (you are renting right now and there is no issue with lease/landlord)

I sincerely appreciate all your thoughts and inputs.

 
Old 04-04-2013, 12:13 PM
 
2,180 posts, read 3,627,986 times
Reputation: 1068
don't try and time the market.

if you are in the market for a new house, get in there already... you've already waited to long.
 
Old 04-04-2013, 12:21 PM
 
Location: Las Vegas, NV
548 posts, read 1,002,633 times
Reputation: 774
Quote:
Originally Posted by MSchu View Post
don't try and time the market.

if you are in the market for a new house, get in there already... you've already waited to long.
Generally, I would agree with you about not trying to time the market. But I doubt many who bought in the Valley during 2007 or 2008 would.
 
Old 04-04-2013, 12:44 PM
 
Location: Sunrise
10,869 posts, read 13,647,071 times
Reputation: 8987
Quote:
Originally Posted by Coco6163 View Post
Generally, I would agree with you about not trying to time the market. But I doubt many who bought in the Valley during 2007 or 2008 would.
Still beats renting. We had no choice but to buy in 2007. Our house value was halved at a stroke. The lost equity is still less than six years of comparable rent. Renters get nothing back. We broke even last year.
 
Old 04-04-2013, 01:12 PM
 
Location: The North
4,962 posts, read 8,681,984 times
Reputation: 3832
Any change at this point would be minimal in impact. The original slow down of foreclosures was very beneficial to the market because it stopped the bleeding and then got people to get off the fence. Sure there are may homes which could foreclose, but with the pick up in shorts I cant see banks racing to get into foreclosing except when people have completely walked away. A little more inventory would probably be a good thing before prices zoom out of the affordable range and start discouraging buyers and potential relocations. Keeping inventory tight will push up prices a little more, but I have to believe the kind of appreciation seen will convince the big equity funds who bought to rent out to switch gears and start selling off some inventory.
 
Old 04-04-2013, 02:31 PM
 
633 posts, read 861,150 times
Reputation: 837
Quote:
Originally Posted by ali74 View Post
Hello All,
This is my understanding of AB300 and SB321:

AB300(aka changes to AB284): if passed, becomes easier for banks to foreclose. More short sales may be seen in market.
SB321: if passed, makes it much more difficult to short sale or foreclosure. House Prices keep climbing up.

I understand that nobody has a crystal ball to predict what’s in store for LV real estate market.
Please make an educative guess and share your thoughts.

My questions:
1> When will either of these become effective?
2> If you are a prospective buyer looking for a house in green valley area (around 4000 sq. ft), will you wait a few months to see where the market is headed or buy fearing that prices and interest rates will go up? (you are renting right now and there is no issue with lease/landlord)

I sincerely appreciate all your thoughts and inputs.
As others have said don't try to time markets. Especially Real Estate in Vegas.

In a healthy market the Median House should be about three times Median Household Income.

Vegas Median Household income 2012: $48,900 (quick Google search).

Median SFR Sale Price Las Vegas Dec.2012: $142,843 (Trulia.com)

If these numbers are correct (do your own research these were very quick google searches) the markets is pretty healthy at the moment. Not depressed but not over priced.

You can extrapolate up or down from the median to evaluate any property/area you like.

From everything I've read I don't believe AB300 or SB321 will have a huge impact at this point but it will be interesting to see.

Interest rates can have a huge effect on the long term cost of housing. This was a big factor in our decision to purchase in 2011.

Vegas real estate seems crazy to me.

Our house was built in 1985 and sold in 1988 (it was a model for 3 years) for $300,000.

The owner put about $130,000 in improvements in 1990 through 1992 (pool, RV Garage, two additional bathrooms)

House sold in 2000 for $295,000

We bought the house (In need of renovation) in August 2011 for $225,000
 
Old 04-04-2013, 03:27 PM
 
244 posts, read 286,093 times
Reputation: 204
I can't answer your questions, honestly I don't think anyone can say with any degree of certainty, I can only suggest doing your own research and decide whats best for you.

For starters, have a look at AB 204, it seeks to exclude distressed sales as comps. That would effectively exclude @50% of all sold comps in the Las Vegas area from appraisals. The bill also excludes "sale in lieu of foreclosures" as comps, aka short sales. This may further the artificial increase of an already manipulated market. Surely this would favor certain groups, new home builders being the first party that comes to mind.

NOTE: Federal rules still require appraisers to consider all sales for appraisals, including short sales and other distressed sales. Should Nevada outlaw using foreclosures as comps, widespread confusion could result.

Last edited by VegasVicsezhowdy; 04-04-2013 at 03:47 PM..
 
Old 04-04-2013, 03:43 PM
 
Location: Las Vegas, NV
548 posts, read 1,002,633 times
Reputation: 774
Quote:
Originally Posted by ScoopLV View Post
Still beats renting. We had no choice but to buy in 2007. Our house value was halved at a stroke. The lost equity is still less than six years of comparable rent. Renters get nothing back. We broke even last year.
I am glad you have recovered. I would guess, however, that rents being what they are here in LV, that most folks who bought in 2007-2008 are not so lucky. Perhaps the equity has sufficiently recovered, but for those who add the cost of a mortgage plus maintenance and insurance to homeownership during those same six years are probably far behind the renters when assessing who lost more of their net worth as a result of paying for housing.
 
Old 04-04-2013, 05:08 PM
 
12,973 posts, read 12,145,995 times
Reputation: 5398
Quote:
Originally Posted by VegasVicsezhowdy View Post
I can't answer your questions, honestly I don't think anyone can say with any degree of certainty, I can only suggest doing your own research and decide whats best for you.

For starters, have a look at AB 204, it seeks to exclude distressed sales as comps. That would effectively exclude @50% of all sold comps in the Las Vegas area from appraisals. The bill also excludes "sale in lieu of foreclosures" as comps, aka short sales. This may further the artificial increase of an already manipulated market. Surely this would favor certain groups, new home builders being the first party that comes to mind.

NOTE: Federal rules still require appraisers to consider all sales for appraisals, including short sales and other distressed sales. Should Nevada outlaw using foreclosures as comps, widespread confusion could result.
Appraisers have to correct for atypical motivation. Virtually all will avoid distressed properties if possible

They also avoid first time sales which are also considered atypical.

They can and will use anything when necessary...but the correction for distressed is simply too controversial to make them happy.
 
Old 04-04-2013, 05:34 PM
 
12,973 posts, read 12,145,995 times
Reputation: 5398
Quote:
Originally Posted by VegasVicsezhowdy View Post
I don't want to hijack the OP's thread but here's the information from it's source:

http://www.appraisalinstitute.org/ab...ssed_Sales.pdf

"An appraiser should not ignore foreclosure sales and short sales if consideration of such sales
is necessary to develop a credible value opinion."
That is what I said. And then they must correct for the distress.

From your cite...

"After selecting the best comps, the appraiser adjusts for material differences between each comp and the subject property. Factors that may require such adjustments include atypical buyer/seller motivations and sales concessions. "

They wisely don't want to do that as the correction may be as much as $20 per SF.

So they try and find non-distressed properties so they don't have to correct.

And to the OP. Get in as soon as you find what you want. There is every indication of an accelerating appreciation. There is some probability of a bust in the second half driven by the overall economy...but it is not going to bust on changes to AB284.

The risk of getting hurt by a sustained rise is a lot more than the risk of a downturn damage..

Last edited by lvoc; 04-04-2013 at 05:45 PM..
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