[logline]

Originally Posted by Clarkcty

You are up against people from out of State and out of the country aside from the locals. Just the last couple of weeks in my neighborhood I have seen a couple of cars with license plates from Canada, Alberta and Montreal driving down on Desert Inn Rd. Goodluck!

I've seen Chinese nationals buying homes in Las Vegas. They are only allowed to purchase one condo in China for investment (see yesterday's 60 Minutes segment for more info on that) so their dollars are coming here. Better deals.

[Clarkcty]

^^^^Saw that segment anyway the latest on Echelon, finally a new player in town! While I don't appreciate what the Malaysians are doing to the real owners of Sabah, the heirs of the Sulu Sultanate, the Malaysians acquisition of Echelon will finally bring life to that part of the Strip.


Genting buys Echelon for $2 billion Resorts World Las Vegas - Business - ReviewJournal.com

[Clarkcty]

.........and of course the Review Journal with its misleading header, Malaysians will acquire the land for
less than $500 million and will build a $2 billion Resort World Las Vegas.

[VegasVicsezhowdy]

Originally Posted by LVNativeJ

We are considering a new build in Mountain's Edge for $170k. It is crazy considering last year we were bidding on properties that were $80-$100k. However, as owner-occupants and non-cash buyers, we are frustrated and really want a home. We've put in 8+ offers in the last 12 months and none were accepted. At least interest rates are still low enough that we can afford the payments.

It's obvious to me that they're trying to re-inflate the collapsed bubble. I'm not surprised that prices have gone up without any support but what really amazes me is how many people have such short memories. Is the housing market strong enough to support this much speculation? Show me a meaningful recovery first, where flat wages rise, unemployment drops and housing sales increase, anything short of that is all smoke and mirrors.

[logline]

Originally Posted by VegasVicsezhowdy

It's obvious to me that they're trying to re-inflate the collapsed bubble. I'm not surprised that prices have gone up without any support but what really amazes me is how many people have such short memories. Is the housing market strong enough to support this much speculation? Show me a meaningful recovery first, where flat wages rise, unemployment drops and housing sales increase, anything short of that is all smoke and mirrors.

You're not looking at how much we overshot to the lows. The prices were way out of whack in relation to average Las Vegas household incomes last year. The rent/buy ratio was at extreme levels... even considering the damaged local economy. You're not looking at the overall picture. I don't think we go much higher than this for a long time (years), but I also don't think we'll see new lows either.

[VegasVicsezhowdy]

Originally Posted by logline

You're not looking at how much we overshot to the lows. The prices were way out of whack in relation to average Las Vegas household incomes last year. The rent/buy ratio was at extreme levels... even considering the damaged local economy. You're not looking at the overall picture. I don't think we go much higher than this for a long time (years), but I also don't think we'll see new lows either.

I actually agree that the market over corrected, it's a classic example of a dead cat bounce but what scares me MOST is the "overall picture". As David Stockman pointed out recently, the fast money people (aka hedge and LBO funds) are only here to make a quick buck, there are too few first time buyers or trade up buyers and as soon as the Fed normalizes interest rates and prices weaken we know what happens, the fast money sells just as quick as they can and yet another bubble bursts.
Rape, pillage, burn, repeat.

[lvoc]

There are lots of buyers. The rub is that the classic first time buyer is locked out. At the lower end of the market,,,everything below 100K and most of below 150K the cash buyer controls the market and the first time financed buyer cannot get an appraisal that would make him competitive.

The only out for the first times is HUD or Homepath. That leaves a very limited selection and Homepath is pricing rather high.

There also appears to be some substantial and new action in new build. One tract in Providence appears to have sold more homes in February than in the second half of last year.

[VegasVicsezhowdy]

Okum,

From Jan. 1, 2013 until present a total of 5,992 sales

3,468 to cash buyers (avg sales price = $156K)

1,392 to conventional loan buyers

820 to FHA buyers

211 to VA buyers (a paltry 3.5% ...shameful to say the least)

the remainder were OWC, lease-to-own, etc.

Howdy Podner,
V.V.

[lvoc]

What's your point?

Below $100,000 it is 80% cash.

Between 100 and 125K it is 62% cash

Between 150K and 200K it is 49% cash

Above 300K it is 35% cash.

As I said the first time buyer is screwed. Above 200K the playing field is much more level. Few, if any investors. Does not pencil.

[VegasVicsezhowdy]

To provide relevant/current hard data.

BTW, please cite the source of the new home sales volume you mentioned earlier.

TYS,
V.V.