Weekly Sales and Inventory Update

Inventory: During the past week, the number of resale homes on the market (those listed with Realtors and posted in the Multiple Listing Services (MLS)) dropped by an above-average 809 units causing total inventory to reach 18,461 homes. Compared to the same week of the prior year, inventory levels are down 20.9 percent, or 4,885 units. During the past four weeks, inventories have dropped by 2,260 units, with vacant properties reflecting the largest share of the decline with nearly 2,000 less vacant units during the same four-week timeframe. Vacant properties represent 58.5 percent of total inventory, while owner-occupied units listed for sale (5,758) represented 31.2 percent of all available inventory.

Sales: The number of units in a contracted status increased by 484 units during the past week reaching a total of 10,574 homes. Contracted units represent homes that have been negotiated but are waiting to close. They consist of contingent units (6,610) that are contingent on some action taking place (e.g., a lender approval on a short sale) as well as pending units (3,964) which are transactions waiting for customary closing procedures to complete. Sales closing activity in the resale market has been on the rise and the latest contracting activity suggests this trend will continue over the next 30 to 60 days (typical closing timeframe). (Applied Analysis.)

Inventory Shrinks To Nearly 18,000 Resale Units:

During the past week, the number of resale homes on the market dropped by 411 units causing total inventory to drop to 18,050 homes.  Inventory figures represent all property types listed within the Greater Las Vegas Association of Realtors MLS. Compared to the same week of the prior year, inventory levels are down 22.2 percent, or 5,165 units. During the past five weeks, the market reported consistent weekly declines in inventory with a combined drop of 2,671 units. 

Contracted Units Rise  To Nearly 11,000 Resale Units:

The number of units in a contracted status increased by 402 during the past week reaching a total of 10,976 homes.  Contracted units represent homes that have been negotiated but are waiting to close.  They consist of contingent units (6,873 homes) that are contingent on some action taking place (e.g., a lender approval on a short sale) as well as pending units (4,103) which are transactions waiting for customary closing procedures to complete. 

Immediate Outlook:

Sales closing activity in the resale market has been on the rise and the latest contracting activity suggests this trend will continue over the next 30 to 60 days (typical closing timeframe).

Home Maintenance Tips -

Spring has arrived in many parts of the U.S. The ideas below will help you prepare your home for a hassle-free summer.

• Clean showerheads and faucet aerators.
• Clean and seal tile grout.
• Clean the clothes dryer exhaust duct and space under the dryer. This prevents lint from accumulating and reduces the risk of fire.
• Inspect washing machine hoses and replace when they show signs of wear or leakage.
• Inspect deck or patio for deterioration and safety hazards. Repair loose boards, protruding nails or other safety issues.
• Keep a multi-purpose fire extinguisher handy and ready for use.
• Wash the exterior of your house using ordinary garden hose pressure and a mild detergent.
• Caulk exterior joints around all windows and doors.
• Change air conditioner filters.
• Have a certified chimney sweep inspect and clean your chimneys.

Did You Know?

SMG Realty was created by the efforts of top brokers and Las Vegas Real Estate Producers who wanted to introduce the principles of service, customer satisfaction, and agent excellence to this rapidly growing city.

From first time home buyers to educated investors.......Its all about you.  Let me set up a free presentation for you or your business.  I offer top notch service. client satisfaction, latest technologies, and 100% commitment.  Other services I render:

• Home Sales
• Commercial Sales
• Commercial Leases
• Rentals/Leases
• Exchanges
• Lots/Land Sales
• Business Plans
• Marketing and More

Mosquito Control
The mosquito season is in a few months and the problem of abandoned homes in Southern Nevada with stagnating pools is a mosquito breeding concern. If members observe these pools please report them to the Vector Control Office. The Southern Nevada Health District_s Vector Control office has a mosquito control hotline (759-1633) or on-line mosquito complaint form www.SouthernNevadaHealthDistrict.org

Call or Email me anytime and let's get started. Ask me about Short Sales and Foreclosures. Let me work for you!

Jeana DeMarchis:  

SMG Realty is here to help you. If you have questions or comments about our services, or want to know how we can help you, please call us at 702-399-1669 or e-mail us at jjeana@aol.com.

How To: Buy A Home Preparing for one of the most important commitments of your life. Before you decide to look for a home you need to: 1. Organize all of your needed documents like: Taxes, Check Stubs, Work History, Bank Statements, References, just  to name a few. 2.  Find a Realtor that will help you complete your dream. 3. Interview several Lenders (if you don't go with your own lending institution). The key with this process is to be approved before you start looking for property. Most sellers will not consider your purchase agreement without an approval. No seller wants to have their property tied up until you look for a loan waiting to be approved. Keep in mind that your Realtor may make referrals to you if you don't have a Lender. 4. Once completed, start your search with your Realtor for your dream property. 5. Once property is located, viewed, and decided on, have your Realtor present your offer. 6.  After offer is accepted, then move forward with a possible inspection, appraisal, insurance, and any other services that you may choose for your purchase. 7.  Once Escrow is completed and everything is done on your behalf.....then prepare for the closing, 8.  If everything is ok and you have been given the go ahead for closing then a date will be set and the closing will happen. You then receive your keys to your property once everything is cleared. A note when purchasing property......if you are securing a loan, make sure you don't use your Credit Cards, use additional cash to shop for your new property, as well as other things that can cause your loan to go sour before it is completed.  NO EXTRA DEBT SHOULD BE ACCUMILATED DURING THE PROCESS.      Red Flag Rules – Update On May 1, the Federal Trade Commission (FTC) will begin enforcing the Red Flag Rules that apply to financial institutions and creditors with covered accounts. While at first glance, REALTORS® seem to fall outside these categories, more examination is necessary. “Creditor” is broadly defined in federal law and includes any person or entity that regularly extends, renews, or continues credit or any person or entity that regularly arranges for the extension, renewal, or continuation of credit. If a real estate agent or property manager provides credit as part of his or her business then he or she is covered as a “creditor.” Additionally, the National Association of REALTORS® recognizes that a real estate agent may be considered a creditor for purposes of the regulation if he or she regularly arranges for credit. The regulation is unclear as to which entities and which actions the Red Flag Rules intended to extend. However, a real estate agent that routinely helps a homebuyer by pulling credit reports, suggesting potential lenders, and assisting in the loan application process could be viewed as a “creditor” and subject to the regulations. The FTC recently issued practical advice to businesses in the guide entitled, “Fighting Fraud with the Red Flags Rule: A How-to Guide for Business.” The following article from the FTC also helps to clarify what steps business need to take prior to May 1. The “Red Flags” Rule: Are You Complying with New Requirements for Fighting Identity Theft? The expression “red flag” signals “Danger: Be alert to problems ahead.” For millions of consumers every year, identity theft is more than a threat — it’s their reality. The economic, psychological, and emotional harm to victims can be devastating. But businesses often bear the biggest part of the monetary damage from identity theft. It’s everyone’s responsibility to do what they can to fight identity theft. But businesses and organizations that offer credit or other financial services can be the first to spot the red flags that signal the risk of identity theft, including suspicious activity indicating that identity thieves may be using stolen information like names, Social Security numbers, account numbers, and birth dates to open new accounts or raid existing ones. Under the Red Flags Rule, which went into effect on January 1, 2008 *, certain businesses and organizations are required to spot and heed the red flags that often can be the telltale signs of identity theft. To comply with the new Red Flags Rule — enforced by the Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) — you may need to develop a written “red flags program” to prevent, detect, and minimize the damage from identity theft.  Are you covered by the Red Flags Rule? If so, have you put into place the new procedures the Rule requires Who Must Comply Although every business or organization with an ongoing relationship with consumers should keep an eye out for the possibility of identity theft, the Red Flags Rule applies only to “financial institutions” and “creditors." To determine if your business or organization is covered by the Rule and required to develop a written identity theft Program, you’ll need to answer two questions: Is your business or organization either a “financial institution” or “creditor,” as those terms are defined in the Rule? If so, do you have “covered accounts”? A “financial institution” is a bank, savings and loan, credit union, or other entity that holds a “transaction account” belonging to a consumer. A “transaction account” is an account that allows the owner to make payments or transfers. Examples include checking accounts, savings accounts that permit automatic transfers, and share draft accounts. Another example would be a brokerage account that allows consumers to write checks. Your business or organization is a “creditor” if you regularly: extend, renew, or continue credit; arrange for someone else to extend, renew, or continue credit; or are the assignee of a creditor who is involved in the decision to extend, renew, or continue credit. Under the Rule, “credit” means an arrangement by which you defer payment of debts or accept deferred payments for the purchase of property or services. In other words, payment is made after the product was sold or the service was rendered. Some examples of creditors are finance companies, automobile dealers, mortgage brokers, utilities, and telecommunications companies. Even if you’re a non-profit or government agency, you still may be a creditor if you accept deferred payments for goods or services. However, simply accepting credit cards as a form of payment does not make you a creditor under the Rule. If you determine you’re a financial institution or a creditor, the next step is to see if you have “covered accounts.” There are two types of covered accounts. One is an account used mostly for personal, family, or household purposes that involves multiple payments or transactions. Examples include credit card accounts, mortgage loans, car loans, margin accounts, cell phone accounts, utility accounts, and checking or savings accounts. The other is one for which there is a foreseeable risk of identity theft. For example, one type of account that should be considered for coverage because it may be vulnerable to identity theft is a small business or sole proprietorship account. In determining whether you have such an account, consider the risks associated with how the accounts may be opened or accessed — i.e. what type of interaction and documentation is required — as well as your experience with identity theft. If your business or organization is a financial institution or creditor, but does not have any covered accounts, you don’t need a program. But if you have covered accounts, you must develop a written program to identify and address the red flags that could indicate identity theft. How To Comply The Rule doesn’t tell you specifically what your red flags program must look like. Instead, it gives you flexibility to implement a program that best suits your business or organization, as long as it meets the Rule’s requirements. Your starting point for developing a program is the Guidelines issued with the Red Flags Rule, available at www.ftc.gov/os/fedreg/2007/november/071109redflags.pdf. (The Guidelines are on pages 63773-63774 of the document.) The Guidelines list the issues you must consider in developing and maintaining a program appropriate for your business or organization. You also should draw on your own experience and knowledge about identity theft risks in developing your program. There are four basic steps to designing a program to comply with the Rule: Identify relevant red flags; Detect red flags; Prevent and mitigate identity theft; and Update your program periodically. In addition, your program must spell out how it will be administered. The program should be appropriate to the size and complexity of your company or organization, as well as the nature of your operations. Identify Relevant Red Flags Under the Rule, financial institutions and creditors with covered accounts must develop a written program to identify the warning signs of identity theft. The Guidelines describe the following categories of warning signs — red flags — that your program must identify and address: alerts, notifications, or warnings from a consumer reporting agency; suspicious documents; suspicious personally identifying information; suspicious activity relating to a covered account; or notices from customers, victims of identity theft, law enforcement authorities, or other entities about possible identity theft in connection with covered accounts. When identifying red flags, consider the nature of your business and the type of identity theft to which you might be vulnerable. Detect Red Flags Once you’ve identified the red flags that are relevant to your organization or business, you must establish policies and procedures to detect them in your day-to-day operations. For example, you may spot red flags when you verify a consumer’s identity, authenticate customers, monitor transactions, or verify requests for changes of address. Some red flags may seem harmless on their own, but can signal identity theft when paired with other events, say, a change of address coupled with the use of an address associated with fraudulent accounts. Prevent and Mitigate Identity Theft Your program must include appropriate responses to your red flags to prevent and mitigate identity theft. These responses could include monitoring an account, closing an account, not opening a new account, contacting the consumer when you spot a red flag, or a combination. Sometimes you may determine that no response is necessary. In other cases, certain events — such as a recent data breach, a phishing fraud that targeted your business or organization, or another suspicious activity — may raise the risk of identity theft and require specific preventive actions. Update Your Program Periodically Because identity theft threats change, your program must describe how you will update it to ensure that you are considering new risks and trends. Administering Your Program No matter how good your program looks on paper, the true test is how it works. Your program must describe how it will be administered, including how you will get the approval of your management, maintain the program, and keep it current. According to the Rule, your program must be approved by your Board of Directors or, if your business or organization doesn’t have a Board, by a senior employee. The Board or designated senior employee also must approve any material changes to the program. Your program should include staff training as appropriate, and provide a way for you to monitor the work of your service providers. The keys are to maintain oversight of the program, keep it relevant and current, and ensure that all necessary members of your staff — from the boardroom to the mail room — are on board. A program that stays in a filing cabinet isn’t a good program. Penalties for Noncompliance Although there are no criminal penalties for failing to comply with the Red Flags Rule, financial institutions or creditors that violate the Rule may be subject to civil monetary penalties. But there’s an even more important reason for compliance: It’s just plain good business. It assures your customers that you are doing your part to fight identity theft. Have questions about how health care providers can comply with the Rule? Email RedFlags@ftc.gov.* On October 22, 2008, the Federal Trade Commission issued an Enforcement Policy statement that delays enforcement of the Red Flags rule until May 1, 2009 (http://www.ftc.gov/opa/2008/10/redflags.shtm). Although the Rule is in effect, the FTC will wait until May 2009 to enforce it. This does not affect enforcement of the address discrepancy and credit card issuer rules. Nor does it affect compliance for entities not under the jurisdiction of the Commission. Tiffany George and Pavneet Singh are attorneys in the Federal Trade Commission’s Division of Privacy and Identity Protection. This article is of a general nature and is not intended to address any specific legal or ethical situation. Suggestions for revisions to GLVAR forms may be sent to the Forms Committee at forms@glvar.org. Legal questions should be directed to NVAR's Legal Answerline at 1-800-748-6999.

Here are the March FAST FACTS: March came in like a lion and left Las Vegas residential real estate roaring. There was powerful improvement in sales and inventory figures while prices remained relatively stable.  It may very well be that in the future, many will regard March as the bottom of the current downturn in Las Vegas. We have said repeatedly that the bottom would begin in that month in which the number of foreclosure sales exceeded the number created. That happened in March - and it happened big. For the second consecutive month, the number of foreclosures fell.  Las Vegas experienced 1,846 actual foreclosures in the month of March, down almost 400 from February.  The number of foreclosures sold, however, was 2,393.  In other words, there was 29.6% more sales of foreclosures than foreclosures created! There are three caveats to the good news.       (1) On March 6, the self-imposed bank moratorium on foreclosures was lifted.  That will impact the market in 60 to 90 days.  So it is likely that Las Vegas will see a significant "bump" in actual foreclosures near the end of the second quarter.      (2) At the same time, a $350 billion Federal program targeting foreclosures became active in the month of April, which, hopefully, will make the bump somewhat short-lived.      (3) One month of data does NOT make a trend.   This month's data may represent significant change and new hope for a shorter negative cycle in Las Vegas.  But, until we've seen several months of similar or improving data, it is too early to declare a new trend. Here's what else happened: Fueled by seasonal pressures and foreclosure purchases, sales in the existing home market skyed to 3,626.  That's an 85.6% increase over last March and a 31.4% jump over last month.  New home sales continued their upward run.  While the figures are well below last March (-59.6%), the 468 new home sales were the best of any month so far in 2009.  And, the average sale per subdivision increased to 1.48, also the highest point this year. While the vertical market improved slightly, the 18 sales in March were a 90% decline from last year. Beyond foreclosures, inventory continued to slide. Existing home inventory fell to 19,155; a 3.5% decline from last month and 13.6% drop from last year.  That total represents a 6.8 month supply of inventory, down from 8.4 from last month.  The number of active new home subdivisions fell to 315, the lowest total since July, 2004. March's beneficence extended to pricing, although somewhat less generously than other categories.  All new home prices dipped $1,000 to $219,000.  But, evaluating only single family homes and condominiums shows a modest median price rise in March to $218,000.  The existing home market continued its slide to a median price of $134,900, about $8,000 under last month. The median price of a foreclosure home - about two thirds of sales - was $127,500.  That's an 8.3% drop from last month. Regarding prices; can anyone doubt that NOW is the time to invest in residential real estate?  Consider this; the median existing home price in March was $134,900, which is the same as it was in 2001, EIGHT YEARS AGO!  Experienced investors realize that you don’t have to buy exactly AT the bottom of a market - - - you only have to buy NEAR the bottom, which is undoubtedly where we are Summary of Commercial Real Estate Sections of H.R. 1 American Recovery and Reinvestment Act (Economic Stimulus) Commercial real estate is impacted in primarily three areas of the bill: green building and energy efficiency, business tax incentives and investment in transportation and infrastructure. Green Building and Energy Efficiency: State Energy Program Funds: Commercial property owners seeking funds or tax breaks to offset the cost of energy efficiency upgrades will need to apply through city and state government programs, which will receive funds under the stimulus bill. States receiving funds are "encouraged to use federal funds for existing energy efficiency and renewable energy programs". Renewable Energy Loan Guarantees: Creates a temporary program to provide loan guarantees for renewable energy systems, electric power transmission systems that begin construction by September 30, 2011. This Department of Energy loan guaranty program for renewable energy projects would benefit commercial property owners seeking to invest in alternative energy systems for onsite power generation. Brownfields: $100 million for competitive grants for evaluation and cleanup of former industrial and commercial sites - turning them from problem properties to productive community use. Business Tax Incentives: (Of benefit to commercial real estate in as much as these provisions are intended to support those small businesses that occupy office space, retail space, warehouse space, etc.) Extension of Bonus Depreciation: Businesses are allowed to recover the cost of capital expenditures over time according to a depreciation schedule. Last year, Congress temporarily allowed businesses to recover the costs of capital expenditures made in 2008 faster than the ordinary depreciation schedule would allow by permitting these businesses to immediately write-off fifty percent of the cost of depreciable property acquired in 2008 for use in the United States. The bill would extend this temporary benefit for capital expenditures incurred in 2009. Extension of Enhanced Small Business Expensing: In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers may elect to write-off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. Until the end of 2010, small business taxpayers are allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase-out once capital expenditures exceed $500,000 (indexed for inflation). Last year, Congress temporarily increased the amount that small businesses could write-off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000. The bill would extend these temporary increases for capital expenditures incurred in 2009. 5-Year Carry-back of Net Operating Losses for Small Businesses: Under current law, net operating losses may be carried back to the two taxable years before the year that the loss arises and carried forward to each of the succeeding twenty taxable years after the year that the loss arises. For 2008, the bill would extend the maximum NOL carry-back period from two years to five years for small businesses with gross receipts of $15 million or less. Infrastructure Investment: Owners and investors in commercial real estate recognize the importance of infrastructure investment and included language to this effect in their recently passed “Commercial Economic Stimulus Plan”. “Provide federal funding for capital improvements to our nation’s infrastructure (transportation, roads, energy grids, etc).”

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