LAS VEGAS SELLERS LOOK AT A SHIFT IN FOREIGN BUYER DATA
With Brexit still fresh on minds here and abroad—and the sometimes hot/sometimes slow summer selling season well underway—some Las Vegas sellers might well be questioning whether foreign buyer influence will remain strong throughout the nation this season. Last month’s numbers provide an answer that’s less ambiguous than usual. The answer is definitely “yes”! The latest national data shows a growing international appetite for U.S. real estate, adding to the momentum exhibited by our now fully-recovered housing market. A closer analysis also reveals a shift in foreign buyers’ real estate target properties from luxury to more mid-level acquisitions. Several factors serve to explain the phenomenon. Overall higher home prices could be one reason; the strength of the U.S. dollar, another. Taken together, those cost elements were seen as the most likely causes for the shift in price range targeted by foreign buyers—especially when their goal is to secure an investment property here in Las Vegas or elsewhere. Even so, sellers were the beneficiaries of a total increase in activity. According to the National Association of Realtors’® annual report on international activity, overseas buyers purchased upward of $102 billion worth of residential property in the U.S. between April 2015 and March 2016. The slight decrease in the prices of purchased acquisitions meant that the actual number of properties purchased also rose 2.8%—to 214,885. The bottom line was strong enough that Lawrence Yun, the NAR’s chief economist, was able to report that foreign purchasers’ overall sales dollar volume was the second highest since 2009. So what does this mean for Las Vegas sellers and our current real estate prospects? According to the NAR, five states topped the charts when it came to most properties purchased: Florida, California, Texas, Arizona and New York. But in fact, foreign sales are happening all over the country; the key for Las Vegas sellers is to make sure your property is well (and widely) marketed; well-presented—and well-priced. Whether you are looking to attract foreign buyers–or just the buyer down the street–a key contribution that’s included with my service is a comprehensive marketing approach designed to get your home sold. Call me today to get a running start on your custom marketing plan…and your sale!
FOR AFFLUENT LAS VEGAS BUYERS JUMBO MORTGAGES TAKE CENTER RING
House hunters aiming for some of Las Vegas’s more upscale properties may see their home loan applications finding an increasingly welcome reception. That’s the word from the national financial press—and they aren’t whispering. According to The Wall Street Journal, it’s nothing short of “a jumbo shift in the U.S. mortgage market.” In the world of mortgage lending, the “jumbos” are home loans for amounts that rise above the limits set by the federal re-insuring entities—Fannie Mae and Freddy Mac (they aren’t exactly miniature outfits themselves). In circus lore, the name of “Jumbo” became legendary when, in the late 1800’s, P.T. Barnum thrilled crowds by starring the pachyderm of the same name—at that time the largest captive elephant in the world—in the center ring of his “Greatest Show on Earth.” Today, the Las Vegas home loans that borrow his name may not be elephantine, but they are larger than average. While one might think that lenders would view the larger loans askance, since more money involved would carry greater risk. You’d think they would give greater scrutiny and be more reluctant to lend for the same reason. But there are more and more indications that the opposite is true: jumbo loans are rising in popularity among lenders. Financial commentators point to a number of reasons. CNBC cited the drop in interest rates as the cause of what they branded a “refinance boomlet” in the jumbo sector. After last week’s post-Brexit dive in mortgage rates, more borrowers had a larger incentive to refinance. CNBC found an average contract interest rate for 30-year fixed rate jumbos falling “to their lowest level since January 2011.” The National Association of Realtors® found a reason to point to the same conclusion—and provided a rationale explaining why “the jumbo mortgage business keeps getting bigger for banks.” In the wake of the mortgage crisis, with regulators pressuring banks to avoid anything that even smacks of risky lending, jumbo applications “typically feature borrowers with high credit scores”—a feature banks find newly appealing. “And,” according to the realtor.com website, “they aren’t linked to government programs that cost banks tens of billions of dollars in fines after the financial crisis.” All in all, the gist of the news should gladden the hearts of any resident looking to buy or sell the level of home that warrants one of those Las Vegas jumbo loans. For sellers, it means that a greater number of consumers may be able to comfortably afford a jumbo home loan, broadening the pool of potential buyers. For buyers, it could mean that “more house” is newly within reach. For either eventuality, I hope you’ll give me a ring!
LAS VEGAS REAL ESTATE INTRO COURSE IN 6 BULLET POINTS
As every college freshman will tell you, it’s those “Introductory” classes that can wind up being the most time-consuming. Since they cover a lot of territory dealing with subjects that are new to you, they can be the hardest to keep up with. If Las Vegas real estate had its own college department, its “Introduction to” class might be a lot easier than some of the other departments’—but there would still be a few basics some of the freshmen might need to master before proceeding much further. When it comes to Las Vegas real estate, the equivalent of the freshmen are the first time home buyers. They don’t need a whole class to be prepared to dive in, but they should be aware of some basics. Some financial preparation comes first: For openers, find out what your credit report says. If there are mistakes, it takes time to get them corrected, so this is Job One. Then, before even starting to discover what properties are available, you should sit down and work out how much you can afford. That will point you toward the portion of Las Vegas’s real estate offerings you should spend your time and effort examining. If you do it the other way around, you are too likely to waste time visiting houses that would put too much strain on your budget. There are many different kinds of home loans—with differing cost and cash flow implications. The difference between variable and fixed interest rate loans and the difference between down payment percentages will have major impacts on your monthly family operating budget, and what you can comfortably afford. An important part of being an informed buyer is making sure you know what loan types are available—and the financial implications of each. Then comes the search—the house hunt. If you haven’t already made contact with the Las Vegas real estate agent who will help with your search, it’s time to do so. Most of the basics are pretty much common sensical: Knowing that sellers pay the Realtor® fee, locate a licensed Las Vegas real estate agent with a good reputation, experience in the area, and with whom you can communicate easily: one who “speaks your language.” (Hint: call me!) Instead of planning to just go out to “see what’s out there,” first get as clear a picture as possible of what features you know you require. Make a list with both “wants” and “must haves”—and stick with it. Remember that allowing the “wants” to become more important than the “must haves” will usually prove to be a bad idea. When you make an offer on the house you’ve been looking for, be sure the contract specifies that you can request repairs or back out of the deal based on the inspection results…and be sure to have that inspection! If I’m your agent, I’ll be sure to remind you!
Categories
Recent Posts
