IN LAS VEGAS REAL ESTATE PROPERTY VALUES NEEDS MORE DETAIL
Every Las Vegas homeowner knows that the state of Las Vegas property values is important. But regardless of how important property values are, it’s also true that the term itself is hard to pin down. It’s more elusive than most of us assume—it literally means different things to different people. One of the odd things about the English language (or any language, I imagine) is how it can convey an impression of being more specific than is actually the case. For example, if you say, “This year there’s been more rain than usual” everyone thinks they know what you mean—which is probably not that since January 1, 2015, until today rainfall has totaled more than the annual average. What you mean is that since the end of summer (or perhaps since October) it’s been rainy. The difference in that example isn’t all that important. But when it comes to Las Vegas “property values,” delving into what is meant is more worthwhile. The term means subtly different things to different people (or even to the same person, depending on their intentions). To most homeowners, for instance, if you say that Las Vegas property values have been on the rise, their first interpretation is likely to be that their home can now be sold for more than before—in other words, they equate ‘property values’ with ‘market values.’ They don’t mean that it has now become a better place for their family to live in: that would be its ‘use value’ or ‘utility value’—a different thing altogether. On the other hand, to a lender, a home’s ‘property value’ usually means its current market value. To an investor, ‘property value’ could well mean its ‘future value’ or its ‘liquidation value’…which could be different numbers depending on whether the speaker is imagining a forced liquidation or an orderly liquidation. The upshot is that “property values” is one of those precise-sounding terms that’s a lot more slippery than it seems. Especially when it comes to major transactions like the purchase and sale of Las Vegas real estate, it’s a good idea to be as precise as possible. In that regard, more useful are terms like “asking price” or “selling price.” They describe actual numerical values in a particular currency at a specific time. Although it’s certainly not bad news if we hear that Las Vegas property values are likely to keep rising in the new year, that needs a lot more detail to be very meaningful (give me some neighborhood comps, thank you very much). And since we’re on the subject: anytime you are ready to investigate the current state of our Las Vegas real estate market, I hope you’ll decide to give me a call!
NEW WRINKLE IN LAS VEGAS MORTGAGE INTEREST RATE GUESSING GAME
When you are close to buying a new home in Las Vegas, one news item that definitely becomes more interesting than usual is the status of current mortgage interest rates. All those little ads on the side of the screen that blink at you with Mortgage Interest Rate Alert! and Lock Lowest Home Interest Rate NOW! that you are accustomed to ignoring may also suddenly rate a second look—although you quickly learn that the promised Las Vegas mortgage interest rate won’t be revealed unless you surrender a lot of personal info to the advertiser. If you decide to avoid blabbing your email address to the internet (certain to put you onto yet another advertiser’s database), you probably do what I do—which is to check the legitimate news sources for their mortgage interest rate commentaries. When you do that, it’s reassuring when you find words and phrases like widely expected and as predicted (or even minor correction or following recent trends). When you are not quite ready to apply for your own mortgage, sudden interest rate lurches make budget projections less reliable. So you would have expected it to have been reassuring when last week, as predicted, the Fed raised its Fed funds rate—the basic interest rate banks pay—by just a tease: a quarter of a point. Pretty much as had been widely expected. That may be an understatement; such a move had been thought imminent by many experts for years. But last week’s Fed action didn’t quite follow through on the as predicted and widely expected fronts. Instead, we got words like ‘paradoxical’ (Mortgage News Daily); ‘fear mongering’ (CNN Money); ‘volatile’ (the mortgage reports). The good news for potential mortgage applicants was that the disarray the commentaries were describing had nothing to do with what homebuyers were likely to encounter. Instead, it described the problem the commentatorswere having explaining what the initially fed funds hike had caused: a slight fall in mortgage interest rates! “Lenders easing up on home loans” and “Fed hike no biggie for mortgages” were stories from CNBC—and they were typical. “Mortgage Rates Slightly Lower Ahead of Holiday Week” was what Mortgage News Daily had found to be the paradoxical descent—eventually deciding it could be explained at the bond market level (traders had erred on the side of caution before the Fed’s announcement). By Friday, loan originators were unanimous in suggesting that ‘today may be a good day to lock’ (but then again, to loan originators ‘today’ is always a good day to give them business). There was an underlying theme to most of the commentaries: expect a bounce in mortgage loan rates before too long. Probably, but not certainly—especially if you kept in mind Motley Fool’s “3 Predictions That Were Totally Wrong in 2015.” In addition to the Fed Funds rate and Treasury Note miscues, there was one we all would have shared: a barrel of crude oil ended the week priced at $40…about half of what the experts projected last January. One fact that doesn’t involve any guesswork: by historical standards, today’s Las Vegas mortgage interest rates remain in the ‘very low’ range. That means it’s still a good time for buyers and seller to give me a call!
HOLIDAY MAGIC SPREADS THROUGH LAS VEGAS HOMES
Last week, those of us who were out and about during the increasingly short daylight hours could take in what looked like the regular number of Las Vegas homes decked out with the familiar holiday paraphernalia. When the weather cooperates, it can’t help but bring a smile to your face to spot the reindeer, Santas, menorahs, giant candles, elves—all the elements that help bring home the familiar feelings the season seldom fails to muster. I bet it’s just that—the sheer familiarity—that explains a large part of why the words “Holiday Magic” are no exaggeration. Sooner or later we feel it. It grabs us. The holidays are back! This usually starts (for me at least) with a valiant attempt to reject reality. Sometime between Hallowe’en and Thanksgiving, with the first department store ad or the first notes of a carol playing somewhere in the distance, we think “OH NO! – NOT ALREADY!!!” This is the part when the ‘magic’ part of the holidays is nowhere in prospect. The whole concept is at its most materialistic (the ‘material’ being that we haven’t started serious gift shopping, are too busy to even think about it, can’t recall whether the roasting pan was wrecked when last year’s gravy got burnt, etc. etc. etc.). Immediately thereafter, in a truly magical disappearing-of-time act, it’s suddenly a couple of weeks before the big day, when all the preparations had better have been set into motion. It’s already holiday running-around time. This is when we are out and about, and can take in all the Las Vegas homes belonging to Las Vegas homeowners who have the organizational skills that allowed them to erect the reindeer, Santas, giant candles, elves, menorahs, etc. It’s also the time of year when we may begin to experience some true holiday magic…especially if our running-around to get ready happens at night, when the holiday lights are ablaze… For some of us, there is something about those Las Vegas homes decked out in lights, and the ornaments, and the music, eggnog, cookies…or even the fruitcake or the stollen or the latkes. It’s the familiarity of the way all the trappings combine to bring back memories: images of our kids’ holidays, or our parents, or dearest friends…and finally, of our own childhood. In spite of all the running around, sooner or later, this most special, set-aside top of the year puts us in a mind of how very much we treasure the ones who are dearest to us. If we’re lucky enough to have them gathered close, it’s pretty wonderful. If this year, that can’t happen—the memories will have to provide the magic. Sooner or later they usually do. Whether these holidays bring you Christmas or Hanukkah gatherings (or both!), here’s wishing you and yours the happiest, most joyful of celebrations—the kind that create future holiday magic!
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