Housing affordability has come into question during the past few years when home prices rose at a greater percentage than salaries. In recent months, home prices have seemed to level off with a slight decline.

 The GLVAR (Greater Las Vegas Association of Realtors) most recent sales statistics support this contention. In January, GLVAR reported the median sales price of a single-family, detached home was $302,000, while the median sales price of attached condo/townhome was $204,450. These numbers may remain less than cities in Southern California, but more than the valley’s early 2004 housing median price when it hovered around $200,000.

Lower priced homes and assistance does exist, if one knows where to find them.

The resale market may offer lower-cost homes comparable to new ones, but sometimes there not much of a price difference because of builder incentives.

We’ve seen the median price of resale home sales go down slightly, and for the most part new-home prices have gone up. But, builders make up for that because they offer a multitude of incentives to buyers. Your may find a lower price on a resale. It ultimately comes down to what the terms are and what the incentives may be.

Bottom Line …… Get with a Realtor who stays on top of the local market conditions. Call us at 702-561-9562.

The new community of Sky Ridge, located in the Northwest portion of the Las Vegas Valley, on a hillside setting, sits just minutes from Mt. Charleston and Floyd Lamb Park is also nearby.

The community offers 4 new two-story floorplans ranging from 1,475 to 1,909 square feet. Interior features include volume and vaulted ceilings, architectural archways and plant shelves, under-stairwell storage, and French doors which lead from the living area to the rear yard.

Kitchens include white-on-white appliances, granite countertops, stainless steel sink, beech wood-stained raised-panel cabinets and a breakfast bar in most models.

All appliances, including the refrigerator, microwave, and washer and dryer are included. Full window coverings are standard and installed at no additional cost. The neighborhood is Energy-Star certified. Prices begin in the $200,000’s.

Homeowners with troubled credit histories are finding it harder to get mortgages or refinance homes because softening in the housing market is making lenders less likely to handle riskier loans.

Several lenders of subprime mortgages, used primarily for home equity loans and for people with spotty credit, have shown signs of trouble after the housing bubble popped and more homeowners began defaulting on high-interest mortgages.

The shifting market is prompting investors to demand higher standards for loan approvals. Loans for 100 percent of a property’s value required a minimum credit score of 580 last year, but now require at least a 600 score.

A high value loan with no income verification could be had last year with a credit score of 620 a year ago but now needs a minimum score of 640.

Most lenders consider scores higher than 700 to signal good financial health and score below 600 to signal risk and a reason to increase the interest rate on a loan.

If your credit score is or has taken a dip there are ways to remedy that situation. We encourage anyone to write to us, we’d be happy to show you ways to give your credit score the boost it might need.

Las Vegas Resale Homes Statistics:

    November ‘06                December ‘06              January ‘07

For Sale      19,729             For Sale      17,834           For Sale     18,774

New Listings 4043              New Listings 3196            New Listings 5809

Sold            1547                Sold           1644               Sold            1397

Resale Home Market Trends:

Over the last five years, the median home price has grown tremendously. Nationally, the median price rose 25% over this
period, but some markets grew in excess of 200%. This run up in prices was precipitated by the sharp fall in mortgage
rates from 2000 through 2005, which improved affordability. But over time, prices were bid up to the point that
affordability fell to its long term trend. In some markets, however, the feeding frenzy caused affordability to fall below
the long term average.

Today, affordability is squeezed and home buyers are focused, more than ever, on the bottom line; the monthly mortgage
payment. While prices have reached dizzying heights, what matters to buyers is this simple actuarial accounting.
Currently monthly payments are too far out of bounds for many first time and trade up buyers.

Sellers should be keen to note this trend, but as of yet they have resisted. While non-price concessions are on the rise (it is
hard to quantify this as there is no data to track, but regular discussions with brokers and agents supports the claim that
this trend is widespread), price concessions have been few and far between. Sellers, who’ve seen their neighbors make
tremendous profits over the last 6 years expect to reap the same reward. In fact, they often come into the process with a
figure in their head of what they expect to make. This seller psychology makes it hard to convince them of alternative
pricing strategies that could save them money and consternation in the long term.

Currently, about 70% of the markets around the U.S. are experiencing declining sales, while 30% are still growing.
Astonishingly, while sales have fallen, in most markets prices continue to rise! How can this happen? By refusing to take
concessions, sellers are driving buyers to the sidelines. The best properties are moved at the higher prices, while the rest
sit.

Truthfully, some sellers, particularly trade up buyers, are in a bind where they have purchased their trade up property
expecting to be able to use the proceeds from their home on the market. With affordability stretched, they are likely to
take a loss if they don’t realize all of the gains from their first property. Consequently, they face an immediate bite to
equity and may choose to cling to a high asking price. But this is a special case and hardly typical of all sellers.

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If you’re looking for a Home in South Las Vegas, and a 3700-4500 square foot home is what you need, the Plan Four is what you’re looking for. This plan recently was named the Best Single Family Home in the most recent Homer Awards.

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