We’ve discussed the issues in competing with cash buyers in our article, “Cash talks – so bid quick!” last week.  We’ve also touched on the great deals you can find in foreclosed, or bank-owned, properties. For a while, the Las Vegas area seemed flush with these discounted properties, but the deals seem to be quickly fading away.

One of the issues, of course, is the number of cash investors willing and able to grab distressed properties as soon as they hit the market. For example, the Los Angeles Times just reported that Colony Capital just made a deal with Fannie Mae to purchase 970 foreclosed homes in the states of California, Nevada, and Arizona.  That’s a whole lot of homes owned by one investor! With so much of the inventory being snatched by such deals, supply and demand is kicking in again – meaning those screaming cheap sales may be a thing of the turbulent past.

According to Zillow, many foreclosed homes in Nevada are now selling for the same prices as normal properties. They are warning that if you are still searching for that super great discount, you may be a little frustrated. Any property that an investor deems good for rentals or first-time buyers (the lower end of the price spectrum) is bought up as soon as they get wind of it.

According to Keight Lynam, the chairman of the Nevada Assn. of Realtors’ legislative committee, the number of foreclosed homes on the market in the greater Las Vegas area was as high as 7,000 at one point. Right now, there are fewer than 300 available. Such a significant decrease in inventory has driven prices back up.

What does this mean to you? If you are a first time home buyer, keep a very open mind. Look at all properties – not just foreclosures. Since the big discounts are no longer as available, you may be limiting yourself. When you are ready to make an offer, you must also be ready to compete, so come in strong.

Green Valley, in the southwestern part of Henderson, has been around for a long time. The area is one of the oldest master-planned communities in the Las Vegas area – in fact; it is considered the first in Southern Nevada.

At just over 30 years old, homes in Green Valley are still some of the nicest in Henderson – but the area is seeing some wear and tear. Some of the older growth trees have died, and weeds are taking over other areas. With paint peeling from some of the block walls, and cracks in the sidewalks and curbs, what does the city of Henderson intend to do to help Green Valley remain one of the finest neighborhoods in Henderson?

It may not be up to the city at all, though those on the council have approached the Community Development Department in hopes that they may find ways to not only maintain the area, but improve it.

One of the issues stems from the lack of homeowners associations, meaning, individual homeowners may not know that they are responsible for the nearby walls and grounds. Under normal circumstances, the associations would take over the maintenance of these common areas. A drive down Warm Springs shows the stark difference between areas with HOAs and those without.

Despite these problems, most residents agree that these homes in Henderson, Nevada – particularly in Green Valley – are in some of the nicest neighborhoods you can find. Hopefully they and the city will come together to find a solution and return Green Valley to its former identity as an upscale neighborhood.

Las Vegas, Nevada (including Henderson real estate) currently has the highest rate of foreclosure in the entire country.  What is considered to be the metro area of Las Vegas, continues to be considered in the top five worst areas in the nation for real estate.  This mortgage crisis is stunting growth in Las Vegas due to the overflow of available homes for sale in Henderson and Las Vegas, Nevada.  The surplus of available homes slows down the construction process of new homes in Nevada, and that (in turn) affects property values. 

One decent side effect of this mortgage crisis, is that the surplus of available homes in Henderson and Las Vegas is creating more affordable houses in the area for those who, up until now, weren't able to afford local housing.  This bittersweet detail helps to soften the blow of the hard-hit local real estate market.

Henderson and Las Vegas homeowners are potentially losing their homes if they are incapable of affording their mortgages.  Local lenders and banks had been giving out loans that were less-than-safe to individuals whose credit scores were low.  The initial attraction to low interest rates has proven to lead to eventual higher interest rates.  Many of the loans given were adjustable rate mortgages (ARMs)- and higher interests rates that deterred timely payments and lead to foreclosures.  Many investors were coerced into buying their homes at the height of the real estate market in Las Vegas and Henderson, Nevada, and due to the lack of credible information, later suffered financial loss at the hands of predatory lenders.

In 2008, a sign of the times hit the resort area of Lake Las Vegas in east Henderson. The development that contained several high-dollar homes, resort hotels, and a championship golf course designed by Jack Nicklaus filed for bankruptcy – and turned off the entryway’s waterfall. It seems that the cost of running the fall’s filtration and pump station was just too much for the flailing area. The dry rocks marked some tough times. 

Just recently, the fall has been turned back on, and the beauty of the manicured entryway has been restored. The Wall Street Journal declared, “Green Shoots Sprout in Las Vegas Desert” in its September 19 issue, citing that the luxury resort development was one of the hardest hit in the recession. 

With the Ritz-Carlton closure of 2010, the resort area appeared doomed. But stars such as Celine Dion still live there and luxury homes are starting to sell again. The Ravella took over the Ritz’s spot in 2011. The Ravella has seen occupancy rise, and revenue has increased enough for them to reach profitability. This summer, home foreclosures fell 80% from last year. Things are turning around.

Amid rumors that Lake Las Vegas itself would dry up, many persisted. Developers held their collective breath, some defaulting on very large loans - but others held on. Those that remain hope that the golf courses will open again soon so that home buyers will be lured back into the area.

In “The 8 steps to buying your first home,”  I mentioned in step #2: “Hire a skilled agent” that you will have an ongoing relationship with your chosen real estate agent. How do you find out if that agent is right for you? Here are another 8 points.

Many people “end up” with an agent simply because he or she was the one advertised on the sign outside the house they were looking at. Because most of us are not real estate gurus, we tend to assume that we don’t have a choice. But we do! Your real estate agent should not be someone you settle for. With a little bit of insight, you can pick the right agent for you. Ask them the following questions:

1. Why did you become a real estate agent?

There will be many answers to this question, depending on the agent. While no answer is “right” or “wrong” – the passion and dedication to you, the customer, should show through. Decide what answers would mean the most to you, and factor them in when you hear what your prospective agent has to say.

2. Why should I work with you?

Much like the first question, this one is subjective. Let the agent tell you whether he or she really wants to be yours!

3. What do you do better than other real estate agents?

This is sometimes a difficult question, sometimes a fun one – but it will give you insight to the agent’s sense of humor and creativity.

4. What process will you use to help find me the right home for my particular wants and needs?

This is a way to test whether your agent is knowledgeable and up-to-date with new trends and technology.

5. What are the most common things that go wrong in a transaction and how would you handle them?

With the candidates spending so much time in our fine town, how has that affected the housing situation in the greater Las Vegas area? It seems that we still have a lot of half-built neighborhoods and several foreclosures – do the candidates care? Will voting for either of them change things? The consensus is, no.

It’s true that the market is making a slow return, and foreclosures are down. But, with six out of ten Nevada residents still owing more on their mortgages than the value of their homes, we still have some serious issues with the housing market.  While cash buyers are snatching up the available homes, new buyers are struggling to make offers in time to still be in the running. Many people who used to own rental properties are letting them go, too. What are the candidates saying they are going to do to help? So far, nothing. When they’re not bashing each other, both have remained mostly silent on the issue.

No matter how bad it seems here, it could always be worse. Consider Florida, where most residents feel that there is no relief in sight. Both political parties are taking credit for any upturns, and both are harshly criticizing the other for the crisis to begin with. Analysts are saying that both sides aren’t coming up with any new ideas, so we’re stuck.

Today your vote may not do anything to help you get into a new home (or save the one you have), so what can you do?

If you are looking for a home, keep a dialog open with both your agent and financial officer. He or she will keep you informed of any new programs or changes that may help you get financing and get into a home. There are plenty of newer, family homes for good prices on the market – especially in the Henderson area – so don’t give up. No matter who wins today, the market will get better.

A new data center is proposed to be built in North Las Vegas.  The company has plans to start construction in Spring 2013, according to Kevin Keating, CEO and Founder of Telecom Real Estate.  Located inside an industrial building at 4527 Losee Road, the $40-$50 million project is proposed to have a 13.8 megawatt capacity.  The building is currently 50,000 square feet, and was purchased by H&R Real Estate Investment Trust from Canada through Block Data Center Las Vegas I LP for $2 million. 

Telecom currently has eight data centers in Canada and the US- this will be the first project for them in Las Vegas.  The company is one of the companies in the Las Vegas area that has plans to bring new data centers to the valley.  The Cobalt Data Center has announced its renovation on the Cheyenne Data Center at 7710 West Cheyenne Ave.  Cobalt Data is a Las Vegas homegrown company that is planning on adding three more data centers in town, as well.  Another 64,000 square-foot facility is prospected to be opening on East Sahara Ave. in 2014.  The renovation of existing data centers in the Las Vegas and Henderson areas means more new business, and improved existing business for Las Vegas residents. 

Metro Police and the Southern Nevada Housing Authority have begun a makeover project for the public housing development on Doolittle Avenue (located near West Lake Mead Blvd., and H Street).  The project has been in planning stages for nearly two years, and its focus is to rebuild and rehabilitate the trouble spots in specific high crime areas. 

The Southern Nevada Water Authority has offered up $200,000 in water rebates toward the rehabilitation makeover.  With the newer facilities in place, the housing community will no longer waste 17.5 million gallons of water annually. 

This housing project in Northwest Las Vegas is still needing $200,000 more in  order to fulfill the rehabilitation.  This money will need to be provided from direct donations.  A few of the plans include updating old, cracked basketball courts, maintaining a grassy field area (for sports), adding trees, better landscaping, an outdoor movie area, and attempts to eliminate local crime. 

According to Captain Larry Burns of the Las Vegas Metro Police's Bolden Area Command, rehabilitation is under way with some changes already in progress:  there are no longer shootings every month in the area, and the litter that was commonplace there, is now gone. 

He states (referring to neighborhood inhabitants), "I think this will work if we make it feel like something they want to be a part of."  

If you have tuned in to any broadcasts, or read any media sourced publication over the last week, it has been almost impossible to avoid the news of Hurricane Sandy.  Pummeling her devastation and destruction throughout portions of the US, Sandy's damages have neared $50 billion.  According to the Consumer Federation of America, hundreds of thousands of homeowners are anticipated to file claims for hurricane damage. 

What does this mean for Las Vegas residents, and how does the hurricane housing destruction directly affect real estate in Henderson and Las Vegas, Nevada?  Before Hurricane Sandy, many areas of the country had reported home sales have been higher in 2012 (overall), as compared to 2011.  According to the National Association of Realtors, September 2012 saw existing home sales (nationally) up 11%, and pending home sales were up 14.5%.  Rising home prices have encouraged growth within the real estate market and the economy, as well.  However, due to Sandy, the beginnings of real estate recovery will recede. 

Chief economist of the National Association of Realtors said, "This will certainly create a negative in the short term…we clearly anticipate a slowdown, but it will be temporary."

This temporary set-back will undoubtedly affect home sales in Las Vegas and Henderson, as well as those who have been hit directly by the destruction from the hurricane (on the East Coast).  Real estate in Nevada is not only directly influenced by local economic conditions, but is also touched by what is happening on a national level.   

The New York Times reported in September that house prices are on the rise – including those smaller, starter homes that are more in demand for first-time buyers. Houses in Henderson Nevada are still selling at lower prices than most other places, but the market has seen an increase lately. Sellers are doing better in the market now, and homes are selling at a quicker pace.

This does mean that buyers may not be so lucky anymore. While interest rates are still at all-time lows, it seems that those with cash are the ones snatching up all the house deals. If you are entering the market with an FHA or VA loan, how can you compete?

One of the best ways is to form an alliance with a real estate agent who will find properties for you that are not yet listed in the MLS. This gives you a chance to bid on the home before the cash buyers even see it. You may even be the first to make an offer!

If you are dealing with a seller who is a person – particularly one who lived in the home – you may also consider the emotional factor. If you and your family love the home, the seller is more likely to sell to you because they like YOU. They know that you will occupy the home and that it’s not just going to a corporation, and they may like that idea a lot better – cash or not. You could win with your offer just by being a real person. It happens all the time.

Never give up. If your bid is not accepted on that first home you fall in love with, trust that something even better – something perfect for you and your family – is out there, waiting for you.