Some great tips for home buyers!

By Beth Braverman @Money April 8, 2013: 4:39 PM ET

NEW YORK (Money Magazine)

Six years after prices . . . → Read More: Housing is back! Best moves for homebuyers!]]> I have never done this on my blog but I was reading this article from Money Magazine and found it to be spot on. Below is a reprint of the article copied from the Money Magazine site.

Some great tips for home buyers!

By Beth Braverman @Money April 8, 2013: 4:39 PM ET

NEW YORK (Money Magazine)

Six years after prices collapsed, housing has begun to climb out of its hole. So what are the best moves to make now?

Real estate has finally started to bounce back across the country — even roar back in some places.

Low mortgage rates and pent-up demand have coaxed buyers back into the market, and homeowners who list their houses are seeing more traffic. That quaint relic of the bubble, the bidding war, has even started to reemerge in some cities.

Consider the mounting evidence that the long national real estate nightmare is over: During the past year, home prices increased in 92 of the country’s 100 largest metropolitan areas, according to data provider CoreLogic, with prices rising as high as 23% in Phoenix and 17% in San Francisco. Sales volume rose in 69 of the top 100 markets, and 35 of those showed double-digit gains.

Yet while most economists agree that the bottom is behind us and the five-year outlook for housing is on solid footing, the shorter term is shakier. “Two thousand thirteen and 2014 are going to be transition years,” says Mark Fleming, CoreLogic’s chief economist. “The market’s improving, but it’s not totally healed.”

BUYERS

Thinking about buying a home? For the first time in more than half a decade, the economics of the market are working against you in most places.

Inventory is tight, and bidding wars are back in some parts of the country. To snag your dream home, you’ll have to pay up and contend with continuing strict loan requirements. The bright side: Despite rising prices and mortgage rates that are edging upward, buying a home is still cheaper than renting in the majority of the top 100 markets.

Don’t waste time with a low-ball offer.

Yes, home prices are still way down from their highs, but the days when you could scoop up a house for 20% less than the list price are long gone. The typical home sells for pretty close to what the owners asked for, and even in shaky markets, sellers have gotten more realistic about pricing.

The median sales-to-list-price ratio in Detroit, for example, is 98%; the national number is 97%. (To find the figure for your market, go to zillow.com/local-info and click on “More metrics.”)

Here’s how to figure out how much to offer initially: In places where homes are still selling below list price but deals are being made in less than two months, come in no more than 2% to 3% below the asking price, says Michael Murphree, a realtor in Birmingham, Ala. Where homes are selling above the listing price, make your first offer the asking price.

Be the winner in a bidding war.

In January and February, 73% of agents with broker Redfin said their clients’ offers faced rival bids, up from 56% who said so in the fall of 2011.

You win bidding wars, of course, by raising your price; it also helps to have few contingencies and to move quickly, since today’s sellers don’t want multiple go-rounds. “You have to give your best offer,” says Dallas real estate agent Mary Beth Harrison. “Step up to the plate or walk away.”

Be flexible about closing too: Quick deals — the median time on the market for homes is 71 days, down from 99 a year ago — have left many sellers scrambling for alternative housing. Leave the closing date blank on your contract for the seller to fill in, or negotiate a leaseback if the seller needs to stay put for a while.

Outsmart the pros who bring cash.

Thinking about investing in a rental property in a downtrodden market before prices there really start to take off?

To beat out the professional investors who have scooped up houses in these areas by offering all-cash deals, lead with your best offer; investors count on nabbing properties at a big discount and are unlikely to boost their bid by more than 5% to 10%. “They’ll just move on to another house,” Harrison says. Also include a bank prequalification letter or statement of funds to show that your money is as reliable as investors’ cash.

Assess the risk in your local market.

Though prices have revived in most areas of the country, they don’t all have the same staying power. In markets that bounced back last year merely because prices had fallen so far, you can’t assume a continued streak; once investors clear out, demand will die down.

“In rebounding markets, recent price gains might not last,” says Trulia chief economist Jed Kolko. Some near-term value setbacks may not be a problem if you plan to stick around for a long time, but a short time horizon calls for greater caution.

To get an idea of a neighborhood’s prospects, start with the foreclosure rate heat map at RealtyTrac.com (click on “Stats & Trends” at the top). The deeper the color you see, the weaker the market’s fundamentals. A broker should also be able to tell you whether cash-only offers dominate — a sure sign of an investor-driven market.

Play bankers off one another.

While it’s old news that credit unions and small banks tend to offer lower rates, they also can be less rigid about their underwriting, says Guy Cecala, publisher of Inside Mortgage Finance. To obtain your best deal, says Cecala, get a good-faith estimate from one lender (you’ll have to shell out for a credit check). Then show the offer to other lenders and ask if they’ll beat it.

Tactics like this will work, he says, because market conditions have changed: “Some lenders want to build up market share and are willing to offer more aggressive pricing than their competitors.” In the past two months, he says, a few have sliced their profit margins on loans.

My last blog post was focused on buying real estate in 2013. It would only be natural for me to address selling on the next post. I would strongly suggest, whether you are a Buyer or a Seller, that everyone read both articles to see where our market is . . . → Read More: Selling Real Estate in 2013]]>

Is 2013 the right time to sell?

My last blog post was focused on buying real estate in 2013. It would only be natural for me to address selling on the next post. I would strongly suggest, whether you are a Buyer or a Seller, that everyone read both articles to see where our market is this year. I believe Buyers can learn from my seller suggestions and I believe Sellers can learn from the buyer’s suggestions. In any event, here are my suggestions for Sellers in 2013 (and most likely 2014 and 2015!).

IT IS YOUR MARKET, ACT LIKE IT! For a variety of reasons it is now a Seller’s Market! In all markets that I work in (and one could argue that covers a great amount of area) inventories are low and Buyers are desperate for properties. I currently have over 8 active Buyers that cannot find product. My daughters team in Las Vegas reports that they typically receive over 20 offers on listings within days of the property becoming active. All of us are waiting on the “shadow inventory” of bank owned homes to hit the market but, to date, nothing has happened. My guess is that nothing will happen. Banks are more and more open to the short sale process and avoiding foreclosure. Now I’m not suggesting you go crazy. But I am suggesting you can push the boundary a bit harder than you could in the past several years. We Realtors like to use the average price per square foot as a comparison for homes. We typically use the mean average which means that approximately half of all properties sold for less than the number and half sold for more. I am using Yucca Valley, CA as my example just because it is a smaller market and more easy to produce the numbers. Last December, 2012, the average price of a home sold in Yucca Valley, CA was $61 per square foot. What I am suggesting is that a Seller with a well maintained home in a nice area of town could push their price to $110 to $120 per square foot. There are a great deal of variables but one thing we know in the Yucca market at this writing, there are only 210 homes active on the market in the 92284 zip code. Of the 210, the average price is $167,317, the average square footage of a home for sale is 1,766, and the average lot size is just over an acre. So the average price of a home for sale in the 92284 zip code is currently $94.75! In Henderson Nevada the numbers really get crazy. There are currently 691 homes available (this includes townhomes, single family, and condos). The average list price is $573,322 or $150 per square foot! My point is that if you want/need to sell, now is the time to get it on the market and test the water.  CALL ME!!!

THIS MAY BE THE LAST YEAR TO SHORT SELL YOUR HOME. Our brilliant leaders in Congress passed an extension to the 2007 Debt Relief Act through this year. That means you have this year to sell your home short and not have a tax liability for the forgiven debt. If you have considered selling short for any reason, DON’T WAIT! It typically takes a week to get a home on the market. Forms, signs, lockboxes, and data entry can take a few days at least. Once an offer is received it will take the Lender at least six to eight weeks to get the sale approved. It then takes another four to six weeks to close an escrow. AND THESE ARE BEST CASE TIME FRAMES MOST SHORT SALES TAKE CLOSE TO SIX MONTHS TO CLOSE. So you can see that waiting could push you close to a year end close and if you miss the date, you could be liable for the tax debt. I strongly suggest you use a professional Negotiator to negotiate your short sale. The average short sale has only a 30% chance of completing in both Nevada and California. Most Negotiators are over a 90% success rate. I use a very qualified negotiator in both Nevada and California. We will complete the sale with little brain drain on you, the Seller. Call me for more information. BUT DON’T WAIT!!!

IT’S TIME FOR SELLERS TO START THINKING OUTSIDE THE BOX TO MAXIMIZE THEIR INVESTMENT. Hundreds of potential Buyers have been locked out of the market because of lender restraints. Borrowing money today is more difficult than most Sellers realize. I know I am showing my age here but…back in the Carter days of the late 70’s it was not uncommon for a seller to carry back paper on a home secured by a second trust deed. We also used All Inclusive Deed of Trust or Wrap Around financing where the Buyer gave the Seller a large down and continued to pay the Sellers mortgage for a set amount of time.  With historically low interest rates on many mortgages out there, you can see how this could appeal to both a Buyer and a Seller. As you consider selling your home take time to think about how you would like a deal structured. You may be able to construct a deal that allows you to continue to make money on the home by collecting interest income at well above market rates. Most Owner carry second notes will get 8% to 12% on interest income. Much better than banks are offering for saving accounts. Since this type of sale has been all but forgotten, call me and let me answer your questions so you can see if it is right for you!

For over seven years we have been tumbling out of control in our real estate market. I can’t forecast how quickly we will see pre 2006 values but I have great confidence that the market has bottomed out and is poised for a return. Call or email me to discuss questions or the possible sale of your home. I would enjoy the opportunity to work for you!

1)      IT WILL NOT BE EASY BEING A BUYER IN 2013- As I am writing . . . → Read More: Buying Real Estate in 2013?]]> It amazes me that each year since we started this down market presents a different challenge for Buyers and Sellers.  Here are my thoughts on buying real estate in our market from the Southern California Inland Empire to Southern Nevada in 2013:

1)      IT WILL NOT BE EASY BEING A BUYER IN 2013- As I am writing this I received an email informing me that my Buyers offer has been rejected by a Seller. My Buyer wrote a full price offer on a short sale within 5 hours of the property becoming available. The Listing Agent informed me that she was going to wait six days to discuss the offer with her client. Here is the problem, Why? We offered full price within hours of the home becoming available for sale. The Sellers Lender will ultimately be the one to accept the price to short sell the note. As you can imagine my client is furious and she should be! On many occasions, and I will elaborate on my third point, the blame is with undereducated Agents. BUT…by the middle of 2012 we were seeing a very real shortage of inventory for sale which caused multiple offers on homes as they become available. Many of us see 20 to 50 offers within a few days of the listing. Most Buyers don’t know the real estate game but many Brokers offer a larger commission split for the Agent if the sale is represented on both sides by the Brokerage (the same office represents the Buyer and the Seller). This encourages Listing Agents to make decisions that are best for their office (and themselves) but not particularly right for Buyers. We could argue the ethical issues here but the reality is that between cash buyers verses buyers needing financing, office politics, timing, and poorly educated real estate Agents the Buyer will lose out a great deal of the time. Buying real estate in 2013 will require a great deal of patience from both the Buyer and their Agent.

2)      FINANCING WILL BE MORE DIFFICULT IN 2013- As we watch the Stock Market reach 14,000 it is clear that many investors are leaving the Bond Market and placing their bets on the Stock Market. Home financing is tied to the Bond Market. As the pool of investors in the Bond Market shrinks, the Market will have to bump interest rates to attract them. This will cause a small increase in interest rates over the year. The more pressing problem is with our appraisal system. Appraisers are hesitant to address an upswing in market value. A very real problem this year will be getting the offered price accepted by the Buyers Lender if the Appraiser does not address an up market. With the new system implemented by Regulation Z, Appraisers are picked at random from a pool. In many occasions the Appraiser is not familiar with the area and will take a more conservative approach to valuing the property. It will be important that Buyers use a well educated Mortgage Professional. And while I’m at it I strongly suggest you use a real person and not an internet company. Someone you can visit, touch, and connect with. This way any issues can be addressed promptly and the Buyer can achieve a higher level of comfort that their Lender is work to get the job done.

3)      HIRE THE RIGHT REALTOR- Since this is my blog and web site, I can toot my own horn. I am a licensed Broker in two states. I am required to take a great deal of continuing education. In addition, I spend hours each week reading and educating myself on current laws and policies, sales trends, and form revisions. I have a couple of friends that are highly regarded attorneys who emphasize real estate in their practice that regularly update me on the ever changing laws governing the market. When you hire a Realtor you are really hiring their experience and knowledge to protect you in your very large purchase. TAKE YOUR TIME AND DO YOUR RESEARCH! Remember that all it takes is about $400 in class work, $400 in fees, and $300 to join a Board of Realtors. Pretty small change for some big rewards. This is why we see a great amount of part time Realtors working in the market. Make sure your Realtor is full time, ask lots of questions about their experience, and make sure you feel comfortable with them and can trust them. Being a Buyer in 2013 may mean you will have a longer relationship with your Realtor than has been normal in the past.

I am asked this question several times a day. I tell my clients that there is no need to panic.

No need to panic!

It would be nice if Congress extended the Debt Relief Act but you still have options. I know this is a bit long but it . . . → Read More: Is it time to panic if I want to short sell my home???]]>

Is a short sale still right for me?

I am asked this question several times a day. I tell my clients that there is no need to panic.

No need to panic!

It would be nice if Congress extended the Debt Relief Act but you still have options. I know this is a bit long but it will be worth your time. First let me give you some background. Finish the article if you would like to learn the most successful way to short sell your home!

The Mortgage Forgiveness Debt Relief Act, which has helped many financially distressed Americans since 2007, is set to end Dec. 31 unless Congress acts. The likely expiration has pushed home sellers scrambling to close on their short sales by year’s end, fearing they’ll have to pay taxes on the debt amounts forgiven by their lenders. The U.S. government enacted the mortgage debt relief law to help folks who’ve had part or all of their loan balances of their primary homes forgiven from 2007 to the end of this year. Forgiven mortgage debt usually is considered taxable income, so the law has been a welcome relief for many borrowers. Consumers could get relief from taxable income on loan balances of up to $2 million, or $1 million for a married tax filer who’s submitting a separate return. California conformed to that rule but with lower maximums.

Mortgage modification and debt relief programs provide real relief to homeowners fighting to keep their homes or trying to get back on their feet. Unless Congress acts, any debt relief to be provided in 2013 under the National Mortgage Settlement, as well as other mortgage debt relief programs, will likely be considered taxable income. On November 20, 2012 The National Association of Attorneys General sent Congress a letter signed by 49 attorney generals written to urge congress to pass legislation to extend tax relief for citizens who have mortgage debt canceled or forgiven because of financial hardships,” An extension is included in the Family and Business Tax Cut Certainty Act of 2012 (S. 3521), which recently passed out of the Senate Finance Committee with bipartisan support.

One thing that’s often missing in this discussion is the fact that there are other situations in which forgiven debt is not taxable. A big one is insolvency, when your debt load exceeds your assets, based on details from the IRS. If you can prove you are insolvent following a short sale, then it’s possible you can get debt relief — without the need of the mortgage debt relief act. Assets include everything from cars to furniture. Click here for more information from the IRS about the insolvency rules.

THIS IS THE PART YOU NEED TO READ, SHARE, AND CALL ME ABOUT!

Help is here!

Realtor’s handle short sales in one of two ways:

Most Realtors go to a class, take a test, and get a designation (SFR-short sale and foreclosure resource) to put under their name. Then they market to consumers that they are experts in short sales. A simple statistic, in CA and NV less than 30% of short sale listing actually close the sale. The problem is that the Agent is handled and recognized by the Lender just like the Homeowner. There is no continuity, there is no clear record of work done, and it just bumbles along until either the Homeowner or the Lender looses patience and allows the foreclosure.

The second method, and the one I use, is to hire a professional negotiator to deal with the Lender. This allows me to do what I do best, sell the home. It takes the pressure off of the Homeowner because only the Negotiator deals with the Lender. This is all the Negotiator does for a living. I use two companies to negotiate my short sales. One charges a fee to the Sellers and Buyers. The other takes a piece of the Realtors commission on both sides. I have been moving more and more of my clients to the second option to save the Buyer and Seller money. HERE IS A FACT…IN BOTH CASES THE NEGOTIATOR COMPLETES ALMOST 90% OF SHORT SALES!

Share this post with family and friends. Hopefully you will provide them with some mental relief. Then call or email me and let me answer your additional questions.

It is hard to miss as you drive Interstate 15 just south of Primm, NV. A large construction project just off the freeway with large towers jetting up from the desert floor. Lots and lots of construction trucks entering and exiting the freeway. Early morning and late afternoon traffic is . . . → Read More: What is the large construction project to the west of Interstate 15, just south of Primm, NV??]]> Click here to view the embedded video.

It is hard to miss as you drive Interstate 15 just south of Primm, NV. A large construction project just off the freeway with large towers jetting up from the desert floor. Lots and lots of construction trucks entering and exiting the freeway. Early morning and late afternoon traffic is bumper to bumper. Just what the heck is going on you think as you drive by?

You are seeing the largest solar field in the world being built, the Ivanpah Solar Electric Generating System ( http://ivanpahsolar.com/ ). Construction is expected to be completed in 2013. The facility will consist of fields of heliostat mirrors focusing sunlight on receivers located on centralized solar power towers. The receivers will generate steam to drive specially adapted steam turbines. Thousands of software-controlled mirrors harness the sun’s energy and reflect it to boilers atop power towers. When the concentrated sunlight strikes the boiler’s pipes, it heats the water to create steam. This high-temperature steam is then piped from the boiler to a standard turbine where electricity is generated. Transmission lines then carry the power to homes and businesses.

The first phase of the project covers over 3,600 acres and will produce 392 megawatts of power. This will be enough power for an estimated 140,000 homes. The project has had some environmental issues also. The solar system may not be as destructive as photovoltaic solar facilities on desert habitat, which require completely flat ground and involve bulldozing of the entire area. However, the mowing of native vegetation, and anticipated erosion of desert soils on the project site make the habitat unsuitable for most plant and wildlife, according to the Final Staff Assessment of the project conducted by the California Energy Commission. Owners are also required to install fencing that will keep wildlife out of the area. As of September 2011, the project has displaced at least 127 threatened desert tortoises, which are expected to be moved to other parts of the Mojave Desert. However, environmentalists have raised concerns that relocated tortoises are more likely to die due to the stresses of adapting to a new area and increased vulnerability to natural predators. In order to conserve scarce desert water the project uses air-cooling to convert the steam back into water. Compared to conventional wet-cooling, this results in a 90 percent reduction in water usage, at some loss in power and turbine efficiency. The water is then returned to the boiler in a closed process.

Now when you drive by you can answer your car mates when they ask what those big towers are for! Look for other desert updates regularly here at www.CA2NVRE.com  and if you need help with desert real estate, call or email me. From Palm Springs to Las Vegas, from the Salton Sea to Lake Mead, I can help with your real estate needs and questions.

The first weekend of this month, October, I was staying in Primm and exploring the desert areas around this small resort on the edge of Nevada and California. I ran into many people suffering from alergies while on my journeys. I thought it . . . → Read More: Fall Desert allergies…blame it on the Ragweed!]]>

Ragweed is to blame for most of the fall allergies in the desert!

The first weekend of this month, October, I was staying in Primm and exploring the desert areas around this small resort on the edge of Nevada and California. I ran into many people suffering from alergies while on my journeys. I thought it may be helpful to repost this blog from October of 2011. I hope some of you get relief!

Last May (2011) I wrote about the spring allergy season here in the Mojave Desert. With spring comes new grasses, flowers, and molds that bloom after the winter cold. But the fall season, for me, is the worst. And what makes it the worst for most of us is an intruder by the name of Ragweed! Of all allergy sufferers who are allergic to some kind of pollen, 75% are allergic to ragweed.

Ragweed season generally begins around the end of August. Geographically, the farther north you travel, the later the ragweed season begins. Once the season has started, it will last until frost kills the annual plant. Ragweed season is normally thought of as being between mid-August through October.

The pollen from ragweed is very light weight. The design makes it capable of catching the smallest of wind currents. Ragweed pollen has been known to be carried away for hundreds of miles. Most pollen, however, falls within a few miles from where it started.

The lack of humidity in the desert also plays a role in pollen production and release. It needs to be very dry in order to take advantage of the air currents. Rain and cool temperatures also inhibit the release of pollen. Our dry desert climate makes a fantastic breeding ground for this weed.

Ragweed pollen is considered by many to be the most potent and widespread allergen of all pollen. It only takes a little of this pollen to trigger unpleasant symptoms. One single ragweed plant is capable of producing a billion pollen grains during one season.

My May post (PART 1)(PART 2) explains some of the local homeopathic remedies for allergies. Do any work for you? My best course of action is a combination of Claritin and the Neti-pot. I would enjoy hearing what works for you!

Ragweed blooms love our dry desert climate.

The following is taken from the Desert Sun newspaper, Drew Schmenner author. The full article can be seen HERE.

With its gigantic granite formations and eponymous flora, Joshua Tree National Park is a scenic showpiece, a wondrous confluence of the Mojave and Sonoran deserts. It beckons adventure and exploration.

Over the years, searchers have embarked on . . . → Read More: Respecting the dangers of Joshua Tree National Park]]>

The following is taken from the Desert Sun newspaper, Drew Schmenner author. The full article can be seen HERE.

With its gigantic granite formations and eponymous flora, Joshua Tree National Park is a scenic showpiece, a wondrous confluence of the Mojave and Sonoran deserts. It beckons adventure and exploration.

Over the years, searchers have embarked on scores of rescue missions. For those who went missing, the vast majority were found within 24 hours. A few were miraculously rescued, beating the odds by surviving in the desert for days. In a 10-year period, from 2002 to 2011, 222 search and rescue incidents occurred in the park, according to the park’s official records. Slightly more than one-third of the subjects involved were injured or sick, while approximately 61 percent weren’t. While 12 people died, rescuers prevented the death or serious injury of 13.

At Joshua Tree, a dedicated team of staff and volunteers known as JOSAR carries out search and rescue missions. Ranger Kevin Buckley, the park’s search and rescue coordinator, collaborates with other agencies to assess each incident’s severity and required response. If volunteers are needed, a detailed automated phone call is sent out, and they show up within an hour to help.

The biggest concern for rescuers is the heat.

For months I have been writing about the false market that we created in the Las Vegas and Henderson housing market.  On several occasions I have pontificated about the effect of Assembly Bill 284 and the negative effect on housing demand and pricing. If you are a traditional Seller, this is . . . → Read More: Is a foreclosure tsunami on the way to Las Vegas/Henderson homes?]]>

Foreclosure Tsunami on the way!!

For months I have been writing about the false market that we created in the Las Vegas and Henderson housing market.  On several occasions I have pontificated about the effect of Assembly Bill 284 and the negative effect on housing demand and pricing. If you are a traditional Seller, this is not good news. If you are a Buyer…get ready for the deals of a life time!

As reported by KLAS-TV, (SEE VIDEO HERE)- It’s estimated there are thousands of foreclosed homes about to hit the local housing market. According to banking and real estate insiders, Las Vegas real estate is about to take another big hit, and it could delay the recovery for years to come. Foreclosure notices continue to be posted on homes around the Las Vegas valley.  According to real estate experts, a new wave of foreclosures is about to hit the market. It will most likely turn what has been a seller’s market, for the last few months, into another foreclosure free-for-all. It could potentially drive Las Vegas Home prices down even further.

Industry experts are expecting as many as 70,000 newly foreclosed properties to flood the market. The inventory has been building up since October when a new law took effect making it more difficult for banks to foreclose. That gave the Las Vegas housing market a much needed shot in the arm.  In September 2011, just before Assembly Bill 284 took effect, banks were foreclosing on about 3 to 4,000 Clark County properties a month. After the new law took effect, notices of default dropped dramatically to a low of about 800 a month. Foreclosures have stayed down ever since, but that’s about to change. “Foreclosures will ramp up shortly. I would argue, probably in September,” said Bill Uffleman, president of the Nevada Bankers Association. Uffleman said the banks have found legal ways to step up the foreclosure process again. “If you took 3,000 a month is the norm, I think we will get back to 3,000 a month maybe 4,000 thousand.” (see full article HERE)

The inventory of available homes for sale has dropped from around 11,000 to 12,000 in February of this year to between 4,000 and 5,000 these last several months. This has caused great difficulty for home buyers with listings getting upwards of 40 or 50 offers within days of the listing going public. It makes it almost impossible for a Buyer to visit the area and find a home.

To help my clients more easily track the market, I have begun to post the inventory amount on my Facebook Fan Page. When you see the inventory amount begin to rise above 8,500 units it will be a great time to find a hot deal on a home in Las Vegas or Henderson! Call or email me with questions. I am here to help you find the best value in purchasing your dream home!

Let’s get it right. A monsoon is not a storm. It’s a season. So, when your local weatherman issues a “Monsoon Alert” he/she is incorrect. Think of a monsoon like the southwest equivalent of hurricane season or tornado season. The actual storm is a Thunderstorm. Those of us that have . . . → Read More: What is Monsoon and why does it mess with my summer in the Southwest desert?]]> Click here to view the embedded video.

Let’s get it right. A monsoon is not a storm. It’s a season. So, when your local weatherman issues a “Monsoon Alert” he/she is incorrect. Think of a monsoon like the southwest equivalent of hurricane season or tornado season. The actual storm is a Thunderstorm. Those of us that have spent any time in the southwest desert know these storms can be fatal. Many times they cause flooding, road accidents, occasional wild fires, and in rare cases a fatality.

Starting in late May or early June, the sun warms up the deserts in northwestern Mexico and the southwestern United States. The air gets so hot and excited that it can’t wait to go share its energy with the cold upper atmosphere. This rising air lowers the air pressure above the desert, creating a bit of a vacuum, especially compared with the colder air over the ocean (the ocean does not get nearly so excited about the summer).

Because nature always balances its forces, the cold high-pressure air from the ocean wants to blow into the desert. When it comes, it brings water with it. But there’s a problem: At the same time all of this is going on, a ridge of high-pressure air sets up shop in Mexico. In June, this ridge mostly blocks moisture from flowing north from the Gulf of California and Gulf of Mexico.

By mid-July, however, this ridge migrates north into the United States, where it bums around New Mexico and the four corners area. The farther north it gets, the more it allows moist air out of the gulfs into Southern Nevada — hence the humidity that sets your air conditioner intermittently wheezing through the end of September.

Now, when that air of the gulfs is especially moist, it’ll bump up against our mountains and condense into thunderheads as improbably high and menacing as the mold in a bachelor’s jar of olives. In the late afternoon or early evening, the now-saturated clouds burst: lightning, sudden downpours, howling winds and sometimes hail.

Monsoon season also causes your evaporative cooler to work less efficient because of the increased humidity. When you are shopping for a home, I recommend you have an air conditioning unit. An evaporative cooler can save money but is not sufficient for year round cooling. Having both systems is best! Call or email me today for other tips for your home purchase in our Southwest desert.

*some parts of this post are taken from the Las Vegas Sun, Brendan Buhler author.

It’s not enough that the process of purchasing a home is difficult at best. Prices and interest rates are low but so are inventories.  With low inventories come several offers on well priced homes. In the Las Vegas area, homes around $100,000 are receiving over 30 offers within 24 hours of the listing being public! In . . . → Read More: Who to believe in the desert housing market?]]>

It’s not enough that the process of purchasing a home is difficult at best. Prices and interest rates are low but so are inventories.  With low inventories come several offers on well priced homes. In the Las Vegas area, homes around $100,000 are receiving over 30 offers within 24 hours of the listing being public! In the California Desert market just trying to find a home can be difficult. Those areas hit with the worst decline now have the least homes available for sale. Add to this that Appraisers are scared of the market. This causes low appraisals on potential purchases. This caps any increase that a supply and demand economy may allow.

The poor consumer is being hit with headlines like; “Despite bump, Las Vegas home prices are expected to fall through 2013″ (May 8, 2012, VegasInc.com) but then “Las Vegas area home prices expected to rise over the next  year” (July 24, 2012, VegasInc.com). What is really happening out there?

The answer is a little of both. What is happening is the banks have stopped or drastically slowed the foreclosure process because of the Federal settlement on the Robo signing process. The banks are re-evaluating the process to insure they are not in violation of the settlement. In addition, both California and Nevada have passed laws that give greater protection to the consumer. The banks have responded with a stop and reorganize attitude. In the Las Vegas market, the amount of homes for sale has plummeted from around 12,000 available units in February of this year to less than 5,000 at this writing. Yucca Valley, Palm Springs, Indio, and the rest of the desert markets have seen similar drops in available homes.

The overall belief is that the banks will start to ramp up the final push on foreclosures over the next two months. Look for inventory counts to go back up and the market to settle down. BUT…be aware that from all appearances, we are at the bottom with this next surge. I expect by next spring we will begin to see a steady increase in prices. Not a sharp increase so there is no need to panic but a steady increase that will take years to reach pre 2006 price points.

Now is the time to be watching the inventory and planning your purchase. Over the next six months you should be able to purchase at or near bottom prices. This is a perfect time to purchase that retirement home, dream home, or first time home. The investment you make should return you years of enjoyment and cost savings! Call or email me today and let me help you realize your goals!