2019 Quarter 2 Market Update

The southern Nevada housing market for 2019 reported a year to date appreciation of 2% on the Median Sales Price, at $304,000 thru June.  This is up 4.8% from June 2018. The national housing market for June over a year was at 4.6%.  At a year to date appreciation of 2%, we are running slightly below the anticipated rate of 3%.  Does the flat line of appreciation mean we have changed from a Seller’s Market to Buyer’s?  Let’s review the definition of a Buyer vs Seller Market. The calculation is based upon the amount of inventory divided by the number of sales per month.

  • Seller’s Market: Inventory is less than 3 months
  • Flat or Transitioning Marketing: Inventory is 3-6 months
  • Buyer’s Market: Over 6 months.

As of June 30th, 2019 the inventory for southern Nevada was 2.69 months. With 7,815 available single-family units, 2,903 units were sold in June.  We are still considered a Seller’s market, but we are approaching the 3-month line for a Flat or Transitioning Market.  We expect it to remain in the 2-4 month range for a flat market for the remainder of 2019.   June of 2019 was a slower month for the year, which is unusual for this time of year.  However, early July figures appear to put July 2019 back in alignment with July 2018.

Inventory

The number of units without offers, as we reported in our 2019 1st quarter report, has substantially risen in 2019.  In June 2019 there were 7,815 single-family units available, this is a 135.6% increase from June 2018.   The days on market continue to increase in this year with 57.7% of the homes selling in under 30 days vs 74.7% in June 2018.

What is the right approach for pricing a home to market?   Price to market. Do not price above or stretch.  The following two graphs indicate clearly that Seller’s receive a greater sales price when they price the home to market at DAY 1.  As you see, the Buyer activity for homes is the greatest in weeks 1-2, it drops off in week 3-4, and after 30 days we enter the “discount buyer” stage.  Buyer’s ask, “what’s wrong with the home? Why is it not selling?” There is no fear of loss or sense of urgency.

The National Association of Realtor shows Nevada in a Stable Buyer Traffic market with our neighbors to the east, Arizona, and Utah at Strong.

 

Mortgage Rates

Looking to purchase a home in the next few months? Then taking advantage of the historically low mortgage rates should be at the top of your mind.   We had clients close a 30-year mortgage this week at 3.5%, wow!!   As we have shared with our buyers, a drop in interest rates of .5%, which we have seen this year, provides buyers with more purchasing power.  This is good news for Sellers as well, as more buyers are qualified to purchase more.

Interest Rate Direct Impact on Buyers

Besides the obvious increase in payment, the more significant issue is purchasing power. For every .5% increase in interest rates, Buyers lose 5% of Purchasing Power. Meaning if their income remains the same, the amount they would now qualify for is 5% less. If we use the average sales price of $304,000, that would mean if rates rise by .5%, then Buyers would be looking at a $288,000 purchase price.

Crown Point’s Update for 2019

STABLE  AHEAD 

We still expect appreciation to be flat at the current 2% year to date appreciation. We expect days on market for homes over $275,000 to be close to 60 days, and over 60 days for homes over $500,000.

The core foundations for Buyers

When is the right time to purchase?

  • I can afford the monthly payment with the down payment funds I have or have access to.
  • This home will meet my needs & wants for the next 2-3 years.
  • With the help of my Crown Point advisor, I have found the community/area that best suits my lifestyle. Including where I want to live, where I work, and where I play.
  • I want to gain personal wealth by equity growth in my home at the market predicted rate of 4-5% over the next five years.
  • I want to own my own home, to live in my style and my taste, and to make it my own.
  • Homeownership as a critical part of my future retirement savings, such as owning a home free and clear when I retire, college funds, and nest egg.
The core foundation for Sellers

To sell their home at the right time and at the right price.

  • Price your home at market value. Do not price with the assumption that you are going to achieve that one in a million Buyer who is willing to pay more than the last guy, or more than market. Hope is not a strategy for a successful home sale. If the time is right for you to sell your home, then let us give you a full market analysis value.  We will guide you through a pricing analysis that leaves no money on the table, but sells your home within your intended timeframe. Then you will be empowered to make the decision. What if this is not only the right time but the market value is also the right price for you?

Achieve Higher Fico Score

 

HOW TO ACHIEVE A HIGHER FICO SCORE

 

1. Your Payment History

Nothing is more important to your FICO score than your payment history, and this is according to the team at Fair Isaac Corporation, the company that created the FICO score. According to the myFICO website, your payment history makes up 35% of your credit score.

Your FICO score will drop — often by 100 points or more — if you have late payments on your credit cards, retail accounts, car loans, and mortgage loans. Missed payments remain on your credit reports for seven years, but decrease in importance as time moves on.

Your payment history also includes any bankruptcies — which stay on your credit reports for seven to 10 years — and foreclosures, which remain on your reports for seven years.

If you have a good record of no missed payments on all or most of your credit accounts, your FICO score will tend to be higher, though other factors could negate your solid payment history.

2. The Amount You Owe

Owing a lot of money on credit cards and on loans can reduce your credit score. According to myFICO, the money you owe makes up 30% of your credit score.

But owing a lot doesn’t necessarily cause your credit score to plummet. What is more important is how much of your available credit you are using. Say you have $10,000 worth of available credit on your credit cards. If you are using $8,000 worth of this credit, your score will be lower than if you are only using $2,000 of it. That’s why financial experts recommend that you never close an open credit card account, even if you’ve paid it off and are not using it. (See also: This One Number Is the Key to Your Credit Score)

3. Length of Your Credit History

How long you’ve been using credit is another important factor in your credit score, making up 15% of it, according to myFICO. In general, the longer your credit history, the better it is for your credit score.

Your credit history includes the age of your oldest account, the age of your newest account, and the average age of all of your accounts. Your history also includes the length of time since you’ve used specific accounts.

4. Your Credit Mix

Your mix of credit cards, retail accounts, installment loans, and mortgage loans makes up 10% of your credit score. In general, it’s better if you have a diverse mix of credit types. But, according to myFICO, your credit mix is rarely a key factor in calculating your credit score. This factor is most important for consumers who have more limited credit histories and less information on their credit reports.

5. New Credit

Your newest credit accounts — including credit cards, mortgage loans, and auto loans — make up 10% of your FICO score. The researchers at myFICO say that consumers who open several credit accounts in a short period of time are a greater risk to default on their loans or miss credit card payments. Because of this, the FICO scores of consumers who have opened too many new credit accounts could dip, especially if these consumers have a short credit history.

Buying and Selling at the Same Time Part 1

Selling your old home and buying a new one at the same time can be difficult and stressful. If you buy a new home first, you run the risk of potentially paying two mortgages at once, or if you sell first, you could end up with no place to live until you find your perfect home.  Doing both at the same time, however, can be done! Here are a few tips for buying and selling a home at the same time.

Find what your options are

Work with an experienced Realtor. Get everything you need to sit down with your agent and lay all your cards on the table. Your Realtor will guide you in finding out what your home is worth, what equity you have, and find a lender to see what you qualify for. These will determine if you’re able to purchase a home without selling your current home or if you have to sell your home to be qualified to purchase a new home. Because you can do either, you can buy or sell first but once you get all the cards on the table, you can at least see what your options are. A lot of sellers won’t have the ability to go buy first before they have to sell their home but for those that do it can really be a good way to approach it.

Selling a house before buying

Let’s say you qualify for both. If you need to sell first, you’ll try to get a lease back on a home for 30 to 60 days or a little longer than escrow so you can put your home under contract and hit the ground running for a new home purchase. Once you get past all the elephants In the room like inspections and appraisals on your home sale, then you are in the position to write a better offer. You stay at your property, you close on the new one and you still have days or weeks to move. Then you don’t have to make double payments on your mortgage. The only problem is you are at a negotiating disadvantage because you are writing on a contingent offer, but you are only moving once, so there’s still a lot of benefits there.

Watch out for part 2 as we discuss the pros and cons of buying before you sell.

  • Would like to view available homes :                   Available Homes
  • Would like to schedule a Buyer Consultation Appointment (phone or in person):  Buyer Appointment
  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment


1st qrt Henderson | Las Vegas Housing Market Update

What does the contracting market mean?  It means that it’s not growing at the same rate as the previous reported and compared period.  In 2018, the greater Las Vegas housing market experienced a 10.2% single-family price appreciation over 2017.  In our January 2019 report, we projected that the market in 2019 will experience a 3-4%  appreciation.  Appreciation at a 3-4% range reflects a healthy housing market and is a positive for the homeowner, but it is lower than the 10.2%, so we are now in a contracting market.  With so much noise in the market place and with negative news often rising to the top, what sources should a consumer be listening to?  We recommend avoiding the headlines that are written to grab attention and obtain an emotional response. Take a look at the data.  Data is boring and not much fun to review, but it does present a more realistic picture and sound basis to make a decision from.

What do the SENSATIONAL HEADLINES REPORT, those that are looking to grab at your emotional coat strings:

What is a recession:   The technical definition of a recession is two consecutive quarters of negative economic growth as measured by the gross domestic product (GDP).  For most people, we do not track the GDP, we are more concerned with what trickles down or up to our market and effects us personally.

Are these headlines crying wolf and what does a recession mean to home prices here in Nevada? The leading analysts are all indicating that 2019 housing, nationally, is expected to be in the 2-3% appreciation.  CoreLogic is predicting a 2019 appreciation of 4.9% nationally, with the highest appreciations being in the Pacific Northwest.  Nevada being on their top states for appreciation.   

2nd:      What does a Recession mean to housing prices?  The graph below shows the last five recessions and the impact it had on home prices.  As you will see, in three of the last five recessions, housing prices experienced appreciation.  However, the great recession of 2007-2009, is the one we all recall vividly, and it did have a large impact on housing prices and it was a long recession period.  Most statisticians state the likelihood of a recession severely impacting housing prices even close to 2007 is very, very low. However, the correction to bear market is likely.

The Health of Nevada Economy

Nevada Sub-State Press Release in April reported that Nevada’s job rate increase of 3.4%  is the fastest pace in the nation for the 6th consecutive month,  congruently unemployment feel to record lows of 3.8, well below the national rate.  The largest sector of growth was in “goods-producing industries” at a 16.7% increase year over year.  

2018 Housing Market Recap

The December Median House Price was $300,000, a year over year increase of 7.1%.  Year to date, Median House Price has increased by 1.6%. 

For the second quarter in a row, the most significant factors in the housing market are INVENTORY (# of homes on the market) and Day on Market (the # of days a home takes from list date to closing date).

Inventory: The number of units available without offers in March was 7,091, which was the year over year increase of 84.9%.   The large increase of homes to recently enter the market is providing Buyers a lot more options and is reducing the number of multiple-offers scenarios substantially.

Days on Market:  Increased with 51.9% of homes selling 30 days or less compared to 69.4% in March 2018.

What is the number one factor for sellers? Sellers need to be sure to price their home at the market value price. Often, Sellers come up with their price point by looking at listings they have previously seen in their community or by using a Zillow Estimate. If the home did not sell at that price point, then that price is not market value price. The market value is the price point the consumer (buyers) are currently willing to pay.  Closed homes in your area are the best indicator of market value (allowing for condition, amenities, location, etc).  Buyers are no longer making over list price offers to beat out other Buyers.  The market has now shifted to a level condition. The key is to price your home correctly at the time you initially list it. This will attract the most amount of qualified Buyers.  As the home sits on the market, it becomes unlikely you will achieve list price and more likely you will receive a price point lower than you would have if it were priced correctly from the start. The key to getting a great price for your home in this type of market is to work with a company, like Crown Point, who will provide you with a solid marketing approach to sell your home.

Interest Rate:  What happened to rates in April? They hit a 14 month low at 4.17%.   This drop had more to do with the global economic condition than it had to do with the housing sector in the U.S.  At the beginning of the year, most of the top banks had predicted interest rates to be at 5% by the end of 2019. However, their predictions have been lowered to 4.6%.  What is causing the teeter totter on rates?  We have read a lot of analyst reports, bank reports, and Federal Reserve releases and there is a vast amount of opinions, but no conclusive evidence or statical prediction that adequately addresses this result. In the March Federal Reserve update, all indication was that rates were going to rise several times in 2019.  Then in the April 1st press report, they are holding rates and expect a holding pattern for the next meeting.  This was after a strong job and earnings report.  It is the simple law of economics: demand is greater than supply. The demand for 30-year mortgage bonds is also high which helps drive down rates to the consumer.    The great news for our Buyers, which also provides relief to our Sellers, is that they benefit from the lowest rates since 1975.  With these lower rates, their Buying power increases, allowing more Buyers to qualify to purchase.

30 Year Fixed Mortgage Rate – Historical Chart



*Chart courtesy of www.macrotrends.com

Crown Point’s Update for 2019: EVEN ROAD AHEAD 

We still expect appreciation to be in the 3-4% range and days on market for homes over $275,000 to be close to 60 days and over $500,000 over 60 days.   

The core foundations for Buyers:  When is the right time to purchase?

  • I can afford the monthly payment with the down payment funds I have or have access to.
    • This home will meet my needs & wants for the next 2-3 years.
    • With the help of my Crown Point advisor, I have found the community/area that best suits my lifestyle, where I want to live, where I work and where I play.
    • I want to gain personal wealth by equity growth in my home predicted at a 4-5% rate over the next five years.
    • I want to own my own home. I to live in my style and my taste, make it my own.
    • I see homeownership as a critical part of my future retirement savings, such as owning a home free and clear when I retire.

The core foundation for Sellers:  To sell their home at the right time and at the right price

  • Price your home at market value, do not price with the assumption that you are going to achieve that miraculous Buyer who is willing to pay more than the last guy.  Hope is not a strategy for a successful home sale. If the time is right for you to sell your home, then let us give you a full market analysis value.  Then you will be empowered to make the decision this not only the right time but the market value is the right price for you.


  • Would like to view available homes :                   Available Homes
  • Would like to schedule a Buyer Consultation Appointment (phone or in person):  Buyer Appointment
  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment

WANTING TO UP-SIZE YOUR HOME?

Unfortunately, our homes don’t always grow with us. What may have initially worked fine for a single person, a young couple’s starter home, or a family with a newborn can quickly become too small as families expand and multiple generations live under one roof.

Remodeling and adding to your home is one option for creating more space, but it can be costly, and the size of your property may be prohibitive. That’s when moving to a bigger home becomes the best solution.

Seller Consultation

Buyer Consultation

30min Meeting

Where do you need more space?

The first thought when upsizing your home is to simply consider square footage, bedrooms, and bathrooms. But it’s important to take a more critical approach to how your space will actually be used. If you have younger children (or possibly more on the way), then focusing on bedrooms and bathrooms makes sense. But if your children are closer to heading off to college or starting their own families, it may be better to prioritize group spaces like the kitchen, dining room, living room, and outdoor space—it’ll pay off during the holidays or summer vacations when everyone is coming to visit for big gatherings.



Moving outward

If you need more space, but don’t necessarily want a more expensive home, you can probably get a lot more house for your money if you move a little further from a city center. While the walkability and short commutes of a dense neighborhood or condo are hard to leave beyond, your lifestyle—and preferences for hosting Thanksgiving, barbecues, and birthdays—might mean that a spacious home in the suburbs makes the most sense. It’s your best option for upsizing while avoiding a heftier price tag.

5 WAYS TO STAGE YOUR HOME

A recent survey from the National Association of Realtors® revealed that 77 percent of buyers’ agents said staging a home makes it easier for potential buyers to visual it as their own. That’s why here at Breakthrough Broker, we believe staging is not to be overlooked! Here are our top tips.

Click Below!!!

Get Your Home Value

1. Dress up your yard. First impressions count, and the first one your home gives comes from the exterior. Mow the lawn, clean up shrubbery, rake any leaves, clean the walkway and driveway, plant in-season flowers, and pull up any unsightly weeds.

2. Reduce personal items. Make it easier for buyers to imagine themselves making your house their home by removing personal photos and knick-knacks from shelves, walls, and counters. Instead replace them with clean, simple décor, such as abstract paintings, nature images, vases, plants, and more.

3. Organize your storage areas. Storage is a huge selling point. Tidy up and clear out the accessible closets and cupboards in the home and make sure to point them out during an open house or showing.

4. Appeal to the senses. Consider ways you can appeal to potential homebuyers’ other senses. During a viewing or open house, bake some fresh cookies or burn delicious smelling candles and play light, relaxing music in the background.

5. Consider turning to an expert. With their knowledge of current trends and a great eye for design, professionally certified stagers can transform a home in a variety of ways and have a keen sense of what home buyers want and expect in a home. Investing in hiring a pro may pay off in dividends.

December 2018 Market Update

 

Our most frequently asked question:  Where is the real estate market headed in 2019?

This question is top of mind not only for our clients who are looking to sell or purchase their home, but banks, equity funds and the global economy.  Here are the projections from 100 economist, market analyst and real estate experts (report by Keeping Current Matters 1.19.2019)

What Will Home Prices Do in 2019?

 

Note:  Data provided by Keeping Current Matters annual report dated 1.19.2019

These are national figures, more real to our clients, is what is Nevada expected to see?  Nevada is still looking strong for a very solid 2019.  A healthy real estate economy will see growth rates in the 3-5% range.  What drives our local housing prices is the health of our economy:

2018 from 2017

  • INCREASE  Employment Growth                                  52,400
  •  decrease Unemployment                                                .5%
  •  INCREASE Population Growth- Clark County         1%
  •  INCREASE Income Levels                                        (2018 data has not been                                                                                                               released but leading indicators                                                                                                   are reporting average family                                                                                                       incomes in Nevada are rising)
  • INCREASE State Economic Growth                     7.2% for 2019 – Nevada                                                                                                             Economic Forum
  • INCREASE Quality of Life                                    Moved up five spots on top 125                                                                                               cities to live, currently ranked                                                                                                 #80  (Us World Report).                                                                                                             Henderson ranked by Money                                                                                                   Magazine in “The Top 50 Best                                                                                               Places to Live In America”.
  • INCREASE in Relocation                                       61.8% of moves were inbound                                                                                                 (Housing Wire)

2018 Housing Market Recap

The December Median House Price was $295,250, that was a year over year increase of 10.2%.  From our last full market update in September, Median House Price declined by 1.6%.

 

The most significant adjustments in the housing market for 4th quarter 2018:

Inventory: The number of units available without offers in December was 6,615, which was a 4th quarter increase of 33.5% from September and December 2018 over December 2017 by 73%.

Days on Market:  Increased with 55% of homes selling 30 days or less compared to 70% in September.

As we reported in September, the housing market is stabilizing to a more neutral ground between Buyers and Sellers.  Homes that are marketed well and priced within the current market range, are selling within 30 to 45 days. Those homes that were priced assuming a large jump in further appreciation from current sales prices, are not moving.

 

 

 Interest Rate:  According to the most recent Bankers Association, as reported by Bankrate, the average prediction is that mortgage rates will be at 5.1% in 2019, with some experts predicting it higher at 5.5%.  Just to remind everyone that even at 5.5% rate is far below what many of the last few decades experienced.

30 Year Fixed Mortgage Rate – Historical Chart

 

*Chart courtesy of www.macrotrends.com

Interest Rate Direct Impact on Buyers:  Besides the obvious increase in payment, the more significant issue is purchasing power. For every .5% increase in interest rates, Buyers lose 5% of Purchasing Power. Meaning if their income remains the same, the amount they would now qualify for is 5% less. If we use the average sales price of $295,000 that would mean if rates rise by .5%, then Buyers would be looking at a $280,000 purchase price.

Interest Rate Direct Impact on Sellers:  As rates rise, affordability becomes an issue. Let’s look at the ability of Buyers to qualify as a pyramid.  As rates rise, the affordability of buyers who can qualify to purchase at market price of a home decreases.

 

 

 

 

 

 

 

Crown Point’s Takeaway for 2019: STEADY AND STABLE

We expect to sell more homes in 2019 than in 2018, however, we expect appreciation to be in the 3-4% range.

 

 

 

 

 

 

 

  • Would like to view available homes :                   Available Homes
  • Would like to schedule a Buyer Consultation Appointment (phone or in person):  Buyer Appointment
  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment

Finding the Best Down Payment for You

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDEThe downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE
The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM
Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

  • Would like to view available homes :                   Available Homes
  • Would like to schedule a Buyer Consultation Appointment (phone or in person):  Buyer Appointment
  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment

Accenting Your Walls

An accent wall can totally transform a room, taking it from boring and drab to bold and exciting. Accent walls create a new focal point for your space, add liveliness and contrast, and are typically a very inexpensive DIY project.



The starter accent wall
You can easily add an accent wall to your room in one afternoon by applying a new paint color. Deep blues and bright oranges are common choices for accent walls, but choose a color that will complement your existing decor and overall design aesthetic.

Interesting textures
Bright, contrasting paint is a good starting point, but there are other options for accent walls that are even more eye-catching and distinct. Floor-to-ceiling wood planks can make your home seem both rustic and modern all at once and provide a natural, outdoors-inspired feel. It’s more work than simply painting a wall, but it’s still relatively inexpensive. You can source the wood from pallets on Craigslist and stain it yourself before attaching it to your wall. It takes a little extra elbow grease, but it’s worth the effort.

Patterns, murals, and more
Paint and wood are bold enough on their own to transform a room, but they’re still pretty subtle compared to other accent wall options. A chalk paint accent wall is a creative idea for any room and makes for some fun moments when you’re entertaining. There are also endless options for wallpaper and stenciling if you want some patterns or you can get really bold with a mural or over sized art print.

  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment

Find the Perfect Mattress

You’ve got more options than ever when mattress shopping these days with no shortage of brick-and-mortar and online-only retailers to choose from. Here are the factors you should consider when you’re shopping for a perfect night’s sleep.


Mattress construction: The most popular mattress types are innerspring mattresses, memory foam mattresses, and adjustable air mattresses. Each has pros and cons when it comes to durability and comfort customization.

Firmness: Mattress firmness plays a huge role in the quality of your sleep. Mattresses that are too firm or too soft can cause aches and pains, so it‘s recommended that you test a mattress for 10- to 15 minutes in store before making a purchase.

Sleeping position: Your mattress should match your sleeping style (side, back, face-down, etc.). You want a mattress that keeps your spine in proper alignment. For example, some mattresses are better for side sleepers, while others are better for back sleepers.

Size: It’s not quite as simple as choosing between a king and a queen mattress. You should also consider your height, as some mattresses are a better fit for shorter people while tall people will want a longer mattress so their limbs aren’t hanging over the edge of the bed.

Stability: For couples, you should consider how the mattress reacts when one person moves, so the other person’s sleep isn’t disturbed in the middle of the night.

  • Would like to view available homes :                   Available Homes
  • Would like to schedule a Buyer Consultation Appointment (phone or in person):  Buyer Appointment
  • Would like a home evaluation (home value):  Home Value
  • Would like to schedule a consultation about selling my home – Seller Appointment