As anticipated, last Friday the President signed the home buyer tax credit extension. Below are some of the key points to the extension:

· Who is Eligible

-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program.

· Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

· Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

· Types of Homes that Qualify

-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

· Tax Credit is Refundable

-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

· -For example:

-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

· Payback Provisions

-The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

· The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.

Maybe not the perfect answer but it does buy us time. There are many plans being considered at the moment and they all have the same goal; keep people in their homes and stop the foreclosures

What A Gorgeous Hotel! Fantastic Food, Superb Shopping, Stupendious Shows… This one stop Hotel Casino has everything you could want. Even the location is great in case you want to walk off dinner in the warm Las Vegas air.

I recently had some friends visit from out of town; they are thinking about buying Las Vegas real estate but want to rent an apartment in Las Vegas first to learn the town. They came for a weekend and stayed at the Wynn, Las Vegas.

Wow! They were so impressed and so was I! In case you are wondering at this point if I own Wynn stock, I don’t. But I do know a good thing when I see one. We rarely get to rave about our shopping/dining/entertainment experiences, so I am taking this opportunity to do so. And remember this, I haven’t even mentioned the gaming yet, which is clean, fun, and classy…

I give the Wynn, Las Vegas, my highest recommendation.

Wynn, Las Vegas
3131 Las Vegas Blvd S
Las Vegas, NV 89109
(702) 770-7000

Sometimes, because I live in glitzy and glamorous Las Vegas, I lose sight, a little bit, of those things that really matter most; family, friends, caring and giving. Lucky for me Thanksgiving comes around again to remind me.

The last few years have been tough on everyone, especially in the real estate market, and it is starting to feel like maybe we have turned the corner and are lining up for the straightaway. I truly hope so. It won’t come fast and it won’t come easily, but at least we are no longer dropping in free-fall with the ground rushing up to meet us. Amen.

I am Thankful for all I have. I have been fortunate. Considering how cruel it can be, life, to me, has been mostly kind, and I give thanks for that.

David

The new Home Builders Research newsletter is out and it is packed with useful information. HOME BUILDERS RESEARCH, INC. was established in 1987. The firm was formed by Dennis L. Smith, its President and CEO. The company is acknowledged as the premier housing research firm in the Las Vegas housing market.

The company’s reports, and its Principal Mr. Dennis L. Smith, are exclusively and regularly quoted in the regional general and business press, and forecasts and special reports prepared by the firm are utilized in planning by most of those whose business involves housing. Dennis Smith is widely sought as a speaker on housing and housing economics topics, regularly addressing industry trade groups, special interest groups, management groups, directors, investors, securities analysts, and others seeking insight into the Las Vegas and regional housing economics. Mr. Smith is one of the principal speakers at the Las Vegas Housing Outlook seminar, an annual event that attracts builders, lenders, contractors, realtors, governmental agencies, and other housing industry professionals from all parts of the United States.

There is some evidence that the Las Vegas housing market is improving. However, there are also many factors that point to continued difficult times ahead. We’ll start with the “hard” numbers we tabulate each month for the last 20 years.

In September there were 452 recorded new home sales. It brings our 2009 sum to 3,619, which is a year to year decrease of 4,717 or 57 percent. That by itself is a pretty sobering statistic. However, if we only look at this data since January 2009, it exhibits a different scenario. During 2009 this trend has been upward, indicating more people are turning to new homes instead of the uncertainties, frustrations, and disappointments that many “real” homeowners have found when trying to find a distressed resale.

The median price of the new homes that closed escrow in September was $208,240.

This is a year to year decline of $42,760 or 17.1 percent
A decrease of $25,933 or 11.1 percent from January, 2009
An increase of $51,716 or 33.1 percent from September, 2000

We counted 4,121 recorded resale transactions in September. It brings our 2009 tally to 32,589, a year to year increase of 10,744 or 49.2 percent. The resale market continues to roll along, greatly influenced by investors. They are still buying properties and renting the homes for an acceptable return on their investment.

The median price of the resale closings in September was $125,250. This was,

A year to year decline of $63,750 or 33.8 percent
A month to month INCREASE of $3,250 or 2.7 percent
A decrease of $29,750 or 19.2 percent from January, 2009
A decline of $6,750 or 5.2 percent from September, 2000

So overall the Vegas market does seem to be improving, but of course there are caveats. To find out more visit their website: http://www.homebuildersresearch.com/

David

This mega-club boasts three main areas: a techno and trance floor, a hip-hop room, and the main room, which features the all important VIP tables. JET even has V-VIP areas. One sits prominently on a raised stage with seven tables, and another sits behind the DJ booth with six tables.

Vibrant lighting and intense sound encompass club goers as they enter Jet Nightclub at The Mirage. A high energy ambiance and inviting party atmosphere entice guests to cut loose as they dance and drink the night away in one of Jet’s three distinct rooms, each featuring their own dance floor and sound system. Rub elbows with the sexiest party crowd in Vegas, while go-go dancers and shot girls help to make sure that the party doesn’t stop till the sun comes up.

Conveniently located between The Mirage’s main and north valet entrances, Jet combines the elements of light, sound, and energy to create an ideal environment suitable for any occasion. Whether you’re looking for a fresh and invigorating way to spice up your corporate meetings, or simply wanting to plan the ultimate bachelor or bachelorette party, Jet’s versatile and massive 3 room 10,000 sq ft layout can be tailored to accommodate groups up to 2,000 people.

Hours of operation
Thu, Fri, Sat, Mon: 10:30pm-4am
Mirage Resort & Casino
3400 S. Las Vegas Blvd.
Las Vegas, NV 89109 Phone: (702) 792-7900

The real estate market in Las Vegas is like no place else. Las Vegas real estate took off in the last decade, just like it did everywhere else, and the boom lasted for many years. Then came the slow down and for reasons too numerous to list here, the whole US economy lost all the momentum it had. But here is the interesting thing: Las Vegas is still growing rapidly. Although down from our hey-day, Las Vegas is still adding thousands of residents every month.

Here at David Brownell Team, we feel real estate will recover in Las Vegas sooner than the rest of the country. A glance at the Las Vegas MLS (Multiple Listing Service) certainly seems to prove this true. Home sales are on a record pace and our home prices have even started to head back up! Take a look.

Summerlin is the Crown-Jewel of Las Vegas real estate. Summerlin is a 22,500 acre master-planned community that runs along the western rim of the Las Vegas Valley. The community is adjacent to the Spring Mountain range and the Red Rock National Conservation Area which provide a dramatic and naturally beautiful backdrop.

Developed by the Howard Hughes Corporation (now the Rouse Corporation), Summerlin came into existence in the late 1980s-early 1990s. Families living in the community come in all sizes and income levels. All Summerlin homes are listed on the Las Vegas MLS, which we offer free access to on our website here.

Now is a very exciting time for Las Vegas and Summerlin real estate. Nobody knows what the future holds, but all indicators seem to be swinging around and heading in the right direction!

Meanwhile, I promise you we will keep working hard here at the David Brownell Team to stay on top and informed. We know you count on us!

David

I wonder if years from now mankind will look back and be amazed at the impact social networks had on the world. I like to think so. Yesterday I had a conversation with a friend and he described all the inter-connectivity as “scary, frightening…what happens when we all know what everybody is doing all the time?”

My feelings are the exact opposite. I believe as we see each other more closely we will see more commonality. We will see that we are all more alike than we are different. The world will become LESS scary.

So come check us out…get plugged in!

Guides Concerning the Use of Endorsements and Testimonials in Advertising

The new FTC guidelines for bloggers, which can be found here, are a wonderful idea. Many times I have been reading a blog and wondered if it was a legitimate blog or some paid site merely disguised. Of course, these new guidelines won’t make all the false site disappear overnight. In fact, it will most likely take a few big fines to get companies and bloggers to even take notice. But I do believe it is a step in the right direction.

David Brownell’s Las Vegas Life Blog has never and will never accept any compensation for endorsements or testimonials. On our website, www.LasVegasMove.com we have a preferred vendor page and here, too, we have never received any monies or services for our endorsement. We have used these companies, just like you, and found their standards excellent.

David.

Yes, it is that time again. Steve and Larry have once again done all the number crunching for us and here are their results for August;

Las Vegas housing statistics for August continue to suggest that the residential market is scudding along a bumpy bottom, struggling to find stability in sales, inventory and pricing.

But the big story in the August data for the Las Vegas residential market can be summed up in a single word:

Foreclosures.

Surprisingly, for the second consecutive month, the avalanche of foreclosures predicted failed to materialize.

—–>Indeed, Las Vegas experienced its second consecutive monthly decline in the number of actual foreclosures, sliding from 2,471 down to 1,944. That’s a drop of 21%.

—–>For the sixth consecutive month, the number of foreclosures sold exceeded the number of foreclosures created. This month, the difference was 527 units.

—–>The number of bank owned foreclosures peaked in February at 16,411. August saw 12,593 REO’s left, a slide of more than 23%. The key here is that the number of foreclosures available in the market is declining … a drop of more than 3,800 units in the last seven months.

——>Yes, that’s about two years of supply at current absorption rates. But, as foreclosures are eliminated, their impact on pricing will be ameliorated.

August data for the Las Vegas market also indicated:

1. Sales remain strong;

2. Inventory continues to decline;

3. Prices, buffered by foreclosures, also slipped.

Here are the details:

SALES:

Sales in both the existing and new home sectors of the market remained strong in August, although not as strong as they were in July.

Existing home sales slipped to 4,001 units, a drop of 14% from July, but an improvement of 27.7% over last year. It is important to note that the percentage of REO’s in sales has been declining steadily for the last six months.

New home sales increased 5% to 429 units, the third highest month in the year. That’s still 46.2% lower than last year’s lackluster pace.

PRICING:

Nearly three out of five (56%) of the existing home closings this month were bank owned homes. The median price of an REO was $106,000. The other 44% of existing home closings were non-bank owned homes with a median closing price of $130,000.

Overall, the median price of an existing home slid to $120,000 in August, about 40% below the level of last year.

New home pricing rose less than 1% over July’s median to $211,350. That’s just 18.7% below last year.

It is interesting to note that the average square foot price for both new and existing homes rose this month. The differential between a new home and an existing home is more than $30 per square foot. In other words, new homes tend to be 28% more expensive than existing homes.

We note that more and more new home builders are bringing less expensive and smaller sized product to the market. It should be interesting to see at what point new home sales begin to accelerate.

INVENTORY:

Existing home inventory declined for the ninth consecutive month, reaching 11,356 – a number not seen since Dec. 2005.

Essentially, there are now 2.8 months of inventory in the resale market – just under the 3-month standard definition of a “hot” market.

The number of active subdivisions slid for the 25th consecutive month to 265 – a number not seen since the last decade!

The number of new home permits dipped slightly to 427, just a shade under July – but still the second highest monthly total of the year.

CONCLUSIONS:

Bottoms take some time to form. So, the questions are: Are we on the bottom? Will prices stabilize? Will the rate of foreclosure absorption accelerate?

We’ll address those questions and more when 3rd quarter 2009 statistics are in at the Crystal Ball Seminar at Texas Station on October 22. To register, go to www.crystalballseminars.com.

Francis Bacon once said: “If a man will begin with certainties, he shall end in doubts: but if he will be content to begin with doubts, he shall end in certainties.”

We have lived with doubts for two very long years. We hope there will be some degree of certainty regarding this market in the very near future.

See you next month!

Respectfully submitted,

Larry Murphy Steve Bottfeld

SalesTraq™ Marketing Solutions

© SalesTraq 2009

I just had to share!