Las Vegas has been named one of five “mega-politan” areas. These places are considered newly recognized super regions that combine two or more metropolitan areas into a single economic, social, and urban system.

Many experts predict that Las Vegas will continue to grow but will have to come up with solutions for water resources, education and infrastructure.  Las Vegas is already experiencing a construction boom on the Las Vegas Strip.  There are numerous projects under construction but none come close to the massive project on the south end of the Las Vegas Strip called City Center.  Project City Center is a project that consists of condos, hotels, casinos and retail district sitting within a 76 acre area.  You can easily say that Project City Center is a city within a city!

Even though home prices are still dropping in the Las Vegas Valley, you can rest assured that home prices will begin to stabilize very soon.  The reason I say that is because many foreclosures that are placed on the market for sale are receiving multiple offers.  When homes receive multiple offers, it usually means the property is priced below market value.  You can see why Las Vegas real estate is a great investment!

Las Vegas is poised for a strong come back in the years to come!  If you are looking to buy your first home or an investment property, you can’t go wrong with choosing a home in Las Vegas!

The Plaza Brand might be coming to Las Vegas very soon. Elad Properties which purchased the New York Plaze Hotel in 2004 is planning on building Plaza Hotels around the world, including in London, Shanghai and Las Vegas. It appears that the first Plaza Hotel that will be built outside of New York will be in Las Vegas.

The Las Vegas Plaza Hotel will be built on the site of where the Frontier Hotel and Casino used to sit before it was imploded on November 13th, 2007. The Frontier Hotel and Casino used to sit across the street from the Wynn Hotel and Casino.

The Las Vegas Plaza Hotel is expected to have over 3,000 hotel rooms and is projected to have a price tag of over $4 Billion.

Currently a trial is under way between Tamares Group, the owners of the Plaza Hotel and Casino, a 37-year-old hotel in downtown Las Vegas, sued Elad, alleging trademark infringement.

Elad Properties has a few hurdles to overcome in order to build the first Plaza Hotel brand in Las Vegas!

Last week there was some very HUGE news in the mortgage industry with the U.S. Government bailing out both Fannie Mae & Freddie Mac as they were facing financial issues in today’s hurting mortgage industry.

Short Term - This was a must for the mortgage industry. If the government wouldn’t have stepped in and bailed out these two giants, what could have happened otherwise would have been catastrophic. High fives should be going around the house with this news. This is going to give our conforming industry back the stability it needs to continue funding loans and driving in new business. I wouldn’t be surprised if we see a drop in interest rates down to the 5.500% range and rally back and forth for some time because of this huge take over.

Folks, please also note that this is not the end of the mortgage crisis. All this is really going to do is allow us to still continue to move forward with the same crisis we were already facing in our mortgage and economic economy. Why is this good news then? Because if what could have happened if the government would not have bailed these giants out would of destroyed or us. Imagine for just a bit if the conforming lending had just the same if not worse restrictions on it as the jumbo loans do now. This could have and would of shut us down and caused worldwide effects.

So Short term, this is great news because we can continue to move forward. What we have to keep our eye on is the long term effects. There are still major companies in economic shambles and the government can’t help them all out. What will happen to these companies, and how will that continue to affect our economy?

Regards,

Fred D. Williams, Jr.
Mortgage Advisor
Mid Valley Financial Service
(559) 256-3645

Are you currently in the process of looking to purchase a home for the 1st time? Do you have clients that may be struggling to come up with the down payment to purchase a home? If so, you need to be aware of one of the many benefits that will take effect due to the H.R. 3221 Bill that was singed by President Bush on July 30, 2008.

Within the H.R. 3221 Bill there is a provision that allows first time home buyers to have up to $7,500 as a tax credit for purchasing a house. The max is $7,500 or 10% of the purchase price, which ever is less. So as long as you have a purchase price over $75,000 your tax credit will be $7,500. This $7,500 tax credit is looked at as a loan and will need to be paid back over a period of 5 years. The exciting part is it is less than $42 a day and it is interest free money.

There are income restrictions on this money if you are single or married. If you are single you will not qualify for the full $7,500 if you make more than $75,000 a year. If you are married your combined income can not exceed $150,000. If for any reason your income does exceed these amounts when filed, your tax credit will be reduced from the full possible amount of $7,500.

You will need to pay your tax credit back in full if you decide to rent out the property while you still owe on your tax credit. They only way to get out of not paying this money back is if your number expires and you were to pass way.

Take advantage of your tax credit today by getting a loan from a family member! If you can’t wait until tax time to get your tax credit Perhaps a family member would be willing to gift you a down payment for your purchase today (with possible interest) and pay them back in full once the tax credit is recieved at tax time. If this is a plan that they decide to go with, please make sure to talk to a CPA who has possibly filed there taxes in the past. If they are an individual that usually has to pay on there taxes, they better be prepared to not get the entire $7,500 tax credit or what ever is due to them (Uncle Sam gets his slice of the cake before anyone). So if you were to file your taxes in 08′ and it turns out that you owe $1,500 and you were also expecting a tax credit  of $7,500. Your amount due to you will drop to $6,000. 

So if you are going to borrow from a family member with the anticipation to pay back at tax time, be sure that you know where you stand with your CPA.

I hope that this has shed some light on the new tax credit that is coming our way from the H.R. 3221 bill. 

Regards,

Fred D. Williams, Jr
Mortgage Advisor
Mid Valley Financial Services

Las Vegas living is just as exciting as visiting. If you enjoy living in the fast lane, Las Vegas is the place for you. With any kind of entertainment that you could ask for, this is a great place to call home.  The Las Vegas Strip is not only a place to play but a great place to work. 

 With many job opportunites in the near future with the opening of Encore, Project City Center and the M Resort to name a few, it’s time to make a move.  Las Vegas Home prices are at lows we haven’t seen since 2003 and 2004, interest rates are still at all time lows and the abundant amount of foreclosures makes this a dream market for any buyer looking to relocate to Las Vegas.

There are homes available of all sizes and in all price ranges, with many luxeries included. These luxeries may include swimming pools, hot tubs, jetted bathtubs, and so much more. If you are looking for a nice place to live, and the perfect climate, Vegas is the hot spot. The community has grown in recent years, and the real estate market will also continue to grow throughout the years.

Home sales in Las Vegas increased for the seventh straight month to 2,592 in July, the most since September 2005, and inventory remained stable at 23,423 units, the Greater Las Vegas Association of Realtors reported Thursday.  This is great news for the Las Vegas Real Estate Market.  With all the negative publicity Las Vegas has been receiving over the last few weeks with the temporary shut down of Echelon, Project City Center financing issues and layoffs at Trump, it was much needed good news.

With President Bush passing the Federal Housing Bill, the Las Vegas Real Estate Market should continue  to do well and inventory should gradually decline.

Will the new federal housing bill help the Las Vegas Real Estate Market?  Without a doubt!  The federal housing bill should stop future foreclosures, stabilize home prices, encourage a wave of more home buyers and reduce the housing inventory.

The federal housing bill will allow distressed homeowners who might be facing an eminent foreclosure to refinance out of their existing mortgage and into more attractive terms.  According to the bill, financially distressed homeowners have the opportunity to reduce their mortgages to 90 percent of their home’s current appraised value. The newly created mortgage will be a 30-year fixed FHA loan at the prevailing interest rate.  In exchange for refinancing, the homeowner agrees to share a substantial portion of any future appreciation with the original lender and the FHA.

So this gives a homeowner two choices.  They could either go through with foreclosure and destroy their credit or refinance their home at 90% of the appraised value and share any future appreciation with the original lender and the FHA.  I think this is an easy choice, don’t you?

The Federal Housing Bill will reduce the amount of future foreclosures on the market, which is significant.  This means the current housing inventory will decrease at a quicker rate and home prices should stabilize because of the decline in inventory.  We have had 6 straight months of increased home sales and it has been making a small dent in the standing inventory because of the increase in foreclosures.  So with foreclosures decreasing because of the new bill, we should see a decrease in the inventory over the next 8 to 10 months.  With the decrease in inventory comes with the stabilization of home prices.  Home prices should start to level out over the same period.

I think this bill was exactly what we needed to help the Las Vegas Real Estate Market which will ultimately have a positive effect on the Las Vegas Economy.

Home prices in Las Vegas dropped 29.5 perecent in May compared to a year ago.  This decline can be attributed to the abundant amount of foreclosures that are flooding the Las Vegas Real Estate Market.  Banks and Lenders are lowering prices to move these homes which is affecting home values all across the Las Vegas Valley.

First time home buyers, investors and those looking to buy 2nd homes are finding incredible opportunities.   A friend of mine is looking to rent a home and they forwarded me a property that was for rent and asked me to find out when it was purchased.  After doing a little research, this 3000 square foot house sold in December 2006 for $610K and just recently sold in May 2008 for $300K.  Talk about a great deal!  This one story, 3 car garage, 3000 square foot house sold for almost 50 percent less in less than 2 years. 

What this means for buyers:

1. Excellent opportunity to find an affordable home.
2. More home for their money.
3. Banks/Lenders are paying your closing costs.
4. Interest Rates are still at all time lows.

Sellers are not in a very good situation right now and should avoid selling if they can and attempt to wait until home prices in the Las Vegas Valley begin to rise.  The rental market is doing very well right now and sellers should look at renting their home as a viable option before selling.  If you cannot wait and have some type of hardship, (divorce, loss of job, pay cut, etc…) you could always look into selling your Las Vegas home as a short sale.

What this means for sellers:

1. Banks/Lenders are driving down the values in neighborhoods.
2. Probably will owe more than the home is worth.
3. Hold off on selling if you can afford to wait for home prices to rebound.

If you are looking to buy or sell in Las Vegas, don’t hesitate to contact Sena & Associates for all your Las Vegas Real Estate needs at 702.376.0088 or visit us on our website at www.SenaSellsVegas.com!

It started as one case filed in 2005 by Wisconsin couple against their mortgage lender. Now, it could have serious implications on the banking industry. It comes down to if an appeals court agrees that a borrower can cancel their mortgage when the lender has violated a federal lending disclosure law.

It started out like any other of the hundreds of lawsuits filed since the U.S. housing boom had a rise in sales of adjustable rate loans. The couple in Wisconsin claimed their lender, Chevy Chase Bank FSB, hide the real terms of the low-interest rate loan when they were refinancing to pay off their children’s college tuition. The couple thought they were locked into a rate for 5 years but in reality by the 2nd payment the rate had more then doubled.

When the couple filed the case, they did so seeking class action status. In early 2007, US District Judge Lynn Alderman ruled that Chevy Chase had the violated Truth In Lending Act and that thousands of other customers of Chevy Chase could join as plaintiffs.

When the judge ruled that the borrowers could force the bank to cancel or rescind their loans, she turned a normal class action lawsuit into a nightmare for the banking industry. Luckily the decision was stayed pending an appeal to the 7th U.S. Circuit Court of Appeals but they are expected to rule on this any day.

According to attorney Christine Scheuneman (whose firm represents Chevy Chase), the Federal appeals court disagrees over whether class-wide rescission under TILA is available. “If class treatment is found to be available for rescission…given the current crisis not predicted in 2005, the result all over the country could be massive class suits,” said Scheuneman.

Be prepared for confusion and market disruption if the 7th U.S. Circuit Court of Appeals agrees with Judge Adelman. The banking industry will curtail lending as a response. Ultimately, both sides feel that a decision in the case will be decided by the U.S. Supreme Court. But in the mean time, all of us in the mortgage industry/real estate industry need to be prepared that lending could get tougher for a period of time.

By Shelli Crysler

I have been saying it all along that the media reports about the Las Vegas Real Estate Market are just not completely accurate. Today on CNBC they stated that Las Vegas Home Prices will continue to drop into 2010 but that is just crazy with over 100K jobs being created in the next 5 years with the opening of Encore, Project City Center and Echelon to name just a few.

The Las Vegas Housing Inventory has dropped from over 29K homes on the market in September 2007 to 21K homes on the market as of April 2008. That is a 25% drop in homes for sale! That is a positive sign for the Las Vegas Real Estate Market, which the media is not talking about?

Alex Edelstein, the developer of Manhattan West also agrees that the Las Vegas Real Estate Market is not as bad as the media is depicting. Watch the video below of his interview on Fox News.