MESQUITE, NEVADA HOMES FOR SALE TODAY
Foreclosure freeze only prolonged the pain, increased the loss in value, and stalled sales. The government intervention has hurt the markets. When this shadow inventory comes into the market, home values will fall further based on simple supply and demand. In addition the freeze will generate more strategic defaults. The average time a homeowner lives for free in a home after they have stopped making the payments is 15 to 18 months, this time frame is getting longer. Many more will stop paying their mortgage payments in their up side down home leading to more defaults and increased foreclosures in the future. Based on the news today, you may be able to live in a home for more than 2 years without making a payment. Two years free is a big incentive to stop making mortgage payments. They have created a huge incentive for people to stop paying!
Just like the 2010 government buyer incentive program, the foreclosure freeze has created a vacuum or lull in inventory, and local agents intend cash in on it. Leaving many current homebuyers to look back in the future at the real inventory from an underwater home they purchased in 2011. Today given the NAR December 2011 revision report looking in your rear view mirror is not going help you from getting run over by the Semi-truck full of distressed shadow inventory that is coming right at the market!
Mesquite Nevada Real Estate
November 2010 there were 13 pages of Notice of Defaults filed in Mesquite or 37 housing units in one month. Also in November 2010, there were 39 residential units on the Notice of Sale report. The NOD and NOS numbers are future foreclosures and then future inventory. Based on this one month, there are well over twelve months supply in distress and likely headed to the market. This is shadow inventory.
Adding more homes for sale to the market supply side pressure, builders pulled from The City of Mesquite issued 105 new home building permits during 2009, and 201 during 2010. The City of Mesquite website building permit report through November 2011 shows 129 new home permits for this year.
There are historically high numbers of resale homes listed for sale at Sun City Mesquite. Average asking price for these resale homes is falling. Due in part to the incentives and competition from Pulte Del Webb new home building.
The August 2010 Single family home sales report for Mesquite, Nevada homes sold from Fidelity Title shows an average sales price of $97 per square foot. There are smart buyers and then are those with no clue!
The rules at Sun City do not allow you to put a "For Sale" sign inside your own home that can be seen from the street through the window. This one rule alone, inhibiting your ability to expose your property to the market may be cause to think twice about doing business with Pulte Del Webb and Sun City Mesquite. From a buyers point of view it gives a very deceptive perception of the actual market, it looks like there are no resale homes for sale.
When you visit any project like Sun City, they count on selling the "sizzle" and your impulsiveness to purchase now, TODAY! Hire an agent to go with you, attend a Mesquite Market Smart Buyers Seminar.
Sun City Mesquite saw the first "Notice of Default " filed within the development in December 2009, since opening three and a half years ago.
Most people are interested in what their home is worth, not how many are selling in the neighborhood. The bottom will ultimately be measured by home values in Mesquite. From my view, the market is beginning to settle, sold prices keep dropping. Listed asking prices have come down this year. Yet a record number of failed listings continue. It is the distressed properties that are selling for the most part. There is an inventory log jam developing with bank owned properties, they have been slowly releasing them onto the market, now they are going to freeze the process. Once they begin to release this inventory patient buyers will be rewarded.
A growing number of Mesquite homes for sale property listings are being listed by banks with out of town agencies, Las Vegas MLS agencies who are not members of the local Mesquite MLS. Of course the local agents generally use only the local MLS and therefore may not be aware that these properties are even being offered For Sale.
The banks that are doing this clearly don't have a clue! This is the result of shoddy work by the contracted loss mitigation companies, and the banks themselves not doing their due diligence.
There have been many non Mesquite MLS agency listings which are mostly bank owned and not available in the Mesquite MLS system.
Smart buyers will wait for the banks to choke on the foreclosure inventory.
This feels like the eye of the storm to me, we may have had an increase in activity due to tax buyer credits and lower inventory in Mesquite, but my guess is there is another leg down for prices in 2012 as the bank owned real estate begins to flood the market. The tax credits may have pulled buyers from the future market place. As the artificial stimulus in the real estate market fades and inventory of distressed property increases the market may feel like it just hit a brick wall.
Mesquite MLS showed 285 single family homes sold and closed with a median price of $184,900 for 1732 square feet or about $106 per square foot of heated space in 2010
There are some condo/town homes asking over $250,000, mostly town homes. Caution, some of these properties have the highest HOA fees in town. These High HOA Fees can inhibit your ability to resale these units, narrow the market of buyers. Possibly more important you should know why the fees are so high. Private roads, building exteriors, poor management, expensive landscapes, gate expenses, etc. Remember you can attend board meetings, review meeting minutes, understand CC& R and HOA rules and restrictions, etc. If you buy and did not take the time and effort to understand, you do not have much room to complain. If you understand you may or may not buy! Be informed.
Mesquite MLS shows around nine condos/town homes closed per month or (112) during 2008 with a median price of $183,250 or $145 per square foot. Mesquite MLS shows around thirteen condos/town homes closed per month or (160) during 2009 with a median price of $111,000 or $90 per square foot.
The Mesquite Market saw 195 total homes closed through the Mesquite MLS for 2008 with an median price of $251,065 or $157 per square foot. For 2009 the median sold and closed price for a single family home in Mesquite MLS was $200,000 or $123 per square foot, with 222 total. Real value continues to fall. Cash Buyers GET an Appraisal!
Attend an "Mesquite Market Smart Buyer" seminar to learn why.
City of Mesquite issued 378 permits to build new single family homes in Mesquite during 2008. Mesquite MLS including Bunkerville recorded 197 total sales of single family homes including a total of 92 new single family homes sold and closed. Inventory of homes available continues to grow, many are not listed but in distress in Mesquite, NV. Just look at the average asking prices and compare it to the real selling prices.
Competitive supply and demand data for Mesquite Nevada real estate is a form of market trend data, one that is more closely tied to a particular or local market, therefore it is neighborhood specific. It is a fundamental rule of appraisal that supply and demand affects value.
Inventory, competition, new home building, foreclosures, and vacancy are driving prices down in the Mesquite Nevada real estate Market. Based on the developed lots available, and those coming back to the market at much lower cost basis from bankrupt speculators, this competitive market should continue for years.
Builders and the City of Mesquite ignore solar orientation. In this climate western exposure during the summer is intense. During the planning stage of subdivisions and homes this issue can be addressed and dealt with to maximize winter warmth and summer cooling. This is an age old passive solar concept and very simple. Yet subdivisions are planned and approved and homes built with complete disregard. Unknowing consumers suffer the consequences in comfort, utility costs, and re-salability.
Not a solar panel in sight, Mesquite is a very sunny place, yet not a single builder offers any type of solar application. Passive solar can be applied by something as simple as proper orientation to the sun. Greener boomers may be a wake up call for future builders in Mesquite. Unfortunately many will just pass Mesquite by on their search for a more efficient and sustainable lifestyle. The new carbon tax will focus retirees more on their fixed ongoing "housing costs", HOA dues, Taxes, Utilities, and SID's. Electric costs for heating and COOLING can be dramatically reduced. This is going to require more cooperation and support from the City of Mesquite and Overton Power Electric Co-op.
The number of distressed properties and sellers is increasing. Banks and sellers are holding out and playing a waiting game with the buyers. They have their fingers crossed that the buyers will begin to feel urgency and pressure from tax credits and starving agents promoting the best deals available. It is my view the prices will go lower and the deals for the buyers will get better over the next six to twelve months. If you are financing you need to consider the interest rate risk, rates move up modestly during this time frame. Think and talk price per square foot, compare price per square foot, then think about HOA and SID costs. Be informed, Be a Smart Buyer!
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Chris W. Miller