Las Vegas, NV – April 10, 2013 – (RealEstateRama) — Las Vegas Homeowners are currently enjoying a surge that is starting to raise national interest for our housing recovery but just how far have we come? History has a way of repeating but after what we just went through just a few years ago, have we not learned? What will be the highest hurdles for this market to continue its run on the road to recovery? Industry real estate expert, author, and brokerage owner Jared W Jones sat down with Anyah Ellis, and outlined the Top Three Critical Indicators to Watch in 2013 that could indicate the end to the surging Values.
Home values have been the range in the City of Sin over the past several months. The average price leaped 25% in fact, just since January. Supply is tight, and buyers are clawing their way to take advantage of record low interest rates. “If we stopped listing homes, we would run out of inventory in just one month at current pace of buying”, says Jared Jones, CEO of Horizon Realty Group in Las Vegas and Top Selling Nevada Agent. “If you want to move up, move down, or just move on, anytime in the near future, you are going to get thousands more than you thought you would right now in the Vegas Housing market”. But timing is everything. Buyers who waited too long in 2006, found that more than half of their equity had depleted 3 short years later. Nothing lasts forever and the question for those who own real estate in Las Vegas is, what do we really need to be concerned with if selling is a consideration?
The first indicator to watch is the recent foreclosure activity. A repeat of times past could cause that massive equity leap that you currently have in your home, to again disappear before you have a chance to escape it. While some are experiencing a housing recovery, there still is a little known fact that Nevada is still 2nd in the nation in mortgage delinquency (10.4%). What this means is that with the backlog of $64 Billion in mortgages with Bank of America alone, that are awaiting the foreclosure process, when they are released, we could have streets lined with bank owned homes for sale. Something Las Vegas is all too familiar with.
The second is buyer affordability. “The vast majority of our locals including teacher and casino workers, are competing with out of town cash investors right now, to buy homes within their price range. As home values climb forward, there will be a point where the buyers will struggle to reach the home they can afford”, says Jones. When Home prices are going up but incomes are not, sellers should be absolutely mindful that their value soars right now because of the willingness of the buyer to pay and their ability to reach that bar. When buyers cannot stretch anymore, all bets are off, and this seller market will slow and possibly move downward.
The third indicator is the Mortgage Debt Relief Act Expiration 2013. Even though we have had an exciting run up in equity, nearly 6 out of 10 home owners in Las Vegas are still underwater in their homes. The Mortgage Debt Relief Act (MDRA) offers homeowners the ability to sell their upside down primary residence in short sale, and in turn protects them from having to show the large amount that the lender is writing off, as income. That is a huge benefit when the tax ramifications of this “added income” can be in the tens of thousands of dollars to an already cash strapped homeowner. On this issue, Jones stated, “Besides the fact that we could see supply increased from those seeking to make the deadline, short sales are like a pricing grenade for the neighboring seller. I say this is because, someone writes an offer based on today’s value and then closes many months even a year later at a different
value. When you are in your home expecting the prices are on the way up, and then your short sale neighbor who contracted his home almost a year ago, having waited for months for bank approvals on the upside down balance, then closes at that lower price, you will be shocked to find the trends change suddenly. It’s like pulling the pin on a grenade now and then the grenade going off 8 months later and you think to yourself, ‘I should be up 10%, where did that go?” Sellers must keep their eye on pre-foreclosure activity when considering their future in their home. You never know what that “grenade” will look like that you see sitting in your neighborhood and unfortunately, it can cause serious collateral damage to your equity.
Jared W Jones was one of a few brokers in Nevada to be interviewed by Time Magazine Online, Las Vegas Weekly, and the Las Vegas Review Journal for selling over 900 homes in Nevada in a single year. At 32 years of age, he was given the distinction of Vegas Inc Magazine’s “40 under 40” local executives and business owners. He has led Nevada in sales for the past 3 years cumulatively selling an astounding 2500 homes during this timeline, a feat most agents never see in two business lifetimes. Aside from that, Jones is an active property owner buying and selling investment real estate in 3 states, and has a grasp on real estate industry from the national standpoint, an understanding that is evident in this article.
To request more information or a phone interview with Jared Jones, please call Anyah Ellis direct, 702-419-0179
Las Vegas Home Values: Boom or Bust
Questions and Answer Regarding Topic
1. Who are you and why should anyone listen to what you have to say about real estate out of over 12,000 local real estate agents?
2. Why is 2013 throwing off warning signs of times past and who / what is causing the conditions and how long will it last?
3. How long can our prices continue to rise at the current pace and what are the conditions that will most likely impact, stop, or even reverse the current run up in housing prices?
4. What are the largest pitfalls that sellers face that cost them thousands even in a market with surging values?
5. What is the definition of a “good deal” for a buyer in our current market?
FOR MORE INFOMRATION CONTACT
JARED JONES at 702-496-5000
Jared Jones – Bio Sheet
While Jared’s success in real estate has deservedly earned him worldwide attention, what’s even more impressive than the number of homes he’s sold is the speed with which he attained his success. Entering real estate at the age of 22, Jared came from a lower middle class family in Florida with only a high school education and was making $40,000 a year selling Little Debbie cakes in retail with absolutely no real estate or business background. Less than 5 years later he was earning more than half a million dollars a year and working his way into the top 100 agents in Nevada.
After only three and half years in the business, at the age of 25 Jared opened Horizon Realty, his now 8 year old company, with more than 50 sales agents and offices in Green Valley and West Las Vegas. After the raging market in the mid 2000s started to plummet in 2006 and ’07, Jared doubled down on the emerging distressed market and while a large section of agents where exiting the business and hanging up their licenses, Jared would see some of the largest years in sales that any real estate agent would see in the history of real estate sales.
Jared would go on to shatter local sales records by selling an incredible 3000 homes and earning more than $6.5 million in commissions during the years of 2007 to 2012. Jared ranked 4th in the Nation out of over one and half million Realtors by Real Trends – Wall Street Journal’s the Thousand list and was featured in the Las Vegas Review Journal, TIME, Las Vegas Weekly, and Vegas Inc magazine for breaking through sales barriers over this same time period. Jones was also nominated in 2011 for Vegas Inc Magazines “40 Under 40” young entrepreneurs and executives award for leading in Nevada.
So how did this young man go from “Little Debbie Distributor” to nationally recognized super salesman in less than a decade? Jones credits his phenomenal success to the innovative and aggressive way he has approached his real estate business. Without previous real estate experience, he entered the business with no preconceived notions of how things should be done, or how high “up” could be. With a tendency for funnel vision, rather than tunnel vision, he not only studied the real estate industry, but also businesses outside the industry to understand what made them successful and how their success could be translated to real estate.
Jones self-schooled himself in the discipline of marketing, and it has become his passion. He has learned through firsthand experience how to use marketing to get prospective buyers and sellers knocking on his door. Jones has also become mentor to several agents in the Southwest region between Nevada and Arizona sharing with them, his step by step approach to success