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Las Vegas’ fast-paced housing market trails other cities

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In the Indianapolis suburbs, a home-hunting couple left some postcards on people’s doorsteps saying they loved the place – and asked the owners to call if they were interested in a sale.

In the Twin Cities, a couple looking to buy their first home made eight offers – about $ 30,000 above asking price on average – and they still couldn’t get a seat.

And in the Dallas area, a real estate company offered prepaid cruises to sellers to help them accept their offers.

Driven by cheap money, real estate markets across the country have accelerated with rapid sales and soaring prices. The Las Vegas market is moving at its fastest pace in years, but it does seem tame compared to other cities.

As seen in recent metropolitan comparison reports, soaring prices in southern Nevada are rising (10.6 percent year over year in March) at one of the slowest rates in the country. The proportion of homes in Las Vegas that found buyers within a week of listing (around 51 percent in April) is in the middle, and the proportion of homes that sold above asking price (15 percent in February) is at one of the smallest in the nation.

At the moment it’s not entirely clear why the Southern Nevada home rocket is lagging behind others. But buyers are setting the lowest mortgage rates in the country, stretching their budgets, and the fact that other cities are cluttered than Las Vegas shows just how frenzied housing construction has become.

“Everyone’s just inundated … this big wave,” Taylor Marr, chief economist at listing site Redfin, told me.

In southern Nevada, people shower homes with offers, often within days of listing them. Average resale prices hit new all-time highs practically every month, available inventory has dwindled, and overseas buyers, especially Californians, seem to be buying more homes than usual in cheaper Las Vegas as people work from home without commuting.

Meanwhile, builders have regularly raised prices and put buyers on waiting lists amid rising demand.

Nonetheless, property prices in the US are rising “pretty fast,” and overall, the trends in Las Vegas are “not unique,” said Danielle Hale, chief economist at listing site Realtor.com.

“Houses sell fast everywhere,” she said.

Las Vegas is still a top immigration destination, but people have packed and moved to other cities like Austin, Texas, as well during the pandemic. Denver; and Boise, Idaho, according to Redfins Marr.

In the Austin area, 4,535 homes were sold for $ 25,000 to nearly $ 100,000 above asking price this year through May 23, compared to 353 such sales in the same period last year, Redfin reported.

Plus, browsing news reports from around the country makes it easy to find stories of red-hot real estate markets, as shown by reports from Indiana, Minnesota, and Texas.

Of course, the housing market has gone crazy before. In the mid-2000s, Las Vegas real estate values ​​soared thanks to the torrent of easy money, people easily switched homes, and home builders filled the valley with far more residential areas than they do today.

After the bubble burst, southern Nevada was ground zero for the American real estate crash, which was marked by falling prices, abandoned construction sites, and tidal waves of foreclosures – a mess that took years to recover from.

Could the not-quite-insane market of Las Vegas today – at least when compared to other cities – leave it in a better position if housing construction eventually slows?

It is possible. As the cliché goes, what goes up has to come down – and the fall may hurt less when you’re closer to the ground.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.

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Housing crisis becomes an emergency as Salt Lake County home prices spike 31% in a year

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Average price climbed to $ 535,000 in May, $ 128,000 more than twelve months ago as severe supply shortages and declining sales take their toll on would-be buyers in Utah.

(Francisco Kjolseth | The Salt Lake Tribune) A home for sale in Salt Lake City on Tuesday, April 27, 2021. Despite Utah housing demand at historic highs, home sales along the Wasatch Front declined earlier this year due to a lack of supply. Single-family home prices, meanwhile, continue to rise as wafer-thin deals dampen sales and buyers seek cheaper alternatives like condos and townhouses.

As the latest sign of the Utah real estate crisis, Wasatch Front real estate agents lamented the catastrophic shortage of homes in the market on Thursday as prices soar to shocking new records and sales continue to decline.

The average price of a single-family home in Salt Lake County surged the noticeable $ 500,000 mark sometime in March, then hit $ 535,000 last month, new data shows – a staggering $ 128,000 year-over-year increase of 31%.

This major damper on the price spiral pushed the volume of home sales in the five-county region in May well below the level of the same month last year, when home shopping was temporarily wiped out by COVID-19.

With the average new home supply now spanning 30 to 40 and selling in five days, real estate agents in Utah’s main metropolitan area issued a rare emergency statement saying the region was “severely undeveloped” and facing severe declines through decades of underinvestment be in terms of affordability.

“It will take more construction of all types of homes so more people can realize the American dream of their own home,” said Matt Ulrich, president of the Salt Lake Board of Realtors, which covers Salt Lake, Utah, Weber, Davis and Tooele counties.

“It’s just too tough out there,” said Ulrich in an interview. “There is simply not enough stock because the demand is so great.”

That cry for help sparked a new report released on Wednesday that estimates the country’s housing deficit at around 5.5 million units. The industry study calls for residential construction in the US to increase by 2 million homes annually over the next decade, compared to 1.3 million units built last year.

America’s housing stock has been largely neglected for nearly two decades, the National Association of Realtors report said, with a severe shortage of new buildings leading to an acute shortage, an “increasingly worsening” affordability crisis and an inventory of existing homes it is getting old and in need of repair.

Calling the magnitude of the construction delay and the resulting gap between demand and supply “enormous”, the report said the crisis will require “a major national commitment to building more homes of all kinds”.

In Utah, the housing gap is estimated at 45,000 to 50,000 single-family homes, apartments, and other forms of housing, with a particularly acute need for more affordable housing for residents with average wages.

Home builders in Utah have record numbers of units under construction but say they are not catching up given the heavily pent-up demand, lack of supply and rising prices for land, building materials and builders.

According to economists, rising prices along the Wasatch front have temporarily slowed sales since 2019, but the pandemic-induced demand for houses with more rooms and larger backyards has pushed the supply of apartments to new lows.

The resulting drop in sales worsened in May, with double-digit price gains making it more of a creep and increasing stress on the part of buyers.

Home sales in May fell to 2,396, a 7% decrease from the same month last year, which was itself a historically bleak sales month, down 19% from 2019 due to pandemic lockdowns. The average single-family home price in five counties is now $ 485,000, up $ 109,640 from the same point last year.

While these declining sales are apparently a bread-and-butter problem for the area’s 10,000 or so real estate agents working on commission, a spokesman for the Salt Lake Board of Realtors said its members are speaking on behalf of budding homebuyers.

“We are heading for California prices if we stay on this path,” warned spokesman Dave Anderton. “And that is a really difficult situation, especially for first-time buyers.”

The National Association of Realtors report blamed the crisis on “persistent underinvestment” in all major regions of the country as a result of economic conditions following the 2009 Great Recession. This downturn resulted in severe job losses in the construction sector and tightened lending standards for builders and buyers, both severe setbacks to housing construction that persisted for years.

While the report describes this as a crisis of national proportions, Ulrich noted that Utah, Nevada, and Idaho – some of the fastest growing states in the country since 2010 – had also seen the worst declines in affordability.

The Cottonwood Heights-based broker and home builder reiterated the demands of the broader Utah real estate sector, urging cities to remove “onerous” building requirements and streamline building permits to reduce construction costs. Ulrich also called for increased incentives to attract more workers to builders – such as frame builders, electricians, plumbers and roofers – who are now scarce.

The national report also pointed to potential benefits of increased housing construction for the U.S. economy, including relief for costly tenants and nearly $ 400 billion in additional economic activity.

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Loyalsock taxpayers to see real estate tax increase for school district | News, Sports, Jobs

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For the first time in three years, residents of Loyalsock Township School District will pay more property taxes next year after the school board recently increased the rate by $ 0.43 million.

This means that for every $ 100,000 of the estimated value of a property, an additional $ 43 is added to the tax bill. According to M. Dan Egly, general manager and board secretary, the new tariff will generate $ 300,000 in additional revenue for the district that would have run a $ 640,000 deficit without the additional millage. The remaining deficit will be covered by fund balances to present a balanced budget for 2021-22 with revenues and expenditures of $ 25,084,743.

“We didn’t leave a stone unturned. We are looking for all possibilities to avoid the effects of these budgets on taxpayers. said Egge.

He said the district had renegotiated contracts, installed solar panels on buildings, and recently approved the construction of a cell phone boom on district property in an attempt to find ways to reduce costs.

“The district is looking for ways to avoid tax increases in the future, but unfortunately we have to make these decisions at some point.” said Egge.

The other tax rates remain the same for the next year.

The Loyalsock Township Recreation Board budget of $ 23,994 for programs available to children in the district for the period 2021-22 was awarded to the OK.

The board also approved that

Resolution to Foreclose Homestead / Farmstead, which will allow primary residents of qualifying properties to obtain a $ 130.75 reduction in their property taxes. There are 3,020 homesteads and nine homesteads in the district that are eligible for exclusion.

In Human Resources, the Board approved the following positions at the stated salary rates: Marc Walter, Assistant Principal, $ 86,000 for the 2021-22 school year; Maria Debrody, Temporary Specialist, Elementary School Teacher, effective October 18, prorated salary of $ 49,059; Laura Kriger, part-time high school secretary, $ 13 an hour; Connie Clapper, part-time hospitality worker, $ 10 an hour; and Erika Maurer, voluntary rail trainer.

The following resignations were noted: Julia Muse, data coordinator; Eric Gerber, social studies teacher; Brandon Schrimp, school policeman; and Kimberly Bigelow, hospitality worker.

The board agreed to accept a $ 4,700 offer made by James McDermott for a 2004 bus with 72 passengers. The bus had previously been sold but the sale was not completed so the bus was offered again.

The purchase of a Cub Cadet mower from Lawn & Golf Supply Co., Inc. for $ 18,824 has been approved.

With the district’s summer programs beginning and CDC policy changes, Superintendent Gerald McLaughlin asked the board if they had any objection to making mask wear optional during the summer months. The board agreed, but stressed that it is up to everyone whether they want to wear masks or not.

Prior to the business portion of the meeting, Denise Holmes was announced as the winner of the Lauretta Woodson Support Staff Award, and Alicia Carner, a special education teacher at the high school, received an Instructor Award Acknowledgment from the group.

The next board meeting will be on July 14 at 7:00 p.m. in the boardroom at 1605 Four Mile Drive.

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Former SEC chief accountant joins real estate investment platform as CFO

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Diving letter:

  • Fundrise, a direct-to-investor real estate investment platform, has been selected as new CFO Alison Staloch, former chief accountant for the investment management division of the Securities and Exchange Commission.

  • Fundrise, headquartered in Washington, DC, manages $ 1.5 billion in equity for more than 150,000 investors. The company has invested more than $ 5.7 billion in real estate since its inception in 2012.

  • Former Fundrise CFO Michael McCord was Fired for attempted blackmail In 2016, he denied a charge.

Dive Insight:

Staloch’s attitude follows news from earlier this month that Fundrise is a Goldman Sachs’ $ 300 million loan facility to finance the construction of new single-family houses in the Sun Belt region.

At the SEC, Staloch developed policy recommendations for regulating investment companies and advisors with regard to their disclosure and financial reporting requirements. Before that, she worked in the auditing practice at KPMG for a decade.

“Having spent my entire career in investor protection roles in our capital markets, I am inspired by Fundrise’s investor-centric mission to use technology to build a better financial system for retail investors,” Staloch said in a statement. “I am excited to work with the Fundrise team to further amplify the impact of its uniquely powerful technology to streamline conventional capital raising and capital financing on behalf of its customers.”

“Alison’s background in advocating at the highest level for the individual investor was a perfect fit for our mission at Fundrise,” said Co-Founder and CEO Ben Miller.

Alison Staloch

Courtesy Fundrise

Staloch was drawn to Fundrise to “do something more entrepreneurial,” she told CFO Dive. “I’ve spent my entire career in gatekeeping and regulation, so it was tempting to be part of building something.”

Staloch, who took up her position in late April, is the company’s first full-time CFO and characterizes her workload as typical of a late-stage company. She focuses on accounting and reporting, alongside more strategic work such as improving earnings models and managing diversity, equity and inclusion goals.

“The most important thing I’m focusing on right now is structuring the finance function to leverage the technology to automate controls and processes so the company can focus more strategically,” she said.

Fundrise is very complex and heavily regulated, but “incredibly innovative in terms of compliance”.

“That impressed me as a former regulator,” she said, adding that she supported the company’s mission to democratize access to alternative assets for retail investors.

In competition with Public Real Estate Investment Trusts (REITs) and with regard to access to a broad investor base, the company offers its products and services directly. “There really is no middleman,” she said.

Fundrise’s assets are managed externally; To achieve efficiency gains in operating costs, the company is focusing on building its technical efficiency to better scale.

“Our technology enables us to raise investor money through an online platform that enables incredible investments,” she said. “Our operations are all done in-house, and our technology gives us real-time data and insights to help us execute an investment strategy more effectively.”

While rising interest rates could affect the value of real estate, it doesn’t determine how Staloch approaches the strategy, she said. “We’re looking for assets that we believe can create value and that we also see an opportunity to transform a current approach to create even more value for our investors,” she said.

Amid the well-documented uncertainty over commercial real estate following the pandemic, Fundrise is not changing its plans.

“We are currently investing primarily in rental properties for multi-family and single-family houses: asset classes that are not confronted with the same uncertainty as commercial real estate,” said Staloch. “One of the benefits of investing is that our real estate assets are diversified; We are not restricted by any asset class or geography. Single family home rental is something of a new industry that we are targeting and we are constantly reviewing which asset classes have value and opportunities for disruption. “

Since McCord’s layoff in 2016, Fundrise has been a Regulation A applicant and filing regulation letters for all funds and measures, Staloch said, which is “truly unique for a company at our stage”. Her own due diligence process has shown her the company has strong controls and, as a former regulator, Fundrise has been impressed by its adherence to strict regulations.

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