June 04, 2007

Homedebtorgamblers in Vegas getting slaughtered as Lennar moves to 30%-off-firesale on all unsold homes

Folks, there's no way existing Las Vegas homedebtorgamblers are going to be able to compete with the screwed and desperate new home builders. The builders can keep cutting and cutting and cutting and cutting, even to the point they're below cost.

And comps? Who cares about the comps, which will now be destroyed for a generation. It's firesale time, everyone out of the way!

And how about existing homedebtors, especially the ones who bought in the past couple of years? They already owe more than the home is worth. In order to sell, they'll need to slash their price. Hello foreclosure or a big-time loss.

You'd have to have a really cold night at the craps table to lose the kind of money homedebtorgamblers are losing today in Vegas. Leverage is fun on the way up but it's a killer on the way down.

Housing market analysis: Las Vegas analyst Dennis Smith said the housing market slump is deeper and longer than most expected. It's going to be a painful for a while longer before it gets better, Smiths said.

Smith said one of the big differences in the inventory of new homes and resale homes is that larger home builders will slash prices to whatever it takes to sell their unsold product.

"It's more difficult for the smaller builders to match these price incentives, so it's crucial for them to keep unsold standing inventory at a minimum," Smith said. "It is impossible for home owners to compete with the price reductions of the larger homebuilders. Owners who are leveraged can't cut their price much without losing money on their investment."

Smith said that one of his clients told him that Lennar Homes sent a letter to companies they do business with offering a 30 percent discount on their standing inventory of homes if they closed escrow by the end of May.

"If a home is priced at $500,000, you could get a $150,000 discount and purchase it for $350,000," Smith said. "The discount on a $750,000 home would be $225,000. That is a primary reason that the resale (market) will normally take longer to correct. There are more of them, and they can't or won't lower prices to match the new home discounts."

In his tracking of the median new home price, Smith reported it was $318,346 in April, which is down more than $10,000 or 3.1 percent. When excluding high rises and apartment conversions, the median price is $313,000, a decrease of more than $37,000 or 10 percent.

35 comments:

Smokey Bill said...

What is that sucking sound?

Darn -- it's my "investment" rapidly sucking down the last of my savings.

devestment said...

Palm Springs California is having an inventory problem. Second homes do not look so good all of a sudden here in Los Angeles.

I hear there were no lookers today at the 104 degree open houses.

I always thought it was a bad idea to buy a place that needed AC 7 months out of the year and costs $100 in gasoline to visit.

Joe Logic said...

Poor housedebtorsheeple in Vegas. Recalling troll stupidity and "if I sell I can still get __" denials. No you can't. You missed your stop off of the sucker train, and now it's crashing and crashing hard. You're competing with firesale builders, 30,000 listings, a bunch of REOs on your street, desperate fliptards trying to offload their shitbox to some hapless renter via a lease option, and your own obnoxious ego.

Stay in your denial comfort zone. Just remember, you're one economic downtick away from disaster.

keith said...

there's no problem in vegas - just listen to this realtor:

The Las Vegas real estate market has grown tremendously in recent years. It has been considered a "hot spot" for real estate in the United States. It has been one of the leading markets for real estate appreciation throughout the country. In fact, the valley has remains one of the most resilient during times of market slow down and accelerates above normal during times of market plenty.

Many Las Vegas communities have seen positive value increase to the tune of 50-200% over relatively short periods of time. Homeowners and investors alike have made a great deal of money simply by investing in a home. Many owners and investors have seen spectacular returns on their investments in the past 5-10 years. City and airline analysts believe that the next decade will bring a 50% population increase causing property values to appreciate significantly.

Land in Las Vegas continues to climb in value and price and new home builders are challenged to provide housing for investors and homebuyers competing for available home inventory.

Homeowners and investors find there are many benefits in owning Las Vegas property. The primary benefit most take advantage of is the ongoing appreciation anticipated over the next decade. When real estate heats up nationally, Las Vegas gets really hot. When real estate goes soft Las Vegas housing stays strong

http://activerain.com/darrenhildreth

Joe Logic said...

You want to see some really funny shit, you have to see these photos (hat tip ocrenter and lavi d). Good luck trying to sell on that street LOL. Spin that one trolltards...

Anonymous said...

I was driving to work today (Sunday) in Las Vegas. I noticed a small plane pulling a huge banner. At a stop light, I got a good look at it. The sign read: "Pulte Homes' Perfect 10 Sale. 10 percent of any home, This Weekend Only."

Why do I have a feeling that signs going to change quickly to "30 percent off" and "Any weekend you want."

-- The Judge

Anonymous said...

And how about existing homedebtors, especially the ones who bought in the past couple of years? They already owe more than the home is worth. In order to sell, they'll need to slash their price. Hello foreclosure or a big-time loss.

--------------------------------

Not if you put $0 down. Well it is a big loss but for the bank, not for the homedebtor.

Anonymous said...

joe logic,

That has to be a doctored photo. I play golf at Silverstone all the time and every now and then when I'm there I'll take a look at an open house or two. I have not seen any street looking like that. Yes there are lots of homes for sale but, noy way every single house like that.

Anonymous said...

ah yes, lennar homes.......built by illegal alien mexicans and the biggest pieces of crap one could hope to buy...

Anonymous said...

Vegas? Ugh, stop saying that. It makes as much sense as saying Diego, Francisco or Angeles.

Anonymous said...

Hey renters, how was the weekend? Any cool stories to report from the ghetto apartments? Shootings, stabbings? Did Tyrone finally get those 32" rims for his 'sclade?

Losers.

Anonymous said...

Ok this is getting a little wierd. 2 weeks ago there were almost 110,000 homes for sale in Atlanta. Today it is down to 104,000.

Anyone from the area have any clue what's going on? Did 6000 homes just get sold in 2 weeks? Even if a lot of them were MLS expirations, that is a huge turnaround in inventory for such a short period of time.

Veronica Lodge said...

RE: Vegas Meltdown:

Have the real estate betting rules changed?

It used to be, "The more you bet, the more you get."

Sounds like it's time to double up and catch up!

Maybe not.

V.L.

showmenouns said...

Once I was in vegas and saw this guy playing the 'bars' slot machine.

It was in a small seedy place and they were giving out free chocolate bars (believe it or not) as an incentive to come in and play.

It was getting pretty late, like 2AM on a week night, and there's this older guy who's wasted drunk, chocolate all over his face. He would pull the handle and in a voice bordering on a yell say, "Bars Bars Bars". He did this for a long time. He was doing it when we left.

Only slightly more pathetic than this situation.


Bars Bars Bars!!!

Grammar Police said...

Vegas? Ugh, stop saying that. It makes as much sense as saying Diego, Francisco or Angeles.

June 04, 2007 1:56 PM

=======================

Anon,
You are a tard. Everyone in Las Vegas calls it Vegas on a regular basis. Diego, Francisco, and Angeles are not good analogies. A better analogy might be New York City being called New York or Lake Havasu City being called Lake Havasu. Local residents use those shortened formats frequently.

Anonymous said...

Vegas? Ugh, stop saying that. It makes as much sense as saying Diego, Francisco or Angeles.


how about frisco?

Anonymous said...

I have to agree with the "Vegas" thing. Locals never say Vegas, only dubmfucks from the midwest and Los Angeles do.

Anonymous said...

Anon,
You are a tard. Everyone in Las Vegas calls it Vegas on a regular basis.


No they don't.

Anonymous said...

keith that is a little misleading. The 30% off is 30% off prices that were increased even in the past year. It's like one of those 20% off everything in store sales on prices that were marked up 10% the night before. Yeah it's a sale but not as great a sale as you're led to believe.

I personally don't see the huge declines declines coming any time soon, if ever. A friend of mine moved to Las Vegas a few months ago. I told him don't buy anything, just rent for a year and see what happens. Nope, he bought, same reaons as usual, rent=throwing money out the window etc. This is a smart guy too, but he has been drinking the REIC koolaid so long he's too far gone.

Anonymous said...

...but I thought a guy here told us that valets and ditchdiggers make $110,000 a year! Why would the median drop??

Anonymous said...

The FB's will not lower the prices because they are already drowning. Those homes will go into foreclosure and the banks and builders will lower the prices.

Joe Logic said...

I lived in (Las) Vegas practically my whole life. Not once has anyone ever complained about the use of "Vegas" over "Las Vegas". So WTF are you lemmings talking about?

This whole "don't call it Vegas" sounds like some recent nuance california hippie shit that one of you losers made up. Vegas is the shitstain of the face of this earth, and you and your snobby wine and cheese friends aren't gonna change that.

Vegas crash watcher said...

Everyone here calls it just "Vegas".

Same houses for sale for the last 8 months in my SW Vegas neighborhood. No sales, but no new signs.

I think the crooks in Carson City changed SB92, so there will still be handgun registration for residents in Clark County, due to the lobbying of the local thuggish police. You'll have a couple of months to register your guns, instead of 24 hours. Big deal.

Anonymous said...

"Losers."

You mean "bitter losers", bigot.

K.W. - Southern Ca. said...

Don't believe everything you read.

Common sense told you that something doesn't make sense.

Stats are often fudged, especially by the housing industry.

Anonymous said...
Ok this is getting a little wierd. 2 weeks ago there were almost 110,000 homes for sale in Atlanta. Today it is down to 104,000.

Anyone from the area have any clue what's going on? Did 6000 homes just get sold in 2 weeks? Even if a lot of them were MLS expirations, that is a huge turnaround in inventory for such a short period of time.

K.W. - Southern Ca. said...

Being "smart" and having common-sense are two completely different things.

Anonymous said...
keith that is a little misleading. The 30% off is 30% off prices that were increased even in the past year. It's like one of those 20% off everything in store sales on prices that were marked up 10% the night before. Yeah it's a sale but not as great a sale as you're led to believe.

I personally don't see the huge declines declines coming any time soon, if ever. A friend of mine moved to Las Vegas a few months ago. I told him don't buy anything, just rent for a year and see what happens. Nope, he bought, same reaons as usual, rent=throwing money out the window etc. This is a smart guy too, but he has been drinking the REIC koolaid so long he's too far gone.

Anonymous said...

Joe Logic said...
I lived in (Las) Vegas practically my whole life.

------------------------------

Aha!! So you are a product of Clark County schools. Explains everything, the lack of grammar, the inability to form a cogent thought. I feel for you brother, I truly do and I apologize for insulting you earlier. I didn't know and I am sorry.

Anonymous said...

I sold my home in 89141 2 months ago. Took 5 months and 2 price reductions but it sold. Bought in 2002, sold for 218% (that's % not $) of what I paid, paid 4.5% commision and $3K additional closing costs. Walked away with close to 3 years worth of salary as net profit. And all along my mortgage was less than what I paying in rent in California before moving.

When I bought it, the "for sale" sign hadn't even gone up and already the previous owner had 3 offers. That was insane to say the least. But I'm glad I bought when I did.

Today it's not as dire as you all make it sound. The key in my first paragraph is "price redctions". There are idiots in my old subdivision who are still listing at $40K above what I sold for. Good luck with that.

On the other hand me and one other guy on the same street figured it out. We lowered the price significantly below what everyone else was asking and we sold. Not rocket science.

Anonymous said...

Just interjecting reality here, is 10% reduction really getting "slaughtered"?

Builders wont keep building inventory below cost so even the 30% off their offer price is somewhat limited.

flip that turdbox said...

Vegas is a shithole once you leave the South Strip. Downtown is depressing and the rest of the city is boring and run down. It looks like the fliptards crapped out at the tables.

Anonymous said...

flip that turdbox said...
Vegas is a shithole once you leave the South Strip. Downtown is depressing and the rest of the city is boring and run down. It looks like the fliptards crapped out at the tables.

--------------------------------

HA HA the south strip, I love you LA people who come to town for 3 days and think you're experts. Yup you are 100% correct, the south strip is all there is. Everything else is a dump. Nothing like that grand boulevards of Fontana or San Dimas.

Carry on now, you'll be late for the $50 Bellagio buffet.

And here's a little tip for you: the food you're paying $50 for is the same food Bellagio employees get for free at the employee cafeteria. Tells you what the cost of it really is, hint: about 90% less than you're paying and prepared by a $7 illegal wokers named Jose.

Vegas Speculator said...

I don't have a gambling problem, I have a LOSING problem.

Anonymous said...

Call it Vegas? Yes, we do.

jbwvegas

wise renter said...

Hey renters, how was the weekend? Any cool stories to report from the ghetto apartments? Shootings, stabbings? Did Tyrone finally get those 32" rims for his 'sclade?

Losers.

--

My weekend was great! I have a decent amount of discretionary money to spend. I rent a nice house in a decent neighborhood in Orlando for $950 a month. The same house would cost triple that to buy. Sorry, no shootings or stabbings to report.

How's that debt trap treating you? I have to admit I envy you because you have lots of money to throw away on interest, property tax and insurance! Has that ARM reset yet? Well, I won't hold you up any longer. I'm sure you've got your own neighbors to harrass for playing loud music and not keeping their bushes trimmed to your liking.

Oh, BTW... Tyrone's 32" rims look nice on his 'sclade. He can easily afford them because he rents too.

Cheers!

Guy Daley said...

Funny thing is, we're just looking at the short term for "VEGAS". (How do people get so anal they complain about how you address the city?). The short term being, the next five years and how the years of easy credit are going to reverse themselves. Because that's all we really are, is short term thinkers.

But it will be really funny when Lake Mead dries up. I wonder what real estate prices will be like in VEGAS then?

I believe that Vegas gets something like 90% of its water from Lake Mead. They are planning on hosing the taxpayers mega fortunes to tap water supplies elsewhere. Of course, the last thing they would ever consider is a moratorium on growth. Growth is sacrosanct. Las Vegas a city of 10 million, why not?