You would have to be blind not to notice all of the Commercial Real Estate vacancies here in Las Vegas. Driving through town with every turn and on almost every block we see vacancies for offices, retail and specialty stores.

What amazes me is that there is still new construction taking place on commercial property.

As we see more and more businesses closing every week the vacancy rate continues to climb. I can’t be the only one that sees this.

This will defiantly be the next big hit on the economy here locally. Why do the banks continue to loan for new commercial projects with such a high vacancy rate? Do they just assume that the Tax Payers will bail them out again?

Perhaps it is time to use some common sense and consider a moratorium on new construction permits. As much as I appall Government intervention into the private sector someone needs to display some leadership. I much prefer the idea of a moratorium on new construction permits than I do another round of bank bailouts.

I am not suggesting a moratorium on casino construction. That is an entirely different class of commercial property and I realize that casino operators are taking advantage of reduced building costs.

We have not yet recovered from the busting of the “Housing Bubble” and when the commercial sector implodes it will send shock waves through the economy unlike we have seen yet. The devastation will be compounding as it will cause even more businesses to fail. The difference between the “Housing Bubble” and the “Commercial Real Estate Bubble” is that the commercial sector has the potential of being more destructive to the economy.

Is this treat of the “Commercial Real Estate Bubble” a local phenomenon? No it is not. You can see similar rates of commercial vacancies nationally.

Do I believe a permit moratorium would stop the pending collapse of the commercial real estate market here? No I do not, but at least we could lessen the blow. Las Vegas Foreclosures already leads the nation in home foreclosures. Do we really want to lead the nation in commercial foreclosures too?

It is not a question of “if” the commercial real estate sector will collapse but “when?”.

Today, more and more Canadians are investing in Las Vegas property whether for a second home or for investment property. At one time, Canadians looked for homes and investment property in the state of Arizona; however, with prices of homes drastically lower than ever in the Las Vegas, many are now looking to buy in the Las Vegas area.

Canadians like other investors in the US are realizing that now is one of the best times to find a wide array of properties in the Las Vegas area at prices that are practically stealing the property. A matter of fact, finding awesome properties that at one time sold for $400,000 is now selling for $200,000, what investor in his right mind would not jump on the chance to buy investment property in Las Vegas.

For anyone looking to purchase investment property in Las Vegas including Canadians, you will need the expertise of a local real estate agent that will be able to show you all the communities in and around Las Vegas that are available. Some of these homes are in sought after communities such as Summerlin, Green Valley, Henderson, Lake Las Vegas, and Seven Hills, to name a few. Not only will an investor be able to choose the location of their rental properties but also the style the property they desire including ones on a golf course, age restricted, ranches, condos, townhouses, and gated communities.

As you look for your second home in Las Vegas, you will need an experienced Las Vegas Realtor that will be able to find the home that fits your lifestyle along with all the amenities you deserve. For any investment property search, you need a Las Vegas real estate agent with talented negotiating that will stay one-step ahead of your competitors. Owning investment property in Las Vegas is an excellent opportunity as many people have the desire to live in the area where they are quality educational opportunities, fun family activities, several employment options, and summer like weather year round.

Canadians are looking for property in Las Vegas for all of the above reasons. Dennis Smith, the president of Home Builders Research stated, “I think we are getting more Canadians than in the past simply because of the affordability,” …“I have been talking with some of the sales and marketing people of builders, and they tell me more Canadians are looking at properties.”

Smith went on to explain that the “median price of resale homes in Las Vegas in February was $145,000, which as stated by Smith numbers is down $10,000 from January and $90,000 from February 2008. That contrasts with the $120,000 median resale price in Phoenix.”

D.R. Horton a builder in the Las Vegas area stated, “Affordability has put Las Vegas back in the picture,”…“For a long time, I think, when (Canadians) think of Arizona, they think of desert and warm weather. When they think of Las Vegas, they think of casinos. They forget about the warm weather and desert.”

Tom Deinet, a Realtor with Century 21 Barrett stated that, “Properties are selling for half what it would cost to build them,”…“You will never see this again.”

Many believe that home sales went up in June in Las Vegas due to the overwhelming number of Southern California investors that returned to the area to find deals on single-family homes. The number of investors seen in the Las Vegas area in June of 2009 when compared to June of 2008 was 35% higher.

Steve Bottfeld the executive vice president of Marketing Solutions stated, “Real estate has always been a good investment, and right now it has never been better from a residential standpoint,” … “I just wouldn’t invest in commercial because it is about to go through what residential already has.”

The research provided by DataQuick showed that Las Vegas property investors of both new and existing homes in June were 37.5% of the buyers. By their records, this is the second highest June during the last decade when comparing investor purchased homes, second to June of 2004 at 39.4%. Henderson homes and homes in Summerlin were also big gainers in the push for Las Vegas property investments.

Bottfeld went on to explain that the investors you are now seeing in the buying frenzy are now the same as the ones that were buying and flipping property. The investors in Las Vegas today are the ones that are looking for long-term real estate income. “It makes sense because if someone can buy a home for $100,000 in cash and rent it for $1,000 a month, that equates to a 12 percent return before taxes and other expenses are included, … “even getting an 8 percent return is better than the 2 percent they might get at their bank.” He stated.

Glenn Plantone a realtor and president of the Real Estate Insiders Club explained that investors are taking advantage of the huge drop in price the market is seeing in existing homes such as homes that were selling for around $300,000 are now going for close to $110,000. “They are buying them for cash flow;”…“We are not even talking about appreciation potential.”

Plantone went on to explain more about the rental market, “It is a lot easier to rent houses than condos,” … “We are getting people who are walking away from a $2,000 a month home payment and going across the street to rent a home for $1,200 in immaculate shape.”

Plantone stated that he has been working more with Southern California investors that have several hundred thousand dollars to invest and have been sitting around waiting for just such an opportunity to present itself in real estate.

Robyn Yates, the broker-owner of Windermere Prestige Properties said that she is seeing foreign buyers as well, many from Asia that are buying homes without even seeing them in person.

If this trend keeps up in Las Vegas, all those homes on the market will be in the hands of investors and new homes sales will certainly be on the rise. Does this trend mean that all those ugly Las Vegas foreclosure stories we have been hearing will soon be a thing of the past and the real estate market will begin healing?

Tuscan Cliffs Southern Highlands homes in Las Vegas is offering a wide variety of model Las Vegas homes for sale at affordable prices. Talking with a real estate Agent in Las Vegas will give you the opportunity to take a tour of this marvelous community.

The homes offer spectacular views of the mountains and the beauty of a custom built home in Las Vegas. The prices of these exclusive Las Vegas luxury homes is more than just affordable and will certainly give you an idea of just how far your money can go in Las Vegas for purchasing a new home in the area.

Examples of the Las Vegas luxury homes you can tour with a Las Vegas Realtor include the Tuscan Cliffs’ Villa de Giovanni. This is a magnificent 6,000 square foot home with 4 bedrooms, 3 ½ baths, a library, large master bedroom and a three car tandem garage. The home sits on a half-acre lot.

Another example is the Villa de Franchesca offering just over 5,200 square feet with five bedrooms, 4 ½ baths, a gallery, master bedroom with retreat, library, loft, butler’s pantry, and split oversized three-car garage.

Both of these are just examples of the marvelous Las Vegas homes you can find available in just one of the communities. You can find a luxury home in all areas of Las Vegas from exclusive custom built homes to golf homes to maintenance free condos.

At Tuscan Cliffs community, you will enjoy such amenities as sand-finished stucco exteriors, paver stone driveways, granite counter tops, 42-inch maple cabinets, wood-clad Andersen windows, exterior stone veneer, stainless steel appliances, Kohler plumbing fixtures, and 6-foot garden tubs.

Residents of this community enjoy the membership at Southern Highlands Country Club with such attractions as the spa, resort style swimming pool, and more.

There are plenty of other communities throughout the Las Vegas with many of the same amenities or more. Instead of just wondering what Las Vegas and the surrounding area has to offer in the way or your new home, contact a Las Vegas real estate Agent to take a tour of many of the new or resale homes that are available.

You will be surprised at the prices, the locations, the amenities, the beauty, and of course the fun you will find in and around Las Vegas. Whether you are searching for the perfect retirement home, newlywed home, or home for the family, Las Vegas has something for everyone.

Record sales of single single-family Las Vegas homes, condominiums, and town homes were announced in June in Las Vegas. The record set back in June of 2004 was at 4,414, but now in 2009, the Greater Las Vegas Association of Realtors reported a new all time record of 4,702.

We hear how potential buyers are afraid to buy homes and just how many homes are sitting on the market, but then we see a report of record-breaking sales in Las Vegas, what is the real truth.

Realtors in the Las Vegas area sold 3,785 single-family homes during June, which is up 16.3% from May and a whopping 70% over June of 2008. Condos and town homes have tripled from sales last year at this time to 917 in June.

A decrease is now seen in the single family homes of 11.9%, bringing homes on the market to 20,613 and condos on the market is at 5,416 decreasing 2.2%.

Sue Naumann president of the Realtors association stated, “I think it’s significant that we sold a record number of homes last month… We’ve been closing in on this mark for a few months now.”

Single family homes in Las Vegas are at a median price of $140,000 which is the same as May. Condo prices are edging up a bit to $66,000.

Inventory in Las Vegas is a bit down and prices are going up or stabilizing which is good sign for the housing market across the US. Las Vegas was one of the first to feel the bubble burst and will be one of the first to see a change for the better.

Broker David Brownell of Keller Williams Realty stated that closings are up from last year as well as pending sales.

Broker and Team Leader for Realty ONE Group Konnel Peterson said, “Figures on closed real estate transactions for June 2009 signal that the market did reach bottom this spring and that Las Vegas real estate may well be on our way to recovery.”

Las Vegas is beginning to see buyers both investors and families, however, everyone is still a bit concerned about the future when it comes to job security. However, with housing prices going down and those wishing to buy a new home for an affordable price, this is a great time to buy. Many of the homes on the market today are foreclosures, which allows you to buy at a considerable lower price than the home is actually worth.

If you want to know how soon the housing market will rebound across the nation, keep a sharp eye on Las Vegas. As Las Vegas heals so, will other states.

Many so-called industry experts are quick to point the finger at the Bush Administration for failing to stop unrestrained sub-prime lending. What amazes me is that until we recognized what actually led to this economic disaster we have little, if any hope of recovering from it and stand a good chance of repeating it again, in the future.

The simple truth is that President Bush and his administration called for congress to enact stiffer regulations of Freddie Mac and Fannie Mae on multiple occasions dating all the way back to 2001 only to be blunted by stiff opposition from the Democrats. The liberal lending practices of Freddie Mac and Fannie Mae were supported by Democrat leaders in both houses of Congress and were forced upon many legitimate lenders with threats of withholding funds by the Treasury. Freddie Mac and Fannie Mae have long enjoyed the status of the Democrats “sacred cow” and still do, even after their mismanagement and lack of regulation was the catalyst for the Wall Street collapse in 2008.

For those that continue wagging the finger of blame at President Bush I would suggest a refresher course in Civics. Congress holds the purse strings and is responsible for legislation and regulation, not the Executive Branch. In the 2006 election, the Democrats seized control of both houses of Congress. Two years later, Wall Street imploded and Bush got the blame.

Congress continues to shoot the American Tax Payer in the foot with an accelerated liberal agenda. Mammoth legislation is passed without being read in an effort to sneak in legislation that has been on the liberal’s wish list for decades. Billions of dollars from the treasury are being hastily spent on projects such as Acorn and Planned Parenthood in the name of “Economic Stimulus”.

Has an emergency been created to enable the “Left” to enact long desired legislation, further a liberal agenda and feather their supporters nest with billions of tax payer dollars? And they have the nerve to blame Bush? Do they really think that all of us are that naive?

Now, the Obama Administration is stating that they are not ruling out another “Stimulus Bill”. We were told that the first stimulus package was hastily passed to avoid further economic woes and to keep unemployment under 9%. With unemployment now reaching 10% I think we can agree they failed. The $700 billion dollar Tarp Fund, the $787 billion dollar Stimulus Bill and the pork laden $410 billion Omnibus spending bill have seen little to no results in affecting the economy in a positive manner other than the economy of Obama and Democrat supporters. We did not keep GM or Chrysler from going bankrupt and we did not stabilize the housing industry and we did not keep unemployment in check. I have no doubt that a “Stimulus II” would have the same affect.

I also have no doubt that if the same events and actions were taken in the private sector, as we have witnessed from our government, the Attorney General would have launched a full blown investigation and the term “corruption” would flow through the liberal main stream media like a tidal wave. Tony Soprano could take lessons from our Commander in Chief and Congress.

Repairing the Economy

Enough of what hasn’t worked, let’s discuss what will work. It was the housing industry that led to Wall Street’s collapse in 2008. So that is where we need to start the repair work. The sub-prime lending fiasco in the real estate industry is only a small part of the current problem. An article on The Wall Street Journal’s website reiterated what I have stated for some time now, that the largest percentage of foreclosures (51%) are conventional (prime) loans, NOT sub-prime loans, where borrowers have negative equity in their homes and choose to walk away. This negative equity occurred due to home prices plummeting resulting in homeowners owing more on their homes than it currently appraises for.

Economists at the University of Chicago, Northwestern University and the European University Institute state that an estimated “26% of U.S. homeowners who stop paying their mortgage may be doing so intentionally, not because they can’t make the payments but because they don’t want to put money into a house that’s worth less than what they owe.”, according to a Times article.

With all of this said, it is obvious that the Obama administration is on the wrong track attempting to help homeowners afford their mortgage payments. However, last Wednesday’s announcement by Freddie Mac offering loan-to-value ratios on home mortgage refinancing of up to 125 percent for qualified borrowers does have some merit. Many homeowners that have seen their home value drop are unable to seek refinancing primarily due to the home’s inability to appraise for the existing mortgage. By increasing the loan-to-value ratio from 105 percent to 125 percent it will allow some distressed homeowners to reduce their mortgage payments. This will only affect a very small percentage of homeowners however.

California and Nevada are two of the hardest hit states, Las Vegas real estate was especially impacted negatively. Given the resilience of Las Vegas, we have started to see a modest recovery due in most part to the First Time Home Buyers Tax Credit and investors capitalizing on bargains.

What Our Government Can Do

Our Government must be completely honest with it’s’ citizens and let them know that the Calvary is NOT on the way. Let the free market work. If you are making $15 an hour and participated in a “liar loan” and were able to finance a $250,000 home, start packing. The government is not going to bail you out and let you stay in a home that you can not possibly afford. The longer we prolong the inevitable of foreclosures to homeowners that should never have received financing the more we negatively impact the values of homes owned by their neighbors.

Where our government can help is to financially back (insure) 4% – 30 year – Fixed Rate mortgages to qualified buyers. In addition, to housing values plummeting do to a lack of confidence in the economy, it is a simple supply and demand equation. By offering a government backed 4% – 30 year -Fixed Rate loan the supply of unsold homes would disappear virtually overnight and home values would begin to increase again.

Confidence: We must restore confidence in our economy to stop the downward spiral. A good first step is for Congress to act as good stewards of our money and stop spending like a bunch of drunken Sailors. Our government can stop trying to pass idiotic legislation like the Cap And Trade Bill that serves only special interest.

Education: Education is vital. Too many Americans think in short term only. This trend is growing every year. We have seen it with the stock market and the real estate industry. Real estate cycles but most homeowners do not understand this, when they are told they are upside-down in their home equity, they opt for the easy solution, to voluntarily walk away. We witnessed this with California real estate in the ‘90s and Louisiana in the ‘80s. Homeowners abandoned their homes only to see home values escalate well above their mortgages a couple of years later. Homeowners that stuck it out made substantial gains when they did sell in later years and retained their good credit. Homeownership is much like the stock market with its ups and downs. If you buy when the market is high and sell when it is down you will lose. On the other hand if you just hang on prices will eventually rise again. Paper losses are just that paper. And regardless of what the appraiser says about your home, you still need a place to live. Perhaps educational PSAs would be in order.

Summary

These are only a few suggestions to help put the economy back on track. To revitalize the sector that caused the Wall Street collapse in the first place…. Housing. Our government would have you believe that if you have a headache you should put a tourniquet on your leg. Why not treat the illness at the source?

These suggestions would not cost tax payers anything and will work unlike everything else the government has attempted.

A Democratic icon once said “it’s the economy stupid”. I say “it’s the Housing Sector stupid!”, that we need to fix. If we do this, the economy will start to recover faster than you can say “Term Limits”.

I have been by the Rhodes Ranch community in the southwest region of Las Vegas right off of Durango many times and have even had the opportunity to show a few Rhodes Ranch homes for sale in this upscale community but really had no clue as to just how nice it was until recently.

My little Brother and his family moved to Rhodes Ranch two months ago. They were fortunate enough to find a great deal on a lovely home right off of the golf course through a short sale. Since then we have shared many meals there, taken the Grandchildren to the water park and enjoyed a few walks through the wonderful neighborhoods.

The Community Center

The Community Center has one of the best exercise facilities in the area with almost every imaginable weight and exercise equipment available. It was almost impossible to get the Grandkids out of the huge water park and that was only part of the water fun there. There is a massive pool, spas and even a separate lap pool for those that are serious about getting in shape.

In addition to a racket ball and inside basketball court there is also a billiard and game area. And that was only part of it.

The Club House

Ok so I don’t play golf, but I do eat and the food and service were wonderful. While I enjoyed a fantastic steak I could watch sports on one of several oversized Flat Screen TVs. It was just a very comfortable atmosphere that one would have to force themselves to leave. And yes, I am sure the golfers liked it too.

Homes in Rhodes Ranch

Most if not all of the homes in Rhodes Ranch are extremely well maintained. Rhodes Ranch consists of several different neighborhoods but all have strict regulations and covenants to maintain property values. Home prices range from the low $150k to the high $700,000s with a floor plan to fit almost everyone. One of my favorites was of course the lush green landscaping throughout all neighborhoods in the common areas. The 24 hour a day Security Guards at the entrance of this gated community and the Security Patrols are a big plus. There were a few resale homes in most of the neighborhoods but not too many and nothing like in other communities in Las Vegas.

Summary

The point is, I am glad I finally got to really see the real Rhodes Ranch and meet many friendly people there. I look forward to taking my next evening walk with my brother and sister-in-law and exchanging more smiles and waves from other residents in this lovely community.

In all likelihood it will be the location of our next Las Vegas home.

Once again President Obama proves he has no real concern for the housing industry by supporting the energy climate bill despite the fact procedurally the bill should have never been voted on inasmuch as a copy of the bill was NOT in the well of the House. How is this possible you ask? The bill was still being rewritten and no copies we available.

How is it that the Congress of the United States can vote 219-212 on a bill without reading it? While the main stream media kept reporting that House Speaker Nancy Pelosi and President Obama worked diligently to muster enough votes to pass the Waxman-Markey Bill, many reliable sources report Democrat Representatives were assessed and forced or excused to vote for the legislation based entirely on vulnerability for re-election in their prospective districts. This is a clear signal that even the Democrat Party understands the devastating effects on the American public.

This climate bill not only breaks President Obama’s pledge again of not raising taxes on individuals making less than $250,000 per year it will have disastrous effects on the economy and the housing industry. The “Cap and Trade” aspect of this legislation will cause utility rates to escalate for all Americans. The increase cost of doing business will be passed along to consumers on everything we use in our daily lives. Our fuel and gas costs will skyrocket. Businesses that can not justify passing on higher costs due to competition will either go out of business or move offshore. Either way this will have another negative impact on our economy and will defiantly add to our already swelling un-employment figures.

Country’s that experimented with this type of similar tax like Spain experienced devastating unemployment and abandoned it.

Affects on the Las Vegas Real Estate Market

Distressed home owners that can barley make their mortgage payments now will be forced to pay more for electric rates, gas and all goods and services they currently use. It is insane that our government would even consider raising taxes and costs on an already cash strapped citizenry.

There is also verbiage in the bill that forces homeowners to have an environmental inspection prior to being able to market their home. Windows, appliances and insulation will have to be inspected and approved by a government inspector and modifications would have to be made for compliance prior to the sale of your Las Vegas home.

Who Benefits from Cap and Trade?

Many Representatives in Congress and Senators have stock in “Green” companies and are the recipients of attention from numerous lobbyists. And let’s not forget former Vice President Al Gore who most certainly will become the first “Global Warming” Billionaire when his stocks and investments in currently worthless “Green” companies will literally be worth billions overnight. Now there is a real “Inconvenient Truth”.

CNBC, MSNBC and NBC have been avid backers of President Obama before and after the presidential campaign. Their parent company’s CEO of General Electric (NYSE:GE) Jeff Immelt has been an outspoken advocate of President Obama and his “Green Agenda”. General Electric stands to gain billions with a joint venture to handle carbon trades if the cap-and-trade bill becomes law. In an April 23, 2009 article on News Busters, author Jeff Poor sights Fox News Bill O’Reilly’s claims of corruption by GE promoting cap-and-trade for financial gain. “The level of corruption is so big, it stands to make Watergate look small.” according to Bill O’Reilly.

It seems as though everyone that supports this bill has a clear agenda and is in clear conflict with the interest of the common family in America or the health of the planet for that matter.

Obama promised change and that is one promise he seems to be intent on delivering. Change is all that will be left in our pockets if we don’t become active opponents to this trend of bigger government controlling every aspect of our lives.

Call Your Senator

Our only hope is that bill fails in the Senate. We must let every Senator know that we are against this bill in any form. Take the time to personally contact your Senators and tell them that American’s can not afford this nonsense and we will not tolerate their voting for stripping more income from us to split between special interest groups and the government. Let your Senators know that you will support their opposition in the next election cycle if they do decide to vote for this bill. And yes, that includes you Senator Harry Reid!

Get involved before it is too late Las Vegas and America. Call your Senators today.

While the Obama Administration promised distressed homeowners relief and loaned banking institutions tens of billions in TARP and bailout money the banks took a “wait and see” attitude and slowed or suspended home foreclosures here in the Valley and across the Nation.

Now that it appears the average homeowner will not be a part of Obama’s bailout, and that there will not be any realistic government effort to keep families in their homes the banks have once again started to move on legal proceedings to recover mortgaged property and get them off the books.

The timing of lifting the foreclosure moratorium is interesting if not suspect. Is it the realization by the banking institutions that the Calvary is not coming or is it public outcries of foul will make government handouts harder to come by for banks and distressed homeowners? It could also be that we are now in the selling season and the financial institutions are simply making a prudent business decision to act.

While motives are uncertain it is clear for both the banks and our government, it is time for the Administration to act and do so decisively. They need to cease spreading false hope to homeowners that over extended themselves to begin with. The market will not recover until it hits bottom and that can only happen without government interference while allowing the free market to work. The promise of government intervention has prolonged this crisis and adversely affected home values across the nation.

Secondly, if the government really wants to help, instead of handing out billions to the nations largest banks they could stimulate the economy and real estate industry by backing a program of guaranteeing 4% Fixed Rate loans for 30 years to qualified buyers. This would not take any money from the treasury and would be a major boost to home sales.

These are two simple steps that cost tax payers nothing that would have huge benefits to the real estate industry, our economy and homeowners. The only downside is the government will have to be honest with the voters and tell the Janitor making $15.00 an hour that he can not afford his $250k home.

We all need to live within our means if we are to overcome this crisis. This includes our government.

Other real estate bloggers have inaccurately described this program as being designed for homeowners with sub-prime loans that need relief. This program is for anyone with a mortgage that is 90 days delinquent regardless of what type of mortgage it is. According to U.S. Secretary of Treasury Henry Paulson, "This is an important new initiative targeted not only sub-prime borrowers, but all 90 day delinquent homeowners."

Project Lifeline will give a 30 day grace period for homeowners that have mortgages with the participating six mortgage companies only. This 30 day foreclosure reprieve is to allow delinquent homeowners time to seek refinancing.

This as other programs before it does little to address the real problem with foreclosures here in the Las Vegas real estate market and elsewhere, and falls woefully short of any real solution for distressed homeowners or the Las Vegas real estate industry. Project Lifeline is little more than a “feel good” news item that only those unaffected by foreclosure would or could receive any solace from. A 30 day reprieve on foreclosures is simply not enough time for a distressed homeowner to refinance.

I am not advocating that our government step in a bail out homeowners that bit off more than they could chew but I am sick and tired of these "do nothing" programs that are being announced weekly as if they will have a positive impact on a deteriorating situation. If our government intends to act then they need to do so in a positive manner. If they intend to let the situation work itself out than they need to so state their intentions and let the market take its hits and begin a natural healing process. This weekly deception guised as potential government intervention of foreclosures is slowing down the market recovery and needs to stop. It is time for our government to quit riding the fence. Either fix it or state clearly that you have no intention of fixing it.