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.

However, what does the Economic Stimulus Act of 2008 have to do with the real estate market? The good part for homebuyers facing foreclosure is that FHA, Fannie Mae, and Freddie Mac will have an increase in the limit of the loan they can give to people wishing to purchase a home or refinance their home at a better interest rate. In the areas where the cost of living is very high, the percentage will rise from 87% to up to 175% whereas in other areas the percentage will rise from 48% to 65%. Along with this, it will also increase loan limits for single-family dwellings from Freddie Mac and Fannie Mae from $417,000 up to $729,750 that covers loans made between July 31, 2007, and December 31, 2008.

In smaller communities where the cost of living is not high, loans from either agency may not increase.

With the increase in loan limits, more people will be able to purchase homes since the government guarantees the loan. This is a great benefit for many that wish to purchase and receive all the added benefits that come with these programs. The increase in the loan limits along with the benefits will allow more homebuyers the opportunity to step up and purchase their dream home. In addition, individuals in ARM loans or high monthly payments will also be able to refinance through FHA, Fannie Mae, or Freddie Mac enabling them to avoid foreclosure.

The economic factors in the Las Vegas area that affect both demand and supply include the job market, the rise in the price of home values, and the economic outlook. The job market has quite a bit to do with the real estate market. If there are good jobs available, then people will want to move to the area and there will be an increase in the demand for homes for these individuals. However, if there are not many jobs available the demand for homes will decrease.

Home Values

When home values rise, buyers feel they can sell their home, move to a new location, and pay cash for their new home. Because of this, they can improve their lifestyle when they sell their home and move to a better neighborhood. When home values go up you will find more homes on the market since home sellers would love to sell their home and better their lifestyle.

Everyone looks at the economic outlook. When things occur in the stock market, social events, or stock market that causes investors to worry about future events they take their funds out of stocks, stop buying, and sit on their money. When everything looks good in these areas, investors spend more money.

Demand for Las Vegas Real Estate

The demand for real estate in Las Vegas is affected by such things as interest rates, how other real estate markets are doing across the US, entertainment, and the local economy. Interest rates have a lot to do when it comes to buyers being able to purchase homes. When interest rates are low, home buyers can afford more home for their money. When interest rates are high, home buyers cannot afford as much. If home values are high in such states as California, Florida, or other areas of the United States, people will sell their homes and move to Las Vegas to better their lifestyle. Entertainment is one reason people move to Las Vegas. There are so many entertainment options in the Las Vegas area all year long that is a major draw for most people wanting to better their lifestyle. Las Vegas has a strong economy that has been strong for years and it is estimated that it will be strong for the next decade due to all the new developments under construction bringing more jobs to the area.

All across America, we are seeing a buyers market and of course many scary words coming from the mouths of analysts. However, the economy is beginning to boom in Las Vegas and so is the real estate market. There are several new projects under way in the downtown area of Las Vegas and along the strip that will have the casino industry alone needing 113,500 workers in the next few years just for the 45,000 new hotel rooms that are in the planning or construction stages. Some of the huge projects on the table for Las Vegas include City Center, Palazzo, Encore, Echelon Place, Station Casinos, Turnberry Associates Fontainebleau, and the Trump International Hotel and Tower. Along with the casinos, there are many condo communities planned that will be self contained so residents have all they need in one location and the excitement of Las Vegas just outside their urban community.

It is being estimated by the Southern Nevada Homebuilders Associations that the need for housing will be increasing beginning in 2008 all the way through 2012. A matter of fact, there will be a demand for around 177,400 housing units. The demand is going to be high and this means that the real estate market is about to take an uphill climb in Las Vegas since it is believed there will be a shortage of housing opportunities by the year 2009.

The economy in Las Vegas is still very strong without much change. In addition, to the strong economy there are many billion-dollar projects in the works. In July of 2006, Nevada was at the top of the list in job growth and is still going strong.

Prices of Las Vegas homes have gone down just a bit with the median price at $280,085 in December whereas for the same time last year the median price was at $337,781. Las Vegas has 95 high-rise construction projects on the drawing board or in some stage of construction with the smaller unit’s prices around $400,000, which is on average around $1,000 per square foot.

If you are watching for a change in the real estate market and the economy for America, keep your eye on Las Vegas. They are leading the pact by working on creating new jobs and more urban style living.

While I do not actively participate in Real Estate Forums I do follow a couple. It seems as if the largest of the forums RealEstateWebmasters.com is consistently embroiled in some type of controversy with competitors, clients or Google.

I have found REW to contain very little usable information. It is obvious that this forum’s primary purpose is to promote the services of the site owner and to manipulate Search Engine Rankings. It is clear that many of the REALTORS® that frequent that forum have entirely too much time on their hands. Personal attacks and outright rudeness are common there.

The latest controversy to surround REW is a penalty by Google stemming from unacceptable linking practices. Site owner Morgan Carey claims no wrong doing but will look into it. No news there. SOP for Mr. Carey as it were.

What is yet to be determined is if this Google penalty will be passed on to REW clients. While Morgan Carey has been penalized in the past by Google he has managed to resurface in the popular search engine but has a long list of clients that have had their sites banned.

Undaunted by this Mr. Carey simply harvests a new batch of REALTOR® clients and applies his latest Search Engine Optimization trick or scheme. With no shortage of willing participants hoping to have their real estate site ranked in the Top 10 of Google, REW manages to keep their client list replenished.

Thus far Carey has avoided civil and criminal litigation by locating his office in Canada making any legal action by U.S.A. authorities or U.S. REALTORS® either too troublesome or expensive.

It is rumored in a popular SEO Blog that Google’s own “Spam Cop” Matt Cutts was personally responsible for the most recent REW penalty. While Matt Cutts has an excellent reputation, Google Engineers have simply proven in the past to be no real match for the infamous Morgan Carey. So the money here in Las Vegas is on Mr. Carey!

Time will tell.

Now, let’s look at the real facts concerning Las Vegas real estate.

The population in Clark County is over 1.9 million and every month there is an increase of around 4,000 to 6,000 a month.
People from all over the US are still relocating to Las Vegas for various reasons. The top reasons include they like the area, to live closer to relatives, for a better lifestyle, and for their retirement years.

What are the advantages to living in Las Vegas?

• No personal Income Tax
• No state Income Tax
• No Inheritance Tax
• No gift or Estate Tax
• Summer like weather year round

As 0f January 1, 2008, there were 15,376 homes on the market, which consisted of 11,380 single-family homes, 2,935 condos, and 1,061 townhouses.

December 2007 sales were down a bit from November. Not uncommon occurrences during holidays since families hesitate relocating during Christmas. That being said, November sales were at 582 for single family, 81 for condos, and 54 for townhouses, while in December the sales were 544 for single family, 75 for condos, and 51 for townhouses.

The median selling price in December was the same as November at $260,000, a little lower in December than November for condos, which was $163,800 in November and $160,000 in December, and the median selling price of townhouses was up in December over November with the price at $201,000 in December and $193,500 in November.

In December the average days on the market for single-family homes was 79, which is better than what was seen in November at 82. Condos however were on the market 112 days, which is up from November at 84 but townhouse, were on the market 91 days which is better than the 113 days seen in November.

In the real estate market we like to look for tends and so far the current trend appears to look very promising for Las Vegas.

Geiber states that many buyers are waiting for home prices to drop. Geiber went to Las Vegas to visit many of the new home communities to assess the situation in Las Vegas and said that he was "somewhat astonished to say the least by the dearth of interesting purchasing a home".

Many of the problems seem to stem from Pulte Homes announcing that they were decreasing the price of their homes by 25 percent instead of 5 percent.

When Pulte made the announcement weeks ago rumors were spread that the Las Vegas real estate market was dead. Since the announcement by Pulte, many agents have been contacted to see if other companies were going to drop prices.

Gieber says that this is not a good sign for the housing market, but many others contend that this will not set the Las Vegas housing market back as far as some are predicting.

As it is now Colony Capital and a management group that is led by current Station Casino CEO, Frank Fertitta III, want to push the deal through.

There is a lot to be considered however.

One thing is that industry sources are saying that if the deal goes through, chances are the new company will not sell its undeveloped land to cover debts.

What the new company would do is put current expansion plans on the back burner. With the expansion plans on hold, the debt would be significantly reduced.

Word that has been leaked is that Colony Capital is not concerned with expansion at this time; they are concentrating on maximizing profitability, particularly in the stock market.

The survey consisted of 4,115 borrowers who originated loans in the first nine months of the year. The market research firm found that customer satisfaction is of major importance to mortgage lenders.

The survey showed that customers from the five highest ranking lenders make more than 20 percent of the referrals and chances are they will be more likely to do repeat business with their existing lender.

Also many of those surveyed, 17 percent said that their previous or existing relationship with a lender was a strong motivator for them to continue doing business with their lender.

28 percent of those surveyed said that interest rates, fees and closing costs were the strong motivator in the choice of a lender.

However there were also some negative findings brought to light through the survey. Nearly one in three borrowers taking out a new mortgage in 2006 experienced problems during the origination process.

Many problems included errors in closing documents, miscommunication of loan terms, or an unresponsive or unavailable loan consultant or mortgage brokers.