Dear Neighbor,
      Our real estate market is booming, interest rates are rising, our local political climate is changing
and the question of the day seems to be how long will it last? In this letter I will give you my
opinion of the market, a view on our never ending zoning battles and my usual sale statistics.
Since the big question is how long will our property continue to increase in value at its current rate, I
will tackle this one first.
      Prices are set by the ratio of supply vs. demand and how affordable housing is compared to the
economy. In the last 30 days we have seen two changes that will effect our market. First, interest
rates have increased approximately 1%, which increases the monthly payment a buyer can qualify
for and subsequently the amount they can pay for the home. Second, with the market being so good,
many homeowners have decided to sell and take the profit, which has increased the supply. While
the supply is still relatively low, an increase at this time of year is probably an indication of the
market. We also must face facts, which means no matter how good a market is, it will always slow
down at some point.
      Now, what does this all mean? My “crystal ball” is telling me we are probably at a plateau where
we will continue to see homes selling very well thru the end of the year, but will probably not see the
increases in values. I then project a cooling off period before we head into our next big up turn in
values around the time we reach 2 million people in the valley (2010) and our area will again rise
significantly because of its 15 minute drive to the work center and estate size lots.
As a seller, you will want to consider two things. Has my home gone up in value enough to get
close to the maximum tax free capitol gains limit and therefore, should be sold before the next surge
in a few years when taxes will take some of the profit? The amount of tax could also change
drastically if Kerry is elected and eliminates the Bush tax package. And second, if you decide to sell
before the next big up cycle is there a chance the market then could be below today’s values, due to
more supply?
      As a buyer, interest rates are the number one factor to consider. Interest rates are simply a reflection
of the economy and supply vs. demand on a nationwide scale. This means interest rates will
probably increase over the next few years regardless of the Vegas market, just like the cost of living
and therefore, now is the time to buy (especially before the next big up turn in our local values).
This is also the time for the buyer and seller to beware as I have heard stories of real estate agents
quoting ridiculous prices to get a listing or induce a buyer to make a purchase. As a seller, you have
to remember that a sale requires an appraisal, if the buyer is obtaining a loan, and “appraisal
law”says the appraiser must use “sold comparables” and is at best “limited” to adjust above recent
sales for market conditions. Just today, I listed a home in Section 11 that expired with another agent
and the seller told me they wished they had not been enticed by a offer of reduced commission and
performance promises that were not met. In this case, they are now dealing with a vacant home that
is costing the seller thousands of dollars a month because it is not sold and they are relocated
thousands of miles away!
      As for politics, most of you are aware our County Commissioner for Section 12, Mark James,
recently resigned. Mark did an excellent job while he was in office and was a valuable vote for
protecting our entire area and will be missed. He is replaced by Lynette Boggs McDonald, who
does not currently live in our area but is looking for a home so we don’t know as yet how she will
view zone changes in our area. Also, Chip Maxfield, the Commissioner for Sections 9, 10 and 11 is
up for re-election and facing what appears to be a well funded challenge. Chip has represented our
area well over the last 3½ years and I have very little info on his challenger. On June 2nd the
existing board will vote on our first controversial zone change in a while, regarding a home on a culde-
sac off Coley and Rainbow that wants to go commercial. How strong Commissioner McDonald
is in the defeat of this proposal will perhaps be a indication of her view of our area.
      As for MLS sale statistics, in today’s market, I will only list the high sale per Section so as to not
show what may have sold under different conditions. Keep in mind this is a number that only
represents what has sold this year and does not necessarily represent the high or low a home may get
per square foot. In some cases the high for 2003 exceeds the high for this year based on different
homes available in 2003 vs. those for sale today.

High Sale per square foot
Section 9 (Sold)____________________________________________________________$178
(Pending)_________________________________________________________$179
Section 10 (Sold)___________________________________________________________$223
(Pending)________________________________________________________ $199
Section 11 (Sold)___________________________________________________________$155
(Pending)________________________________________________________$193
Section 12 (Sold)___________________________________________________________$158
(Pending)________________________________________________________$195

As usual, I would be happy to provide a free evaluation of what your home is worth.
Sincerely,
Jac Lindell