The Drought Contingency Plan calls for Nevada, Arizona and, eventually, California to voluntarily reduce their use of the river to leave more water in Lake Mead. Arizona would give up 192,000 acre-feet of water, and Nevada would give up 8,000 acre-feet under the first round of annual cuts. California would join in the reductions for the first time, surrendering 200,000 acre-feet of water a year, should Lake Mead drop another 40 feet from where it is now. Thursday’s update came amid more bad news for the iver.  According to federal projections released this week, Lake Mead is expected to drop 16 feet over the next year. That would trigger a first shortage declaration and require Nevada and Arizona to reduce their annual river use by 13,000 acre-feet and 320,000 acre-feet respectively — cuts that would come on top of the voluntary ones now being discussed as part of the drought plan. Worse yet for Lake Mead, California’s largest municipal water agency has announced plans to start withdrawing some of the water it has stored in the reservoir to prevent it from being locked away in the now-likely event of a shortage.  The drought contingency plan would loosen some of the restrictions on water bank withdrawals from Lake Mead during shortage. But in the absence of a finished drought plan, Jeffrey Kightlinger, general manager of the Metropolitan Water District of Southern California, said his agency could not afford to leave up to 600,000 acre-feet of reserves stuck in the lake.  Entsminger said removing all that water could cause an additional 8-foot drop in Lake Mead. But he can’t blame his Southern California counterpart for threatening to do so.

• Mesquite Population in 2018 is 22,557 a 8.25% increase from 2017.  Sun City now has 1,519 Homes. 
• Mesquite is the fastest growing and safest city in Nevada
• Mesquite issued 341 permits for single family homes in 2018 vs 329 permits in 2017.  
• Sun City will roll out a few new neighborhoods in the next few years. Horseshoe Ridge is a smaller village of around 80 homes.  Crimson Ridge is the big one at 245 Lots.  This is just above Split rail.  FYI......Sun City averages about 12 new builds per month.
• Deep Roots contributes over $700K in Tax revenue to the City of Mesquite.  They have 95 employees.
• The RV Center that was supposed to come is being postponed due to a company restructure.  They still own the land but have no plans to develop currently.
• No new business or restaurants that the City officials know about.

The start of a new year is a great time to reflect on the prior year and the markets that often matter most to homeowners and potential buyers.  For several years, mortgage rates remained very low, and home prices climbed steadily. 2018 saw a moderation of those trends as rates began to rise. Home prices still grew, just not as quickly. Homeowners stayed put, so the inventory of homes for sale was tight.  Rates have since fallen back and have already triggered increased mortgage activity. The combination of continued inventory shortages and lower rates may also keep a solid floor under home prices as the spring market develops.  Outside of home financing trends, good economic news and market uncertainty are setting the stage for the new year. Wage growth and very low unemployment could lead to more inflation, which has historically pushed rates higher. However, global economic pressures and political tensions could sustain the recent volatility in stocks and in turn, help to keep rates low.  All in all, 2019 is set to take the markets on an interesting ride. During the year, if you or someone you know is ready to buy, sell or refinance, please reach out or pass along my contact information. I’m always happy to talk about what’s happening and the opportunities that may exist.

As expected, and going against the wishes of some, the Fed increased policy rates by a quarter percent at their December meeting. This is the fourth hike this year and the ninth since 2015. Previously, the benchmark rate was kept at a record low for seven years.

 Remind me—who is the Fed?
The Federal Reserve Board (the Fed), controls the Fed Fund Rate and the Discount Rate. These are charges for overnight loans from bank to bank or from the Fed to member banks.

What does an increase mean for regular people?
• It could cause banks to increase their “prime rates,” which are often used to calculate interest on consumer products like credit cards, private student loans, and home equity lines of credit (HELOCs). Adjustable Rate Mortgages (ARMs) may be directly impacted as well.
• Fixed mortgages are typically based on long-term rates, which are not directly affected by Fed rate changes. However, Fed policy does influence mortgage rates, which can rise in anticipation of future Fed action. There are exceptions, yet home loan rates will typically follow overall interest rate trends over time. 

 Here's something new:
Officials initially projected three additional Fed rate hikes for 2019, but that number dropped to two. Fed members say they will continue monitoring economic data to make future decisions.

Thank you for allowing me to provide you updates on industry news. Please reach out if I can answer any questions for you.....Goody