Hello. Welcome to Todd Miller TV. It’s the end of December 2012. Get ready for 2013. And I just read an article that a bunch of economists got together and did some analyses. And they predicted every single state, all of the 50 states would see price increases in 2013 and the real estate for the whole state. And this is like the first year that’s happened in a long time.
A lot of it has to do because the economy has been lousy. The prices have been down everywhere. So, there’s nowhere to go but up, right? So anyway, but this is interesting because it predicts every state will have aggregate price improvements, which they will. And improvements will be anywhere from half a percent to maybe five or ten depending on what state.
So looking here at Nevada, what does that mean for us? Well, it doesn’t mean that if you own a house, it will be worth two or three or four percent more next year. What it means is that the aggregate number, the total value of all the real estate residential real estate will be more. And how they calculate is just they have – they look at what’s happened recently then they apply these leading indicators to make adjustments to it to truly predict it.
So it’s just that prediction. So you’re probably asking yourself, “How does this – what does this mean to me as an investor or somebody who’s looking to make a transaction. I’d like to say, “Well, buy now because the prices will go up.” Well, not necessarily. And this is why.
Those were – that’s an aggregate number. And any good person who understands their market is going to know within the market where things are moving because remember, the total value of things could be like going up like this but there are still going to be pockets that there’s a downward pressure. Maybe there’s an area with still a bunch of REOs or short-sales in one area or high inventory.
You have other areas that maybe there’s no inventory and that those areas will go up. Maybe it’s a price range. Maybe investors have flooded the market and the lower end is being pushed up really heavily which is what’s happening here. Houses that used to be 40 or 50 grand are now 80, 90 grand.
So there are some houses out there that have doubled in value. Yes, there’s still less than half of what they were six years ago but they’re much – they’re relatively cheaper. So those prices are going up. Maybe the million dollar price range is coming down a little bit.
So understanding specifically what is happening in the market is only going to work for you if you get with somebody who’s a professional and that can articulate and then statistically show you what’s going on, like where the sales have been, what the trends are. So anyway, just every time I see this whether the prices are going up or down or whatever they say, there’s always another story. So for Las Vegas, that’s the other story. But I find this good news. It’s sort of – it’s in general, it shows the things that we’re covering.
That other thing that happened was that new home sales were at the highest that they’ve been in like maybe five or six years naturally, which is really good which means that the builders were getting back into action and we’ll have more inventory available for people to purchase.
So anyway, I wanted to share that with. That’s probably – this might be the last update I do for 2012. But anyway, happy new year to everybody. Looking forward to a great 2013 here in Las Vegas. And if you need me for any advice or any of your real estate needs, just – you know where to find me on the website here.
That’s my update and hope to see you on another video. Thanks.