Las Vegas real estate predictions 2013. Episode #295

Las Vegas Real Estate Predictions 2013

Hello. Welcome to Todd Miller TV. It’s December of 2012. So we’re going to do a market outlook for 2013 here in Las Vegas. So I’ve been tracking the numbers every month as far as inventory and prices. And a year ago, I made predictions that the market was going improve. The prices would start going up and that’s exactly what happened. I had a people a year ago saying the prices would go down 30 percent. That didn’t happen. So I felt that I did a pretty good job there.

And so looking forward, this is sort of what I foresee. And we have a couple of things going on right now. We have a very small number of people who are in a position to sell. And they’re not in the position to sell because they either can’t or don’t want to do a short sale. The bank hasn’t started foreclosure yet so they’re out of the market. They just can’t transact the property. There’s quite a number of people, people that should be selling but aren’t selling.

So what that gives us is an artificially low inventory. So now, there have been a couple of reasons for this. One was the National Mortgage Deal that happened back in February. It incentivized all the banks to not foreclose. The other deal was AB 284. It happened last October. And that was some legislation here in the state of Nevada where they said, “Hey, you got to go through all these steps if you want to foreclose. There’s extra stuff you’ve got to prove.” They’ve gotten around that. The Supreme Court said, “No, they can just use electronic MERS data and prove that they’ve transferred the note.” So they could if they wanted, start just massive NODs and foreclosures again but they haven’t started that.

So what I foresee is that the slow process over 2013. NODs starting to increase and then probably in the spring or summer, we’ll start to see some more REO properties. REO properties, we’re still getting. It’s still much – we’re still getting them but just much slower than we saw in like 2008, 2009, and 2010. It’s been – it’s dropped off but we still see supply and inventory coming in.

We have upward pressure on prices because there’s an imbalance. We have – buying level is up here. We have this many people who want to buy and this many people that can sell. So that difference represents a pressure. It’s upward pressure on prices. Multiple offers on properties, it’s something that you’re very likely to see here in Las Vegas.

So the overall market is going to look relatively similar. I think that if there are any new properties that tend to come on the market, they’ll get absorbed. And that we won’t likely see a price decline. I think we’re beyond that. I think that the market has been beaten up here so badly and people have just associated the Las Vegas real estate market with bad. And I don’t think they understand what that really means. But we’re through it. It’s done. And 2009 and ’10 were really the years when the market was sitting there with those – we sold the houses 20, 30 grand for a three-bedroom house. Those are gone. They’re a thing of the past. Those were all purchased out.

If you want a property now, you’re going to pay a premium. The real winners we’re going to find out. We’ve already are finding out. They’re the people who bought the super cheap properties in 2010 that were sitting around. They all appreciated. If you bought last year, it’s appreciated.

My guess is anything you bought this year is appreciated. It will be worth more next year. So, rent stand strong. We still have a lot of tenants. So I think it’s still a good time to buy. If you’re sitting on a property, I don’t know that I would sell it. My investors right now, I’m telling them, “Hold. Don’t sell the properties. You’re still getting rental income. Wait a year or two. Keep getting that income because prices are going up.”

So you’d start – very often, you hear real estate agents say, “Hey, did you sell your properties?” If you’re an investor and you bought, you won. That’s just the bottom line. If you bought 50 properties, you’re a big winner. If you bought five, you’re still the winner. It’s a lousy economy for the most part. If you’re trying to buy stocks, you’re not going to do very well. If you’re trying to buy CDs or put your money in some funds like that, you’re not going to do very well.

Las Vegas real estate predictions 2013

But if you bought real estate, you’re making 10 percent or more per month on your – on annual return. Every month, you’re getting a check from a tenant. And that’s pretty nice. And all our investors, we’ve seen all the properties appreciated and they’re very happy even guys who were flipping, guys who were buying long-term have all done pretty well. I foresee that happening. We still have some people buying when they can. But the investors that are having their properties, a lot of them are holding on to it.

So that’s my outlook for 2013. I’m very positive that the prices will go up which is good I think for – it’s not good if you want to buy next year but it’s good if you already own. And so anyway, that’s my market outlook for 2013 here for Las Vegas and hope to see you on another video. Thanks.

Las Vegas real estate predictions 2013