Why are buyers flooding the Las Vegas real estate market? Episode #312
Buyers flood the Las Vegas real estate market
Here is the link to the price trend
Las Vegas Real Estate price trend
Hello. Welcome to Todd Miller TV. Today’s episode is called Here Come the Buyers. In the past few weeks, I have seen much more buyer interest activity and what this means is this is when people are calling me or emailing me saying, “Hey, we’re either moving to Vegas. We want to buy a house.” Or, “We’re living in Vegas. We want to buy a house.” Or, “We’re investors from – in Vegas, throughout of Vegas and we want you to help us buy a property.”
So, it’s interesting because this is the sort of the first time in a long time that it’s been this – I’ve got this many new inquiries. And I’m going to show you why. I’ve got actually a graph to show. Hopefully, you’ll be able to see it. So, as all of you are aware that prices in Las Vegas are relatively – are relative low. So for many years, home prices sort of went up three percent per year and then all of a sudden, over three or four-year period, the Las Vegas real estate market they skyrocketed. And now, they have tanks.
But people still don’t know what to make of that. So I’m going to show you a visual demonstration. This is a graph. And what it represents is it represents – now down here, and I’ve got this from Zillow by the way, so down here, 2004 and then over here, it’s 2012. At the bottom here is 100k and the top up here is about 300k. And you can see that in 2004, ’05, and ’06, this is what home price is really skyrocketing. OK?
Now, what you don’t see is before 2004, home prices looked like this, like the pen. They just slowly went up every year in the Las Vegas real estate mareket, right? OK? So this maths here from 2006 until down here probably in 2011 was when the market was lot of REO properties, things were going very bad, as far as price is going down, a lot of short sales. But this is the interesting thing I want to show you.
Do you see right here? You can probably see this little upswing just right here, this little upswing in prices. Well, a lot of people now and if you watch my video from a year ago, go back like a year and find a video I did that says, “Todd’s predictions for 2012,” right? I predicted home prices would go up. I predicted it the end of 2011. We were at the bottom and that the investors would show up now and come in like crazy. So this is what’s happened.
So everyone can see this now. You see, people couldn’t see it here and they were afraid it would keep going down. But now that it’s going up, there are some people out there saying, “OK. Now, I’m willing to jump in the market.” Well, guess what? A lot of people are now willing to jump in the Las Vegas real estate market and it’s caused no inventory and it’s caused that appreciation to some extent to keep going.
We don’t know what’s going to happen. We know that we still have over 50 percent of people in Las Vegas real estate market are upside down on their house. We don’t know how the hell it’s being resolved. We know it’s not going to happen immediately because there’s not enough notice of defaults out there that would cause prices to collapse. So people say this is a mini bubble. We don’t know.
When you look at the long-term, long-term trend says, prices – if you just take a long-term from like I said, before here, it was like this and then it shoot up. A long-term trend says we should be up here. Your average price for a house should be 220 to 240. And right now, 120 and change is your average house, three-bedroom house.
I’m actually going to take this and put a link so you’ll be able to click on that while you’re watching the video and just kind of look at that. If you’re looking at this on YouTube, I’ll put a link to the video on YouTube. You’re going to have to click over to Todd Miller TV because I’m putting it in WordPress on the blog. And you’ll be able to look at this chart, make of it whatever you want. I grabbed it from Zillow. In aggregate, it’s going to be fairly – this estimate is not super accurate but this is going to be representative because in average, they’re going to be right on, on all the values.
So, it’s a really good resource for stuff – for general information of course, a really good resource. So anyway, I want to share that with you. And the reason I said that the buyers are coming is because people tend to decide when to do something when they see other people doing it too and when they have – feel like they have less risks.
And of course, you – most people are going to say, “Well, I wish – Todd, I would have called you back here at the end of 2011. At the end of 2011, you did that video that said, it’s only going to go up from here. I wish I had called you then about that house because I would have got it 105 instead of 120.”
And that’s all good. So – but I don’t know what they’re going to be in a year. They could be 140, 160, 180, or 80. They can go anywhere. But anyway, I just thought I’d share that with you. I want to give you as much information as possible. I certainly can’t predict the future but I could kind of analyze what’s going on and have a pretty good estimate.
And just so you guys know, personal properties that I own, I’m hanging on to them, right? Rent them out and watch – just watch them be worth more in value. So I’m telling my investors to do the same thing. None of my personal investors that I’m working with except for people flipping or selling right now, they’re only acquiring. So, the only people selling are people that have to because they’re moving out of town and that’s all good.
So anyways, I thought I’d share that with you, give you as much information as possible about the Las Vegas real estate market. Remember, right at the bottom of this, I’ll put the link to this graph on WordPress. You’ll be able to just take a look at it. That is my update for today and hope to see you on another video. Thanks.