Prices in Las Vegas hit bottom: Episode #184
Hello! Welcome to Todd Miller TV. Today is Monday, this will be the last video I’ll do before I head to New York for 4 days for Inman Connect Real Estate conference. So I’ll probably be doing some video from New York which will be pretty cool. Show you some of the cool new things that are gonna be coming out in Real Estate. So, wanna do market update today. Something very interesting. I read an article that said that prices in 20011, which was last year, declined by 2.1% Nationally. We talked about this before. Whatever the national number is, that’s fine! But every market is different. So that’s an aggregate number. Some markets went up, some markets went down. And/so prediction was that the real estate markets/that real estate would plummet 20-30% next year. That’s what they said last year it didn’t happen. They’re saying that again and remember I said that in which is now about 5 months we’ll check and see if the prices went down. Which we know they’re not going to. But they’re actually predicting 2012 will be the first year of like the last 6 years of prices will go up nationwide. Prices will Increase. It should be very interesting. There are some markets now with 10% plus appreciation. So we’re definitely on the sort of a bottom end coming up. Some markets are still going down. Probably will for some while. Which you probably know Las Vegas got hammered. And there’s a lot of debate as to what’s specifically happening. ‘Cause we have foreclosures. But we have less now than we have a couple of years ago. 2008 2009 was/there were ton, and and it’s dropped off so/because we have less foreclosures that’s already accounted in to the prices. So, I found an interesting statistic, Okay? You can look at median prices but that doesn’t always tell the picture. ‘Cause that just tell where the houses are selling. But I found something and I picked a number. I picked $20,000. I did an analysis of houses under $20,000. Now, in 2009 and parts of 2010, you can get a house for $9,000, $10,000. You can go out and find a little, old, 2 bedroom house, maybe 7 to 800 sq.ft. on a 6,00 sq.ft. lot somewhere.
And there were a few of them. As a matter of fact, form the beginning of 2009, to the end of 2011, there were 167 houses under $20,000 in Las Vegas that were sold. Like I said down to about $9,000. And what’s interesting now is if you go to the MLS, there’s only 3 under 20,000. So that market, for homes under 20,000, is evaporating. now what’s most interesting is that the 3 houses once listed for 19,900, another’s listed for 19,900, and another’s listed for 20,000. So there’s nothing in the MLS at all under 19,900 that’s available in Las Vegas. or in north Las Vegas of in Henderson. Which is interesting because that means there’s super cheap properties. Some of which had been my listings. Remember 2009 I had a property that was 12,500. It was atleast $12,500 that we sold. It was a thousand sq.ft. house. built in like the 50’s. Late 50’s or early 60’s. Right down kinda in the downtown area. So, those are gone. You just not gonna find them. And then these houses for the most part fly really quick unless they’re trashed or you know, like somebody’s are. So, but that’s the interesting indicator for what’s going on in the Real estate market. And ofcourse those were all Cash purchases. So I thought I would share that with you. I thought I would share you that news. Because I’m still hearing that people say that prices are gonna fall, even 3 months ago they were/someone had said 20 to 30% but that’s just number just keeps getting regurgitated. So, it’s been 3 months, prices haven’t fallen, as a matter fact the one person that had bought properties back then/the prices are worth more than were when you bought them. So that’s pretty nice. But anyway, I thought I would share that interesting update to what’s going on here in Las Vegas, in the Real estate markets specifically with houses under $20,000. It’s been a few years since the bottom has been/has done that. Bottom has come up like that. What happen was the floor fell and fell and from 2007 really to 2010, 2011 and then it’s come back up. That’s an indicator. I would call that a Leading indicator to the Las Vegas Real Estate market specifically. If you’re trying to gauge when the market is gonna turn, first of all if you’re an investor, and you’re buying a bunch of houses in a certain amount of time, you probably have either miss the boat or you better start hurrying and getting ’em quick. Because most investors that buy overtime, and I’ll just show you an analogy, if you’re buying overtime, you’re insulated to buying in a good deal. If you’re only buying one house you have to like time it, which is really hard to do ’cause you always find out/like we’ll find out where the bottom of the market was a year if happened. It’ll come out and you’ll say “this was the market” and you know,at the bottom of the market, if you look back and read the news reports, what they’ll be saying is Prices are gonna fall. ‘Cause all analyst do is they look at what prices are doing and if they see prices are doing this, they go “Oh, it’s a little level off and Falling” Right? that’s what they’ll say. And they stop. So what will happen is that it takes about a year and then they could look back and see the dat and go “Oh, prices are now going up” So this is the bottom of the market. By then if you’re trying to buy you’re like “Oh, now I’ll buy” and the prices are going up. That’s what some people do. They wait ’til prices are going up ’cause they you know, that’s how they feel it can be safe. But if you’re an investor you’re buying in a long period of time, you wanna actually start buying your properties over the bottom of the market. So you don’t want to wait ’til the bottom divide because now you’re buying as prices go up. And you’re paying more up here for the houses. Your best thing to do is buying just before you hit the bottom, So you’re buying them throughout the bottom and then you’re buying in as prices increase. I personally thing within the bottom, I bought my investment houses last year, pretty happy with them. I may get 2 or more early this year but then that’s gonna be it for me because they’re going up. So anyway, that’s my thought, personal opinion. Anyway, that is my update for today. I thought it would be interesting to share those numbers with you. And the reason I’m looking over here is I’ve got it written down in this piece of paper here. So, and anyway, So I will see you from New York and Thanks for watching. Bye.