Market update May 2012 Episode #210
Hello! Welcome to Todd Miller TV. It’s May 2, 2012. And if you’ve tried to buy a house in Las Vegas, you probably have found out that there are a lot of offers you have to deal with, competing offers, multiple offers, bidding up over the list price, everyone’s paying cash. So I wanna give you 2 examples, of houses that I have listed recently that the both I would say blown up. One was the little house, $100,000, 3 Bedroom, 1,400 sq.ft. house, and we ended up in about weeks time frame with 51 offers on the property and yeah, 51 offers with 51 offers presented to seller, 51 counter offers and yeah a lot of work. Ofcourse someone got it for cash way over the list price. Another property, 275. It was trashed. As a matter of fact I did a video and I had a little fun one weekend, I did a video it’s on the blog. You have to find it. Had a little fun in a trashed house, pool was empty, there were spray paints on the walls, there were holes on the wall, 275, we got 20 offers on that one, way over list price, cash offers. Well, surprising, what going on in La Vegas? Well, what’s going on is, that we just have less inventory and everyone wants a deal. So, the house that are being targeted, anything that’s listed for less than what it normally would sell for, even if it’s in bad condition ’cause people think they’re getting the last deals. I wanna talk about that because I’ve got the actual numbers for what’s available than, you know, ’cause there are houses out there, they have no offers on them, they’re out there. Okay? But they’re not on your radar. Because of the way you believe and what you’re looking. So, first of all, right now in the market,. there are 19,700 homes. Now, all those homes are not available for sale. About 12,000 of those houses roughly are under contract already. A lot of them are short sales, some of them have recently just gone under contract. The actual number of homes on the market right now is about 6,000. This is Single Family Homes, Townhomes, and Condos. So if it’s Single Family Homes it’s less or under 5,000/4,000 change. What’s normal for Vegas is 7,500. In a normal average market where houses sell and you know, we sell 40,000 houses a year, we have 7,000 on the market at any given time, they come on the market, they go off the market, in that sort if a normal number. So what, why is all of a sudden it seems like we have 6,000 houses on the market. And it’s Dior you know, times here? Well this is the reason, 10 years ago the average purchase price of a home here was about $170,000. You could go to Summer Land which is a master flag community, really nice. Get a 3 bedroom house, 1600 sq.ft for 160-170,000. 6 years ago, that same house would have been 360,000. So you had a house worth 160,000, now people are paying 360 for it. Today that house, you can get 160,000 again. So that type of area has sort of recovered. Now there are other areas we can get a house like that for $80-$90,000 other parts of town. So prices are low. I mean, we have homes that were selling for you know, $50-$60-$70,000 then yeah, they’re trashed, and people hear that, they come to town, and think they’re really gonna live in a really nice house or not, they’re trashed houses. But they’re out there. You know, a bunch of them out there. If you have cash, which you’re not getting a loan. No one’s gonna loan on them. You can get one of those houses. So the difference now is, that the prices historically are much lower so there’s more demand. That’s why that number, that 6,000 really doesn’t matter how many houses are on the market. There’s be thousand of houses on the market. And if nobody’s buying houses, it’s a dead market. There could be 20,000 houses on the market and it could be a screaming market. Like it is now. ‘Cause there’s almost 20,000 houses out there with signs in front of them under some either listed or getting ready to close. Okay? What makes the market really is the prices are low, rents are still high, investor’s gonna come in, buy 4plexes, there’s 237 multi-families that yet have been included in those numbers on the market, duplex, triplex, 4plex. Nothing bigger than a 4plex is in those numbers. They’re available so come in down here, drop $150,000 and get a 4plex. You have 4 rental units you know. And you’re in there for $37,000 a door or something like that. Anyway, So, I just wanna give you those numbers and sort of give you my feel for Why are we getting 50 offers on a house, and the real reason is ’cause the house is listed below a little bit below market value. It was an REO. That’s the same house is probably $10,000 over market value, probably has 2 offers on it. And the truth is, they’ll probably sell for the same amount of money. Right? So, you know, But everyone want/they see the low price, they put in am offer, hoping to get it, they end up fighting with a bunch of people and you know, 50 of the 51 people didn’t get the property. So, just keep that in mind when you’re put there looking for houses, don’t always go for what looks like the best deals, it’s not always; and sometimes you get in emotional, it gets bit up and you end up paying more for it than you should have anyway. Anyway, so we do have a hot market here in Vegas. It’s gonna be hot outside here too pretty soon as well. Summer’s coming. Anyway, that is my update for today and hope to see you on another video. Thanks!
My FSBO. I will pay 3% sales commission
Looks like a beautiful home! Most recent model match sale was $145,000 at 5413 Lochmor right around the corner. I’ll let you know if I get any buyers looking in that area.