Where did the low end (under $50k) houses go? Episode #225
Hello! Welcome to Todd Miller TV. I wanna do an update on the low end of the market. The properties that everybody wants, 50, 30 thousand dollar houses. Prices, home prices in that range. If you probably watched a couple years ago, I did a video where I went and broke down the actual numbers of how many homes where different price ranges. And, so I did that again and everybody’s complaining that houses are gone there are no more. But then I looked at the MLS, there’s over 5,000 houses available. I’m like “Well, there are many houses available.” You’re probably saying, “Where are they?” Well, I’ll tell you where they’re not. They’re not under $100,000. Okay? 2 years ago, half the houses were under $130,000. Okay? Today, only 10% of them are under $100,000. So you have 90% of our market over $100,000. You’re asking, “Where did the $100,000 homes go?” Well, 2 things happened to them: One, they already got bought; Two, they’ve all appreciated. So these homes that were $80,000-$85,000 whatever are now over $100,000. So here’s some specific numbers: Under $100,000 there are 585 homes available. Single family homes, okay? What you get down to $70,000 it drops to 217. That’s less than a half of that number. And then once you go under $80,000/ $50,000, you only have 74 houses. 74 houses. So at the time right now, most of these houses are trashed, they’re you know, they’re just , some of them they’re gonna take $10-$20,000 with the work. Some were built in the 40’s which is about the oldest houses that we have here in Las Vegas. And they’re not very appealing. So what happens is, you’ll be looking for houses, you’ll find something descent that’s $85,000, you’ll be like “Wow, this isn’t too bad.” And you put an offer on it and you say “Hey, there’s 40 offers ” and you won’t get the house. And then you’ll go complain or people go complain saying “Oh, we can’t get any houses ’cause there’s not enough and everyone’s bidding. No, that’s not true. Everybody’s bidding on the same house. Everybody’ finding the jams that are listed super low, that are in good condition, and they’re all writing offers on those. And I know this to be a fact, I’ve got a house, it’s not that terrible, it’s 2,000sq.ft. it’s listed for $65,000. And you what? No one’s writing offers it. There’s 2 offers on it that were low, it’s not that bad of a house. It’s in a great area but, for rental houses it’ll be just fine. So the key is you know, I wanted to share with you where the houses went. The houses have appreciated. You know, I still get called everyday. People call and say “I wanna buy a house between $30-50,000” I’m just like “Really?” you know. So I just want you to be aware of that that the market has appreciated and those deals have disappeared. So just be aware of that when you’re looking at investment properties here that you have to change your expectations. Remember, everybody in the last 9 months has jumped into the Real Estate market. Predicted 9 months ago, people are saying “I read an article 9 months ago these prices would fall.” I said “No, they’re not gonna fall. Prices are gonna go up ’cause inventory’s going away.” I explained why inventory’s going away. That is what’s happened. Are there still opportunities? Yes! We have new investors who are coming in with lots of money to buy a lot of properties. I see this really pushing the market. We don’t know what’s gonna happen in 6 months, we don’t know what’s gonna happen in a year, we don’t know what’s gonna happen with inventory that may or not be foreclosed on, what’s gonna happen AB-284 and short sales and everything else. So all we do know is historically their prices are super low, rents are still pretty strong, although they soften a little bit over the last few months just ’cause of all the investor homes that have now been purchased so they’re out there available for lease. So anyway I wanted to share that with you. Sort of my low end market update. The numbers of houses that are under $100,000 I’ll hit them again really quick, 585 houses under $100,000, 217 under $70,000, 74 under $50,000, that’s the lowest it’s been probably in, I don’t know maybe 3 years so, least number of low end inventory. Anyway, that is my update for today and hope to see you on another video. Thanks!