Breaking News – Housing bust is officially over! – Episode #230

Hello! Welcome to Todd Miller TV. Today’s episode is titled “The Housing Bust is Over” and the reason I say that is ’cause the Wall Street Journal today just officially announced that their prediction at the housing bust is over. So, there’s this article that came out today, the title of it is “Housing passes a milestone”. So I’m just gonna read some exerpts, and sort of talk about this. It says that the Housing market has turned at last, the U.S. has finally moved beyond the tension grabbing prediction from housing experts that the housing is bottoming. The numbers are now convincing. So it’s been 6 or 7 years since the bubble burst. It’s now been percolating down for a couple years. And for those of you who have been following the blog here, we’ve talked about this probably 6 to 9 months that, you know. Remember I told you about 9 months ago that people are saying that prices have dropped 30%, and I said there’s no way. And they’ve been going up and, the other thing that I called was the demand was high, I said what we’re seeing the highest demand ever which is why our inventory is going away. And then, this is something that was quoted from the article, Okay? Nearly 10% more existing homes were sold in May than in the same month a year earlier. Many purchased by investors who plans to rent them for now and sell them later. An important sign of an inflection point. So the/and that 10% number is actually a little higher in Las Vegas. Our year over year numbers is/you’ve probably realized if you’ve tried to buy a house in the last 3 or 4 months, it’s much higher. We have about 30% less properties than we have a year ago at this time. And that 30% is a huge number. It’s not as much as some other places in the country where it’s down 35, 40, 45&. But it’s still quite a bit and.. So the other thing the article said was that economists aren’t always right but on atleast on atleast this they agree, a new Wall Street Journal survey and forecasters found 44 believed the housing market has reach its bottom. And only 3 don’t. So the good analogy for this is, it’s 4th Quarter Football game, there’s 2 minutes left, team’s up by 3 touchdowns, and there’s still 3 guys that are saying “I don’t know, the game could still go the other way” right? So it’s pretty convincing, atleast when you’ve seen what’s happened in the last six months. We haven’t seen this in 8 years. It’s been 8 years since we’ve seen this kind of demand and this kind of increase of prices. So, I think it’s pretty safe to say that we’ve hot the bottom or we’re passed the bottom. Especially when we talk to economist, ’cause economists typically don’t say anything until they can prove it in the past. So typically by the time said something it’s too late. The one thing that a lot of people are gonna say is “Well, interest rates are gonna go up and that’s gonna hurt the housing market.” Well, the housing market right now is all backed by cash for the most part. So interest rates aren’t gonna affect the housing market hardly at all. And if that was the case, if you use that as your sole measure, interest rates are half what they were 6 years ago. So the argument there would be, if interest rates went down while the prices go down. If interest rates go up, prices are gonna go up so it’s good for the market too. So it’s kinda hard to make that point. Whatever interest rate do it’s not really gonna affect the housing market that much. The other thing that they talked about in here is the inventory that we know is out there, and what they basically said is that because that’s gonna turtle out at such a slow rate, it’s gonna get absorbed. It’s probably not gonna affect the housing market very much. At least not sort of enough to overcome what’s happening and the number of people who are now starting to buy again. Then the very last thing, last sentence states the housing bust is over. They’ve officially declared it, and we talked about this for a while, that we’re probably at the beginning of some sort of recovery, we probably have it probably for a year maybe, atleast 9 months and 6 months, I think we can all agree on that. Here in Las Vegas for sure, anybody who’s tried to buy, or if you’re a Real Estate agent, you’ve been working with clients, it’s a much different market. So I thought I would share that with you, the housing bust is officially over. That’s my update for today and hope to see you on another video. Thanks!