September 2012 Las Vegas Real Estate Market Update: Episode #252

Hello! Welcome to Todd Miller TV. I want to do a market update for September of 2012 even though it’s the end of August. We’re gonna look at the August numbers and give you and update. So very interesting, we’ve been tracking this number for month over month over month which is the total inventory of the Las Vegas it’s been sitting at like 4,500 to 5,000. And what’s very interesting is today, at the end August, that number is over 5,500. So meaning 5,540 homes in the market which means there’s more homes out there, still a lower number than we’ve seen but it’s a lot. And what’s really interesting is number of sales haven’t increase.We’re 3,300 for the last 30 days. That’s roughly where we’ve been. 3,300-3,500 sort of in that range. And so, sales are pretty stable. Inventories’ starting to climb a little bit. What’s really interesting is where the houses what price ranges is selling in what prices ranges are available. So you probably earned that agents or other people out there with a bunch of misinformation saying ” Hey, all the only available houses, nobody wants them.” And they’re these little mini condos” which is the phrase I keep hearing. Little bitty condos. So I pulled up form median numbers, meaning the number which half the houses sold below, half the houses sold above. Half the houses sold below are 120,000. Half the houses sold above is 120,000. So 120,000 is the median number right now in La Vegas for sales. What was really interesting was when I pulled what’s available and then I saw what the median number is. And that median for what’s available is 175. SO that means half the houses under 175 and half of over. So what that means when you look at those 2 numbers is, that the house place where people are buying it’s under 175,000. Those houses are flying off the market. It’s over 175 where it’s a lot slower. The absorption rate is much lower there. That ranges represents where people live in houses tend to buy. Investor tend to buy lower end houses. Owner occupants tend to buy higher end houses. And what that shows in our market, we have a very, we have a lower demand for owner occupants. Now, there are a lot of owner occupants out there that are buying 80, 90, 100,000 dollar houses. The problem they’re having is they’re competing with investors who are paying cash. So the people out who are saying “Hey I’m just gonna buy first house- $100,000 house” They’re getting very frustrating with the process. So, a couple things you can do. One is, you can be patient. Okay? And just keep trying and maybe you’ll get one.The 2nd thing you’ll do is buy a more expensive home. A $175,00 house occurred interest rate, you’re payments is gonna be between $1,000 AND $1,100 a month. If you’re paying $1,200 in rent you’re probably not living in a house like that. That’s a house that was worth $400,000 years ago probably depending on what part of town it’s in. So you know, there’s a lot of opportunity in the market but that’s sort of overall thing I wanted to convey was that 5,500 houses available and then $175,000 is the median price of what’s selling. Flying off the market actually is at $120,000 price range is the median basically below that is/it’s super hot. And so anyway, I thought I would share that with you. That is my market update for September of 2012 here in Las Vegas. Thanks.