Inflation is making everything unaffordable for average people, especially when it comes to buying a home. In popular cities like Las Vegas, home prices have skyrocketed as many home sellers and home builders overprice homes on popular real estate websites like Zillow. This has led to a significant increase in the cost of living, leaving many potential buyers feeling priced out of the market. Despite this, Las Vegas homes for sale are now seeing more price reductions, a small relief amid the financial strain. The horrible news is that these reductions are still not enough to make homes affordable for the average person, especially within the Las Vegas real estate market. The median Las Vegas home price now stands at $475,000, up 7.7% from this time last year. However, with interest rates remaining elevated, housing inventory is now increasing while the job market continues to weaken. These are signs that a potential housing correction is on the horizon. If you’re looking to buy a home, whether in Las Vegas or elsewhere, it is essential that you do not overbid on the price as many homes are significantly overpriced. Being patient or making a lowball offer is certainly an option for aspiring homeowners. As a local Las Vegas realtor, I help people make the move into Las Vegas all the time. Reach out to me anytime if you're considering moving to this beautiful city. It would be my pleasure to help you find your perfect Las Vegas dream home. Jerry Abbott - REALTOR Summit Properties Call/Text: 702-550-9658 Email: jerry@jerryabbottrealty.com Website: jerryabbottrealty.com
I know you can't predict the future, and have no control over it, but in your opinion what would you think would be a reasonable entry point for an average home in the Las Vegas area in terms of monthly payment? Like if monthly payments fall below 3,000 per month for a new construction, single family 3 bedroom home, do you think that would be fair or still too high?
@@MDTFoodAndTravel That is a hard answer to give you because it's all based on credit scores, down payment and interest rates. It has to be financially comfortable for the buyer more than anything else but there are many variable factors in play.
I don't know if you can legally do that. In any case if the home market collapses we must all revolt if our so called government tries to bail out these so called "too big to fails". The bailouts in 2008 and 2009 are what enabled the hedge funds and private equities - there is no way for them to lose because if the prices of home go up they win big and if the prices go down they just get bailed out , of course inflation rises, national debt rises etc. The hedge funds are too big to fail and the rest of us are too small to save.
I love white castle burgers and I agree. Problem is they'll need to institute laws for it and those politicians love that sweet lobbying money the hedge funds have to keep the laws the same.
It's criminally inhumane, every human that works and makes a significant amount of money with a savings should be be able to own a home not just corporate conglomerates. There should be a true leader in office to end this by law and states need to adopt that law and protect it's residents, heck! make it a federal crime to dictate a market it's almost like inside trading, the game is rigged.
My interest rate is 3.1 . I bought a condo during the pandemic. I am really stuck here now that food, inflation has taken over. I am grateful not to have to rent. I am grateful not to be homeless as well as a senior. ♥️
In an area where I used to live, outside Phoenix, there are sales, but they’re sitting there for 3-4 months and are selling with $25K-$50K price cuts. That’s not enough, but it’s a start.
All this talk about the price of homes dropping is senseless. No matter how you cut the cake these prices are far too high to begin with for 80% of the population to afford comfortably. When you consider what average Americans have to pay to cover all their bills home prices need to drop 50-60 % in these metro areas. The fact is salaries are not keeping up with the rise of all things. Companies are raising prices 25-35 % and using shrink inflation to increase profits yet none of this trinkles down to the consumer. I am an older baby boomer and what I see happening to the purchasing power of the other generations it really bothers me. Unfortunately, I probably won't be around to see how all this chaos ends.
Agreed on all of that Bruce! Truly sickening to see what has happened between the Fed printing trillions of dollars, corporate greed running rampant and reckless and unending consumer spending since the end of the pandemic.
I just had to make a decision to rebuild my trucks engine or buy a new truck. I chose 6500 to rebuild my engine over a $50k truck with 800 dollar payment I don't regret it Keep in mind I have an 800 credit score
Nothing defines a bubble better than buying a house and three weeks later selling it for $200k more. LOL! This is going to be ugly for many many "investors".
My interest rate is 2.37%… I’ve been buying homes since late 1980s and had every rate from 16% down… I’m afraid to sell this house because I’ll never get this rate again in my lifetime. I’m 64.
Thanks for sharing that Deborah. Many homeowners of your age are facing the same the issue. Be grateful for that 2.37% rate because we will likely never see it again.
I'm a Gen Xer who has given up on ever owning a home. I live in an old RV and I'm very satisfied. The real estate market can go scratch my ass. 😁 P.S. I really like this channel 👍
My interest rate is 4.180%. I bought back in 2016 here in West Virginia. A year and a half after I had bought my house, interest rates had dropped and I was being hounded by my mortgage company to refinance. Now look at where things are. Crazy how much everything has gone up in a matter of almost 8 years since I bought. *my house will be paid off in a month*
@@BREEZYM6015 - HA! ;) Hey - it's cheap here. You could afford a home of your own. As always - pro's and con's wherever you go. It's a different life here. I'm from here but lived in SoCal for over 30 years. Moved back here and there was a definite culture shock. Good luck to you out there.
My father just came back from Sedona, Arizona. He said the homes there are selling are more than a million dollars. He is a retired Income Tax Consultant. and a retired Korean War Veteran. He says it has a large retirement community. He says there is no way he would pay that much for a home, and says it is nice to visit but not to live. He bought his house that he lives in now back in 1974 for $40,000. It is 4 bedroom and 2 bath home. He says there are some homes for sale in his community and start for $800,000. He has another home he bought is 1964 for $18,000 It is a 3bedroom and 1 bath home and now selling in that community for $650,000. He rents that one out. Thanks Jerry You are the BEST!!!
For a large retirement community, where does the Younger Labor Force live? Do they commute from 40 miles away? Interesting dilemma 10-15 years from now when retirees age and go to assisted living facilities. Does the million dollar home go on the market or the favorite child gets a deal on the parents house?
Interesting feedback James. I appreciate you sharing that. I also agree that there seems to be a lot of manipulation going on within the real estate industry to support these overinflated prices. Seems to be one big dirty game.
Mahalo Jerry this event coming this time around will be Epic and be bad or worst for some and great for others that are prepared. Great video Jerry the picture painted is now even clearer. 🤙🏽👍🏽🍍🌴🇺🇸
Thanks again Jerry for the spot on information about the Vegas real estate market. I have family living in Las Vegas and will be buying there at some time & your take on the market really helps me with a responsible decision.
Great show as always! I looked up your last example at 411 Pulse Ave 89011 that was asking 209k over the price they paid a month ago. After only 16 days on market they have already lowered their price by 25k now asking 775k. The floors are still from 2016 as are the kitchen cabinets, appliances, and there is no refrigerator! The pool is heated and there is a spa and that alone is a huge expense and headache for a buyer to build. The cost today for a basic pool is 100k not including landscaping or any hardscape you may want in your back yard, if you buy from a builder and get the typical dirt back yard with nothing but dirt in it. So let's knock off 100k off their asking price, and it is still at 675k. You can buy, right now in a much much much nicer area inside Lake Las Vegas on the top of the mountain, brand new gorgeous single story homes being offered at just over 500k with dirt back yards, but they have brand new everything and they do include the refrigerator. If you bought one of those, put in the pool, plus landscaping,, paint, light fixtures, let's epoxy floor the garage too ok so that's probably around 150k if you do really high-end landscaping and high end fixtures. brand new all in 665k- 700k That's not even being frugal, that's going hog wild on your improvements and it's still a LOT less than they are asking. but if they got 675k for a house they only pain 590k in a few months that's a pretty good pay day. This is the only improvements they claim to have done: New Carpet, New Baseboards, New Paint and New Fixtures. Cheers!
We just sold our home here in Las Vegas for $1.2 million with 3800 sq ft/pool/RV parking and bought a new home about 2/3rds the size for half the price without a pool and paid all cash in the same general area. Why? It is immensely expensive now to have a pool and heat and cool these larger homes. I don't look on a home as an investment really. It's where you live and much cheaper than rent if you can get your maintenance costs and utilities down. I know a lot of people that are taking advantage of the market right now to trade down older larger homes and properties for smaller homes just because a new home is cheaper to run and easier to maintain.
I sold both of my homes in the past few years and now I’m just renting, waiting for LV to drop in prices. No rush. Renting is cheaper than buying right now. I think we hit a recession by EOY and watch the prices start to dip more and more.
I see a lot of talk about people being locked into low interest rates. I don’t see much talk about down payments. If you have a low interest rate and only put 5% down or 10% down, you are in no better position than someone who put 30% down and got a 5% rate or 6% rate.
As you have mentioned many times before, a downturn may be coming... it looks like sooner than later! Some spots in Florida and Texas are seeing a downturn in home pricing. We can hope that Las Vegas will do the same soon. We'll keep our fingers crossed! Will contact you when I am ready to buy in Las Vegas!!
Ya but they could have also raise the prices to make it look like you’re saving. Like retail sales. How would you determine the right price? The cost to build was $500k, add $100k and then advertise the price at $600 - you could $50k if you buy now at $550k.
Very different story here in Massachusetts. We dont have a lot of undeveloped land. Average homes pushing towards $1M. Sellers in my town getting over asking price. Its crazy.
Looking on Zillow and Redfin, I see prices already going down a little. Hopefully, they will go down a little further when I am able to get down there.
Wish you would address why the state doesn't limit the amount of houses an investor can buy. This, in my opinion, is what's hurting our economy. I rent here in Las Vegas. I hate it here; born and raised in Southern California, I experienced cirumstances beyond my control which led me here. Prices are out of control. I'm a single woman living paycheck to paycheck struggling to afford a roof over my head. I will not consider roommates or renting "a room." Your chances of a dangerous living situation is elevated in this town. You can't trust people here; they're shifty, if you know what I mean.
We are so glad that we purchased our home in 1995 🎉 if we tried to buy today we could NOT afford it 😞 in 1995 we paid $ $ 110,000 for 1200 sq ft on 3/4 of an acre 🎉 now we could sell our home (NEVERfor $$ 749,900 CRAZY the house is now 3500 sq ft We put in a swimming pool with Jacuzzi , pool house with bathroom , Large outdoor kitchen , and so on ….
A big problem here in Vegas is the fact how much they prop up the town of Summerlin. They act like it's Beverly Hills. Born and raised in Southern California, I can attest that Summerlin is not a big deal. It's like any normal town in Los Angeles and the suburbs. I know this because I lived it my whole life. Summerlin is not all that and I just cannot understand why people pay so much money to live in this overpriced town.
Thanks Mr. Jerry for this critical analysis. Extending the inventory issue, the builders fund construction with short term notes. If the inventory does not turn quickly, pressures on builders will increase, creating bank loans to restructure and even default. Inflation coupled with increasing property taxes increasing, adds to the pressure of the middle class purchasing homes. Recently a major furniture company is closing 100s of stores as slowing home purchases directly impact families buying new furniture. The crash is in play.
Bought my first home in 1982 at 16.5% rate Bought my last home in 2012 at 3.75% saw rates dip to 2.75% and didn't refill for 1% Moved to Vegas in 2022 . having seen large housing corrections in 1990 and 2008 I feel its too early to buy so I rented my house with low rate and bought a cheap mobile home in a resort style over 55 park. My rent covers my mortgage and my Vegas space rent. Now I have time to look at homes and areas to figure out what I like. My expectation is the correction may be in the starting stage and it won't be time to buy for 3 to 5 years.
Thanks for sharing that information Raymond. You could be right, it could be a slow grind down on the real estate market. We'll see how it all plays out.
Watch the Del Webb Anthem area in Henderson. Very nice Senior Center. Nice area and the people who first moved in are starting to age out. Husband passes away, house too big and wife moves into an apartment.
Yeah, I have heard other people say the same thing. That shouldn't be the case but just further proves how much transparency is still needed for every area of the country.
When people start losing their jobs, or even just reduced hours worked, this whole housing market will collapse harder than 2008 as values are 2x in some markets and 3x in others...seen it before!
I'm not sure the government will allow that to happen. The rumor is that the Fed will cut interest rates in September, which is absolutely mind-boggling. They are doing this though to prevent that kind of economic and employment crash. We'll see how it plays out.
@@lasvegasliving9237 it's possible before September if Fed calls for an emergency meeting and rate cuts sooner. There is also the chance of another banking crisis from defaults. At least Wall Street has the mortgage backed securities and credit default bundles in their game plan I always said a house is to live in, not a get rich quick scheme.
When you see a state like Nevada becoming garbage 🗑️ ~ unconstitutional laws discriminating people for dumb past offenses and oppression of people and ignoring actual crime and real threats to focus on irrelevant issues you know that it’s become rogue. They decided to sponsor F1 but told people it would only cost 7, million to make a billion. The false narrative to trick it’s own local citizens and create a false illusion only to be exposed publicly here’s what F1 is costing people ~ Full sponsorship ( any repair on damaged vehicles) paid advertising 12, million, paved track 48, million, plus whatever sponsorship millions it takes to cover the team being sponsored. It’s great to get rich people to move there but those rich folks won’t service your tourism. Robots will replace all workers there goes your new purchased home…
The last home - they only would have had time to put new carpet in. 3 weeks - you're getting nothing substantial done to a place. Carpet and paint is literally about all you CAN do. So buy for 590, put 9K in, expect 200K profit out. Just insane.
3.125% here. If I was to sell, it would only be to move to another state where the housing prices are not so crazy to get the most bang for my buck. That is unless the fed reserve gets there heads out of their butts and adjust the rates accordingly (or banks just ignore it)
A recent lawsuit has ruined it for any buyer of real estate. Have you told your viewers THEY NOW HAVE TO PAY THEIR BROKER ADDITIONAL FEES? This means any BUYER dealing with an agent now has to pay his/her agent ADDITIONAL FEES in order for a realtor to show them houses. With high interest rates, high home prices, inspections and appraisals, this additional fee makes it almost impossible for buyers (especially new ones) to buy a home. This also put the majority of buyer's agents out of business. I'm impressed with your presentation and knowledge....I wish I could say the same about your company...that's your only weak point.
That is completely wrong because once again, the media is putting out information that is not even remotely accurate. Most real estate agents already know that the likely trend is that the buyer will almost never pay a commission to buy a home because it will turn into a "seller concession" that is offered to avoid buyers having to pay commissions. Otherwise, sellers will simply never sell their homes especially as the market shifts to more of a buyers market. I appreciate the personal support Ron.
Canadian here, pretty much the same story mirrored here. Prices have gone out of hand, I feel for anyone trying to buy their first home these days with the way prices are. Used to be a smaller/starter/retirement home was attainable, and in the case of downsizing for retirement you could get somethning decent that you wouldn't need to spend a significant sum of money on to upgrade and have yourself a bit of a financial cushion. Now, good luck with that. The price gap between those small homes and next "tier" is smaller than ever vs when my parents where at that stage years ago.
I have heard Canada is much worse than the United States in terms of home prices (if that's possible)! Really a sad situation to see how much prices have increased everywhere. Very frustrating times.
@@lasvegasliving9237 Hard to say, I don't follow real estate that closely any longer. As a whole I'd say we're probably pretty similar, perhaps a steeper jump in prices a few years ago at least locally. Same issues on both sides of the border, big cities (ie: Vancouver BC and Toronto ON being the major high priced cities) and smaller cities all lacking low cost housing causing people to be on the line or worse. Places with good paying job having the same sort of inflated pricing. Since I'm about 2 hours from toronto the pandemic exagerated the lack of houses and drove prices up as people moving out of the expensive city had money to burn on our "cheap" housing getting into bidding wars on already overpriced houses exaggerating the problem. There was a period of time if you listed your house today, you'd have a pile of bids by the end of the day, you could cherry pick your offers. Now we';ve seen things cool down and prices actually stabilize and sit on the market for a few days as pricing is still beyond the reach of those looking to get into their first home.
The housing market out here in Vegas is insane. They have made it so high, it really does make a normal functioning human being so frustrated 🥴 Buying a home, should be a wonderful feeling. Out here its more frustrating! 😢Somethings gotta break instead of Our Wallets🥴 Subbed you and look forward to reviewing your channel🤟🏼✌🏼 Cheers 👊🏼🙏🏼
@lasvegasliving9237 Thank you, Jerry, for showing the Extreme example with Super high end home with patience really paying off for those buyers. And let's not forget all of the people who bought at ridiculous prices, and thought that they were going to get rich by playing The Airbnb game and are now getting their Hard pills to swallow due to so much competition. And another caveat for someone playing the Airbnb game over here in Arizona just this week alone there were 2 child drowning cases that occurred at Airbnbs that were not up to code because they did not install pool fencing. So these owners will likely be spending a whole bunch of time in a Court room and possibly worse.
@lasvegasliving9237 $11,700,000 Roger and Barbara Jo Simons of Naples, Florida, bought a 13,364-square-foot Paradise Valley mansion with seven bedrooms and 13 bathrooms. The home, which was previously listed for $23 million, has been completely remodeled. The house on 2.2 acres has a huge glass closet, a 7-car garage, a tennis court, a pool with a slide, a wine cellar, a bar and two guesthouses. Stephanie Grauer was the seller. Jerry here is another great example of patience paying off as you can see in this sale that was in The Arizona Republic newspaper. A nice approximate 50% below the previous list price for Paradise Valley Mansion.
@@timsmothers8740 Yes. Unfortunately many of these luxury sellers are delusional in those original list prices. Many are getting a serious reality check now. Thanks for sharing Tim!👍
Zillow has a check box in the top left (for sale). You can open it and change it to (sold) . Looks like it displays the amount sold for? I was looking at 50 acres for 625K. No way I could afford it, sold for 485K I may could have scrapped enough together for that. You never know until you ask.
I moved from Anaheim, CA in 2022 and bought my home in West Summerlin with a 3.02% interest rate. My cost of living is way lower than it was in CA so I'm not complaining.
That’s why us working class in Vegas can’t buy because California is buying up property at cash when we workers in Nevada with shit wages can’t do it ! Sad haves and have nots !
@pnketia~ are you self employed or work for a salary? What was the pay cut? Everyone likes to sugar coat everything about moving to Las Vegas. People call it a smart move, but is it really? You haven’t seen here long enough to experience the difference and if there’s really anything left? Once you get to know the city and the ridiculous incompetence that has rooted in this state you will understand what I’m talking about. Today moving from California or Atlanta doesn’t make any difference people are paying high end prices on already overpriced homes. You might save on state & property tax but let’s be honest for once, everything gets delivered to this state so you are paying way more for groceries. Another reality is you are not paying less for electricity nor natural gas everything in Nevada has skyrocketed. I’m not sure what you do for income but here in Nevada the high end make 100k and that’s a very low few. 59k is about the norm. When it only took 35k~45k then that was the good time to buy. Anything after 2020, people are trying to pump themselves into believing they did a smart move but there’s no big difference except now they are in a desert with summer activities unless you go to the lake or flock to Charleston Mountain. Car insurance is 3, times higher than California. If your insurance drops you the state will try to charge you ridiculous money for not having insurance. If your vehicle is not registered with tags they will come and tow it ( extortion) imagine you forgot to put on the new sticker? Their DMV is always closed or down ( you can’t call because nobody will answer they only have 8, people to pick up for the hole state) are you going to say that’s lovely? How about the bad drinking water? You ever wonder why there’s so many cancer hospitals? Here’s one thing Nevada is garbage for, They blame California for everything, however by California standards when people get a DUI and hurt someone they get severe punishment in Nevada Drunk drivers get zero or little punishment even when they kill people ( some are repeated people with multiple deadly DUI) in California after the second incident if you hurt someone again it’s 25, to life. Here in Nevada when people kill their sugar daddy or momma or anyone it’s been known to see people get 1, year to 10, years tops that’s why crime in Nevada has skyrocketed. Do the math on groceries and utilities and car insurance if you own one and you will realize that you are not really in any advantage or better off. Las Vegas will be like San Francisco except no high pay rate.
Hoping by next year these prices have dropped way more than they are now. Getting ready to be a first time buyer but i flat out refuse to pay these prices. $400k for a townhouse is insane. Just going to be patient and see what happens
Sounds good. I think we could see a correction as the job market weakens and inventory increases, Overall debt is now at record levels so something has to give at some point.
Hard to cover every subject matter within the industry in one video otherwise they will be far too long. I will add commentary on the mortgage rates and the NAR lawsuit in future videos.
I’m not sure when this was recorded but some of the Lennar homes have increased in price from what you saw. 6772 Eckardt Fields Ct for example is almost $1.1m listing now
The price increases from some of these builders are just simply outrageous. I really believe there is pain coming for a lot of the builders and sellers that are massively over pricing homes once we see a shift in the economy.
Jerry, is there a trend of people taking a HELOC or Reverse Mortgage from their overpriced homes being in a horrible predicament when the housing market crashes? What happens then?
It's hard to know how many people are doing that but that certainly is more likely when many have a lot of equity and need the funds to support other day to day costs and expenditures.
Hard to stomach buying at all time highs with 7 percent rates...for those buying now, its got to be hard sleeping at night. Its probably cheaper to rent and let down payment marinate at 4 to 5 percent in savings.
Completely agree. It is far cheaper to rent right now but a lot of people want to own (which is natural) but at what cost? It is a huge anchor for people to buy at these prices and rates in this current market.
Bought a home last year with a 6.1 interest rate with the hopes of interest dropping. First 10 years of a mortgage is just interest payments. So it should be a good idea to refinance anything greater than 1% or more will probably have to take but it looks like the economy just can’t afford it and the people should probably be glad that they have, anything under 10%
I came from Vietnam 30 years ago. I still remember back then, they printed so much money, they devalued their currency, and they kept on printing until they can't print any more. Their currency become practically toilet paper. They had to change the bills denomination. People have to swap out old currency for new currency.
I don't think we're going to see that here in the United States but they (the Fed) are certainly are devaluing it massively from all the printing, especially since the pandemic ended.
@@lasvegasliving9237 You are not wrong... but no matter how hard things get there are those who still figure out a way to benefit. Some people will PROFIT off the misery of others. :)
I’ve been telling you this for a long time now and you have said I was wrong. I build homes for a living and it’s a lot higher then what your showing. We have so many built homes sitting empty or being bought by investors sitting empty. Lol.
I don't even recall who you are based on the volume of people that watch and comment on my videos but I have heard that there are many new homes sitting empty at this time.
@@lasvegasliving9237 Ohh yeah I’m sure you get loads of comments and hard to keep up with them all. A lot more than many. Haha. They are doing what the car dealership are doing. Car dealership are buying back their new cars to make them look like they sold to keep the market inflated and they are doing that with homes. Since the stock market is majorly vested in the housing market this time around it’s going to be catastrophic for both.
A recession is not coming this time around a depression is. Back in 2009 I could rent a 2 bedroom apartment in summerlin for $600 a month. Today a young couple starting out they will pay over 2k in summerlin. It’s over it has to crash and crash hard.
Time of reckoning will be here soon. I still remember back on 2007 when I purchased a 2 be., 2 ba. home on Ellingson Dr., LV NV for $ 199 k and short sold it for $ 50 K in 2009.
I don't see a repeat of the 2007-08 crash coming this time around. I do think there could be problems, but this is a very different market compared to that time. We'll see how it plays out.
@@lasvegasliving9237 I hope that you're right; however, this time around, it doesn't matter to me. If I sell low, I buy low, which would be better for me because I wouldn't pay capital gain taxes. We'll see. Thanks and have a great day.
The median price here just hit 487k eclipsing the record of 485k in 2022. The drop in interest rates tells me that it may finally be the time for the market to start correcting. It need to!
Where do you see prices going in Vegas in the next year? You got movie studios moving to Vegas along with Californians ruining the market on top of that
I see a correction coming within the next year or so. There's no way that this will be sustainable without first seeing that kind of correction after the last few years of unprecedented appreciation.
A recession is most likely unless the government intervenes as usual to give the economy CPR. It may be too little too late once we see sentiment change. We'll see.
My latest Las Vegas grocery bill. 5lb bag of Idaho Russet potatoes $0.97, one dozen large eggs $1.77, corn on the cob 4 for $1.00, loaf of white or wheat sandwich bread $1.00, head of iceberg lettuce or cabbage $0.97, large bunch of red radishes $1.00, baby back ribs $1.97 per lb, half of gallon of milk $1.67, honey nut Cheeries 12 oz $1.47, snow crab legs $6.97 per lb, ice cream 48oz $2.47, Stouffer's or Lean Cuisine Entrees $2.47 each, 85% lean ground beef $3.97 per lb. We shop at the nation's second largest supermarket chain.
@@carolcraig6053 Nation's second largest supermarket chain, but you have to know how and when to shop for groceries, too! Hence, the high grocery bill for most folks. Jimmy Dean sliced bacon 12oz $2.99, bananas $0.17 each, store brand ultra thin crust pizza $1.97, whole rotisserie cooked chicken $4.97 each, cheese chunk or sliced or shredded 6-8oz $1.67, family size Chips Ahoy or Orea or Wheat Thins $2.97 each.
Good stuff!! I know you think it’s just going to be a pull back in real estate, But man are the stars are lining up for epic crash again All time credit card debt Job loss on the move Stock market way overvalued Inflation still of the charts ($75,000 for a pick up truck) Trillions in fed debt You know wonderful stuff like that. It’s very difficult to see it especially up here in Connecticut the amount of apartment complex’s being built is off the charts and they are being rented, and they are not cheap. A ton of people from ny, Florida moving in
We bought our home in Henderson in 2015, with a mortgage rate of 3.75%. We refinanced in December of 2021 at a rate of 2.375% I retired in July of 2023 and am grateful for a super manageable house payment. Just crossing my fingers that inflation+recession doesn't eat too much into my nest egg.
Not one of the properties you feature in any of your videos have the seller accepting less than they originally paid for the property. Prices are not going down, sellers are simply accepting less profit on their sales. Lower interest rates will simply fuel another round of wild speculation as homes are not viewed as places to live but ways to get rich.
That is true because regardless of pricing reductions, the appreciation has been enormous since the pandemic so they are taking less of a profit but a handsome in most cases nonetheless. Lowering interest rates by the Fed is a disaster in the making. It will spike inflation and just make things even worse down the line.
@@lasvegasliving9237 I do like your channel and analyses, Jerry. The pandemic is the lowest hanging fruit to blame our current predicament on and hindsight is 20/20. Keep up the good work!
I actually don't think 7.4 million average home price is a crazy as like a million or whatever it is in Los Angeles. Jackson Hole is a resort area for a small amount of wealthy people. For a million in LA you get a horrible , small dump with a car port and it has one of the highest poverty rates in the country - to me there is a huge disconnect there.
My ex and I bought our home in Anthem in 2015. Refinanced it to a 2.25% interest rate during the pandemic. Owed 9 more years on it, then the divorce happened. We sold the home while splitting assets; my ex bought a town home and I purchased a single family home in the same neighborhood. We both unfortunately have a 6.5% interest rate. But, with the money down; it’s still cheaper than rent in the area for the sq ftg. We both have conventional fixed mortgages…
Thanks for sharing that. Unfortunately hindsight is 20/20 and people never realized how good they had it when rates were so low. But if it’s cheaper than renting that’s a good thing.
I watched this place on @CNBC, and then they did a story, that people cant live there but work there, and they got kicked out of the home they was in, because they didnt want to work for a given company, so when that was said, the people gave them two weeks to find another place to live.
The billionaire’s are kicking out the millionaires in Jackson Hole for years!. If you want to live near Jackson ( be one of the workers in Jackson) then there is Star Valley (aka Starve Valley) to the south.
Just curious what your fellow real estate agents are saying to you about these ridiculous price increases in such a short amount of time. Is it like 2008 when people knew things were inflated but since they were making money who cared? Thanks!
I don't really care what my colleagues say or think about home prices going up so quickly. None of it is sustainable or make sense at this point and we all know it. It is completely unprecedented and anytime this has happened in the past, historically we have seen prices reverse down or crash. It could be different this time around but we'll see how it all plays out.
The problem was appreciation crated more appreciation. Assume you were a buyer in 2012. Your dream home was priced at 600K but you could only afford 300K at the time. 10 years later your house is worth double- 600K. But your "dream house" also doubled to 1.2M. Assuming you paid down 50K on the mortgage + appreciation you have $350,000 in equity. You could buy your dream house, put 20% down, finance at 2.65% and still have 90K left over. But look what happens when home prices remain flat... your dream home is still 600K, but the home you bought is still worth 300K. But you've paid for 10 years so you have 50K in equity... the problem is now all your equity isn't even good for a 10% downpayment on your dream home... its a very strange paradox that your dream home going from 600K to 1.2 million actually made it MORE affordable! This is only because leverage and artificially low rates distort everything, including reality.
Who in their right mind would compare normal Cities like Las Vegas across the country to the outliers of ski towns, boating towns etc that are usually retired rich people owning second homes... ESPECIALLY to open a video like this. Then @ 2:42 you mentioned that listed homes sitting on market for more than a month, are up 65% YOY... when the redfin article in the video clearly states its up to 65% from 60% the year prior... thats only a 5% increase YOY which is minimal and uneventful. Then we get into this 10th grader like chart explanation of completed homes and how they are at a dangerous level crossing a median level of 100k completed homes for sale. Naturally this is done without mentioning the obvious upcoming 8-10 interest rate cuts the fed is on track to make over the next 18 months. Which is going to bring buyers to the market who have been waiting for lower rates to make their purchase. Finally, we go through a few examples of homes in Las Vegas that were egregiously priced and were brought down to reality before selling which is common in every market when a product is priced too high and MEANS NOTHING. Las Vegas home prices are up 7.2% YOY with a minuscule 14% decrease in homes purchased in June in 2024 compared to 2023. WITH AN ACTUAL DECLINE in days on market from 40 in June of 2023 to 37 in June of this year... All of this is a simple redfin google search away. Really this video educates no one, and is more of a fake fear mongering approach to explaining current housing situation in most cities using pointless information. D-
Sorry you feel that way Kyle. It's unfortunate that your tone had to be so insulting but you are mistaken in several areas. The opening about Jackson Hole is that it is a wealthy town for sure but it has now reached absurd price points with billionaires kicking out millionaires and certainly average income earners. The completed homes chart/explanation is showing a strong indicator (not seen in 15 years) that the tide is starting to turn. The fact that you think the Fed is going to cut rates 8-10 times over 18 months is preposterous. If that happens, hyperinflation comes back into the mix and most people will be finished at that point. Everyone said at the beginning of 2024 that the Fed was going to cut rates six times this year and they've yet to do it even once. The problem is that most people think a real estate crash is going to happen overnight when they have notoriously taken years to play out. I don't know if we will see a crash or correction but we are certainly overdue after the last several years of unprecedented appreciation.
Jerry, as a former RE appraiser in CA, the one thing that I found to be unique there as opposed to Las Vegas (which is where I currently live) is topography and history! I've appraised homes in Oakland - the hills that overlook the SF Bay - and homes in Alameda City (not County) that also overlooked the SF Bay from a different perspective and those homes had value that was difficult to appraise because of their unique locations. Those homes had such appeal to buyers because of their locations and history! Here in Las Vegas, that's not the case so when I hear these insane asking prices for homes in this market, I shake my head and wonder if this is somehow manufactured to inflate properties here?
