Despite reports of a strong economy, inflation has significantly impacted every sector, particularly with skyrocketing home prices. However, waiting to buy a home is now a wise choice as inventory grows and price reductions become more common. In cities like Las Vegas, data from real estate websites like Zillow show many Las Vegas homes for sale are still overpriced. The terrifying news for sellers is that these Las Vegas homes for sale are increasingly seeing price cuts, with many selling for less than the original asking price. For potential buyers, this shift in the market suggests that patience might pay off, as waiting could result in better deals as the market continues to correct itself. 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 moved from California to Vegas almost 3 years ago to retire from a 35 year career in real estate. I have been watching your channel since before I moved here. You sell real estate just like I did. By always telling the truth! Its a horrible market to buy in now. I still haven't bought one because I don't want to be upside down when the market crashes - and we both know it will. Thank you for proving great information for your viewers who really need you!
They will, but most will be ex B&B and rentals that need a lot of TLC as out of state/helicopter landlords are notorious for not keeping their places up. If you can DIY some of the repairs and renovation, then you're going to find a nice place to live. But, no, it'll be another decade before you see a profit - only buy if you intend to live here.
@@plektosgaming I used to live there for a few years and I loved it. I had to leave because it got too expensive and I got a better job offer out of state. This was 3 years ago and I still miss the city. I hope to one day move back.
Mr. Jerry as you asked about the housing market and its downturn. We live in Lake Havasu AZ, which is about 2 hours from Vegas. Our recent history here in Havasu. In 2015, we purchased a property which we rented out until April of 2022. We purchased the property for 150k. Sold it in 2022 for 450k. It sold with multiple cash offers in three days. The market was in a massive fever where property sales hit the sky. It sold even before a for sale sign was placed in front of the home. Well now, in Havasu, homes are sitting unsold with for sale signs everywhere. The property has declined in value per Zillow.
You'll also note that the zestimate drops every month. :) So they are at $700K, reduce to 650K. Zestimate goes from 680 to 630K in that time as well. They are playing catch-up in what's honestly not even in the top 20 markets to move to at the moment. Vegas is a nice enough place, but it's Vegas. Investing versus living here long-term are two entirely different things.
I've been watching the sub 400k to 280K range for price reductions to determine a trend & not much movement yet IMO. Blows my mind the old Henderson 3b 1b 1970 crap they are asking 300K still
I live in Henderson and renting. I plan on talking to you in 2-3 months and plan on buying a home, no hoa, one story, I know prices are going down. I am a cash buyer. I was a broker in Chicago and never sold a home, I sold businesses, I was a CPA. My wife and I are Trump. Hope to buy in Henderson. Very much concerned about the future.
It might be beneficial to wait, though, until it hits the bottom and interest rates are closer to 3-4%.. 2-3 months is right when we should see rental prices drop. $1500 a month versus ... can you save 18K in a year? Absolutely. Some homes are dropping that much every two weeks :)
The FED is only concerned with inflation if it is going up faster than what they deem as healthly, which is 2%. They ARE NOT concerned with high prices and they are not concerned with your lifetime savings. In fact, they want to balance it so that YOU do not have too much savings. So, they are literally working against you because they will never allow prices to drop if you are a great saver. So, IMO, the FED is not your friend. They are working to keep you with a meager lifestyle.
right.. So, in my opinion, the only way to "overcome the Fed" is to have a monitary winfall like in Stocks or Lottery or a big Land sale which is out of the FED's reach..... Because you wont ever overcome the FED with just working an 8-5'er and saving your money. It helps to be in touch with God who multiplies the Fish and the bread and refills the oil jar. If you can save, it will take decades to save anything significant with a FED that works against you. Daniel 8.25 says he causes deceit to prosper. And He shall destroy many in their prosperity.
Las Vegas Review Journal just had an article that says you need to make 111,000 dollars to afford a home in Las Vegas now ..Las Vegas economy is in tourism and the service industry , how many people in the service industry make 111,000 dollars a year ? The Fed is insane and playing political games unemployment is rising except in government, and lowering inflation is only going to increase inflation and everything is up 21% from just 4 years ago. I believe home prices will fall a lot faster than people think because even with lower interest rates people are still not buying because they are scared of this economy .
The sad thing is that most people who live in Las Vegas and work here do not make anywhere near $111,000 per year. But, the Las Vegas real estate market is not being propped up by local buyers but mostly from wealthy out of state buyers, foreign buyers, corporations and investors. As more inventory hits the market, if the economy also hits rough water, we will likely see more of a housing correction here in the near term.
1,780 sq ft Henderson NV home sold Sept 30 for $416,000. Today it is a new listing asking $499,000. Thanks, Jerry, for urging us to look at the price history.
A step further you can do a web search for "Clark County Real Property Records" pop in the address and see the paperwork of ownership. You'll find out that (not to surprise) Premiere Residential Holdings LLC bought it on 9/30...shameless.
My Favorite Realtor! Watching your RU-vid channel all the time. I’m still plannings move to Vegas in 5 to 6 years hopefully the market settles down. From Florida.
Hi Jerry, we bought our home in Henderson in 2015; paid 477k for it. As of today,m my mortgage company's website shows a "likely value" of 869k for our house, with a range between 791k and 947k. Zillow shows a value of 827k, the range being 777k-893k. Whichever set of numbers you go with, thats a pretty healthy appreciation in home value. A couple of homes in our neighborhood have recently sold at close to original asking price, At the height of the pandemic, houses listed on Friday would be under contract by Monday, often with multiple cash offers well over asking price which seemed insane to me.
Truly unreal appreciate in such a short time but good for you as a homeowner, bad for buyers. That kind of rapid appreciation is over IMO. Thanks for sharing that info!👍
I’m guessing that’s why they pre released earnings during a strike. Smart timing of Boeing. Should put some pressure on union to be more reasonable in the negotiations
I just saw that as well. Also, CVS recently laid off 3000 people...not looking good as this bubble could eventually burst at some point down the line next year.
Jerry, let us know when your 20 year anniversary is. So you don't have to say nearly. Totally agree with the gaslighting comment, it's everywhere not just pertaining to the economy.
Wall Street and many large corporations now own millions of homes across the country. They are a big reason as to why the residential real estate market is completely out of control. It should be outlawed that corporations and Wall Street are ever allowed to invade the residential real estate market. Unfortunately, that's not the case and it will likely continue as long as they can make money off of it.
Some houses are listed too high, but just don't expect the price go back to where it is ten years ago. One of the reasons that drives the price so crazy is because the international capital comes back to the US, where Asian especially China the house price increased 5 folded but now is crashing mode just like we experienced in 2008.
I certainly do not expect prices to go backwards 10 years even if we have a correction. That simply won't happen due to all of the inflationary pressure we've seen in the last few years. However, we are overdue for correction in my opinion after the last few years of unprecedented appreciation.
Wow, the market is starting to move. Excellent opening monologue, I'm sure many people feel that way. New England has been pretty steady, the economy is still good, no price spikes and many good values on homes. Vegas, Arizona, Texas, Florida, Georgia will see big reductions in prices going forward. Be patient, let the market come to you.
The 3 bd 3 ba example on Lunar Effect was purchased from the builder Sept. 2022 for 534k. if they get the 580k minus their expenses, they might make 20k but not really since they paid mortgage payments over two years that is approximately 50k so they won't make a dime, unless it was rented.. anyhoo, they keep saying houses are going up but not really since the money buys less now so if you make a few bucks it's lost because it isn't worth what it was a couple of years ago. 😢 682 Quayside had been withdrawn JUST since you posted this video! Took a look at it. Need new carpet, has no dishwasher, looks like it needs updating and is still about 100k over over priced because of it. Maybe they plan to renovate??
yes home prices are still too high even with a 1% drop.. haha Btw, too bad Zillow only goes back 5-10 years in their price history.(some not at all) If it went back just 15 years (before the FED dropped rates), you would see something more like a reasonable price. I mean, something you can pay off and live in. But they way prices are rigged now, You have to take out a 30yr mortgage and even then the monthy is still too high, and you will probably default at some point in that 30 yr period anyway... where you may lose your equity or a lot of it anyway. For sure. That is what foreclosure does. And I see the foreclosure bug roll from house to house and neighborhood to neighborhood every week. And foreclosures can only apply to a person if they have a mortgage but some 33% of homes are paid off . So the number of foreclosures you see, only applies to a smaller market. Its so plentiful, it is almost like saying "if you take out a mortgage, you WILL default". Not a question of IF, but WHEN. So anyway, the FED and government policy just allow greedy home owners to push up prices hoping they you will sign a Loan, which creates Money in the system, and makes the Seller Rich, he goes out and spend it... All at the cost of your signature. So I say Go right ahead! haha I want to keep my earning.. not give it away to YOU.
@@emt52889 ok I do see 10 years on the Zestimate now. They change their formatting apparently on the website. (For exqample, look at 5848 S Maplewood Ave, Tulsa, OK 74135 It shows nothing) But even 10 years these days is not an accurate historical model because prices have been inflated since the FED dropped rates to nearly 0 for a decade. And by the way, that house in Tulsa, isnt worth any more than 180k. It is 100k overpriced.
@@emt52889 well apparently zillow changes their format on some houses. For example if you look at 5848 S Maplewood in Tulsa , it shows nothing. But even if you can go back 10 years, thats still when the FED had dropped rates to nearly zero and isnt a good historical model.
@@emt52889 I do see 10 years on some but apparently zillow changes their format on some houses. For example if you look at 5848 5outh Maplewood (located in Tulsa) it shows nothing. But even if you can go back 10 years, thats still when the FED had dropped rates to nearly zero and isnt a good historical model
@@emt52889 I do see 10 years on some but apparently zillow changes their format on some houses. For example if you look at 5848 Maplewood it shows nothing. But even if you can go back 10 years, thats still when the FED had dropped rates to nearly zero and isnt a good historical model
"Labor market conditions are solid... Maximum employment and stable prices" ... Meanwhile, unemployed for 11 months, eagerly seeking employment, and can't afford shit.
Sorry to hear that. This is what is so infuriating about listening to public officials and politicians telling us how great the economy is when we know deep down it is not for millions of people.
I am in contruction and the spigot has slowed waaay down and people are reassessing if they want to build, or remodel. Many are waiting for November....
Something people need to remember too is that as the market begins to turn, bank appraisals start coming in lower than sales prices and people have to come to the table with extra money to make the loan work. Most people don’t have extra to put down to make these loans work.
Of note are the percentages that these homes were originally listed for sale at. The 2nd one - was basically a $375K home 10 years earlier marked up 119% - then the slow price drops. These prices are still out of line, as this is the original seller and they should expect 25-30% in ten years.
Yes but this is a very different market than previous cycles and sellers expect a lot of profit which is absurd in any other normal (steady) appreciating market. Many sellers will face a reality check in the coming months.
The increase unemployment to decrease inflation. The stores suffer because they make less money. I remember when I didn't have a job, I didn't buy anything but what I absolutely needed.
@@crand20033 The Fed raises rates to curtail inflation but then that hurts the job market and now they lower rates to prevent a recession but now will increase inflation again. It's a no-win situation.
Inflation has eased because that joker ruined the economy. The labor market is imploding-just look at the tech sector (Amazon) or industrials (Boeing)-Powell must be reading off the wrong script! Great commentary Jerry-loved it!
Unfortunately, those are the old days. Times have certainly changed since the pandemic. I do not see us ever coming back to that kind of a median price point in Las Vegas.
Thanks for the update Jerry, always look forward to it every Saturday. Hopefully we’ll be able to move to Vegas soon from California. You’ll be the first person I contact!
Here in my area my neighbor listed it for $1,599,000 and was sold the first weekend it had open house and it went for over list. CRAZZZYYYY This is Northridge West CA.
I feel poorer everyday. Not one content creator is telling anyone to buy homes, cars, or electronics at this market. Not even an offer to buy a home in my neighborhood.
I think the biggest scam at the moment is those Zestimate and similar... is the algorithm public or they could put the numbers they want??? It's easy to polarize a market with a crafted algorithm that constantly overestimates the price, even you as an agent consider it as a reference price...who says it is fair?
So true! It's all one big dirty game and hard to gauge true value points when huge companies like Zillow create the entire market based off algorithms.
The rental business is booming. I have 5 homes I rent out. Honestly, nobody is moving. I've had the same tenants for years. Great time to be a landlord, I hope I get another 5 years out this bull rental market...
@lasvegasliving9237 of course, Im well aware of that... This next election could change the housing market, especially if rates drop back down under 3%.
Jerry, in 2016 I purchased a lot for 50k and build a home in a gated comm. in Naples FL. The home was $368. One year later I had a heated salt water pool put in. $65k We got the screen 12k. I did 150k in upgrades, from mosaic floors, venetian tray ceilings, shutters, some wallpaper, crown molding, chair railing, sunsetter for patio etc. I just listed for sale in June $740k. Every open house we have the showing goes like this, oh they're trying to double. Absolutely not. They just see the zillow price of $368k and think that's all we paid. Not to mention 10,300 taxes a year and hoa fees. I paid cash for the house and we are only using it for the winter. We are not desperate to sell. For me zillow is so off. What do you think? TRUMP 2024
I understand your point of view as a seller but many people have not done those kinds of upgrades and still want an absurd price for their home. Also, you have to remember that just because you upgrade your home doesn't mean you get all of those renovation costs back plus profit.
Any upgrade you do to a home only nets you 20-30 cents on the dollar, same as modifying a vehicle. You have to be VERY careful as some, like a pool, don't help the price at all. What this means is that you're toast and stuck with it. The home is worth a lot less on the actual market. Probably 500K. I would suggest moving there, making it your main home, and selling your current one if the numbers work out better, as you'll never get the money you put into that place in Florida back out - not for 20 more years at least.
EDIT - How can I say this? Based on what you told me, the price, location, and rough time it was put on the market, it's one of 4 or 5 homes listed in the MLS. You can find nearly identical homes for closer to 500K now in the same neighborhoods (4 bed, 2+ bath, upgraded, enclosed pool) - and I suspect they might even edge lower still.
So, moving here in 2018, I've witnessed the pro hockey team, the pro football team, the women's pro basketball team all come here and I'm under the impression that this is somehow going to raise the real estate market to imaginary heights? In an economy that has no industry other than tourism? California has high-tech, agriculture, sea ports, industrial plants and of course, tourism, and for some reason people think that having pro teams come to Vegas all of a sudden raises the value of homes to California values? Don't fall for it folks. It's unsustainable!
Normally, I would agree with you but a lot of wealthy out of state buyers and investors are seeing a huge growth opportunity here in Las Vegas compared to other states with high property taxes, and other problems. Las Vegas is proving to be very resilient this time around. We'll see how it plays out.
It’s not lying when they have no choice but to be cheerleaders for the economy. It’s not like the fed chair can say everything sucks. It’d make things worse.
I pay almost 2600 for a house that rented for 1600 in 2019😂 teeeerrriiiibbbbbllleee. But if I were to buy the house I'm in the mortgage would be atleast 32-3600 monthly
If not for the election, the Federal Reserve would not have lowered rates, and the mortgage lenders are not fooled by it, hence the mortgage rates aren't dropping. Inventories are peaking nationwide in October, up significantly since the spring and the prime selling months of summer. I have real estate friends who suffer cognitive dissidence no less than most people trapped in their false perceptions of politics and the crushing collapse that is inevitable, not to mention planned by the same bankers and government pukes who've robbed the Middle Class to near extinction. Keep up the great work trying to awaken people so they can prepare. We ain't seen nothing yet.
I totally agree with you that lowering interest rates by the Fed is politically motivated. It's absolutely absurd that they could lower rates when we are still seeing hot inflation numbers. A lot of people are going to get a big wake up call down the line if things don't change soon. Thanks for the support Mike!👍🙏
Again, The Fed does not control the 30y mortgage rate only the Fed funds rate which is the 30 day! The 10Y bond controls the 30Y mortgage rates which has west UP along with rates since the Fed cut the 30 day rate. Easiest thing in the whole world to look up
With deficit spending already out of control & the economy on the brink of a more severe recession, US Treasury bond issuance will simply accelerate imo. In this scenario, long term rates will rise, exerting upward pressure on mortgage rates. We have already seen a bottom in mortgage rates imo. Also, the Fed Reserve cuts will have a temporary inflationary impact on stocks, but little to no impact on the recession & rising underemployment/unemployment. The current methodology used to calculate CPI/employment has been rigged to hide the impact of the "real" data...the Fed has completely bastardized economic data collection/analysis, ignoring/disrespecting what truly is happening to a majority of folks in this faux economy that's being supported by the elite & our biggest, least productive employer (Big Government). Powell represents the voice of government & the elite, & I take everything he says as no more than Orwellian double speak. All imo.
Consumer credit card balances are $1.2 trillion which suggests people are charging their monthly budget shortcomings on high interest bearing credit cards which signals being ripe fir future defaults with just one minor hiccup in the economy occuring
The radio heads on 105.9 say that exact thing here in Denver. Charge it! Makes me think of the Jeff Bridges movie he did, where he puts stuff back on the shelve. Can’t afford….. don’t buy.
The level of consumer debt is completely off the charts at this point. Much of that comes from reckless spending but also because people simply can't afford most normal things in life anymore. It's a disaster in the making and we are going to see some very big problems down the line when the economy hits rough water.
@@jimkelley8658 True in some aspects but not fair to say all are like that as many resort to using CCs because they have to pay for necessities when funds are limited. But yes, those are the ones who really shouldn't be homeowners.
If you remember when the last housing crash happened the houses lost so much value that people just walked away from their homes 😢, it took years for housing value to go back up. Soon after banks received the bailouts thanks to the tax payer.
Everything is cyclical and as inventory grows we are likely going to see lower home prices, especially if the economy hits rough water. Time will tell.
Imagine paying $1.9 million for a house to have a big wall as your view? 🤦♂️ That home was sold in 2021 for $1.87 m. That’s a loss over a crazy 3 year period.
I left Las Vegas 2 years ago after making a nice profit on my Spanish Trail house. I bought a house in Tulsa Oklahoma sight unseen because , just like in Las Vegas at the time, there were multiple offers pouring in on all available listings. The market here is stable as prices are about 50% less than in Las Vegas, but houses are sitting on the market longer than they were and multiple offers are rare. Anything priced well is selling, but Oklahoma did not see the huge price spike in home prices that Las Vegas did. I believe that it will continue to be a stable market.
You're probably right regarding your local market in Tulsa and you can see the changes happening here in Las Vegas and now even in Tulsa and many other markets. The bidding wars are over and prices are more stable if not dropping (like in Florida) due to a surge in inventory and if it continues we will see lower prices on the horizon.
I like your videos. You demonstrate how badly the home prices are overly inflated. As an owner of a condo with a low interest rate of 5.125 percent, you have given me hope on buying a future home at lower price along with a low interest rate since it appears that the Feds are going to keep lowering interest rates as well. My first plan, "Plan A" is to buy a new home at a reasonable price with a reasonable interest rate within the next 1 to 5 years, rent my condo out, and move into the new house I would like to buy. My second plan in case "Plan A" fails, is to stay in my condo and possibly refinance to a lower interest rate if the fed keeps lowering interest rates. Either way, I am not concerned about which direction the economy goes. As long as people are coming to Vegas buying overpriced show tickets and gambling their disposable income away, I am confident the economy is going to remain strong.
Most people have a hard time seeing around corners and only think the good times will last forever until they no longer do. It will not continue that way as everything is cyclical. Hopefully we will see prices return to some kind of normalcy in the near future.
Also if the market doesn’t crash that overpay property is going to look like a bargain in 5 years. There’s a saying real estate is not timing the market. “It’s time in the market”.
Inflation has come down because more people are losing their jobs. Also, if students don't pay their loans back, their kids and any future students won't be offered loans.
The media and public officials will tell us that near term inflation has come down but they do not factor in compounding inflation and how bad it has been for the last few years. None of that has come down prices are double in many instances from just a few years ago. Also, there's more student loan forgiveness than ever before. We're in a real mess!
The first example is the reason our median price is showing so high still. Bottom of the market just sits unless it’s actually a bit cheap per sq ft. But then these upper end they drop price from 2.8m to 2m and put priced to sell and someone from California grabs it thinking they got a deal
@@lasvegasliving9237 unfortunately for Las Vegas locals these are all secondary vacation or rental homes for the Californians making our market even more unstable if liquidity or costs become a concern
Why don't YOU run for office/politics in Vegas??!!! You've got the inside track on Vegas and the economy. Instead of just telling about Vegas and real estate...MAKE A DIFFERENCE... there's an old saying here in Oklahoma...."Don't talk about it..be about it". I think you'd help Vegas and be an excellent elected official!!! If I lived in Vegas, you'd get my vote!!!!!!!
Corporate investors are the plague of the residential real estate market. It should never be allowed but there will still be many opportunities for individuals to buy with constant competition, especially as the market declines.
Prices have started going back up in Vegas after a one month slight decline. I still believe it takes a major correction in prices to rent and wait it out. When you factor in rent from 24-36k a year, no tax break, and no principal reduction, it's a real gamble. The market better decline by 50k a year to BREAK EVEN. A correction is likely coming, but will it be large enough to justify that risk? It's a long shot.
I do see the market declining after the election and well into 2025. There is no way that this can be sustained over the long-haul, especially if the Fed continues to cut interest rates.
A lot of homes are still sale pending in the above $1000 per square foot in CA, some even higher. I think the bullish stock market has a lot to do with it. Doesn't mean that when they do a price cut they are willing to sell it at that price, they did a price cut for a reason, to drive more and more foot traffic and bidding wars. And, there are quick divorce sales too, when they sell it at a low price at a short period of time, it could be a divorce sale.
Most of California is an anomaly in terms of how outrageous home prices are there. Once the economy hits rough water and we see a weaker stock and job market we will likely start to see more and more home price reductions in most of the major markets. I don't think we're going to see a crash but I definitely think a correction is long overdue at this point after the last few years of unprecedented appreciation.
But who is buying the homes??? I’d bet 50% are undisclosed LLC’s for international private equity companies that eventually trace back to Blackrock or Vanguard
Jerry, You always say the zeatimate is.... My question as a realtor do you actually go by those and are they even accurate? I had a 3 unit right across the street from a college, I got crazy rents. when I sold it the buyer kept trying to get it for the ridiculous zestimate price.
The zestimate is only an estimate but their algorithm has gotten a lot better over the years (although still not perfect). I only use Zillow because most people use that platform because of its popularity. The key factor is to run comps to make sure the estimate is more accurate.
Vegas prices are not going down..PERIODT Vegas is the New Sports Mecca So NO the prices will not fall! If you can’t afford to live here there’s other states to move too 🤦🏽♀️
I think Chairman Powell is looking at money center Bank deposits not "how much any normal person has in a regular Bank" and I'm not sure what the debt clock has to do with any of this either but yes true to say had a Bank Run just 2 Years ago and that was apparently a *NO BIGGIE* indeed!😊😊
The metric that they are using to recalculate a higher savings rate might as well come from the tooth fairy. It's all just complete nonsense. The debt clock image was just to show the severity of our debt within this country and how the endless money printing scenario is only making it worse for us in the long run.
New construction has done quite well, especially since they offer more incentives for buyers that you cannot get when buying a resale home. However, it really all depends on the economy to determine what homebuilders will do with their prices and incentives.
