Las Vegas Homes For Sale - Prison!

So we've all been brainwashed into believing that buying a home is the American dream, but as you're about to see, it is an unaffordable 30-year prison sentence for millions of people. All 50 states require more than a $100,000 annual income, with 38 states needing more than $140,000. The most affordable states, Mississippi, Arkansas, and Kentucky, need between $109,000 and $117,000. The median income for a household of four people in each state in 2022 was between $71,000 and $87,000. Hawaii, California, and Massachusetts are the most expensive. Each requires an annual income of more than $240,000. The median income for a family of four in those three states in 2022 fell at least $94,000 short of what's required for the American dream. And if that's not bad enough, check out this shocking information about the In 237 cities, a so-called starter home will now sell you back at least a million dollars. So basically, buying a home right now is completely unaffordable for millions of people. Just take a look at this headline right next to me. 99% of the US is completely unaffordable in terms of home buying for the average person. But there is a silver lining as mortgage rates are now starting to drop, and I'm going to show you coming up how you can potentially save hundreds of thousands of dollars on your home. What's going on, my YouTube friends? This is Jerry Abbott, your number one real estate resource here in beautiful Las Vegas. Hey guys, a couple of real quick things before we dive into the video. If this is your first time to the channel and you want to learn the cold hard facts about the US economy, the US real estate market, and specifically the Las Vegas real estate market, then make sure to subscribe to the channel down below. Number two, if you happen to like the content in today's video, make sure to press that thumbs up like button, guys. That would really help the channel out. And number three, if you are thinking about relocating to beautiful Las Vegas, whether it's next month or next year, I've got your back. I'm a local real estate agent here. I've lived here for nearly 20 years. I know every inch of this city. When that time is right for you, definitely reach out to me. Just call, text, or email me anytime, and I'll help you find that perfect dream home. Let's dive into the video. So as you just saw at the beginning of the video, buying a home right now is completely unaffordable for millions of people. And for those that do own a home right now, especially with a high mortgage rate, it feels like a prison sentence to have to make those large monthly mortgage payments. But there is a way to lessen that and save a small fortune in the process, as you're about to see. So if you had a $400,000 loan at 8%, your principal and interest would be $2,935 a month. Now, over a 30-year period, if you never refinanced, the total interest would be $656,000, which is disgusting. But let's say the rates do continue to come down to 6% and you want to refinance. 400,000 at 6% would bring your payment down to $2,398, saving you $537 a month, which would bring down your total interest to $463,000. So you could stop right there, enjoy your savings, enjoy your lower payment. But if you want to take it even a step further, this is where the real savings come in. 400,000 at 6%, the payment's $2,398. But instead of saving that $537 a month, you just continue to pay that as an extra principal payment. It is going to cut 11 years off your total loan, and the total interest will only be $273,000 for a total savings of $383,000. Now, I know everybody can't do that, but even if you could just make a few extra mortgage payments along the way, it will save you a small fortune on your overall home interest that you're paying on your house. Now, more specifically here in the Las Vegas real estate market, you can see right next to me that overall US home prices recently hit a record high, and Las Vegas is number two on the list in terms of yearly home appreciation. But you can also see right next to me this chart. This is the Las Vegas median home price chart, and you can see those two large red boxes. The large red box there, that's the peak levels that we hit in terms of the median home price last month at $485,000, and now we finally saw our first dip down to $475,000, because the market is changing. The Las Vegas real estate market is definitely adding inventory every single day here now, and I want to show you a few examples coming up of homes that are already massively reduced in price. All right, so now drilling down more specifically into the Las Vegas real estate market, I'm now on the popular real estate platform Zillow, because I want to show you four separate examples here of Las Vegas homes for sale, starting in the luxury category, and then working down closer to the median price point, and then actually below the median price point to show you one of two things, either massive overpricing by the sellers, or massive price reductions that are already happening. Now you can see right here on the left side of the screen, this home is currently listed for $1.5 million. I focused on this home a couple of months ago, and it still hasn't sold, and I want to just show you an update on this particular home. It's a two bedroom, three bath, 2,500 square foot home, but more importantly, I want to show you the price history and the surrounding homes around this particular home to show you why I think the sellers on this particular home here in Las Vegas are delusional in this price point. All right, so the first thing I want to show you is take a look at the top left on this particular home in the yellow highlight, 164 days on Zillow. That means this home is coming up on close to six months of sitting on the market unsold, because the sellers, again, are completely delusional at a $1.5 million price point, as you're about to see. They refuse to lower the price, and that's why the home has been sitting on the market, because buyers are smart enough not to overbid massively on a home like this that's completely overpriced. So the other thing I want to show you is down here in this blue highlight. Down on the bottom left there, the date says 11-6-2023, so we're coming up on close to one year ago when this home was originally sold for basically a million dollars. If we look just above it, in April of this past year, about five months later, they relisted the home for $1.5 million. Here's the thing, guys. No home goes up in value nearly 50% in five months. That's why the sellers are sitting with this home on the market for nearly six months, and the reason why I know this home is massively overpriced is because I'm going to show you in the next clip the aerial footage of the surrounding homes and how much lower they are compared to this particular home. All right, so focus your attention on the left side of the screen, where I put this red box around the home that's listed for $1.5 million. Now, this is the aerial footage of this particular community, and I want to show you some of the surrounding homes in terms of what the ballpark estimated values are of these homes. Let's start at the top here, and we'll go right here from the top. $427,000, 541, 572, 695, 820. Then there's the home right here for 1.5 million. Underneath that, 613, 726, 530, 735, and 670,000. So it's pretty easy to see that this is total insanity by the sellers. Even if this home was completely renovated, this home is double the price of all of the other homes in terms of an average price point on this particular street, and there's an old adage in real estate. You never buy the most expensive home in the neighborhood or the community, and this home is not just more expensive, it's massively more expensive than all of the other homes. And again, that's why it's been sitting on the market, and unfortunately, these sellers are going to get a reality check because there's no way in hell, in my opinion, this home is going to sell for $1.5 million. It's either going to be reduced massively, or the sellers are going to take it off the market. All right, so let's take a look at this second example of another Las Vegas home for sale. Now, you can see on the left side of the screen, this home is currently listed for $1,398,000. It's a three bedroom, four bath, 2,800 square foot home. But let's take a look at a few details right here down below. On the bottom left here, the Zestimate, that means Zillow's estimated market value of this home is $1,346,000. So they think this home is still $50,000 overpriced. And over here on the right, a very high HOA fee of $415 a month. But here's the thing, I want to show you down below where the original price point is. And now obviously you see the current list price, but I want to show you how much the full reduction has been on this particular home. All right, so once again, focus your attention down at the bottom of the screen in the blue highlight. Down on the bottom left there, the date says 4-1-2022. So this is going back about two and a half years ago. This home was originally listed for sale for $1.7 million. They were not able to get anywhere near this kind of a price point for it, so they started to reduce it. They went to 1-6, they went to 1-5, 1-3-5-0, and they kept it at 1.3-5-0. And then it finally sold, you can see right there in the yellow highlight, for $1.25 million, three months after they originally listed it for $1.7 million. So that's a $450,000 price reduction to get this home sold over the course of three months. And this was during the peak of the real estate market back in 2022. And now you can see just above it, they've listed it for sale back in June for the current price of $1,398,000. So it just goes to show you, even though they're trying to get a little bit more money for the home, this home was originally listed for $1.7 million. It took a $450,000 price reduction to finally get it sold, and now it's sitting at $1.4 million, and they still can't find a buyer because again, there is too much overpricing going on by a lot of sellers here in the Las Vegas real estate market. All right, so now let's take a look at this third example of another Las Vegas home for sale. Now we're definitely coming way down in price, closer to the medium price point, which here in the Las Vegas real estate market currently stands at about $475,000. You can see on the left side of the screen, this home is currently listed for $500,000, but just above it in that small red text, there was a price cut of $30,000 that just happened a couple of weeks ago, but that is definitely not the full price reduction from the original list price as you're about to see. This is a six bedroom, three bath, 2,700 square foot home, but let's look at the original price point compared to this current price point. All right, so again, focus your attention down at the bottom of the screen in the blue highlight. Down in the bottom left there, the date says 12-11-2023, so this is about 10 months ago where this home was originally listed for sale for $645,000, and you can see just above it, there was a lot of price reductions on this particular home. It went to $620,000, $600,000, $595,000, $580,000, then they removed the listing, they dropped it to $550,000, $540,000, $530,000, and they kept reducing it all the way right here to the current list price of $500,000. So over the course of 10 months and a $145,000 price reduction from the original list price of $645,000 to the current price of $500,000, the seller still cannot find a buyer because the home is still overpriced, and if we go up just a little bit higher here, and you see the estimated market value right here in the upper left side, Zillow has it estimated a little bit lower at $485,000 because again, there's so much overpricing going on by so many sellers here in the Las Vegas real estate market, and I'm sure it's happening across the country because again, it's not just a few instances where I'm finding a few examples like this on popular real estate platforms like Zillow. There are hundreds and hundreds of homes that are massively overpriced. So again, in my opinion, if I was your real estate agent, I'd be telling you one of two things, either be patient or look for a home that's been on the market like this and has gone through a series of price reductions because that means the sellers are motivated and you're likely going to get a better deal on a home like that. All right, so now let's take a look at this fourth and final example of another Las Vegas home for sale. Now, I just focused on this home a week or so ago on my last video because I wanted to show you it's already gone through another series of price reductions just in the last 10 days or so. You can see on the left side of the screen, this home is currently listed at $475,000, which is right around the median home price average here in the Las Vegas real estate market. But just above it, you can see in that small red text, they just did another price cut of $20,000 recently. This is a four bedroom, two bath, 2,100 square foot home. But again, I want to show you the full price history down below, starting at the very high original list price compared to this current list price right now. All right, so one final time, take a look down here at the bottom of the screen in the blue highlight down on the bottom left there. The date says 7-27-2024. So that's less than three months ago. This home was originally listed for sale for $600,000. They've not been able to find a buyer and they've gone through a series of price reductions. You can see just above it, $575,000, $545,000, $540,000, $525,000. And then right there at the top, right in that yellow highlight, $505,000. That's when I focused on this home just a couple of weeks ago in one of my most recent videos. And then take a look just above it when we scroll up a little bit more. They reduced it to $495,000 and then $475,000. So they've gone down about another $30,000 on a price reduction just in the last couple of weeks. So two things are happening here. Number one, once again, these sellers, like many other sellers here in the Las Vegas real estate market, are far too aggressive on the original list price. They had it at $600,000. It's now $475,000. That's a $125,000 price reduction and they still can't find a buyer. And the second thing that's happening here is you can smell the desperation in the air from a lot of sellers because again, they know that you were delusional in these original list prices and now they're getting this reality check and they have to go through massive price reductions. So again, if I was your real estate agent, I would tell you one of two things. Either be patient and wait for more price reductions or two, when you look for a home, try to find a home like this that's already gone through a series of price reductions because you know the sellers are desperate at this point. So just to summarize and give you guys three takeaways from this video. Number one, we all know that paying for a home in today's economy feels like a total prison sentence, but number two, if you can make those extra mortgage payments, it will save you a small fortune and interest on your home. And number three, if you're in the market looking to sell your home, I would likely want to do it within the next calendar year before price reductions start to kick in, in my opinion. And if you're a buyer in this market, I would be patient and wait things out because I do think more price reductions are going to happen within this next calendar year. So before we end today's video, I just want to give a shout out to my favorite comment from last week's video. And that goes to Downwind. Now I'm going to put his comments up here on full screen, which is really pretty shocking. And then I'm going to come back on the other side and comment on it. So Downwind wrote, housing prices are out of control. I live in a monastery in SoCal, a home on my street sold for $604,000 in 2020. Today, the same house is listed for sale at $1,500,000. In the early eighties, I purchased my house for $28,000 at 8% 30 year fixed. Today, my house is estimate Redfin $893,000 and Zillow $850,000. So this is a perfect example of how out of control the real estate market is. And it's also a case of the haves versus the have nots because the sellers that bought many years ago or decades ago are reaping all of the financial benefits right now because they're able to sell because of so much appreciation over the last several years or several decades. It's the buyers right now that are getting the stick. And that's why, again, it feels like a prison sentence to buy a home right now, not just because of how high home prices are, but also because of how high mortgage rates still are right now. So I want to hear from you. I want you to drop me a comment down below. I read and respond to all of my comments. I want to know if you happen to be a homeowner in your local real estate market, how much your home was appreciated over the last several years or the last several decades. And I want to know whether or not you're also seeing a shift in your local real estate market. If homes are sitting on the market longer, or you're starting to see some big price reductions and my favorite comment from this week's video, I'm going to give a direct onscreen shout out to in next week's video. So I hope you guys enjoyed today's video. I also hope you appreciate my transparency. You know that I'm always going to keep it 100% real on this channel regarding the economy and the real estate market. So here's my very simple advice to you guys. If you're thinking about buying a home, if you act too hastily, it could become a 30 year economic prison sentence for a lot of people who are really not ready to become homeowners. I think the real estate market overall is going to shift from a seller's market into a buyer's market. We're going to see more price reductions because now that the Fed has started to cut interest rates, that is ultimately going to hurt the economy more than help it in the next year or so. Now, I know everybody's circumstances are different. Some people can be patient. Some people are looking at buying a home right now. If you are thinking about buying a home, especially here in the Las Vegas real estate market, I would put in a low ball offer or look for a home that's gone through a series of price reductions so that you can get a better deal. Now, if you are thinking about buying, especially here in Las Vegas, I've got your back. I'm a local real estate agent here. I've lived here for nearly 20 years. I know every inch of this city. When that time is right for you, definitely reach out to me. Just call, text, or email me anytime, and I'll help you find that perfect dream home. I'll see you guys in the next video.