Las Vegas Homes For Sale - Lunatics

So let's be honest. There's a lot of lunatics out there right now, buying and selling real estate. And I want to show you two brief, but perfect examples of that right out of the gate. Take a look at this. So let's start with what I call the selling lunatics. Take a look at this home right next to me. This home seven months ago was purchased by an investor for $1.1 million. It was renovated and then put back on the market for $2.1 million, even though all of the homes in this particular community are only about $1 million. I'm going to show you more details of this one coming up later in the video. Then we have the buying lunatics who are doing things like this. So this loan officer says, I'm seeing middle-class home buyers take on $7,000 mortgage payments, thinking they can always refinance when rates come down in the future. And yet this madness continues, but we could be in for some big changes as you're about to see coming up. 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 U S economy, the U S 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 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 I want to start out by showing you guys this upcoming chart that shows you why so many people are looking to buy homes at any price. Take a look at this. All right. So let's first take a look at this U S map graphic. Now you can see at the very top where it says change in home prices from 1984 to 2024. So this is going back over 40 years and you can see this color gradient right underneath it, this thin strip here. It's going from about 200 to 300% all the way up to 700 to 800%, depending on the color, the lighter color means less appreciation, and then the darker colors obviously mean more appreciation. So what I want to do is I want to hover over a few of the States here in the U S map graphic below, just to show you the kind of price appreciation that's happened in these States over the last 40 years. So if we start in the top in the Northwest here, take a look right there. You can see that little pop-up box for Washington 828%. That means over the course of 40 years, if you owned a home 40 years ago, till today, it's gone up over 800%. If we go down here to California, you could see it's 664% right next door in my home state of Nevada, 403%. If we go all the way down here to Texas, Texas is up 320%. You can see it's a little bit of a lighter color. If we go down here to Florida, Florida is 541%. If we go all the way up to the Northeast and we go to Massachusetts, that's 664%. If we go all the way to the Northeast, Maine is 600%. And let's say we go over here to North Dakota, right there. North Dakota, obviously a less populous state, a little over 300%. So this just goes to show you that if you live in the darker colored states, which are usually on the West coast and on the East coast, you've made a lot of home price appreciation somewhere in the neighborhood of 600 to 800% over a 40 year period of time, the middle part of the country obviously has less price appreciation, but the bottom line is this, the one common denominator is that if you own a home, especially over a 40 year period of time, you're usually going to make a lot of appreciation on the home that you own. That's why there are so many buyers. That's why are so many corporations and so many investors that continue to buy property. And that's why over time, the likelihood is that these numbers are only going to increase. So that right there shows you why so many individuals and now corporations, and of course, investors are looking to buy homes at any price, especially here in places like Las Vegas, which has now become one of the most expensive cities to buy a home in. As you're about to see in this upcoming clip. The Urban Land Institute lists Vegas as the 11th most expensive city to live as only 18% of the homes on the market are deemed affordable for a four person household, making the annual median income of almost $71,000. That's making it hard for some people to stay in Vegas. Now just listen to this short clip from that same news report, because this is going to blow your mind. The report also estimates that it would take a household with the average median income at least 37 years to save up for a down payment on a house in Vegas. So let that just sink in for a second. If you're making $71,000 a year, you would need 37 years to save for a down payment on an average price home. This entire real estate market is completely crazy and totally unsustainable in my opinion. And I'm now finally starting to see cracks form, not just here in the Las Vegas real estate market, but throughout the whole country as inventory is spiking throughout the whole country because home prices are still near record highs and less people are able to qualify, especially when interest rates are still at about 7% or higher for most buyers. And now a lot of home sellers, especially here in Las Vegas are forced to readjust their prices and come down off of their original list price because a lot of homes are massively overpriced and they are not selling, especially now during the slow season for real estate. And I want to show you a few examples of that coming up here in the Las Vegas real estate market where we're seeing a lot of big price reductions. All right, so now I'm on the popular real estate platform Zillow that most of you are familiar with. And I wanted to show you a few of the many examples that I find here in the Las Vegas real estate market of a few Las Vegas homes for sale, starting in the luxury price category and then working out closer to the medium price point, which here in Las Vegas is about $480,000 because I want to show you one of three things, either one homes that have been massively reduced in price to homes that are massively overpriced or three homes that have closed for far below the original list price. And I want to show you a few of those examples here coming up. So let's start with this first example of this luxury home. You can see on the left side of the screen, this home is currently listed for $1,865,000 just above that. And that small red text, they just did a price cut just about $10,000, which is a very small price cut just a couple of weeks ago. This is a six bedroom, six bath, 5,000 square foot home. Now this is the home that I focused on just to show you the example of it at the very beginning of this video, because I want to show you the full pricing history down below because this is really going to blow your mind. So let's take a look at that. All right, so focus your attention down at the bottom of the screen in the blue highlight down on the bottom left there. The date says 5-10-2024 so that's seven months ago when this home you could see on the right side of the blue highlight was sold for $1.1 million. Then if we look just above it, the date on the left there says 9-26-2024. So that's a little bit more than four months after the sellers bought this home for $1.1 million. They listed it for sale for almost $2.1 million. That's a $1 million price increase because an investor bought this. They renovated it. The home looks great, but the homes in the neighborhood aren't even remotely close to this kind of a price point, but I'll talk about that more in just a second. You could see just above it, they reduced it to $1,980,000. Then up there $1,960,000, $1,895,000, $1,875,000 and now $1,865,000 is the current price of this home. So that's almost a quarter of a million dollar price reduction. And if we go up a little bit higher here and we take a look at the price history, you could see right there in the upper left estimated market value. Zillow has this home estimated at $1,789,000. So they still think that the sellers have this home overpriced by nearly $100,000. But here's the crazy thing that Zillow could even think that this home is worth near $1.8 million just because the sellers put money into the home and renovated it. There are no homes and no comps that support anywhere near this kind of a price tag, which again is why I keep telling you guys, even if you have the money to buy a luxury home or an average price point home, I would never ever put in an original list price offer, especially when you look at the pricing history and you see this kind of a jump because this just goes to show you an investor is trying to make a lot of money on a deal like this. And as a buyer, you need to really pay attention to the pricing history and be patient before putting in any kind of list price offer because I would definitely put in a below list price offer on any of these kinds of homes. All right, so let's take a look at this second example of another Las Vegas home for sale. Now we're definitely coming down in price, but still well above the median price point, which here in Las Vegas is about $480,000. You can see on the left side of the screen, this home is currently listed for $875,000, but just above that in that small red text, you can see says price cut $24,000 that happened just a couple of weeks ago, but that is definitely not the full price reduction. As you're about to see, this is a three bedroom, three bath, 2,700 square foot home. And you can see right here at the bottom where that yellow highlight, this has a very large HOA fee of $465 a month, but I want to show you the full price reduction down below because this is pretty stunning. All right, so again, focus your attention down in the blue highlight down at the bottom of the screen, down on the bottom left there, the date says 8-15-2024. So that's about four months ago when this home was originally listed for sale for about $1 million. Again, massively overpriced. They could not find a buyer. And then they dropped the price just about $100,000 in one month. That's a very significant price drop because again, the sellers were far too aggressive on the original list price. And then they had a pending sale just above it. You could see for $899,000 and for whatever reason, it fell apart. They weren't able to sell it. They kept it on the market for $899, and then recently just reduced it down to $875,000. So now here's the thing that really irritates me about the overall real estate market. The sellers were trying to get a million dollars for this home just a few months ago. And now after four months of being on the market and reducing the home $125,000, they still can't find a buyer. But here's the thing. They bought the home in 2020 for $700,000. So even if they sell the home for $800,000 or $850,000, they're still going to make a profit. I really believe a lot of sellers in this market are intentionally overpricing their homes and then reducing them down to make it look like the buyer is getting a good deal. Kind of like when we walk into a store on Black Friday and we think we're getting a good deal. If you're a buyer, regardless of the price point, whether it's a luxury home or an average price home, in my opinion, that's why you should continue to wait things out because more of these sellers are going to be forced to sell their homes at reduced prices because the market is dictating that as inventory grows, home prices are starting to drop now. All right. So now let's take a look at this third and final example of another Las Vegas home for sale. It's actually not for sale anymore because they closed on this home at the beginning of November. And I want to show you the close price. You can see right at the top middle there in that yellow highlight, it closed at $460,000 right at the very beginning of November. But more importantly, I want to show you the original list price down here in the blue highlight down on the bottom, right? This home you can see on the left side of the highlight was originally listed for sale right at the end of July for $525,000. It went through a series of price reductions and then it ultimately sold for $460,000. Well that's a $65,000 price reduction off the original list price of this home in order for it to finally have sold. But here's something more interesting about this particular home. Take a look below the blue highlight down on the bottom, right in this yellow highlight, the date says 8-1-2022. This home sold for $428,000. That was the peak of the real estate market a couple of years ago. Then in the blue highlight just above it, they tried to get about $525,000 for it. So they were trying to make about $100,000 on it. They couldn't do it. They sold it for $460,000. So they made a little bit of a profit. But now what's going on is sellers are facing a very big reality check because if homes are overpriced, they are not going to sell at the original selling price. And a lot of these homes are being reduced. And I think as we go through 2025, a lot of these sellers are going to continue to face these big reality checks and we're going to see more price reductions, not just here in Las Vegas, but throughout the whole country. So the unfortunate reality is that even though we're now starting to see a lot more home price reductions, affordability is still lacking tremendously because home prices are still near record highs and interest rates are still about 7% or higher for the average home buyer. Now the problem is we're in a no win situation because right now everything is still massively overinflated. But here's the thing. A lot of people are hoping for a crash. And if we get any kind of an economic crash, there's going to be a lot of collateral damage. That means stock market losses, job losses. These are very frustrating times right now for millions of people. 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 Jada. Now I'm going to put Jada's comments up here on full screen, which are really unbelievably shocking. And then I'm going to come back on the other side and comment on it. So Jada wrote, just signed a rental contract yesterday. My rent is only 3,400, but to buy the same house would cost $1.2 million, $9,500 a month with 20% down. So this comment right here perfectly illustrates the total lunacy of the real estate market. Most people already think a $3,400 a month rent payment is obscene to begin with. But just imagine if you were trying to purchase this home and put down a traditional 20% down payment, you'd have to put down almost a quarter of a million dollars. And then your monthly mortgage amount is almost $10,000 a month for 30 years. I want to hear from you guys. I want you to drop me a comment down below. I read or respond to all of my comments. If you had the money to buy this home and you could put down this 20% down payment and make that monthly mortgage amount, would you do that knowing that you're building equity in the home or would you bypass purchasing it altogether and just make the rent payment knowing that that's a lot cheaper? 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 just to close out the video, guys, I just want to wish you all a happy holiday season. This video is going to come out a couple of days before Christmas. I really appreciate all of the support that you guys give me every single week. Now, when it comes to buying a home, I know everybody's circumstances are different. Some people want to wait things out and hope for that housing correction that might happen, in my opinion, has a better chance of happening in 2025. And some people are looking to buy now during the slow part of the real estate season, whatever option you choose, make sure you just go with your gut instinct. And if you are thinking about buying a home, especially here in the Las Vegas real estate market, I've got your back on the local real estate agent here. I've lived here for 20 years. I know every inch of the city. When that time is right for you, definitely reach out to me. Just call, text or email me anytime. And I hope you find that perfect dream home. I'll see you in the next video.