Las Vegas Homes For Sale - Panic!

Well, if you're not in panic mode now, you should be, because I want to show you three recent headlines that just came out to show you exactly what I mean. Breaking the top 10% of U.S. households, those earning over $250,000 annually are now driving 50% of all consumer spending in the country. Whopping 78% of aspiring homeowners say they can't afford the American dream. Increase of Canadian lumber tariffs to 39.5% to add up to $10,000 to new home prices. So you know what all of that means? It means the rich get richer, the poor get poorer and home prices along with everything else in this economy continues to go higher. Now, I know a lot of people don't want to hear that, but I want to drill down specifically into the real estate market and show you why so many people right now are mad as hell because they can't afford a home and why so many people still can't afford a home. Stay tuned. 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 the 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 we are living in scary times right now. Everything is just so expensive, especially home prices. And with interest rates so high, I want to show you in this next graphic why people are so frustrated right now in terms of buying a home. All right. So I want to show you guys this mortgage calculator page, because I want to show you just how unaffordable it is right now for the average income earning person to buy a home. So let's take a look at the very top left. You can see in that first box there, it says home price, and I have $485,000 put in that box because I just want to use the Las Vegas median home price where I'm located, just to kind of give you guys a full breakdown as to what your full mortgage payment is going to be. So take a look in the second box right underneath that, where it says down payment 72,750. Now that represents a 15% down payment, which is about the average down payment right now. Underneath that, it says loan term 30 years. Then underneath that it says interest rate seven, because right now the average person is paying about a 7% interest rate. And then underneath that, I just have the zip code here. One of the local zip codes here in Las Vegas. Now if you look right in the middle of that page inside that blue circle, that summarizes the full breakdown from the left side of the page to right there in the middle of that blue circle, what your full mortgage payment would be. So if we take a look on the right side, you can see where it says at the top, principal and interest $2,742 property tax, $307 homeowners insurance, $150, and because again, you do not have a 20% down payment. You would pay PMI, which is private mortgage insurance, which comes out to about roughly $300 a month in this scenario. And then underneath that I put in an HOA fee of about a hundred dollars, which is about average here in the Las Vegas real estate market. So now these numbers can vary, but again, take a look inside that blue circle. Take a look at that $3,600 a month mortgage payment for you to really comfortably afford a home payment like this. You really don't want to use more than 25% of your gross income. So if you multiply that number times four, you're looking at just over $14,000 a month in gross income that you would need for almost $170,000 a year in income. Now here in Las Vegas, the household median income is about $70,000 a year. So you need about a hundred thousand dollars more per year to truly and comfortably afford a mortgage payment of this magnitude. That's why there is such a massive affordability crisis for the average income earning person. And of course the person that's at the lower income levels. And that's why people are having so much trouble because again, home prices are very high. Interest rates are very high and the median household income doesn't come anywhere near close enough to be able to afford the average home here in Las Vegas. Now here's the thing, like I showed you at the beginning of the video, the top 10% income earners and high net worth individuals are the ones that are driving the majority of consumer spending. And they are the ones that are still easily able to buy homes, which is frustrating millions of people in the middle and lower class because they're the ones that are getting squeezed out of the market every day. So now here in Las Vegas, you can see right next to me that we are still at record high home prices. But if you look at this other recent article headline that just came out, the total amount of Las Vegas homes for sale are now starting to pile up, but that's done nothing to change the actual home prices here in Las Vegas. I want to dig into this article a little bit more now coming up. All right. So I want to drill down into a few more details within this recent article that just came out from realtor.com specifically about the Las Vegas real estate market. And I want to highlight some of the things in this article that are definitely inaccurate starting with this headline right at the top where it says gambling on Las Vegas, since city housing markets softens as it suffers affordability crisis. Now again, there is an affordability crisis, but the market here in Las Vegas has not softened. We are at record high home prices. And in order for a market to soften, in my opinion, we have to see prices come down as inventory is going up. Now I want to highlight a few things here as we scroll down a little bit deeper. All right. So let's put a couple of highlights in here on the second and third paragraph where it says the median home price in Nevada's most populous Metro in February to reach $469,974 up 1.1% compared with a year ago, making last month the highest February in the data's history. According to realtor.com researchers. First of all, that's inaccurate. The median home price in Las Vegas right now is not $469,000. It's $485,000, which mean that 1% number is really about eight or 9% year over year growth in terms of the median home price here in the third paragraph. Let's just highlight this at the same time. The number of active listings in the self-described entertainment capital of the world soared more than 60% year over year reaching 7,447 properties and capping off six months of uninterrupted inventory growth. Now we have had significant consistent inventory growth, but I'm not seeing almost 7,500 homes for sale here. I'm seeing a little bit over 5,000 homes for sale, but again, these are just some of the inaccuracies that I'm looking at in this article and I want to scroll down a little bit deeper just to show you a few more of them. So take a look at the very top in this section of the article where it says Las Vegas tops list of nation's most unstable markets and there's a study done here. You could see in this first paragraph where it says right there, it has revealed that Nevada and the Las Vegas Metro in particular has the most unstable housing market in the U S. Again, this is really not accurate because what they're doing is if we scroll down to this highlighted section right there, which says since 2000 the largest drop in median home prices in Las Vegas was 64%. Here's the thing in the second to last paragraph here, they're interviewing a local real estate agent here talking about the fact that this research group pointed out that the period covered by the study included two cataclysmic events that had a major impact on the Vegas real estate market, the great recession and the COVID-19 pandemic. But the very last line of the paragraph, you can see that the real estate agent says that he's arguing that at this time the city's market is more balanced and that person is 100% accurate because if you take out those two cataclysmic events, we have a very balanced market. And also too, since the pandemic, there's been a lot of wealth, a lot of growth coming into Las Vegas and it's proven to be very resilient because a lot of people keep thinking Las Vegas is going to be the first market that's locally going to crash compared to other real estate markets. And it's literally just the opposite. We're seeing other local markets start to decline now yet home prices are at record highs here in Las Vegas, which again proves that the Las Vegas real estate market is not softening. It's actually strengthening. And just to further prove how strong the Las Vegas real estate market is, take a look at this section of the article at the top where it says luxury market in the Vegas Metro is booming. Now, if we highlight the third paragraph right here, it says as of Friday, there were more than 800 single family homes priced at $1 million plus listed on realtor.com representing just over 15% of the city's entire for sale inventory. So again, this just goes to show you because a lot of people think that Las Vegas is in the middle of the desert and home prices should be cheap here. A lot of people don't realize that Las Vegas is now a hotter luxury real estate market than Los Angeles. And this just goes to prove it because a lot of people, especially from the California area are buying luxury homes here every single day. And the real estate market, especially the luxury market here is strengthening every single month. Now with that said, because we're in a strong real estate market comes a lot of overconfident sellers who are still trying to get a ridiculous price for their homes. And I want to show you a couple of quick examples of some Las Vegas homes for sale where sellers are still trying to do that. So let's quickly look at this Las Vegas luxury home example. Take a look at the very bottom. This home almost seven years ago was sold for $1.1 million and then the sellers who were investors that remodeled the home fully tried to list the home this past summer for an insane $5.3 million and it still is not sold. And let's take a look at the second example of another Las Vegas home for sale. Take a look at the very bottom. This home was sold for just $410,000 right at the very beginning of January. And two months later, the sellers put this home on the market after renovating it for $624,000 trying to make a 52% profit on the home in just two months. So those two examples of Las Vegas homes for sale are perfect examples and there are many of them here in the Las Vegas real estate market. Whether it's a luxury home or an average price point home, the sellers are listing their homes almost intentionally overpricing them for one reason, because they know buyer demand over the last couple of years and still today is very strong. And even if they don't get their original list price and they have to reduce it a little bit, they are still going to make a very large profit on the home. That's just the way the real estate market is. And even though a lot of sellers are definitely being overconfident and they're coming back to reality, they are still likely going to make a very large profit. So before I close out the rest of the video, I just want to show you my favorite comment from last week's video. It's very interesting. I'm going to put it up here in full screen and read it to you guys and then come back on the other side and comment on it. But Jay Pratt wrote, I live in Vegas too. I have a small it PMO company here. And the fact is the jobs in Las Vegas do not support these prices. So what you've got is people from California selling their houses there and buying houses cashier driving up the prices. At the same time, Chinese investors are leaving the real estate market in China and buying houses here in Vegas cash. Also the local residents are getting pissed off, Jerry, you need to address this in your videos. So this comment perfectly illustrates what I'm talking about regarding the overall housing market, especially in popular cities like Las Vegas, average income earning people who used to be able to afford an average price home can no longer do it in this market. So what's happening is the rich get richer and the poor get poor. The wealth divide is growing tremendously. So the people that are buying all of the homes, especially in popular cities like Las Vegas, not all of them, but a lot of them are out of state, wealthy homeowners, high income earners, business owners, investors. Those are the people that are controlling and dominating the market. And even though a lot of people are very upset about it, I am addressing it now in this video because I want people to realize that the market is not dictated by average income earners. It is dictated by people that are wealthy and have the assets to do so. And that is not going to change anytime soon, in my opinion. So I want to hear from you guys. I want you to drop me a comment down below. I read and respond to all of my comments. I want to know whether or not you agree or disagree with what I just said regarding the overall housing market being controlled and dictated by the investors, the corporations, the wealthy people, the high income earners, or do you think the market is finally going to have a reversion to the mean? We're going to get that correction and it's going to become affordable again for the average person. I want to know what you think. I want you to tell me why you think that 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, I just want to leave you guys with one final comment. I truly am on your side. I empathize with all of the people out there that are massively frustrated with how high home prices are and how prices are high across every sector of the economy. We all feel it emotionally, but when we take emotion out of it and we think about it from a logical standpoint, what happens to food prices, college tuition, insurance, home prices, everything else in this economy continues to go higher. It does not go down because we have persistent inflation. And guess what? The people that I mentioned earlier in the video, the wealthy people, the investors, the corporations, they are your competition. They're going to be waiting in the wings. They're constantly looking at buying high ticket items like homes. So you have to really crunch your own financial numbers. And when you can comfortably afford to buy a home, I would definitely say, go for it, buy it, hold onto it for a long period of time. Because in my opinion, the time that you have in the market of owning a home will likely treat you well from longterm appreciation. Now, when it comes to buying a home, especially here in the Las Vegas real estate market, if you are thinking about buying here, definitely reach out to me. I'm a local real estate engineer. I've lived here for 20 years. I know every inch of this city. When that time is right for you, definitely reach out. Just call, text, or email me anytime. And I'll help you find that perfect dream home. I'll see you in the next video.