"National Real Estate Market Update" (Part 1) | March 2014 - YouTube

>>DALE: Good afternoon.

Today's topic of discussion is going to be the national real estate market update with

a specific spin on how that's impacting the Las Vegas housing market for March 2014.

I'm Dale Snyder with The Snyder Group, Team Driven Real Estate, at Keller Williams Realty

here in Las Vegas, Nevada.

[Music]

Before we get started, I have a list of data I want to go through with you that's going

to give the national trends and we're going to spin that to what we're seeing locally.

Keep in mind that Las Vegas is accelerating.

What we're seeing nationally is what we saw last year.

We're in a different market than most parts of the market right now.

I coach a lot of top level agents around the country, and one thing that I'm noticing is

they are experiencing exactly what we experienced a year ago.

So before we jump right in, I also want to note that the information, the resources for

the data I'm going over will be in the description below, in the videos.

You'll be able to look at the references to see where the sources are for the data I'm

providing.

And one thing I'd like to point out, I really trimmed this data down to just give you some

bite size pieces.

If you would like more information about the national data and how it's impacting us locally,

please reach out to me.

I'd love to have an educated consultation with you to go over this information.

Alright, so let's jump right in.

First, this slide is great because it shows pending home sales by the NAR [National Association

of Realtors] from last January up to this January, or two years back actually.

The trendline there shows when we're at a healthy stable market this is important because

what you're going to be hearing, you know, if you're watching the news or online going

to different media sources, they're going to be talking about how sales are down.

So as you see in this next slide, existing home sales.

If you look at the sales, they are down as well.

One of the most important things that I think we all need to acknowledge and realize is

that sales are down because inventory was so tight there wasn't product to sell.

There were 20 buyers for each property.

So if you're doom and gloom or optimistic, kind of depends on your style but if you look

at raw data and be non-emotional about your decision, you will logically come to the conclusion

that a low supply is why we had a low amount of sales.

I think that's an important thing to note because that's not what you're going to hear

from other real estate professionals and from the media, as a whole.

It's either doom and gloom, or it's a hay day.

One or the other, right?

Okay, you'll see by this next slide what we've seen by region for sales.

We were down the most in the West.

And what we're seeing in the west is our inventory starting to go up, and I'm talking more Arizona

and Nevada.

The Coastal Areas in California is a little different but their inventory is going up

as well, in a lot of those markets.

Midwest, northeast, and south, you know, they're starting to see tightening inventory but their

sales were up because they had more inventory.

Okay, this next slide is a very important slide.

When you look at the percentage of distressed property sales, keep in mind in Nevada, specifically

on Las Vegas, we had some legislation that bottlenecked the foreclosure process and slowed

down our inventory of distressed properties.

But we still huzzah about the 20%-30%, I think it's 25% off the top of my head, percentage

of our sales were distressed.

So we still are burning through a lot of distressed inventory.

So, no, the banks aren't going to flood the market.

And we're not going to see, you know, 5,000 short sales hit the market in one month.

They're going to slowly keep trickling the amount like they had been.

But the important thing here, nationally it made up about 15%.

So that's what where we want to keep our minds set, is the national trend here.

So when you look at that, that's a huge change.

35%, last year 23%, January of this year 15% of the sales.

Okay, by this next slide, you will see that the non-distressed sales are still up.

So look at January of 2013 compared to January of 2014, we have still seen an increase in

the non-distressed sector.

That's the most important point here to make.

Because the distressed inventory nationally is being absorbed and we're seeing an increase

in the non-distressed sales and a decrease in distressed sales.

And I'm going to tie these all together in a moment with some of the other reasons why

we're not seeing as many sales as we had in previous years.

So keep in mind, when I say non-distressed, what I mean by that is it's a traditional

sale.

You're not missing your mortgage payments, it's not a bank-owned home.

It is a traditional sale.

Just to clarify there.

Okay, this next slide here, my first thought, I'm always a skeptical being a scientist with

a background in geology and the sciences.

I always look at data from a pessimistic perspective at first to see how did they present and come

up with this.

So if you look at the bottom of this slide from 0 to 100k, we're down 19%, and the million

plus and above we're up 35%-37.5% . Well, obviously in the lowest price range we're

going to see a decrease and we're going to see an increase in the higher price points.

Because prices have gone up drastically.

In Vegas, for example, we've gone up 30%-35%, if you can't even find stuff below a 100K

really unless you're looking for condos.

So this data may not be the most irrelevant.

Just being transparent and open with you here.

But what is important and we are seeing is luxury sales are up drastically nationally,

and that impacts us because we're such a globally-based economy.

We've seen a big increase in the luxury sales, especially what I like to call luxury in that

$500,000 to 1 Million, that's a lot of semi-custom homes, so that's really entry-level luxury,

were seeing a huge increase in sales there.

And that's driven a lot by the transitional sellers, people looking to move up, to move

down, and the out-of-state people that have been selling off their luxury products and

diversifying buying a place in Vegas, a place in Maui for example.

So in summary of this video segment, this is part 1 of a 3-part segment, you know we

talked about the distressed inventory, we talked about the non-distressed, you know,

we talked about pending sales and sales.

The next segment of this video is going to be talking about, who's going to be backfilling

the investors pulling out of the markets.

So make sure to catch part 2.