Existing home sales slipped for the sixth straight month in July. Median home sales climbed 10.8% from one year ago but down $10k national median from last month’s record national high of $413,800.

The inventory of unsold existing homes rose to 1.31 million by the end of July, or the equivalent of 3.3 months at the current monthly sales pace. All-cash sales accounted for 24% of transactions in July, down from 25% in June, but up from 23% in July 2021.

Housing Starts dropped in July. Starts for single-families are down 18.5% yearly, but up 17.4% for buildings with 5 units or more.

Building Permits are down 11.7% annually for single-families, up 26.2% for 5+ unit buildings.

Las Vegas market is cooling as median prices so far down again for August. Buyer’s are still in the market and property is trading hands although August numbers are looking like decreases in median price for single family homes and townhouses with condos rising slightly.

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State of the Real Estate Market Update July 21

Hey, Jordan Dove here.. I wanted to thank you for supporting my business.  Because of you, we have been able to grow year-over-year, helping hundreds of people, families, service members, and more, and I am extremely grateful for your support.  I believe real estate is the number one key for generational wealth, and can be passed down to heirs tax free – without probate – through a trust.

As your real estate professional, I want to give you an update on what is going on in our local Southern Nevada real estate market.  The market is shifting, and it’s shifting fast.

It’s actually shifting faster towards a buyers market than any point in recorded united states real estate history, and I’ve had conversations with people who have been in the business for decades – and they concur. 

One of the biggest reasons why we had an absolute boom, with home prices appreciating at unprecedented numbers was due to the extremely low inventory and low interest rates or cheap money, which created a bidding frenzy.  One of the biggest factors in that price appreciation was wall street hedge funds, private equity & foreign investment syndicates.

Up until the overnight mortgage rate hike that essentially doubled mortgage rates happened in June,, hedgies were purchasing single family residential homes up to $500,000, in cash, and paying higher than comparable sales.. This essential “set the market” and traditional buyers were competing against these buyers and these recorded sales.

Blackstone ALONE had a $20 BILLION DOLLAR real estate fund which drove this last boom. But guess what, they just raised ANOTHER $30 BILLION DOLAR FUND, and they will be holding onto this to create another crazy cycle one the dust settles, rates come back down, and they will take an even larger market share and turn those into rentals.  Wall Street owns 25% of all apartments and 15% of all residential real estate. Their goal is to monopolize residential real estate, push out first time homebuyers so they are renters forever – eliminating the opportunity to build wealth – and play residential real estate like a stock market. Up 20%, down 20% then pump it back up again, which they will do after this next price correction. The good news is, we know what their game-plan is and we can adapt accordingly. 

Fast forward to about a month ago, and the hedgies with virtually unlimited funds changed their buying parameters to up to $400,000 purchase price of single family homes. 

As the rates went up, that $482,000 median price became unaffordable for most Buyers. 

For example, a $500,000 purchase price with 5% down at today’s rate of 5.75% is an estimated monthly payment of Principle, Interest, Taxes, insurance and private mortgage insurance is just north of $3,500 per month.

For context, at a 3% interest rate, that payment is just north of $2,700, a difference of $800 per month on the same priced home. 

So with the hedge funds in a price discovery mode, changing their buying parameters, and with home sellers using those sold homes as comparables – when rates were much lower and affordable – this is causing massive price reductions across active listings.

The month of June saw a slight decline in the median price after the record setting month of May. The median price dropped $2,000 in June to $480,000.  Albeit very modest, we are waiting for the July numbers to come out because we will see a better trend of where the market is heading.

Not to mention that the United States GDP has two consecutive quarters of negative growth, inverted yield curves – meaning the 2 year treasury bond yield is HIGHER than the 10 year bond yield, are signs we are currently in and have been in a recession.  It is my belief that things are going to get rocky for a bit.

But don’t worry, there are some things you can do the prepare for this changing environment: 

#1) If you are considering selling your home – DO NOT WAIT. I believe we will continue to see price reductions in the LAs Vegas market and a lowering median price.  It is my opinion that interest rates will continue to rise, as the Fed is expected to hike rates another 75 basis points next week.  We are at extremely high levels of home prices, and many homeowners are sitting on a ton of equity – which is the majority of wealth for Americans.  Now, Homes are sitting on the market longer and those days of multiple offers and homes selling in a day or two are gone. We are moving back to a more normal market. We have had clients cash out and sit on the side lines by renting for a year or two to see where things go.  We have also had clients cash out and downsize or upsize, and using the proceed to Buy down rates.

#2) If you are considering Buying – there are going to be many opportunities.  I am advising my clients to. Begin asking for concessions from Sellers – who are now becoming more motivated to sell their properties and learning that the greatest sellers market in history is over.  One strategy that can be implanted is a Seller Buy Back – in which I can negotiate several thousands or even tens of thousands of dollars for you to use to buy down your interest rate to make payments more affordable, and/or use that for closing costs. 

To piggy back on that a bit, I want to explain something.. Experts are predicting a more normal appreciation of homes in the low to mid single digits.  The average price appreciation of a home is 3-5% per year, and they are expecting to see those levels return very quickly. 

#3) If you are falling behind on payments or know somebody who is struggling to meet ends meet, the good news is … unlike 2008, many homeowners now have much more skin in the game and equity.  You can sell your home on the open market and in most cases be able to walk away with much more money than you could in a short-sale or foreclosure sale.  I would not recommend not paying your mortgage for a year or so and trying to quote live for free unquote but rather cash out your equity so you can get ahead financially. 

Remember, you only lose if you sell your property at a loss. You have to live somewhere, and if you stay in your home long term, historically, real estate has ALWAYS appreciated over the long term.

Here is an example of how purchasing at a higher price with lower rates results in a lower payment versus purchasing at a lower price with higher rates, and why basing your decisions off of payment is better than making the decisions based on price:

Let’s take the median price of a home of June at $480,000 — The average homeowner puts 5% down conventional financing – With a Seller buy back, let’s say you are able to buy down you rate to 3.5% at no cost to YOU – this results in a payment of approximately $2,783 including PITI and PMI. If you put 20% down or have at least 20% equity in your home, you can get rid of your private mortgage insurance, which would save you between two and three hundred dollars per month. 

Now, if we take that same price of $480,000, and let’s say there is a 10% market correction, bringing the price of the home down to $432,000, but with higher interest rates, and I believe they will be steady in the 6s soon, so let’s say 6 and a quarter, that payment is almost $3,200, a difference of $400 per month. If prices do correct just 10%, which is HALF of what they appreciated in 2021 alone, sellers will NOT be offering large concessions, you can see how purchasing at a higher price is a better result in terms of monthly payment.

So if you plan on staying in the property for several years, that may be a better option for you.  It’s better to look at monthly payments LONG TERM versus price of home.  

So there are a few options:

If you are comfortable with where you are at, in terms of payments, and are not looking to cash out your equity, that is great. Stay put. I believe there is going to be some opportunities on the horizon, so I’d recommend to keep that credit clean, minimize debt, live a bit more frugally through this recession and look for some opportunities in the future.  You want to keep your powder dry because you will not want to miss out on these opportunities. 

If you are looking to cash out your equity and sit on the sidelines, do not wait, because it’s going to get very difficult to sell properties at these levels very soon, and the price levels have  already decreased. The peak of this cycle was May.

If you’re looking to cash out and upsize or downsize, there are many more opportunities then there were just a couple of months ago, and we can negotiate with the Seller to buy down your interest rates.

This is not a time to panic.. Once inflations starts to come down, and that could be in months, that could be in a year, we don’t know, but once inflation does start to come down, we will see rates start to come down.. And if the market does correct, and rates do come down where homes are much more affordable in terms of monthly payments, that will be the time to take advantage of the opportunities, and I will make sure you are informed.  

I sent out a Monday Market Pulse e-mail to all of my clients, so I hope you receive it.   You can also signup for the substack newsletter at jordandove.substack.com

If I can be of help to you or anybody who might be in the market to make a move soon, please send me their contact information.  Your referrals are greatly appreciated. 

If you have any questions for me, you can call me, text me, e-mail me, whatever.  I will do my very best to respond as promptly as possible, and if there is something I do not know, I will find somebody who can get that answer for you. 

Take care & be well.  

According to a recent survey from the National Association of Realtors (NAR), one of the top challenges buyers face in today’s housing market is finding a home that meets their needs. That’s largely because the inventory of homes for sale is so low today.

If you’re looking to buy a home, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your home search.

Clark County, NV Home Inventory is Increasing

If you are subscribed to my e-mail Market Pulse which is sent every Monday morning, you would know that the markets of Las Vegas, North Las Vegas & Henderson are seeing an increase in inventory. The past eight consecutive weeks have seen increases in single family, condominium and townhome inventory. The spring season typically bring in influx of properties available for home shoppers, and this year is no different – although we still remain at extremely low inventory levels and the absorption rate is hovering around 75%.

Early Signs Inventory May Be Growing

The latest data from realtor.com shows the number of listings coming onto the market, known in the industry as “new listings,” has increased since the start of the year (see graph below):

This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their research finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says:

“. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”

Homes Are Still Selling Quickly

But while new listings are increasing, it’s important to know they’re also selling quickly. The latest Realtors Confidence Index from NAR shows the median days on market for recently sold homes since the beginning of the year (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month.

What That Means for You

While a low-inventory market is difficult to navigate as a buyer, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you’ve had a hard time finding a home that fits your needs. Just remember, those new listings are going fast. That means you’ll want to keep your foot on the gas and be ready to act if you find a home you love this season.

Your agent can help you stay on top of the latest listings in your area so you can find the home that’s right for you and submit your strongest offer as quickly as possible.

Bottom Line

If you’ve been having a hard time finding your dream home, stick with your search. More options are coming to market and your ideal home could be one of them. Let’s connect so you can stay up to date on the latest listings in our market, so you can be ready to move fast when you find the one that’s right for you.

Remember that nasty word “sub-prime” thrown around in 2008 and 2009 like monkey’s slinging poo? Well, because of semantics and whatever reason, they are back and they are called “NON-QM” or Non-Qualified Mortgage. That has a much nicer ring to it, right? Also, ARMs or Adjustable Rate Mortgages just reached 9% of all loan applications last week, more than double from three months ago! Things are getting weird!

Please like and subscribe to my YouTube channel! If you think you know of somebody who would find this real estate information valuable, send them our videos or channel. If you have any questions or future content you would like to see my talk about, please drop them in the comments. I appreciate you all!

Get my books for free: https://jordandove.com/books

Visit my personal blog: https://jordandove.com

Follow me on Twitter: https://twitter.com/jordandove

Follow me on Instagram: https://instagram.com/jordandove

Follow me on TikTok: https://tiktok.com/jordan_c_dove

Like my business on Facebook: https://facebook.com/jordandovereales… Connect with me on LinkedIn: https://linkedin.com/in/jordandove

Investing carries risk. Invest at your own risk. This channel is not for financial or legal advice. Opinions are my own.

Hope everybody has enjoyed theirHoliday weekend! It’s good to be back. I have something to share that is irritating me.. and.. I am going to discuss that in a minute.

But nonetheless, It’s good to be speaking to You and I am extremely grateful for you following my work.

Today, the 10 year treasury Bond yield is at 1.929 percent,

With the 30-year fixed national

Average 4.08% Which is actually a great interest rate,

But is pretty tough with the price of housing.

 Remember to always Look at the PAYMENT,

 and not the COST of the home.

Right now, Buying power is being

Diminished and first-time home

Buyers continue to get priced

Out of the market.

Stock market futures were down big last night, 

and markets are down big today.

All this Russia/Ukraine talk now

That COVID is effectively over,

 I think

Is just a massive arms deal

To keep the cabals and defense

Industrial complex cash flow rolling.

I think the Russian Federation and the Chinese

 Dictatorship Is fed up with NATO, and are 

Going to be playing war games 

For the time being. I think there is

Going to be an event, that triggers

Some sort of financial, economic

Change globally. The only question

Is when?

There is a bone I want to pick

With the boneheads who make

These idiotic decisions, such as

The mortgage giants Fannie & Freddie

Raising lending costs less than six

Months after the cancellation of

A one-half point “adverse market”

Refinance fee. 

These fees are to take effect on April 1,

2022, but unfortunately, lenders are already

Passing these fees on to borrowers already.

This is a complete money grab to the mom
& pop real estate investor, and what a 

Joke this is.

This should really piss you off. It pisses 

Me off. Now, I’ve been told, “Oh, Jordan,

This will be great because it will even

The playing field for first-time home

Buyers because less investors will

Be absorbing these homes”

Well, let me tell you that is

BULLSHIT. A complete crock of

SHIT.  What’s going to happen, in

My opinion, is that this is going to

Make this investors like you and I,

Who only have a few rental properties,

Or may want to invest in one.  You know

Who this is going to benefit? It’s going

To benefit the ultra-wealth who

Will just purchase in cash, which

Is a hedge against inflation, and

Will make it even worse for the middle

Class to build generational wealth

For their families.

Who comes up with this stuff? I

Know for damn sure these cone

Heads in Washington DC are not

For the middle class.  They are not

For you and I.  They are not here to 

Help us create wealth. That’s for damn

Sure, and it’s a damn shame.

As Klaus Schwabb famously said,

“You will own nothing and like it”

This is really upsetting. And the fact 

That they are already charging this 

Fee before the April 1 deadline is

A complete money grab.  As you know,

After 2008, Fannie & Freddie became

GSEs of Government Sponsored Entities,

And have never been released back to 

Public ownership, although it is still

Publicly traded.  This is just a cash cow

Slush fund for the cronies in Washington

D.C.

Ok end rant, but really, it should piss you

Off that people like you and I are always 

Getting screwed, and the real problem

Is that we don’t do anything about it.

On a personal level, I used to meditate quite

Frequently and really good things seemed to

Happen.  I got away from it for a bit but recently started

The past month again. Something I am doing different

Is listening to different frequencies such as music in 528 Hz and

963 Hertz, and let me tell you.. I leave it on low volume

When I sleep.  I get up earlier, I feel so great and

rejuvenated. I feel like I can accomplish

So much. My body feels good. 

My back pain feels like it’s gone when I do this.

 I have nothing but good

Things to say about this practice, and thought

I should share that with you.

That’s it for today, I have a listing appointment

To prepare for but I am so grateful for all of you

Being here, my clients, my friends and family

Who support our business and work.

IF there is anything I can do for you,

Feel free to reach out.

Make sure to leave a comment, like the

Video and subscribe to this channel

Because I am going to give it to you

Straight, how I see it, in my opinion. 

IN other news, the magic of Disney

Continues to be bold.  They are going to

Be building residential communities

With condominiums and single family

Homes. The first community is 

Planned for Ranch Mirage in California’s

Coachella Valley, and I will be discussing

This and a new construction update by the NJ General Contractors on my next video.

’til next time.

Stop talking about inventory. Use the ABSORPTION RATE figure to calculate market demand in a certain area given a certain time period. I give you my National Real Estate Market Update and Local Las Vegas/Southern Nevada Real Estate Market Update

Can you invest in real estate without owning physical real estate? Yes, you can. It’s called a Real Estate Investment Trust and the earnings are paid in the form of dividends. Also, the second largest mortgage company in the United States, United Wholesale Mortgage was the first company to accept BitCoin, Ethereum & Doge for mortgage payments. The pilot program ended, but why?

Get my real estate books for free, ‘The Complete Guide to Buying a Home’ and ‘Selling Secrets You Can’t Afford to Miss’ by visiting http://jordandove.com/books

Follow me and connect on Social:

Instagram: https://instagram.com/jordandovereale…

Twitter: https://twitter.com/jordandove

Facebook: https://facebook.com/jordan.c.dove

The information contained herein is not legal or financial advice, but an opinion of Jordan Dove NV Lic. #S.0180594

Home Builder stocks up across the board to start November 2021, Lennar is 3D Printing a 100-home community in Austin, TX, Mortgage Rates have been RISING, and more on today’s Real Estate News, Technology & Financing update.

Get my Real Estate books free: www.jordandove.com/books

All information provided in this video is not legal or financial advice, and is an opinion of Jordan C. Dove

Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy. There are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

Lawrence Yun, Chief Economist at NAR, explains in the report:

“The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Yun’s insight was supported the next day when the Census Bureau released its Monthly New Residential Sales Report. It shows that newly constructed home sales are up 20.7% over the previous month.

Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.

What will this mean for home sales going forward?

Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:

Bottom Line

Living through a pandemic has caused many to re-evaluate the importance of a home and the value of homeownership. The residential real estate market will benefit from both as we move forward.

Don’t be impressed by the headlines reporting year-over-year housing numbers for the next several months (data covering March, April, May, and June). The data will most likely show eye-popping one-year increases.

While the year-over-year jumps will certainly be striking, consumers should take these numbers with a grain of salt, as the situation highlights a short-term quirk in the reporting of this data. Essentially, the increases will reflect a combination of two things: sharply lower housing numbers during last year’s virus-related market collapse and the subsequent strong rebound. This will result in what will appear to be unbelievable growth.

Let’s use single-family home sales as an example:As the graph reveals, last spring’s buying market was anything but typical. Instead of sales increasing, they fell sharply as a result of stay-at-home orders that virtually shut the real estate industry down.

This spring’s real estate market will bounce back with more normal seasonal sales increases. The percentage increase in sales will be astronomical – not because sales have skyrocketed, but instead because they will be compared to last year’s low numbers.

Bottom Line

There are likely to be some sensational headlines about real estate over the coming months. However, don’t be fooled. The actual story is that the real estate market is finally back to normal.