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Still Listening to Real Estate "Nostradamuses"? - Lloyd Newberry
Our dropping Real Estate sales prices policy is not helping decrease the existing inventory even a bit, but scares away our potential buyers like some bad flu, and therefore SLOWS DOWN the market substantially.
If you are a realtor who still tries to convince your sellers to reduce the prices, following the "experts" brainless advice, stop doing so. It is not a "buyers' market", it is a total failure for buyers, lenders, developers, sellers and real estate agents until our property equity will start increasing. This very precious property equity investment often means the only homeowners' life saving. It is already partially or totally lost mainly because of the price reducing brainless game in your neighborhood, influenced by "experts", panicky realtors and desperate speculators.
The very ill idea to decrease residential housing prices in order to "reduce the inventory", is based upon a made-up reason, artificially glued to random statistics, which does not sound at all convincing to a fairly intelligent observer. If we use a real estate terminology this decreasing prices activity, encouraged by "experts" and real estate agents falls into the category of "Price Fixing".
Homeowners/sellers have to beware of the real estate and lending institution "experts" who cannot come up with any intelligent reason of what they analyze or suggest to do, but pretend to "predict" the situation by actually brainwashing people so they do not think for themselves and actually follow the "predictions". For instance, a housing analyst, Dennis Smith, Las Vegas, does sound almost like Nostradamus, while explaining that "Las Vegas is different than many markets because it went up more and faster than most other markets - and it's going to come down harder".
This observation could appear very convincing, but only if this expert was analyzing rocks thrown up in the air. Yes, they do fall hard. The real estate market in any area , as well as in Las Vegas is a much more complicated business. If some "experts" and their followers are still waiting for the market "to hit the bottom", ( D. Trump among them), we have already hit the very bottom of our intelligence.
Homeowners seem to appear expremely helpless and manipulated in every way - by real estate agents, appraisers, lenders and "experts".
However sellers are absolutely unaware that they have a great power in their own hands, and no one, whether it is Donald Trump or Dennis Smith shall not ever effect their brains. No one, including lenders and appraisers, has the right to manipulate their property investment. Sellers shall begin to raise the prices, starting right now, even by a few thousand dollars to start with. The reason is that WE MUST RESTORE our precious home equity, and help our exceptionally promising market get well again. This gradually increasing home equity will greatly benefit every homeowner, developer, lender, realtor and - no doubts - a new buyer. This will stabilize and even boost our local economy big time.
Our local Las Vegas market IS different from any other market in the country. We just need to open our eyes to see the new booming multibillion economic growth in LV. Lets learn how to appreciate our unique market. Even today, the housing prices in Las Vegas, one of the most known international tourists' destination, have not even reached one third of those average prices paid in Florida or New York, or in the cities such as San Francisco, San Diego or Los Angeles, (only a very ignorant person can say that about three years ago our sales prices in Las Vegas went "too high".)
Even the most skeptical and narrow-minded "Nostradamuses" in real estate say that our market inevitably shall go up, just cannot say "when". It is right now. It is impossible to reverse or stop Las Vegas in its independent rapid business growth and development. New casinos grow like mushrooms under the summer rain. They create new jobs, welcoming new residents and homeowners. The most important economic boost is still ahead of us. In a couple of years a new remarkable development will begin economically storming not only our local, but international activities on a grand scale. The most gigantic new airport project in Ivanpah Valley is about to change our city's infrastructure and stretch Las Vegas Boulevard "strip" up to Jean and Goodsprings areas. This project will keep developers, businessmen, new employees and entrepreneurs very busy for decades to come. Thousands of people will be looking for properties to purchase within a couple of years. Make sure that our real estate market is coordinated and ready for this inspirational challenge. The healthy gradual process of increasing the housing market prices by property owners themselves will RESTORE their very home equity, stabilize and lead the market out of its artificially created depression.
In spite that some experts' say "lenders have to educate their borrowers", lenders must carefully select and educate themselves - lenders must learn about elementary ethics in providing their services. They have to start practicing in providing good care for their long term borrowers - their very milking cow without which they cannot at all exist.
Lenders shall train their own loan officers to do their job right, and do not trick their customers with their questionable deals. In order to survive they must find some coordination with the Government, greatly reduce the interest rates and create more favorable conditions, attracting new dependable borrowers.
Residential developers, lenders and realtors will be able to tremendously benefit from the increasing market prices and fix their own bad mishaps and mistakes - however, not on the homeowners account.
We have no time to wait any longer.
Thank You.
Lloyd Newberry,
Real Estate Independent Analyst Observer
Las Vegas
