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>>DALE: Hello this is Dale with The Snyder Group here in sunny Las Vegas, what I want
to go over today is going to be just the market trends with what we're seeing with home sales.
So far this year if you annualize our sales we're targeting about 5.1 Million sales this
year whereas last year we sold 4.9 Million homes.
Reasons why we're expecting an increase in sales this year, one there's more jobs being
created nationwide. In fact, unemployment has dropped two percent in Las Vegas. We're
down to 12%, still pretty high but it's down. So it's positive news.
Rising stock market, well, the apartment rental rates have been increasing. In fact in Las
Vegas, it's not cheaper to buy a home than to rent so that's increasing sales.
Homes are now way below replacement cost. You can get a home as low as $25 a square
foot in Las Vegas, unbelievable. With an average of about $80 a square foot. So that's motivating
people to buy you know obviously it's cheaper. Much below the replacement cost.
Investors are investing in our market as a hedge against inflation. In fact, you know,
the cash-on-cash return right now is going to be about 6%-8% in the most desired areas
of the city with less than 30 days on the market to get a tenant.
You can get higher return if go into other areas of the city as well. Some investors
are getting as much as 15% cash-on-cash return. And we have a lot of foreign investors that
are buying homes cheap here, with the exchange rate. You know, with the dollar being weak
they're able to buy a smoking deal on properties.
We have a lot of asian community, Canadians, Australians, are buying on our marketplace.
Other potential things that should help increase the sales are going to be the banks are making
huge profits now which should that in turn loosen up their lending restrictions. The
short sale are being streamlined.
You know short sales are now taking maybe 45 to 90 days to get approval whereas 3-4
years ago take a month just to get a denial.
And the appraisal issue is becoming less and less so we're able to turn more inventory
because we don't have the short sale just stagnating and setting in the market. We obviously
have some issues to get through, you know, the market's recovering but we do have some
issues with distressed properties still coming on the market that's going to be an issue
moving forward, continuing to put down or pressure on the market.
The unemployment rate even though it's going down is still high. You know, fuel prices
are definitely a concern, but with all that being said, you know, the economy appears
to be recovering as a whole.
Tourism is up. The traffic through McCarran international airport is up. I know Southwest
[Southwest Airlines] is having a record year. Gaming revenue is up. It just makes sense,
Vegas is getting back to the basics. Has affordable housing so there's more incentive for people
to move here and buy and ah...
So things are looking up.
If you have more questions, feel free to reach out to me at my website at dalesnyder.net.
Thank you for your time and I appreciate any opportunity that may arise.