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Every fourth Sunday, Regana Kooman-Henry discusses various aspects of the home buying process and home ownership experience.
Unknown Speaker 0:00
You're listening to locally produced programming created in. Hey, you envy studios on public radio K you envy 91.5
Kevin Krall 0:11
You're listening to special programming brought to you by Regatta. kumin. Henry of Coldwell Banker Premier Realty. The content of this program does not reflect the views or opinions of 91.5 Jazz and more, the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.
Regana Kooman Henry 0:43
Welcome to the Southern Nevada real estate Show. I'm your host regatta and I am a full time real estate agent and broker associate with Coldwell Banker Premier Realty. And today I have a very special guest. Bob Hamrick, who is the CEO of Coldwell Banker Premier Realty talking about the current real estate market first Southern Nevada. Welcome, Bob.
Unknown Speaker 1:09
Regatta. Thanks so much. It's great to be here. Thanks for the invitation. Well,
Regana Kooman Henry 1:13
it's really a pleasure and a thrill to have you on my show. And Bob, today for today's interview, I have some questions for you. And first of all, Bob, how would you describe the current real estate market?
Unknown Speaker 1:28
Well, I would say it is surprisingly good when you consider the impact that the increase of interest rates have had, you know, roughly multiplied by three times or interest rate from It's low. Our market has responded in a very resilient way. There's a tremendous number of buyers, there's actually a shortage of inventory. So I would say that, it's I'm surprised that it is come back as strong as it has.
Regana Kooman Henry 1:58
Okay, that's a good very solid explanation on the current market, and bomb. Are we currently in what we call a buyer's or seller's market? Well, it's
Unknown Speaker 2:10
a good question. I certainly at the beginning of last year, we were in a very clear seller's market. And just to elaborate seller's market means who's in charge, so sellers were in charge, they could name their price to some extent, we went from that to the end of last year, the middle to end of last year to a buyers market very clearly, also, as inventory inventory grew. And now we are at more of a balance but closer to a seller's market, because inventory has dropped significantly. And there is a bit of a shortage of inventory, and still a lot of buyers. So I would say we went from sellers to buyers to now sellers, balanced market.
Regana Kooman Henry 2:48
Okay. And, Bob, how do you compare this year's housing market, for example, to last year's housing market?
Unknown Speaker 2:58
Well, that's a good question that really depends on which part of last year's market because we really had it was really a tale of two markets. At the beginning of last year, as I mentioned, it was very, very strong, probably the strongest market that we've ever experienced, with appreciation rising significantly, and inventory dropping significantly. And then the second half of the year was virtually the exact opposite of that. So our market now compares more or closer to the first part of the year than the second part. But I would say it's best described as right in between.
Regana Kooman Henry 3:36
Okay. And Bob, do you think the Southern Nevada real estate market has hit the bottom yet? Like everybody's question right now?
Unknown Speaker 3:44
Absolutely. Everybody is wondering because nobody wants to feel like they bought at a price that has gone down. So as you know, we're gonna we hit a high sales price of $480,000, in the Las Vegas market, and that was in the top of 2022. That adjusted down to $425,000, around October of last year, and it stayed at 425,000 through November, December, January and February, and in excuse me, and March. And in April, we saw the first month of appreciation, which was 1.2%. However, in May we experienced 2.8%. So, in the last two months, we've experienced depreciation that annualized is to about 24%. So if the question is if we hit the bottom, we absolutely have because we've bounced from it. Okay.
Regana Kooman Henry 4:43
And what are some key reasons that Southern Nevada will not be impacted by a housing crash?
Unknown Speaker 4:51
Well, that is a big concern because most of us here in Southern Nevada experienced a major crash through the grid. recession. And the concern is that that's going to repeat and I am very confident that it will not circumstances are so much different than they were then. We are seeing such an influx of traffic moving here from Southern California. 40% Of all the people that are moving here are coming from there. There's a tremendous tailwind of development, as well as the pro sports that we all know about the in migration, we are in the Sunbelt, and people are leaving the rust belt and moving to the Sunbelt. So there are multiple reasons why I do not believe we are going to experience a crash. Okay,
Regana Kooman Henry 5:39
and why do you think the market has slowed down from the fast paced market we experienced up until about May of last year? Well,
Unknown Speaker 5:47
I think it's one person's name Chairman Powell and Chairman Powell of our treasury is responsible for the Fed, I should say, is responsible for managing our economy. And he experienced observed that inflation was growing quite significantly, that it was not as he originally thought transient temporary, and so he had to do take measures to cause inflation to come down. His goal is to get to two and a half percent. And in order to get there, the most significant lever is to raise interest rates. And when you raise interest rates, that has the greatest impact on long term purchases, and housing is the longest of term with typically a 30 year mortgage. So those are the very clear reasons why our market experienced the slowdown. And now we are seeing that inflation is getting under control. So I'm seeing us getting to the other side of that.
Regana Kooman Henry 6:47
Well spoken Bob. And since Bob, you're the CEO of Coldwell Banker, Premier Realty, some people might think that you have a crystal ball. And know specifically what will happen next in this current market. What do you say to these people?
Unknown Speaker 7:03
I say I don't. However, I do look at the numbers. And I believe if you follow the numbers, they will give you the tea leaves of what the future is going to look like. And as a result of that, I would say the trend is your friend. And we are trending in a very positive way. And so anyone that asks me as far as what the future is going to be, I believe it is going to be very positive. Very specifically, I would say to Southern Nevada, because there's so much positivity going on here.
Regana Kooman Henry 7:37
Okay. And do you think by having a hometown sports team, like the Golden Knights and the Raiders affect the Southern Nevada market, real estate market and even a greater positive labor?
Unknown Speaker 7:50
I absolutely do. And you know that the A's are potentially and most probably going to be here as well. We have the WNBA, who won the World Title last year, there is so much going on. And I think it's very specifically to Southern Nevada and a gaming slash hospitality environment. It is difficult to truly calculate all the upside potential that comes from pro sports. When you when you look at the fact that people are coming to Nevada or Las Vegas to watch a game. In a typical marketplace. They watch that game and they go home the next day, but in Las Vegas, they come in and they're typically staying for three to four days, and they're spending money in our community while they are doing that. So sports in Las Vegas have has a strong compounding effect. Okay,
Regana Kooman Henry 8:47
that's great. And Bob, is it true? It is true then Oakland A's sports team. So that's not a rumor that's actually going to happen? Well,
Unknown Speaker 8:59
it's not a rumor. But as you probably know, there is a special session of our legislature that is debating that right now. And it's coming down to how much tax abatement will we be able to provide? And the number is around the 380 million number. And if we are able to get to that, then that's going to work for Oakland, and I think it'll work for us. I have great confidence that that that they will come to an agreement.
Regana Kooman Henry 9:23
Okay. And Bob, is it true that the Hollywood film industry is considering an expansion to Southern Nevada? Have
Unknown Speaker 9:31
you heard of Mark Wahlberg? Yeah, so mark, recently moved to Las Vegas, and he's made some some huge real estate investments. And he also has been the person that declared that Las Vegas should be the next Hollywood and so also being debated in our state legislature was a question as to whether we should be providing tax incentives to the film industry and and Sony films upon pass passing of that committed to investing a billion dollars in in moving their industry or expanding their industry to Southern Nevada. So I believe it's just one more amazing diversification for our community. Okay,
Regana Kooman Henry 10:21
that is really very informative. And Bob, what would you say to a buyer, if they would ask you if now is a good time to purchase a home?
Unknown Speaker 10:32
I would say yes, based on the information that I shared earlier, the fact that we have clearly hit the bottom. The rest of the facts are that we have a strong new home community, there's a there is a lot of new home construction. And the rest of that is that the overhead the cost to build a new home has increased significantly. $267,000 is the added expense that a builder incurs with setup fees, connection fees, construction, cost increases land increases, that $267,000 has to be reckoned with. And so that is what's forcing home prices up. And as home prices go up for new builders, then the resale homes move up accordingly. So it's a great time to buy because we anticipate that property values are going to continue to increase in Southern Nevada.
Regana Kooman Henry 11:28
Okay. And what would you say Bob to a seller, if they would ask you if now's a good time to sell a home? Well,
Unknown Speaker 11:37
I, my personal belief is that you should never sell a home. And that may not be good for our industry. But the reality is you don't sell a home for this whole reason of selling a home, you sell a home for a reason. And oftentimes the reason is greater than holding on to it. So sometimes people want to sell a home in order to take the equity and buy a larger home, now is a great time to do that. Some people feel like the market is going to continue to drop. And if you truly believe that, then now's a good time to sell. And so it really comes down to one's individual reasons. And if those reasons are strong enough, then yes, it's a great time to sell.
Regana Kooman Henry 12:16
Okay, and how are rising interest rates affecting the market and what is forecast for the rest of the year into 2024? Well,
Unknown Speaker 12:27
you know, of the banking crisis that we have some banks went under over the last couple of months. That was due to a significant increase in interest rates. And that has Chairman Powell in a kind of an interesting spot. Because because of that he does not want to raise interest rates anymore, based on what could be a worse impact. And then he is starting to see that inflation is getting under check. And so that typically means that we can reduce interest rates, I believe that we're going to see in the fourth quarter of this year, interest rates beginning to drop, and in 2024, we will see them drop even more never, in my opinion getting back to the two and a half percent that was unrealistic, but perhaps getting to the five, five and a half percent rate.
Regana Kooman Henry 13:18
Okay. And Bob, the luxury market grew and at a really expedient rate following the pandemic. What trends are you observing in the Las Vegas luxury market?
Unknown Speaker 13:32
I would say ultra luxury is probably one of the biggest trends that I'm observing. And ultra luxury speaks to the type of communities that are selling building lots for two and three and $4 million. And then homeowners investing another eight or so million dollars to have a finished product that is 10 to 12. And these properties are appreciating significantly location you're familiar with the summit has been very, very well received, and other communities and also high rise projects coming back to the marketplace after they've been gone since the great recession. So there's a lot that's taking place in the luxury market. It is amazing to me, we're gonna when I speak to a California, a Southern California individual that's moving here. They are a little shocked at the similarities between pricing of ultra luxury homes and what they would sell for in Southern California and that is because the quality of construction has become similar. The cost of land has become similar. So that means the ultimate price has to be similar as well.
Regana Kooman Henry 14:40
Okay, and Bob, why would someone work with a Coldwell Banker real estate agents such as myself because I work with I am a real estate agent through Coldwell Banker, and as being one of the Coldwell Banker, real estate professionals. Why would someone work with a real estate A company of Coldwell Banker, other over companies.
Unknown Speaker 15:03
Well, there's a lot of great companies in Las Vegas. There are a whole lot of real estate companies in Vegas. Coldwell Banker, obviously is a brand that most people have heard of. And we recognized nationwide and internationally as being the company that provides the best guidance to our agents. And we're able to keep our agents on top of what's happening in the marketplace. And if that is what we do for our agents, then I believe that that's the type of agent that a buyer and seller would want. Plus, we're constantly helping our agents learn the skills that are needed to compete in this marketplace. And one of those skills is the skill and art of negotiation. And that is huge when it comes to representing a buyer to help them find a home that they want, and representing a seller to get the most money possible for it. representation and negotiation are critically important in this business. And that's something we specialize in.
Regana Kooman Henry 16:03
Okay, and Bob, you and your wife, Molly are celebrating 25 years of owning your Coldwell Banker brokerage? Is there anything you would change?
Unknown Speaker 16:15
Well, yes, and there's a lot that we have changed. So over the 25 years, we have progressed with the marketplace, we have constantly been adjusting to the changes that are taking place. And there's always more that needs to be done. So is there anything we would change? Probably a few things that we didn't, but for the most part, we have changed a lot to adapt to the changing real estate market. Okay, and
Regana Kooman Henry 16:41
Bob, what is your favorite thing about real estate in real estate? And why is it so rewarding for you and Molly, after so many decades in the business? Well,
Unknown Speaker 16:52
you're the you're one of the things regarding quite honestly, you are the person on the front lines, you're the person that is having the conversations with buyers and sellers, Molly and I are not listing and selling real estate on a daily basis, what we're doing is supporting you to be the best agent in the marketplace. And that truly is what we enjoy, which is helping, as I mentioned earlier, helping agents understand where the market is going, helping them be able to serve their buyers and sellers as best as possible, providing them the best marketing and tools to engage and to use to help their buyers and sellers. So you're the reason.
Regana Kooman Henry 17:31
Thank you, Bob. That makes me feel good. Thank you. And Bob, I know there is a lot of positive feedback regarding the real vitalize program. And how it has helped sellers make more money from the sale of their home on average, because they're able to make improvements on their home in order for their home to show at its best, without the upfront out of pocket costs that a seller might not even have up front. So Bob, explain to the listeners how the program works? Well,
Unknown Speaker 18:04
we're going to you make it a point to stay on top of everything that's changing in the real estate market. And your question to me before about what would I change? Well, we adapt to all the changes that are taking place in the marketplace. And as a result, it is important to help sellers sell their home for the most money possible. And one of the things that has changed in the real estate world is that there are companies known as AI buyers, they've come into the marketplace and they say we'll buy your home no matter what condition it is in. And the whole reason that they are buying your home no matter what condition it is in is in order to buy it and make a profit after they fix it up. And so what we found is how about if we help the seller do what the eye buyer is going to do so that they can place that money in their pocket and be able to realize the additional equity and it costs them nothing to be able to do that. So ultimately, it has been something that has been very, very well received the real vitalize program, we advanced dollars to be able to put new carpeting to paint to paint the home to stage the home to make it very competitive in the market and to cause the seller to get the most money possible. And they only pay it back at Close of Escrow. So it has been a fabulous tool. And it's not just for fixer uppers. There are homes that need to have a little bit of tweaking to compete against the models of new homes in the marketplace. And this has been a wonderful way to help a seller stage their home to make it more valuable.
Regana Kooman Henry 19:40
Okay, well Bob, that is really a lot of great information. And how long have you been doing this Bob? So
Unknown Speaker 19:48
I graduated from high school right here in town Western High School in class of 80. I had my real estate license before I graduated, and so 1980 and 2000 23 That's about 43 years. Wow,
Regana Kooman Henry 20:02
that's a long time. I've loved every moment. I know I've been doing it a minute to since 1991. So, you know, we're kind of like the dinosaurs without giving our age away. There
Unknown Speaker 20:15
you go. Absolutely. Well, I kind of gave my age away. I guess I was 1718 and then Neff add 43. So yeah, you go. Yes. So,
Regana Kooman Henry 20:23
Bob, I really appreciate you for being on my show today. And thank you so much. And, uh, please say your name, company name and phone number twice for the listeners and also your license number.
Unknown Speaker 20:37
Awesome. So, the name again, Bob Hamrick, ha M. R. I, C. K. My, did you ask for my email address? What do you say? No,
Regana Kooman Henry 20:46
just your phone number.
Unknown Speaker 20:48
And my phone number is 702-460-8090. And my real estate license number is 000 2124. That means I was the 21/24 2020 tweet. Yeah, you know, I was that person.
Regana Kooman Henry 21:06
It's been a long time. A long time. And thanks again, Bob. You've been a big source of of knowledge and information for the listeners this morning on Sunday morning.
Unknown Speaker 21:16
Thanks for the opportunity. Oh, no,
Regana Kooman Henry 21:17
no problem. Thank you for being here. And for listeners out there that may be on the fence, you know, is it a good time to buy or sell? Well, let's explore if you're thinking about buying, if you're thinking about selling if you're worried about the interest rates, even, you know, my model is to marry a property data rate. And what I mean by that is we may never have the opportunity or not in the near future, to be able to purchase a home at a price that we weren't able to purchase to this time last year, because this time last year, prices were like very, very much higher. And now you know, prices are starting to come back again, we have hit the bottom. But you know if you'd like my number is 702-596-1267. If you'd like to call we can explore some options and see if it is a good time to buy and for sellers. Even though prices came down. They are coming back summon you know you had so much equity in the last two, two and a half years that you still may have that equity to make it worth your while you never know until you try it. Everyone's situation is different. So if you'd like to know, again, my number is 702-596-1267. It's you're never too young. Also, and you're never too old. I remember when I first started real estate, I think I was in my second year. My youngest client was actually 18 years old. 18 he was selling cars. And that was my youngest client did they take them seriously at the title company, he looked even younger. But he was my absolute youngest client. He had a job for two years, he had a bonus. You know, we know the prices were a lot lower in price. But you know, you know people's income kind of match the prices back then. And that was such a thrill to see someone of such a young age that was so motivated and determined to own their first home. And my oldest client, believe it or not, was 92 years old. I couldn't believe it. He came from Chicago. He wanted to get out of the cold weather. And his dream was to buy a home in Boulder City at 92 live on his own and he had it all together heat for 92. It was a blessing. He was still driving. You know, he probably retired a few years ago. And he just wanted to have that peace and serenity of living in Boulder City. And he wanted to learn languages. He actually went to the Henderson community college to learn languages at 92. So for the audience out there, what I'm saying is, don't give up your dream. You're never too old. You're never too young if buying or selling is what you want to do. You know, let's explore. Again, my number is 702-596-1267 and I am regatta human Henry, your hosts for the Southern Nevada real estate show that airs every third Sunday at 8:30am and I am also a full time real estate agent and broker associate with Coldwell Banker Premier Realty, my phone number is 702-596-1267 that 702-596-1267 And my license number is BS 2780 Thank you so much for listening to my show this morning. And I hope everyone One listening has a great Sunday and a great week.
Transcribed by https://otter.ai