Friday Update October 9, 2020
On this day in 1936 the Hoover Dam started producing power for the nearby settlement of Las Vegas. The city at the beginning of the construction had a population of 5,000 people. Now it has a few more than that.
And our population here has grown too. In the mid 1930s El Paso County had a population of about 50,000 people, now it's closer to about 740,000 and growing at a steady pace.
And there are only 519 existing single family homes for sale here. If you've been following my blog I've gone into all the reasons why I think this is. Those aren't changing. Inventory is getting tighter as we go into what's generally the offseason. This year's offseason will still be stupid competetive as the last few have been.
September's median pricing hit a new record and the 360 sales we've logged so far in October are falling right in line with that as well.
The market is not crashing. I repeat, it is not crashing.
One of the Fed's presidents came out the other day and said that we're not just going to keep interest rates at 0% until 2023 but perhaps until 2026! That means an astounding amount of money creation which in turns means an amazing transfer of wealth to people that control the hard assets.
Never ever forget that money is made up, the Euro, the Dollar, the WTFever only holds value as long as people think it does. People used to think that barley was money.
So yea no need to rant on here guys. There is a plan in play, it's been in motion for a while. Hard assets will continue to increase as all of the world's central banks continue with the same policy of debt devaluation via money creation. Asset valuations go up, the cost of debt service goes down, rent goes up, pretty much everything else goes up, incomes go up last if at all. Get on the right side of this thing or get run over by it because there is nothing fair or pretty about it.
I shared an article today about how the Millenial generation only controls 5% of this country's wealth where as the Baby boomers at this same time in their era held 21%. Why do you think that is? My take is that we as Millenials put way too much value on college degrees (probably because our Boomer parents beat that into us) and we're way too quick to take student loans out for shit that we don't really care about. Those loans then in turn kept many of us from buying real estate until about 10 years later than when the Boomers we're buying. So yea "Ok Boomer" on whatever politics we disagree on but the truth of the matter is the only way to accumulate wealth in this country or any other is by controlling assets and equities. I prefer assets, always have ;).
And to anyone out there that thinks this isn't important just do me a favor and never ever bitch about inequality, ok?
The United States is pretty much the only nation in the world where all you need to do to take control of real estate is a pulse, a job, and a decent fico score. There are still loans out here with 0% down, you can literally buy a house for less than a first/last/security deposit. I know this to be true because I help clients do this on the regular.
Whatever reason you have that has kept you from jumping into home ownership you need to have a little heart to heart with yourself about it. The opportunity is out there even when inventory is this low, but positioning yourself to take advantage of that opportunity is solely your responsibility. You know I'm right, even if you don't wanna hear it.
Cheers and have a great weekend.