Las Vegas Real Estate Driven By Greed Not Fundamentals

Here is an example of a house sale that is being driven by greed. The house was purchased here in Las Vegas for $142,000 in April of this year and is being flipped for $239,000 as we observed driving by a few days ago. It is still April!

This is just a blowout of everything we know about historical house appreciation and is a bubble price based upon the Zestimate found here. 

That Zestimate is $162,00. That is a bit of a bubble itself but is blown away by the asking price.

The folks living here are not going to buy this house, most likely, unless they think this bubble can be sustained. There are empty houses in this complex. They are sitting there not available for sale.

The comps are being busted by flippers. And if a Wall Street guy wants to raise the comps on the slew of houses he already owns he just has to offer this price on this house to do so.

It is a scam. Not saying the seller is scamming. But a buyer offering cash for this house would blow the comps out of the water and that is a massive and hurtful scam against main street.

Thanks to the Fed this speculation is occurring. This does not help main street. If there were laws against this sort of thing, perhaps QE would work for the people. But Bernanke has pretty much forgotten about the people and only cares about his rich cronies.

He is a bad man. He needs to put a stop to this madness.

UPDATE: In this crazy market, the house was dropped to 219k and went pending although I am not sure about the price. It is pure Bernanke and it is purely speculation. I hope this new buyer gets seriously burned. 

Comments

  1. I totally agree with you. I have been arguing with this idiot real estate agent lvoc who keeps trying to debunk my arguments. He is failing as people on that forum are seeing the truth that this is just another bubble.

    ReplyDelete
  2. As you can see by the update, the house went pending for 219k. This is Bernanke's doing and it is outrageous.

    ReplyDelete

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