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Reno Real Estate At New Highs · The Jon Sanchez Show

• Jon G. Sanchez: Thank you very good. Mr. Corey Edge of Edge Relay, how you be, Dwight Millard: Good. Cory Edge: I'm doing really good. And regards to the Bill Poulty stuff, in case people couldn't hear ⁓ it was... ⁓ guess you can't be shocked anymore, but it is kind of a weird person to put in that role, but we'll see. Jon G. Sanchez: Yes. Yes. Yes, absolutely. ⁓ Dwight Millard: He's going to be spying on all of his other home builder buddies. Right? Watch out Hortons. Watch out. You know, mean, right? Jon G. Sanchez: Yeah, it's the saga never ends. The saga never ends. Yeah, yeah, yeah. Morrison is now gobbled up by Berkshire Hathaway. mean, yeah, it's ⁓ world is as volatile as mine is. That's for sure. Well, of the housing, let's tell you exactly what we have lined up for you after I go through the stock market recap with you. We are going to get into the May housing data. Thanks to Mr. Edge. Dwight Millard: Yeah, yeah, well, yep. Jon G. Sanchez: And I think you're going to be up for a nice pleasant surprise when you hear what the new medium home price is here in northern Nevada. It is absolutely amazing to see how this thing is has progressed. Corey, you know, it's been a couple of months since we've been able to do the report and absolutely amazing numbers. Absolutely amazing numbers. Cory Edge: Yes. And if you, haven't done it, but I'm guessing if you overlay the stock market chart with the housing chart, they probably follow each other. it's just, everybody's feeling really good right now. Jon G. Sanchez: Yep. Yep. Absolutely that they are. right. So we're gonna get to that here momentarily. Let's get the stock market side out of the way. But once again, if you're wondering what we were kind of joking about at the first part the show, Bill Polte, of course, Donald Trump's appointment as the head of the FN, Federal National ⁓ FHFA. Yeah, I never remember that FHFA. He has now ⁓ been appointed by the president. Dwight Millard: FHFA, yeah, FHFA, Jon G. Sanchez: He if it becomes permanent, he'll have to be confirmed by Senate, by the way, but he's going to be the acting director of National Intelligence and he's going to be running that organization, of course, in possession of the country's most prized secrets and move that analysts are fearing could further politicize the office and erode the US intelligence gathering. I don't know. I don't know. I mean, I don't know what problem. I mean, he has all kinds of qualifications, right? His grandfather started Pulte Holmes and He's kind of slid in there and now he's the top dog in the is that even above the CIA? I'm wondering. I was thinking about that. I don't know if that position is as the act is the director of national intelligence. I don't know if that oversees the CIA. I've got to look into that one, but powerful position. He'll know a few secrets. How about that? He'll know a few ⁓ All right, very good. Cory Edge: Yes. plan on seeing a lot more lawsuits based on the secrets he listens to. Jon G. Sanchez: Yes, yes, and that's been the criticism of Mr. Polte as he's been running the FHFA as he's many look at him as kind of the one that goes after the the the people that Trump dislikes and if you know what I mean, and so they're fearful now of this very, very powerful position that he'll be doing the exact same thing. But that's just the speculation. Again, this news has came out a few hours ago, so we'll keep an eye on it. And like I said, I don't know how long it could be kind of a. Acting position before he has to be confirmed by the Senate, but he's got a little bit of time there. Alright, that's one news we're going to before we get into. Our topic again, the the May housing data. I want to get through the stock market side of things and then we're going to. I want to talk a little bit about something that happened yesterday and was where. You know, Berkshire Hathaway, which you is no longer run by the infamous Warren Buffett. ⁓ Berkshire Hathaway is now you know got a new people new people running the organization Greg Abel has been there quite some time as now the CEO But he made a massive acquisition yesterday. He he and I say he the company Doing a deal six point eight billion dollars. They agreed to purchase the major home builder Taylor Morrison homes Like I said for a price tag of about six point eight billion and and guys I want to get your opinion on this because I didn't get a chance to touch on it on the show yesterday and really talk about their logic behind this. I know both of you, especially you, Dwight, know you know Taylor Morrison Homes very well, and you know the Berkshire Group very well. But you know, it's fascinating. And I'm going to share with you, there's a great article in the Wall Street Journal of all the housing related type of stocks that Berkshire Hathaway owns. And basically saying, look, this was the absolute best time and many analysts were saying this was the best time to make an acquisition of this size, because the housing slump that we're in, and they're very, very bullish. Of where the housing market is gonna go for various reasons interest rates coming down demographics so on so forth so ⁓ want to get your opinion on that because I think it was you know again a absolutely fascinating situation but in the meantime, let's let's you know get things over to the stock market side and you know, Dwight Millard: I assume, John, another record-setting day. So congratulations again. Cory Edge: Nope, I might have lost him. Dwight Millard: We're really having difficulty. Cory Edge: It was a record setting day, I believe. I might be wrong on all three. I'm not sure if the Russell 2000 made it or not, but I believe the Dow and the NASDAQ and the S &P. Dwight Millard: Well, I saw, Corey, that the Dow was up 228, S &P up nine, and the NASDAQ up seven. So I gotta believe those are all records, territories for all of those. you know, I got, you know, we're waiting for John, of course, but I've got to, okay. So it was another record-setting day, John, I think, for all three. Was it a trifecta again? Okay. All right. Good. Congratulations. Cory Edge: So they're all. Jon G. Sanchez: Right here, right here. Yes, it was a trifecta again. Yes. Yep. It was a trifecta. Yeah, know. ⁓ know. Go figure. ⁓ Your rates are comfortable, Dwight. How about that? Your rates are comfortable, as you like to say. We will, of course, get into the about that. But, you in the let's kind of get down to the stock market side things today, because again, ⁓ Dwight Millard: to you and all your clients, right? My rates are stubbornly high, but congratulations to you and all your clients. I am one, so I'll take one. Yeah, yeah, yeah, yeah. Cory Edge: You Jon G. Sanchez: It was a day, once again, we go back to the early morning side of things, and we had triple digit losses on the Dow Jones Industrial Average. Things were not looking good. Again, the entire situation with Iran, which was, by the way, that whole situation was very, very quiet today. There really was no news. some more missiles flew between us and Iran yesterday or last night, early this morning, depending upon what time period you're at. But really didn't have that to really contend with today. The market again, really focused on one thing that happened early this morning. I'm sure you guys saw this. So Jensen Wong, of course, who is the CEO of NVIDIA, I'm incredible NVIDIA, he came out with a comment at a conference and he delivered a what they're calling a rare and powerful endorsement at Computex in Taipei, calling Marvel technology, the next trillion dollar company. Well, you know, it used to be a big deal, of course, when a company would hit a trillion dollars. Now, you know, we've got companies like Apple and many others that are three, four, five trillion, you know, way up there in value, including the video. boy, that sparked some incredible enthusiasm. Marvel today just on that news, they didn't have any earnings numbers. They didn't have anything. ⁓ Marvel today shot up thirty two and a half percent, a seventy one dollar and thirty six cent gain to a price tag of two hundred ninety dollars and seventy nine cents. ⁓ video is down about a buck fifty four to two hundred twenty two dollars and eighty two cents. Google the drag on the Nasdaq side of things today, lost fourteen dollars and nineteen cents, three point eight one percent to three fifty eight thirty nine. ⁓ Again, as I announced yesterday, not long after the stock market closed, Google is basically doing a secondary offering. They're going to the stock market and raising about $80 billion, of which Berkshire Hathaway is going to chip in about a mere $10 billion. And they're going to use these funds for their AI expansion, data centers, et cetera. Many said, well, wait a minute here. If a company of the prowess of Google doesn't enough cash on hand ⁓ to suffice capital expenditure spending, ⁓ Are we in trouble? And so that's the reason that the stock went down like it did the last one I want to mention was Hilla Packard enterprises stand out They have an impressive beat and an impressive Forecast going for stock rose 19 and a half percent nine dollar and fourteen cent gain to 56 14 we come back I'll tell you what the indices did and then we're going to Talk a little bit about this Taylor Morrison acquisition by the aforementioned Berkshire Hathaway. Let's turn it over to Kristen snow. She's in the right now traffic center. Hello, Kristen Jesus. Yeah, I hit a button trying to bring up something and took Dwight Millard: We lost you for a second. that okay? Cory Edge: No. Dwight Millard: Away you went. I don't know. Are we still on the of us when you go away? Okay. Jon G. Sanchez: Yeah. Yeah. I was hoping you didn't say anything. Well, you said we lost John. Cory Edge: Yeah, I think I'm in. Dwight Millard: No, is. We lost. Well, yeah, of course. think but then we went ahead and just go, OK, looks like, Jon G. Sanchez: Yeah. these cobwebs out. freaking hard trying to do all this by yourself. Dwight Millard: Do you guys hear any noise in my background or is that I'm okay? They got a little bit of a going. Jon G. Sanchez: Nah, don't do it. Yeah, no, hear it. Cory Edge: You're watching TV. Dwight Millard: No. So John, I had a guy that's, don't know everything about his financials, but he's pretty, got quite a bit of money out of Houston. He's buying a house up here for two and a half million, a new build job. And he's gonna put a million and a half down, wants only a million dollar loan. But he says he believes, he's gonna get a construction loan, even though can pay cash for it, he's gonna get a construction loan. because he wants to leave his assets deployed in the market. He thinks the market might go to $55,000 before his houses. It's a 12 month bill that's 60 by the end of the year. I mean, I don't know. You know, but that's the attitude. I know I'm just saying people are making decisions like that. No, know. Jon G. Sanchez: Yeah, that's shit. We've gained 2000 in the last week. Gained 2000 points and almost to actually 1300. Dwight Millard: I see my underarmor still not doing any good. Jon G. Sanchez: Still suffering a little bit. Dwight Millard: God, much better than Nike too. Man, ⁓ can't figure it out. Bye Underarm. Jon G. Sanchez: Yeah, I know. I know. Dwight Millard: Yeah, I think we can spend a little time on that Berkshire because I've told you there's been directive down to Clayton to buy as much land as they can. They want them to compete with DR and Lennar and all these national. Jon G. Sanchez: Right? Right. Yeah. I'm surprised that that this thing about that. Yeah, I'm seeing Clayton Homes, obviously one of their companies. No antitrust issues buying Taylor Morrison. Cory Edge: Modular. Dwight Millard: That's where they're going, John. They're going modular. Jon G. Sanchez: What's up? Yeah. Yeah. Well guys, bring that up. Dwight Millard: know what they're doing now? You why they built roofs so flat on manufactured homes? go under the bridges. Jon G. Sanchez: that makes sense. ⁓ Dwight Millard: Now they're putting them on hinges and dropping them in and raising them up. They're gonna make them even look more aesthetic to, yeah. ⁓ that, it's crazy. It's crazy. And they're, have an arm and they're called Vanderbilt. Is their financing arm? Did you see it? Their company's Vanderbilt. It's very profitable. They're like a finance company. They're like Transamerica, Northwest. Jon G. Sanchez: Really? Wow. Yeah. No kidding. Jesus. Dwight Millard: And that's a, he built a really well-oiled machine. Jon G. Sanchez: That's incredible. I didn't know they owned it. Acme brick. I mean, that brick company too. So own all the components going in there. Okay, here we go. Here we go. Yeah. Dwight Millard: Yeah, you should own everything too, a building. Jon G. Sanchez: Welcome back to the John Sanchez show on new stock 780 K which with Corey edge of edge reality and of course a doe white mullard of on cue home loans. All right, here we go guys. Here's how we finished for the day is is Dwight says so correctly mentioned. I just don't know how he does is how he is so busy, but yet he can he can he can figure out exactly when we have these record setting days. It's a miracle. Alright, but it was a trifecta as Dwight said 229 point gain on the Dow point 45 % to a close of 51,307. Dwight Millard: Love it. Jon G. Sanchez: Nasdaq gained seven and the S &P higher by just 10. So very small amount. The close on the Nasdaq was $27,093. The close on the S &P was $7,609. On the commodity side, ticked up a little bit on oil prices, $1.64 gained, a 93.83 a barrel. Gold rose $7.10 to $4,519.90 an ounce. Mr. Millard, three basis point decline, 10-year treasury. Had we do on the 30-year mortgage. Dwight Millard: Yeah, so it's not going to shock people much, John, but we're at 6.57 today, according to Morgan's News Daily. So you're not really feeling the movements, you know? mean, even if you get a day or two down, it's only moving today was three basis points downward, you know, from 6.6. So, you know, I guess we said it last time, it's stubbornly high, you know, it's just, it's, I mean, and it's amazing because there's still quite a bit of activity around. shared with you on break a gentleman that's, you know, Jon G. Sanchez: Right. Yeah, certainly. Yes. Dwight Millard: taking a big leap on a construction site, but there's still lots of movement going on. Jon G. Sanchez: Indeed there is. go that Cory. Cory Edge: There there's definitely movement not when we go over the report We'll kind of get into it because I tried to break the numbers apart best I can because you're seeing movement in two different markets You know one market is is pulling the other one up and I I had some interesting discussions with multiple people on Monday all different segments of the market and so I'll share it with you later, but kind of where they're getting their money, what they're doing. I talked to a big local builder for quite a while, he's a really good friend of mine, so listening to what he had to say about their traffic and margins and stuff was kind of eye-opening. ⁓ So yeah, there's activity, it's it's strange activity. Jon G. Sanchez: Hmm. Mm-hmm. Mm-hmm. Interesting. interesting. ⁓ a nice tease. You got me on that one, Corey. All right. Well, would definitely like you said, you're to get back to that here momentarily. In meantime, let's get down to this story again that came out yesterday. Warren Buffett's Warren Buffett's, Berkshire Hathaway. They to acquire Morrison homes for a price tag of about $6.8 billion. Again, this reflects their conviction going into the housing market. It's an all cash agreement. ⁓ That's the other part, know. Cory Edge: Yeah. Jon G. Sanchez: They don't like debt. yeah, all cash. company is now, Dwight, I couldn't believe this when I saw this. They are now poised to become a top five US home builder. That is amazing. about that. A non-home builder's in the top five now. Just their acquisitions. Dwight Millard: John. Yeah. Yeah. Well, you know, through, their, you know, ⁓ business model with Clayton homes, which we've talked about before on queue has some exposure throughout the country with ⁓ Clayton folks. I mean, there's been directive to go buy land. mean, just, you know, they want to be John, there's no question. They want to be the number one home builder. I don't know. And maybe this is another, effort to try to accomplish that to your point, if they're in top five and they really don't, you know, I Jon G. Sanchez: here. Dwight Millard: You know, not out there, you know, don't see lots subdivisions like that. So, I mean, it's interesting. Jon G. Sanchez: Well, you know, they ended up paying a 24 % premium, which me when I saw the numbers, right? That's not Warren Buffett style, but maybe Greg Able, the new CEO, maybe that's his style. 24 % premium under Friday's closing number. ⁓ some analysts, one Tony Avila, chief executive of the Builders' Advisor Group, he advises on home builder mergers and acquisitions. He said, this is an incredible bargain. Simply because the acquisition, again, is focused on the future, right? They're looking at, all of the different, and I'm gonna read this list here in a second, all the different homes that Berkshire has, home building products, I should say, and manufacturers, in the home sector, and it's absolutely amazing. mean, brokerage home services of America, I mean, the list just goes on. Remember, they did at one point have a stake in D.R. Horton and in Lennar, but ⁓ real quick, guys, we go to break, let's kind of share with the audience a little bit. ⁓ Excuse me of the construction slash home building exposure that Berkshire Hathaway has. So these are the following companies that Berkshire currently owns. Clayton Homes, as Dwight just said, of course, modular manufactured homes, Shaw Industries, which is carpet and flooring, Johns Manville building installation, MyTech, which is connectors, hardware for roof and floor trusses. Who would thought of that? Home Services of America, again, residential real estate brokerage. Nebraska furniture Mart, which is a massive massive company obviously furniture court co RT business services, which is furniture rentals RC Willie, of course furniture Benjamin Moore paints paints and coatings Acme brick bricks and concrete blocks Jordans furniture furniture and star furniture obviously furniture I mean what quarries what's the last thing to do go out and buy a few hundred or a few million acres of timberland and you know mill the lumber itself. I they've got pretty much everything else in there. It seems like amazing. Cory Edge: Well, and just think they come into the market, they've got more cash, I guarantee, as Berkshire as a company than any builder, or you can put them all together and that. And so they can start pushing, pushing things around, get their costs down. share with you after the break. When I was talking to one of the builders on Monday, the price increases are getting the, the, the stretch that they're getting on their margins, just all the stuff. Whereas Berkshire, as you mentioned, they look long term. They can come in and say, well, maybe it's a, maybe it's a Jon G. Sanchez: Yes. Yes. Yes. Cory Edge: an increase to the current stock price but what we're going to bring to the game it's a deal because we're going to get everything down and we're going to run lean and mean so you know good for them. Jon G. Sanchez: Yes. Yes. Yeah. Dwight Millard: John, believe they believe they're the answer to affordable housing with the modular, the manufactured space. believe they ⁓ the solution or that's their long-term play. Not that they're gonna get completely out of stick built and do those types of things, but I they have a that's going to be very competitive. Jon G. Sanchez: What's the niche real quickly? What's the niche of Taylor Morrison? Who's the demographic they go after? Dwight Millard: I think, I don't know if they're entry level, but they were real big. think they're still real big. I'll do some research on the West coast. So I think that, like you said, I think they got them for a bargain and maybe this is something they can start testing. Jon G. Sanchez: Okay. Yeah, well, the reason I'm asking, mean, so are you saying they're, you know, they're looking to capture the stick, stick built market, and then Clayton Homes, the modular market. Dwight Millard: ⁓ they'll get the modular and they're working manufacturing and the modular at the same time. So yeah, it is fascinating. So it's almost like they got the whole buffet, right? You want this, this, this, or this? We'll give it to you. Yeah. ⁓ Jon G. Sanchez: Okay, okay, fascinating. Yeah, yeah, absolutely. I said, they just got to go buy some land and the bunch pine trees on there and start milling their own lumber and they got it that and put some some Cory right pretty much got it got it down pat for that point. ⁓ All when we come back, we're gonna get into our topic, the Reno real estate and market we're approaching new highs on the median price which you hear what these numbers are with Cory and Dwight sort of Jack Saban. He's got news traffic and weather Hello, Jack. Cory Edge: Yep. Yep. Jon G. Sanchez: All right, no disasters that segment. Dwight Millard: Did good. How's Brett doing? Jon G. Sanchez: Good good he's in week four of his recovery. So yeah, ⁓ yeah. ⁓ yeah, shit. He was locked walking the day of the surgery and they get you get you out of bed or Yeah, but you know, of course there's other pains, know due to the surgery but yeah overall it was it appears to be a major success. So yeah, yeah, he had back surgery third one and she's with the last two years had it. It'll be well yeah matter of fact four weeks today. ⁓ Dwight Millard: Did you walk in? Okay. ⁓ okay. So you feel the relief already? Cory Edge: back surgery. Jon G. Sanchez: And, yeah, they had to shave four discs that were herniated and then Roto-Root or his spine because all the, ⁓ not but the nerves like ⁓ literally almost an ingrown toenail. The nerves were like almost ingrowing back into the spinal column and just a disaster. I felt so for him. Yeah, it is. Yeah, it is. Cory Edge: Yeah, that's nasty stuff. It's a I haven't talked to you guys and I didn't want to tell you on Tuesday because we were on the phone. But if we got a minute, I'll tell you this story. And John, I was thinking about your clients. So I have a gal that I sold the house to about. Shit, 17 years ago, 16 years ago, her and her husband, elderly at the time, she called me about a month ago and said, hey, I want to move back to Sparks. So the house is unfurling the current one. Her husband, Jim, had passed away, which I knew that. I go out there, I meet with her. She's a sweetheart of a lady. She's 84 years old. We're going through all the stuff and she starts to get a little kind of teary-eyed. I'm like, what's the matter? We're talking financial stuff. She goes, I got scammed out of some money. I go, what? Because I know her pretty well. I go, what? She goes, I haven't told anybody. I haven't told my kids. I haven't told anybody. I go, what happened? So listen to how crazy this is. She goes, I'm on my computer one day and I get a bunch of crap at the bottom of the screen. She goes, so I shut it immediately. Jon G. Sanchez: Hola. order. Cory Edge: And I call Microsoft. And she said it was the real Microsoft, and it was. they said, no, it's not us. Nothing's infected, but you should call your bank just to make sure. So she calls Wells Fargo with the number on the back of her card, which she's called before. And the guy goes, yeah, it looks like somebody's messing with your accounts. We should get your money from your savings into your checking. So she moves it from her savings to her checking. 84 years old. Guy calls back a couple of days later. Jon G. Sanchez: Thank Cory Edge: Somebody's still in here. There's some weird stuff going on. We need you to get the money out of the account and go buy gold so that they don't have any way to get to your funds. So she takes the money out. The guy told her kind of where to go and what to do. She goes, drives into Reno, 84 years old, to the gold store, buys $400,000 in gold. And the guy gives it to her, which I'm still curious about. Jon G. Sanchez: Holy shit! Yeah, boy, I was thinking the same thing. Cory Edge: She goes, go home, everything's good. I get a call two days later from the US Treasury Department. Says the gold isn't safe. We need to hold it for you to make sure nobody breaks into your house. She goes, a fucking guy shows up to her house, knocks on her door. She hands him the gold, gone. Jon G. Sanchez: my God! Cory Edge: I go, are you kidding? I go, what did the guy look like? She's like, it was a little Chinese guy in a white car. go, ⁓ my God. So I go, did you call Wells Fargo? She goes, I called them back and they verified that the number I called was their fraud department, that somebody had gotten in between it. And I'm like, man. So we have to sell the house because it's free and clear because now she doesn't have any money. Jon G. Sanchez: Holy crap. Dwight Millard: Yeah. Jon G. Sanchez: ⁓ my god, my god, that is unreal. What a heartbreak of a story. ⁓ she report it to the cops? Cory Edge: unbelievable yeah and she's scared to tell her kids She was scared to report it, but I called the cops. This happened last May. I just found out about it. But the cop said you can't do anything unless she files a report. And I told her like, you don't have a lot of income, but I think that carries over as a loss. I don't know if it's long-term or short-term, but you get to count it as a loss against any tax issues. But she's too embarrassed. Yeah. Yeah, crazy. Jon G. Sanchez: ⁓ jeez. You did. Yeah. Okay. Yeah. Yeah. Yeah. But she's gonna have to prove it. Yeah. god. ⁓ that's heartbreaking. Absolutely heartbreaking. Dwight Millard: You guys hear that noise? We've got a thunder. We got we got a huge thunderstorm passing by. It rains like it's crazy the way it rains here. Yeah, it's like a bucket. Jon G. Sanchez: No, other than you chomping. Cory Edge: Yeah, just the chips. Jon G. Sanchez: Do you really? Geez, that we had last week, that was nice. Dwight Millard: Did you have snow? Jon G. Sanchez: Yeah, higher elevations did. Yeah. That's hotter than shit. I go back to my boat core. can't handle this heat. Jesus. Cory Edge: Yeah, this is, and this is the beginning. Dwight Millard: Are you going back or what did you decide? Jon G. Sanchez: At some point. Yeah, but not leaving till Brett's operational. probably. Dwight Millard: Yeah, yeah. Is your boat ready though? Done? Good. Jon G. Sanchez: ⁓ fuck yeah, Trudy. Yeah, it's like best condition that's ever been in its life. This captain's just done amazing with it. Yeah, looks looks brand for canoe. Cory Edge: you Dwight Millard: Really? You're probably excited that you haven't seen it in a while, have you? Jon G. Sanchez: No, we left December 24th. Yeah, ⁓ months. Dwight Millard: Yeah. Yeah. You guys can't hear that. Jon G. Sanchez: got KLH my ears on about Corey. ⁓ there it is. There it is. There it is. I heard that. That's cool. Cory Edge: No, I can't hear anything. Dwight Millard: Can you hear it? Can't the lightning? And it's cool, it rains like, it's like tropical. It's like Florida, it just dumps. Jon G. Sanchez: range for an hour or 10 minutes and then gone. Dwight Millard: Yeah, and then it's gone and floods. get a little flood and then it goes away. It's crazy. Jon G. Sanchez: Okay, I'm to come back and talk about my webinar just real quick and then we'll get to the report. Cory Edge: you Jon G. Sanchez: or Corey, do you want to share that story? Cory Edge: Which one? Jon G. Sanchez: About the developers, you said, the meeting you had Monday? ⁓ okay. Cory Edge: We can do it during the report. I'll just mix it into the report. Dwight Millard: The worst part about it is this turns to hail sometimes. had one up, the guy bought a brand new house, already has to have roof replaced. The hail was that big. He froze it in his freezer and ⁓ looks almost like, you know, it's got points. It's awful. It'd kill you. Jon G. Sanchez: like a softball. Yeah. I'd so worried about my cars. Holy shit. Dwight Millard: It's nuts. I throw the cargo blankets over my truck when I know it's coming. Jon G. Sanchez: Okay, there we go. Welcome back to the john Sanchez show on news talk 780 k which with Corey edge of edge really day and a white mullard of on cue home loans. All right, we're gonna get to our local real estate report for the month of May. And again, you'll be very, thrilled with some of the data you're about to hear. But in the meantime, I want to give you a quick reminder, join me the tomorrow evening 6pm. For the new business that I started step the specialized trust and estate planning, we're going to be getting into our first webinar of the year, what happens to my family if something happens to me? What happens to my family if something happens to me? I'm gonna be covering what happens when someone dies without an estate, how probate can impact a surviving spouse and family, common beneficiary and asset titling mistakes. ⁓ do I see that one a lot? What happens when estate planning documents become outdated, et cetera, et cetera. It's gonna be a great, great hour that we're gonna spend together. No charge, no obligation, of course, not my style. me an email right now. I'm gonna personally answer it. John, J-O-N at specializedtrust.com. That's J-O-N at specializedtrust.com. ⁓ and sign up for the event. You'll get a reservation coming your way. almost booked up. So got probably tonight and that's going to close her down ⁓ It'll be tomorrow evening, 6 p.m. And we can last about an hour title. Once again, what happens to my family if something happens to me? So John Specialized Trust dot com and get your invite to you right after the show. All right, Mr. let's get down to the details of May's local real estate All right. You want to start with a good number? medium price, the six number. Cory Edge: It's good for 50 % of the people and bad for the other 50%, unfortunately. Yeah, you want me to let the cat out of the bag? You're going to do it. OK. We don't want to break tradition. Jon G. Sanchez: Okay, okay. All right. I'll let me do it. You know our routine. get no, we don't know. It's bad luck. We don't want to do that. So our medium price and Reno, I'm sorry, Washoe County, Reno Sparks, course, medium price for the month of May $629,250 the medium price that is an increase of 2.3%. So think about that. Yeah. 2 % is roughly what 12,000. So what are you talking 13 14,000 increase in one month year over year up 5.7 % so now you're talking north of $30,000 increase. All right, there you go, Corey. Tell us what the heck happened. How is this occurring in a rising mortgage market that says bizarre? Cory Edge: less unit sales and some on the higher end. So I talked about it a little bit last Thursday. We hit 615, the high before this was 615. We hit that in June of 2022. Then we went down, tried to get back up there again. The last couple of years never got there. But in April, so last month, we hit it again, 615 right on the nose. And then May blasted right through it to 629. What I was trying Jon G. Sanchez: Yeah. And this is an all time high. Cory Edge: is an all-time high for, so this is Washoe County, Reno, Sparks, stick-built homes, not counting condominiums. So if you use all the same data through all the reports, this is an all-time high for, and that's what we've, over the years, that's the same data we've always talked about. So all-time high. So this morning, I broke down the numbers to try to figure out, where's the sweet spot, if you will, or who's lagging, who's this or that? I couldn't get... I couldn't get a ton of detail, but the interesting part I thought was the lowest price. So the meetings at $629,250. The lowest house sale was The ⁓ house sale was $5 million. There were 60, I wrote it down, 69 over a million bucks last year. So in 2019, Jon G. Sanchez: Mm. Ooh. Cory Edge: for May, there were 12 deals over a million bucks. So to me, looking at this, it's the top end of the market pulling the rest of the market up. You see it at Lake Tahoe. I don't know if you caught the Wall Street Journal article a week or so ago. Yeah. And you're seeing it here with some very healthy high prices that are pulling this meeting up. Jon G. Sanchez: Right, right. Yes, incredible. Multiple articles. Cory Edge: not uncommon to see price per square foot in the thousand to twelve hundred range multiple times because i'm out every day i was out today looking at houses and looking at the regular houses in the four or five six hundred thousand range i saw two foreclosures i talked to an agent on a short sale today like it's just a it's a it's a strange market because it's completely bifurcated it's Jon G. Sanchez: So the high end is driving prices higher, increasing the medium price, the kind of quote average house average person, there's a few of them starting to struggle now the foreclosures starting to arise. Cory Edge: Yep. Yep. starting to struggle a little bit. The prices are there, the market's still good, but you have to be priced right. And I bet I pulled numbers for, let's pick a number, 600,000 below over last eight years, I bet it hasn't done much. It's probably stayed right there. So interesting. And I had a discussion with a couple... I don't want to give out too much information because they might listen. But a couple of different parties on Monday that was eye opening to me. One of them was, and this goes back to your market, John, like both of these people I talked to, I believe do it on their own, heavily invested, talking about stock market, this, that and the other. One of them is buying a house for just under two million dollars cash that has no reason to have two million bucks. The other one is a young couple that is moving international because they're doing so well in the market that they're going to go vacation, to me seems like people think what's happening now is a job. Like it's always going to happen this way, which as you know, the market will turn around and punish you twice as hard as it twice hard as you think. I just I'm seeing all different kinds. And when I talked to that builder friend of mine on Monday, big builder, local guy, he said they are getting price increases. ⁓ Jon G. Sanchez: Right. Right. Yes, it will. Cory Edge: to the tune of about five a week from roofers, insulation companies, concrete guys, labor, all this stuff. And he goes, I'm trying to beat them down and hold them back because we don't have the margin. We don't have it. He told me, and I don't think I'm getting too much up, he talked to their roofing manufacturer, which is a huge, huge, huge international company. And the gentleman, they wanted to raise it, think, 12 % or 15%. And he said, we can't afford it. We don't have it in the house. And he goes, well, our plant is huge. We have lots of employees, but we're not making it either. So if we don't raise our price, we can't make it. And my friend's response was, well, if we raise our price, we won't sell the house, or you're going to get zero. So one he talked to was Whirlpool. You know how big they are. They wanted to raise prices. But he said they have all told him, we're going to leave it alone. But six months from now, they're going up whether you like it or not. It's interesting. Jon G. Sanchez: You You like it or not? know, ⁓ ties in. I made this comment on the show a couple of days ago when I was by myself. I think it was maybe Friday. It's mind boggling, guys, ⁓ look at the corporate profits that are being made by corporate America right now, right? Obviously, I don't care if it's tech. I don't care if it's caterpillar. I don't care what industry it is. These corporations, Corey and Dwight, are making a ton of money, right? I mean, that's why the stock market is setting these records day after day. These numbers are just mind boggling. blowing. you know, are there some out there like the example you just gave where they're not making it? Yeah, maybe who knows until you really look at the financials. But ultimately, you know, it all trickles down. They're making money because they are able to jack up their prices. Victor, you know, Victoria's Secret of all companies today, blowout earnings numbers. Let's see the stocks shot up 47.44 % today. Victoria's Secret $25.76 gained 80.06. Why? Because they're not paying tariffs. Cory Edge: Victoria's Secret. Jon G. Sanchez: They had a huge boom to their bottom line for the quarter because they're not paying tariffs. So, you you look at different situations like that corporate America is making a ton of money. And I think just going to see it just trickle down ⁓ to the line to, ⁓ you know, trying to justify having to lend hundred thousand more because to your point, Corey, the cost of materials are that much higher on a project. It's crazy. It really is. All right, we'll come back and we'll talk real quickly about the number of sales, the days to contract, and our inventory. Those are the key numbers, of course. Let's wrap it up with Kristin Snow, Radnout Traffic Center. Kristin. That's amazing. So the middle man's not making money. It's just the, you know. Cory Edge: NUTS It's yeah, it's well and you know, it's I'm sure Pete listeners going through the same thing like their margins are nothing and my buddy Mike, he owns Silverado or they run Silverado. He goes, we have to give out. He goes, we don't even wait for them to ask us. We offer them upfront. Twenty five thousand dollar rate by down. Because we got to do it just to keep them in the sales office. And he goes, and we can't build specs anymore. Jon G. Sanchez: Wow. Dwight Millard: Yeah. That's what they're all at. They're all offering that. You can just see it, John. It's everywhere. Your way, 25 year away, 20 year, whatever it, you can't hold it back. got to play five aces right now. You're not even going to keep them in the office. It's amazing. And you know what you take what Corey's saying, and you get the bar in there that wants this, this, this, this, this, and this. Then you start to decide, do we want to keep this on our books for another 30 or 60 days? Jon G. Sanchez: kidding right right yep Dwight Millard: especially an inventory home, or do we go ahead and take it, our punch right now and try to move on to another day? It's These builders are just getting slaughtered, just slaughtered. That's why the Taylor Morrison thing worked. You know, they saw probably. Jon G. Sanchez: is like that we're doing. Cory Edge: ⁓ because with Berkshire's and scale, they can keep all those forces at bay while everybody else dies on the vine. And Taylor Morrison probably, I didn't look at the stuff, but I'm sure they have a lot of land holdings. So that might have been also a purchase to get at some land. ⁓ Jon G. Sanchez: Right. ⁓ Dwight Millard: Yeah, well there you go, yeah. Jon G. Sanchez: Absolutely amazing. Cory Edge: Yeah, I went to a client's house on Monday. These people have rented this house from them for 13 years, maybe longer, probably in their mid 50s. And they're like, oh, we're going to move. bought a house. I mean, super nice couple, retired teachers, I think. go, well, where'd you guys end up buying? Oh, Collin Ranch. I'm like, what street? Oh, Better Root. like, oh, I know that street real well. Pull it up when I get back to the office. 1.7 cash. Jon G. Sanchez: Cheers. god. Teachers. Cory Edge: You guys are teachers? The people that are selling it is two young realtors that have a six month old that the gal was, they alluded to the husband day trades. She sells houses. They've made so much money. They're going to Bali for three years. But because the mentality is, ⁓ well, this is like a job. I go keep getting this paycheck. Jon G. Sanchez: Yes. Cory Edge: guy that that five million dollar house is down the street from me It's four houses down the guy that bought it as a fucking accountant from Gardnerville who paid five million cash like the last time I saw that That guy is now in jail because he was from Carson City because he was stealing all the money Mike does an accountant from Gardner go get five million bucks in cash? ⁓ didn't know the name until I pulled them up Williams something Williams Jon G. Sanchez: Is it really? What? You're right. Who was they, who was it? Okay. Cory Edge: I'll pull it back up. Dwight Millard: So when I bring up Taylor Morrison, they got 28 communities just in the DFW Metroplex. I can't seem to find the national. Jon G. Sanchez: Amazing. Dwight Millard: the communities. Jon G. Sanchez: All right, here we go. Welcome back to the john Sanchez show on news talk 780 k which once again a reminder my webinar tomorrow evening. happens to my family if something happens to me? moch charge? No nothing just a bunch of knowledge you're gonna gain from at 6pm tomorrow night to send me an email at john joan at specialized trust.com. All Mr. Edge, can we get your phone number sir? Cory Edge: 673-6700. Jon G. Sanchez: Thank you, Mr. Mallard. Dwight Millard: Yes, sir. 240-2022. Jon G. Sanchez: Beautiful, thank you boys. All right, so once again, here we go. Median home price, 629,250, all time record. Number of closed sales, only 434, and again, this is May's data, only 434, down 9 tenths of a percent month over month, up 2.4 % year over year. Corey, I'm gonna skip the median days to contract, 13 days, yeah, 18.2%. List price received, 99.3. Now you were saying some homes, know, $1,000 plus per square foot, median price, what, 343? Cory Edge: 343 and that's normal right so the high-end stuff though it's not unusual to see the thousand or twelve hundred bucks a foot it's kind of nutty Jon G. Sanchez: right, right. Which is dirt cheap for those coming out of California and some areas. All right. How many new listens did we have? Cory Edge: I guess probably. Absolutely. Yeah. 588 new listings, so up 1 % from last month, down 5.3 % from last year. Kind of holding steady, nothing crazy. again, that's what leads to these prices. There's not an... I can attune to it that I was out today looking at houses there's not a whole lot to look at and so it's going to keep these prices high which again sounds weird because I also told you I looked at two foreclosures in a short sale so everything's kind of mixed there more from the leverage side too much leverage on the front end causes the the back end to not work ⁓ but that's about right Jon G. Sanchez: Yeah. Right. Okay. All right. Let's wrap it up with our months of inventory supply. Cory Edge: Month supply, 1.8 months of inventory. So up 9 % from last month, down 27 % from last year. So if you remember this time last year, we were talking about, the inventory is starting to rise. Oh, maybe this thing's going to spread out. Maybe prices are going to come down. That all happened for a little while. And then it shrunk right back up. And here we go again. So when the inventory shrinks, the price goes up. Jon G. Sanchez: Yes. Dwight, what is this gonna mean for you? Again, we've got a new Fed Chairman, Kevin Warsh. No one's anticipating a Fed interest rate cut. We're expecting, of course, the first move to be an interest rate increase, but we'll see. But what's it gonna mean when these rates finally, steadily begin to decline? I mean, you look at this data, you look at the demand that is out there. Imagine if we get sub six again on a 30 year. Dwight Millard: and Yeah, well, I think you're still going to see the challenges, John. You see the income qualifying challenges. to our previous show we did about bringing on co-borrowers, I think this is going to still be a struggle because these home prices, to Corey's point, just came down briefly and they're back up. I think it's going to be, and I think you're going to get back into that. You're not going to have much time to think about it. Right, Corey? mean, if you start to see this, you're not going to be able to go home and talk about it. Jon G. Sanchez: Mm-hmm. Right. Dwight Millard: gonna have to just make a decision. Jon G. Sanchez: So wouldn't you guys agree the reality is we're probably gonna stay where we are for 2026 as far as rates are concerned? Cory Edge: Yeah, I mean, unless, unless Kevin Horst does something crazy, but yeah, we'll probably stick right around here. Dwight Millard: Rates, yes. Jon G. Sanchez: Okay, so with that said, Cory, and now that we're at an all time high in the median price, what's your prediction say for rest of the summer season and heading into fall? Cory Edge: So usually if the patterns hold, the 4th of July is the top of the market and then it starts trending down. So I wouldn't be surprised if we get this number close to it, maybe in June, July you usually see a little bit less and then so on all the way down into the holidays. But it's still healthy. That's just the normal market. Doesn't mean it's a crash. It's just that's the way it kind of moves. yeah, unless you see a flood of inventory, which I don't think that'll happen. There's no more for it to come from. The prices are going to hold steady. Jon G. Sanchez: Yeah. Okay. Do I get your advice right now? Dwight Millard: Well, I mean, it's not going to get any better to Corey's point. I mean, if you can qualify and you've got the means to do it, I'd be active. I'd be more active than I've been in the past because to our point, don't think rates are coming down and I don't know if this is going to help pretty stay higher for longer. Right, John? Yeah. Yeah. Jon G. Sanchez: Yeah, yeah, yeah, exactly higher for longer. ⁓ But don't you agree, Corey, with 30 seconds left, that we are seeing this trend of go in the opposite direction on a national basis where we're not seeing the prices rise like we are here locally? Cory Edge: It's been sporadic market to market. And it may be inventory. Some places have more to build. I mean, we're all working off the same rates. So it has been very sporadic. And you got to remember, RenoSparks is a very small data set. So a lot of times you can't really say, well, that's what's happening here or there. But John, it's your market. It's your world that is doing all of it. And I was going to blame there. But you know what I mean? Like everybody feels good. I'll spend more. I don't care. Jon G. Sanchez: Yes. I'll accept that twenty dollar bill in the mail to say thank you. I will accept that from you, Corey. There you go. There you go. All Great job, fellas. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great afternoon. Cory Edge: Yeah, if you keep your market up, the house prices will stay up. Dwight Millard: Yeah. Yes. Jon G. Sanchez: very good. Dwight Millard: haven't stopped us yet, John.