You’re probably thinking “ok, great year for real estate; but what’s next?”. It’s true. 2016 brought some stability to the Northern Nevada market, and it seems we can expect those trends to continue modestly into 2017, and really, until new homes are built.
To get an idea of the complete picture, we’ve got to examine a few key facts. Of all homes sales in 2016, 55.3% were attributed to homes under $300,000 and 39% of homes that sold were priced from $300,000 to $600,000 for a grand total of 94.3%. That’s right…94.3% of homes sold in 2016 were priced under $600,000. This shows demand for homes priced under $600,000 is very high, while supply remains largely static, pushing prices up for homes in that range. We don’t expect a huge jump in prices, but we believe the steady increased experienced in 2016 will continue through 2017.
94.3% of homes sold in 2016 were priced under $600,000
In addition, because of the fantastic job EDawn has been doing to attract new companies, we will continue to see an influx of individuals relocating to the area, continuing the squeeze on supply. At the moment we are seeing a 2 percent vacancy factor in apartment rentals which is very low. This supply squeeze will continue to push up rental rates until the 7,500 new homes commissioned, are completed.
Mortgage rates saw a marginal increase, to answer the rising employment and wage numbers. The federal reserve board predicts additional increases in 2017 but doesn’t think these increases will surpass 5%. This increased rates will have an impact on the down payment and credit score requirements to purchase new against cash buyers only exacerbates the problem.
New presidential administrations often have an impact on national housing markets. With this particular administration, we expect to see a short term bump in luxury homes because it inspires confidence in the luxury home buyer.
Overall, 2017 looks to be an exciting year in real Estate and a great year to watch Reno’s healthy growth. This decade will change the face of Reno/Sparks, and it’s housing market. We are predicting a shortage in homes under $350,000 in the coming years due to the demand in that price range. A lot of the companies coming here have a lot of employees making less than $20.00 per hour.
If you are a seller and want to sell your home click here, we have been doing this for over 30 years in the Reno Sparks area.