Reno Housing Rebound

From 2002 till 2006 builders went crazy building houses.  Now we have the lowest amount of new starts on new homes in 17 years. Builders were outpacing the buyers and now there is a glut of unsold, vacant new homes on the market.  Even though builders have cut back, so has the number of buyers in the market. For this recovery to begin we have to eliminate the amount of inventory currently being held by the builders in the Reno Sparks area.

 

 

As renters start to realize the amount of rent they are shelling out they can make a monthly mortgage payment, they will now become first time home buyers.

 

The crazy thing is the new homes are selling for less than existing homes on the market, and this cannot last. Sellers of existing homes will have to price their homes to be competitive. The first time buyers will start to take the existing homes off the market and allow the sellers of these homes to buy bigger homes thus allowing the recovery to begin. When you do not have the first time home buyers in the market this entire recovery will not take place. Housing starts should start to increase slowly over the next year or so, but the oversupply of new homes was so huge during the bubble that the process of absorbing these homes into the market could take a couple years and at that point prices will start to rise again.

 

Sellers of existing homes in this market have a double whammy; they are not only competing with new home builders but are competing with foreclosures that surely will be showing up in their area. If you do not have to sell your home, don’t, rent it or just stay put. If you do have to sell because of a job transfer etc., listen to your Realtor. It is all about price. You must be aggressive if you want buyers to look at your home. Another option you should look at is trading your home for a home currently on the market that they cannot sell. This is a great option, especially if you are looking to buy a bigger home. It is pretty easy in this market to get a seller to take your smaller home in trade for his bigger home. This is not as complicated as it may seem.

 

Did you know you can buy a home using the money in your retirement plan?  Stay tuned for my next blog…….