For the month of January the fed has dropped the rate by a total 1.25 basis points. There are a lot of buyers out there right now, as soon as we get a break in the weather we are going to see a surge in home sales. They have had enough of the holidays, the bad weather and especially the bad news from the media. There are some very good deals out there for buyers who want to brave the weather, I was showing homes today in Arrowcreek and some of the homes had three feet of snow on the walkways. Some sectors of the Reno Market are hitting the bottom in the 250,000 range, the Northwest Suburban and Double Diamond are very good examples of that with buyers getting some good values on the same homes that were selling for 350,000 three years ago and will be there again in a few years. These are two areas that make sense for investors looking for a single family rental property. The schools, shopping and proximity to some of our larger employers make these two areas prime spots for tenants. Visit my Reno MLS link and see what Im talking about.
General Market Trend in Washoe County
January 31, 2008 by David Hughes
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As we’ve discussed all along we are in the midst of the financial ‘perfect storm’. Even if we were not, it would still be a correction cycle that has happened since we started tracking RE trends. We will come out of this stronger. People will lose their homes, our respective industries will shed excesses and, as always, the free market economy that we, for the most part, enjoy, will stabilize and grow.
I have to agree with the honorable gentleman before me (Bruce Specter).
A correction cycle was needed as the prices over the last few years were unrealistic and out of wack. If you used a “return on investment” model there was no way you could pay for any of the property purchases and certainly couldn’t justify the return – or should I say “lack thereof”. Even the 1031 monies from California couldn’t realistically justify the prices, they just help fuel them.
This period will definitely separate the realistic buyers and investors from the chancers.
Steve, I couldn’t agree with you more, 3 years ago investors were buying anything they could just to get into the market. Banking on the appreciation a lot of them were upside down on their monthly debt service. Now that the appreciation is gone you have to go back to traditional investment models and we are seeing some stability in the 2 areas that I mentioned and some investors taking advantage of some under valued real estate.