The real estate industry projections look strong at the beginning of 2020, so sellers are in a really strong place moving forward. Comprehending what’s going on in the real estate industry with a new year underway will better guide how you approach selling your house. Now is a perfect time to take a peek into what home owners should learn regarding the growing real estate market.
Home Prices Are Slowly Rising
Home prices increased by an average of 5 percent in 2018 and values increased by a total average of 3.3 percent in 2019. While 2019 saw the considerable drop in prices compared to 2018, it was still a year of steady price increases. Home values are still going up overall. The 2010s is largely a decade of strong increases in real estate values, but this begins declining when we reach a new decade. We expect home prices to keep increasing marginally for now, but there are no indicators of fast growth anytime soon.
What does all of this mean? Despite this is probably being the end of the development period, Reno, Nevada area real estate owners should be in a fantastic place to increase future incomes and profits.
Interest Rates Are Low
In 2019, the Federal Reserve cut interest rates on several occasions, partially due to economic uncertainties. For 30-year mortgages, the most prevalent type of conventional mortgages, analysts anticipate the Federal Reserve to hold real estate interest rates around 3.7 per cent. For both homeowners and home buyers, this is ideal. This could lead to lower fees in the long run for buyers. This will also lead to more more buyers looking for homes for sale in Reno, Nevada and in all of Northern Nevada. The current real estate market will continue to growth in the Reno, Nevada area. Giving more promise for home sellers.
Millennials Are The Biggest Buyers
The Millennial generation has grownup and are now looking to buy they’re first home. As a result they are the largest group of home buyers in the current Reno real estate market.
Millennial generation is very tech savvy. So if you want to market you house to them you wil need to go where they are looking. Which is online.
It is important to have an online presence when you are looking to sell your house. This means having professional pictures, floor plans or a 3-D virtual tour. Adding these features will take your listing to the next level and will impress and inform potential buyers. Not to mention, this is become a norm when putting a house on the market.
They are also concerned with the location of the property for transporting kids to school and activities than they are with the size of the property. Make sure to highlight any close proximity to shopping, restaurants, and schools.
Baby Boomers Are the Biggest Home Sellers
Although Millennials is the largest category of home buyers, Baby Boomers is also the largest group of home sellers. This is due to baby boomers wanting to downsize and cashing in their home equity for retire. This has potential to change the dynamics of accessible real real estate in the Reno, Nevada market. Mostly dependent on how many people are buying in relation to selling.
THE CURRENT HOUSING SHORTAGE MAY SPUR NEW CONSTRUCTION
As you may know, Reno Nevada is facing a housing crisis for home buyers. This is good for home sellers. Since it will increase demand therefore increasing prices. This is producing even newer construction as shortages raise. Prices on newer construction has gone up consistanly with home prices. So home sellers do not need to worry to much on new construction homes undercutting them.
However, there is a concern for affordable housing. This is something to pay attention to as Reno is becoming a very expensive city. If home buyers are priced out of the market, there will not be enough buyers in the market to buy. As a result, home values could drop. The Reno, Nevada real estate market in very unique but it still follows the same trends of the national housing market. Luckily, job growth is increasing in the area and will continue for the foreseeable future. Job growth is also contributing to a higher amount of out of state buyers.