by Lindsay Clarke and Nicolle Gust
The Greater Reno-Sparks-Lake Tahoe area has become a very appealing place to call home. The economy is in full recovery mode with major companies moving in to take advantage of the tax benefits, tourism is back on the rise and the unemployment rate has considerably decreased. Coupled with the proximity to California, the Sierra Nevada Mountains, entertainment and recreational opportunities, it is no surprise that people are moving here in droves.
When the Great Recession hit Nevada 10 years ago many homeowners had no choice but to either stay put and ride out the hard times, sell their homes for far less than what they were worth or worse, foreclose altogether. With the improved economy, job growth and rising house prices, northern Nevadans are finally starting to see equity back in their homes.
Homeowners now have the opportunity to take advantage of their equity and finally consider purchasing their ‘move-up’ home that can accommodate their wants and needs. Homes priced under $1million dollars are selling at a record rate due to low inventory. According the National Association of Realtors Home Sales Report dated 3/21/18, existing inventory is down 8 percent from last year. This seller’s market gives the seller greater control of the price point and a chance to maximize their gains. Luxury homes, however, are not moving as quickly. According to the Luxury Market Report dated 3/22/2018 by the Institute for Luxury Home Marketing, inventory of homes priced over $1 million are actually up 7 percent from January of last year, which puts that particular price point in a buyer’s market. This gives more control of the price and terms to the buyer.
What does this mean to you? If your current home no longer fits your needs or if you are looking to finally purchase your dream home NOW is the time. The sale of your current starter or ‘trade up’ home can yield high returns in the current market making it possible to put down a larger down payment on your luxury home. Even if you do not have a home to sell but are considering purchasing a luxury home, the inventory of homes exceeds the number of buyers which ultimately means that homes are on the market longer and discounts can be negotiated.
Long and short, the optimum time to sell anything is when supply is low and demand is high. Conversely, the best time to buy is when supply is high, and demand is low. If you’ve been considering purchasing your dream home, now is the time to contact your local real estate professional to discuss your options.
Lindsay Clarke and Nicolle Gust of the Clarke & Gust Group are Residential Real Estate Specialists and Certified Luxury Home Marketing Specialists in Reno-Sparks area with over 15 years of experience. For additional information or a personal market analysis of your home contact them at firstname.lastname@example.org or visit wesellrenotahoe.com.