Reno & Sparks Real Estate Market Report: August 2019

Reno & Sparks Real Estate Market Report: August 2019


Hello everyone is Garrett Stewart here again
with Keller Williams group one in Reno, Nevada. It’s August, it’s time to look at the market
and see what happened in July in the Reno Sparks and Northern Nevada real estate market
for the month of July. So let’s dive in and take a look. As always, we’re going to dive right into
property prices and would you look at that? Another new record? I feel like I’m on repeat every month now. And so again, we hit another record. We’re at 40 5,000 median home price now. This is Reno and sparks single family homes. And that’s what the median price is right
now. So it did slow down a little bit. If you look at the history of the last year
or the last year, we hit our peak in July in 2018 as well. We anticipate this to be the peak for the
year as well. We traditionally in the winter, fall time,
slow down. And so we, anticipate that again this year. So hopefully we’ve hit the peak for the year,
but we’ll keep watching to see if that actually happens. Days to contract didn’t really change much
this month. It went from 44 days to 45 days. So just taking about that long to put your
home on the market to get an offer on it. Taking a look at inventory along with the
sales that we had. You can see that inventory did go up just
slightly as well as sales. So we went from 555 sales in June and we went
to 590 sales in July. Inventory went up just slightly as well. How that affected our month’s supply of inventory. We did go down slightly from 2.4 months to
2.3 months. That’s still a sellers market. So we are again shooting for that six month
Mark. Which is a neutral, a balanced market. Anything below is a sellers market. So we are still in a sellers market. Taking a look at the sparks real estate market
median home price did go up slightly to $380,000. And you can see that new listings did drop
over 8%. The average days to contract drops slightly
as well, 33 days to contract. So homes are selling a little bit faster in
sparks versus Reno. We’ll see the Reno numbers in just a second. And inventory stayed about the same. Actually. Taking a look at Reno. You can see home prices went up a little bit
there to $420,000 for median home price for Reno. You can see that inventory did drop there
a days to contract went up. So again it’s 49 days from, the day you put
your home on the market to get an offer on it. That’s how long on average it’s taking a here
in Reno. Ooh, the big R word recession. You know, you hear that word and a lot of
people start freaking out and get, a lot of people that ask me, when’s a recession gonna
happen? You hear the word bubble, you hear the word
crash. All these, you know, scary words basically
for a lot of people, we all have those memories from 2008 and through that recession. So let’s take a look and see when, when the
next recession is going to happen and what that really means for us. So you can see four big players did a survey
of when win with their experts when the recession is going to happen. When they predict it’s going to happen, I
should say. And you can see this as all the numbers split
up. If we average them out, you can see that by
the end of 2022 2/3 of the experts predict by then we’re going to have a recession. So again, it’s not a scary word recession
does not mean a housing crisis. It means it’s a slow down. So taking a look at the definition for Merriam
Webster’s dictionary, it’s a period of temporary economic decline during which trade and industrial
activity are reduced, generally identified by a fall in GDP in two successive quarters. So again, it’s more measured by the GDP, not
the housing. So just because we are in a recession doesn’t
mean any things going on with the housing market. They don’t they’re not completely correlated. And so don’t freak out. If you hear right, we’d go into recession
and even if we do, it could literally last two quarters and be over with as you know
it. So don’t let that freak you out. But we are on the biggest economic turnaround
from the recession in history. So our industry and market are doing really
strong right now. So, you know, it’s, it’s only a matter of
time before we see a slow down. Now looking, we’ve, seen these numbers, I
showed these statistics before, but I did want to show you again, yes, 2008 that recession
was a bad time. We saw the home prices drops on average and
that almost 20%, but look back at the previous four recessions and three of the four homes
appreciated. You know, two of them are over 6%. That’s incredible. And only the 1991 recession only went down
1.9% less than 2% of depreciation. So that’s incredible. So don’t let the word recession scare you
because predictors aren’t predicting or these experts aren’t predicting depreciation anytime
soon. And again, we talked about when they’re predicting
it’s gonna happen. Well, why is it going to happen? That’s the big question actually. And the top three from pulseconomics survey
were trade policy, stock market correction and geopolitical crisis. As you know, we said two thirds are predicting
by the end of 2020. Well, what happens in 2020, the presidential
election, which looks to be one of the most contested presidential elections in our history. So it’s very you know, people are unsure what’s
going to happen with that. And so we’re going to see what happens in
our economy and that’s what puts that up into the top three. But if you go down the list way down in number
nine, housing, slow down, that’s it’s way. There’s eight other things that are more likely
to happen before housing slowdown that may cause the recession. So don’t let the thought of a home crash,
a bubble pop recession. Don’t let those things scare you because look
at these numbers. These are appreciation projections for the
next five years. And you can see that every single one of them
is positive and not just a little. I mean, the lowest one is two and a half percent. Can you imagine getting two and a half percent
appreciation for a year? And so that’s awesome. So don’t let the thought of a recession scare
you away from having your dream home and home ownership basically. So taking a look at the mortgage rates every
single month we kind of talk about they keep on dropping lower and lower and shocker, they’ve
dropped even more and all, if you look through the end of the first half of 2019, pretty
much everyone’s predicting we’re going to stay under 4%. So it’s a great time to buy and get a mortgage
for your home because the rates are so good right now. I would just actually had lunch with a lender
friend of mine today and she was saying just in the last few months with all of these rate
drops, a lot of these buyers can qualify for, you know, up to, she’s seen people on average
up to $75,000 more of potential purchase power that they have. Now. How incredible is that? So we know that the you know, the median home
price has gone up month after month, but not $75,000 in the last six months. So think about that. What would an extra $75,000 purchase price
in a home do for you? So just because home prices have gone up doesn’t
mean you can afford less because the mortgage rates are helping you out there. So let’s talk about that. If you have any questions or worry about that. Again, I am Garrett Stewart with Keller Williams
group one here in Reno, Nevada. If you have any questions at all about these
numbers, the real estate market, anything at all, you can reach me at my number right
here below. I’d love to talk to you about it. I appreciate you guys following my channel. And if you want to see more of my videos,
you can click on them right over here and they’ll take you to the next video. Thanks so much and have an amazing August.

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