Housing affordability is on everyone’s mind as Reno/Sparks continues to grow and attract newcomers to the area. The chart above summarizes the third quarter of 2019 and combines median housing prices, mortgage rates, and median family incomes to track progress. But what does it all mean?
This chart shows a drop in the median home sale price the last two quarters of 2018 and the first quarter of 2019, which stirred up doom and gloom. The second and third quarter of 2019 had a strong bounce back and gain.
I am constantly being asked: When will the Reno/Sparks housing market implode?
My response has been the same for many years: Our economy is strong. The new industry coming to town and the many employees being hired is impressive. Our area currently has 2.2% unemployment, which is incredibly low and a huge turnaround after the recession ten years ago. Barring a global meltdown like we experienced in 2008 (many believe brought about by lax and irresponsible lending practices), the Reno economy is strong and will continue an upward trend.
It seems like the housing market is cooling down, but this is a positive thing. We need to get back to a trend in housing of annual increases in equity of 1-3% not 10-15%. I always look forward to EDAWN’s (Economic Development Authority of Western Nevada) New Year’s conference with reports of the past years success and the coming years forecast.
The only negative I have heard over the past few years, from EDAWN, is the lack of affordable housing. It will be interesting to see if all the apartments being built have eased some of that pressure. There will be peaks and valleys in the real estate market, but that is a given and the market does not have to melt down for this to happen.
Enjoy the ride. This economic boon helps everybody! Feel free to reach out to me with any questions about our area, or to help you find a home.
Realtor® Sierra Nevada Properties