March Mortgage Market Forecast from the Experts

Thanks to the experts at Guild Mortgage here in Reno and to help navigate the current demanding housing market in Northern Nevada, below is the March mortgage industry economic forecast created by the Mortgage Bankers Association (MBA).

Every month the forecast is updated and provides insights into expert mortgage economists’ view of the current real estate industry. Some of the notable highlights of the March report are:

  • The total industry volume for 2021 is projected to drop to $3.184 trillion, down from $3.828 trillion in 2020.
  • The purchase loan volume for 2021 is projected to increase to $1.688 trillion, up from the $1.433 trillion in 2020. (Great info to share with our realtor partners!)
  • 30-year fixed rate mortgage rates are projected to go up 0.80% in rate from an average rate of 2.80% in 2020, to an average rate of 3.60% in 2021. They are projected to go up to 4.50% in 2022.

The report also shares a lot of great information on home sales, housing statistics, and home price appreciation trends and forecasts. I encourage you to take a look and leave me a comment below with any questions!

These economic forecasts from MBA are viewed to be highly credible and balanced. High quality information is more valuable than ever as we navigate the lack of supply in a high demand market. Click here to view the 2020 annual report from MBA for even more insight.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Virginia Street Project Reaches Completion

Wider sidewalks. New landscaping and trees. Bike racks and benches. A cleaner and safer look and feel.

Washoe County’s Virginia Street Project broke ground two years ago, in September 2018. The Regional Transportation Commission (RTC) accelerated construction of the $87 million project last March when most Midtown businesses closed due to the coronavirus pandemic. Sierra Nevada Construction helped to expedite efforts and Reno’s main thoroughfare reopened to two-way traffic through Midtown in mid-August.

The opening was three months ahead of schedule and showed off new crosswalks and roundabouts, center medians, and wider sidewalks, along with other upgrades.

Sam Sprague, owner of Micano Home and Garden in the Midtown District, said “It’s like a whole new world — what we had always dreamed of Reno being like.

Having wider sidewalks and a cleaner atmosphere to walk in and feel safe, I’m having a lot more hope than I ever felt when I had three feet (wide) of sidewalk. I’m seeing a lot more smiles out there and a lot more people. Business is up at least 35%, which is pretty big.”

For many businesses, it was a difficult journey while the project was going on. Prior to completion, many retailers in the area were struggling to lure customers to their doors. Kayla Sisson, co-owner of JoStella Coffee Co., opened her store on the corner of South Virginia and St. Lawrence Avenue just one year before SNC construction crews began their work.

“It was really hard because people didn’t want to come here because it was just orange cones and one-way streets and it was really intimidating for customers,” said Sisson. “It was hard to have a new business in the midst of that, and it went on for years.”

With the streets reopened and parking cleared, there’s nothing holding customers back from making it their first stop on a shopping day in Midtown.

“It’s kind of a destination now, where people come to Midtown, they walk around, grab coffee, they go to the shops, so it’s been really great,” said Sisson, noting JoStella Coffee’s sales are up 100% compared to January 2019. “The wide sidewalks really help. And just the fact that it’s an open new road and accessible, that’s all we ask for.”

Many businesses were forced to be creative and adapt to the pandemic, but the ever-present theme amongst Midtown entrepreneurs was hope and optimism. Especially now with two years of construction wrapped up and the pandemic coming to an end, there is a fresh feeling in the air. Some of the sidewalks before construction were 12 to 16 inches wide, and now they’re six feet (if not wider) making the area more walkable and more welcoming.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Reno Now 4th Best Performing Large City in USA

The 2020 Milken Institute Best Performing Cities Report came out and Reno, Nevada once again is #1 in Job Growth and has moved up from #11 Best Performing to now 4th Best Performing Large City behind Austin, Texas and Salt Lake City, Utah.

If you start hearing people talk about Austin, remind them we are not too far behind. Reno is 4th in wage growth and 2nd in high tech Gross Domestic Product (GDP) growth. Metros are ranked on their performance, while indicators help identify the drivers behind their success or failure.

Key Findings

  • San Francisco-Redwood City-South San Francisco, CA, regains the crown as the best-performing large metro after 2014. The skilled workforce, abundant venture capital, and innovation and entrepreneurial culture support regional high value-added industries, including the expanding tech and biotech industries. The metro’s excellent performance in our five-year high-tech GDP growth (ranked first) illustrates this point.
  • Twenty-one top-performing large metros return from our 2018 Best-Performing Cities index. A substantial number of them are metros with dynamic tech sectors, including San Francisco-Redwood City-South San Francisco, CA; Provo-Orem, UT; Austin-Round Rock, TX; and San Jose-Sunnyvale-Santa Clara, CA. Others, like Reno, NV, continue to develop a diverse industrial base while experiencing rapid growth in the advanced manufacturing and technology sectors.
  • California secured four (San Francisco-Redwood City-South San Francisco, CA; San Jose-Sunnyvale-Santa Clara, CA; Oakland-Hayward-Berkeley, CA; and Riverside-San Bernardino-Ontario, CA) of the top 25 spots among large metros. The Bay Area in Northern California consistently shows economic excellence powered by high value-added industries.

Biggest Gains

  • Recent rising demand in energy and natural resources, such as coal and natural gas, uplifts several resource-dependent metros in our index, including Tuscaloosa, AL; Grand Junction, CO; Odessa, TX; and Wheeling, WV-OH.
  • The Wheeling, WV-OH, metro is the biggest gainer among all metro areas in our index, jumping 111 spots to 70th place.
  • Other big gainers include California-Lexington Park, MD, and Clarksville, TN-KY, two regional economies anchored by the defense industry.
  • Still, other big gainers, including Sebring, FL; Carson City, NV; and Kingston, NY, have health care, retirement communities, and tourism driving their economic growth.

Thanks to EDAWN (Economic Development Authority of Western Nevada) for sharing this great report!

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

EDAWN’s Plan for Zero Homelessness

Zero homelessness is possible. According to the New York Times, “nine communities in the United States have reached a rigorous standard known as ‘functional zero’ for chronic homelessness – a standard that indicates homelessness is rare.”

In the healthcare sector, a collaborative methodology was first pioneered to keep infectious diseases from spreading. The sole existing program that has proven to reduce or eliminate homelessness over time is a similar methodology. Here in the Reno community, there are more than 1,000 men, women, and children that are homeless. In order to combat this, there needs to be a plan rather than accepting the difficult problem as unsolvable.

In an article from EDAWN, they outline six critical phases to address the problem of homelessness:

Phase One: Prevention, coordination, and planning.

“There are things we are already doing to prevent long-term homelessness. A great example is the relocation and expansion of the Eddy house, with a new focus on training homeless youth to help them acquire the skills they need to get a job to escape a life of chronic homelessness. As for planning, over the past year, our local governments established the Community Homeless Advisory Board (CHAB), which meets regularly to work collaboratively to develop solutions. The CHAB commissioned a study by OrgCode Consulting, implemented some of the report’s recommendations, and recently joined Built for Zero. This national program helps communities achieve the goal of ‘zero functional homeless.'”

Phase Two: Provide facilities that enable the separate of men and women/children.

“The Record Street campus is overcrowded and unsafe. With the state’s help, our local governments acquired the former Northern Nevada Adult Mental Health Services (NNAMHS) campus. The campus was recently renovated and now provides homeless women and children wrap-around services in a safe environment as they engage in programs that move them on a path to self-sufficiency.”

Phase Three: Acquire land near the downtown and relocate the Record Street shelter.

“Setting up a safe and drug-free campus that provides a place for all citizens experiencing homelessness requires a larger area. There are ongoing plans to set up a campus that offers tents, accommodates pets and even campers in a secure environment where shelter, feeding, security, and wrap-around services are readily available.”

Phase Four: Address the funding needed to execute the plan.

“While there is some funding available to address our homelessness needs, the growing number of camps and working homeless, some as a result of pandemic related unemployment, is a clear indication that we must do more. While emergency shelter and food are vital, we need adequately funded wrap-around services and programs to help the homeless address and cope with some of the root causes of chronic homelessness, like drug and alcohol addiction.”

Phase Five: Aggressive enforcement and maintenance of the effort.

“Once the resources are in place, we must redirect our homeless to the resources and facilities to survive first, and eventually thrive. Getting more ambassadors and adding river rangers will help us identify and address new homeless. By avoiding the costs associated with cleaning up homeless encampments, countless emergency room incidents, and the diversion of our policing efforts, we will save resources that can address other community needs.”

Phase Six: Increase affordable housing.

“We continue to fall short of our growing housing needs, causing the cost of housing to go up due to supply and demand. These rising prices make it more difficult, if not impossible, for many people to find a place to live. That is why we must make every effort to encourage and support more housing construction, especially affordable housing.”

What do you think of EDAWN’s Plan? Leave me a comment below!

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Creative Ways to Solve Nevada’s Affordable Housing Shortage

Affordable housing is defined by the Department of Housing and Urban Development as housing the costs no more than 30% of a person or household’s income. For people in the lowest income brackets, that’s next to impossible amid a global pandemic and an unforgiving job market.

Reno’s housing marketing is in a period of historically low inventory. There are only 41 affordable housing units for every 100 renter households earning between 31% – 50% of the median income. There are only 27 affordable units for every 100 renters making 30% or less of the area’s median income (according to an analysis of Comprehensive Housing Affordability Strategy (CHAS) data from 2010 – 2014).

In addition to the housing shortage, there were also more than 7,000 people estimated experiencing homelessness in Nevada as of January 2019, a number that is believed to be undercounted. Affordable housing seems to come with a negative perception, often hindering its creation, in addition to the costs and hurdles that exist for developers. Despite these challenges, housing advocates and nonprofits are working to address this critical need.

Some of the solutions offer a health care facility, others a drive thru tent, and still others tiny houses. Click here to read the full article of the movers and shakers in our area who are addressing the affordable housing shortage.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

$3B Clean Energy Project To Be Built East of Reno

America’s largest carbon-neutral industrial park is coming to Northern Nevada.

TerraScale, a southern California-based clean infrastructure design and development company, was pitched the Reno-Sparks region by Stan Thomas, the VP of the Economic Development Authority of Western Nevada (EDAWN). Danny Hayes, TerraScale’s CEO, liked the idea so much that less than a week after the pitch he hit the road to see our beautiful area for himself.

As it turned out, our little slice of Nevada had everything Hayes was searching for to launch the ambitious green technology project: vast amounts of open land; plenty of sunshine; robust fiber infrastructure; untapped geothermal opportunities; proximity to five major West Coast ports; and a business-friendly attitude.

Dubbed Energos Reno, the project will include development of a data center that will leverage the site’s renewable energy infrastructure to make it a fully carbon-neutral, off-grid facility. At full build-out, the project will be the largest in the U.S. powered by hybrid renewable energy. TerraScale plans to develop 3,700 acres of land in Churchill County, hugging the Reno-Sparks Interstate 80 corridor and 1/3 of the property will be marked as an Opportunity Zone with the entire patch of land designated as a Federal Foreign Trade Zone. Within the development will be a scalable data center and logistics hub with 500 megawatts of renewable power generate on site within 10 years.

The total cost of the project and development is expected to exceed $3 billion and Hayes even anticipates that the amount of financed development will be closer to $6 billion if everything were to work out according to plan. The company plans to create roughly 50 jobs over the next three to five years and the carbon-neutral development could lead to 300 – 400 jobs, if not significantly more. The Energos project also looks to establish and develop a strong relationship with the University of Nevada, Reno. UNR President Brian Sandoval echoed that sentiment during a press conference earlier this month and is “very excited about the myriad of possibilities”.

“Clearly, if Nevada is to create jobs today, we have to seize the opportunities and industries of tomorrow,” said Sandoval, who advocated for diversifying and advancing Nevada’s economy during his time as governor (2011-2019). “(Today’s) announcement, which signifies a really important step forward in the world of data and renewable infrastructure, couldn’t come at a more opportune moment.”

Click here to watch the press conference recap.

Click here to watch the Energos Reno video.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Buyer & Seller Guides Winter 2021

Buyer and Seller Guides for Winter 2021 are here!

Our Buyer and Seller Guides offer a wide variety of up to date real estate market information and processes to follow when buying or selling a home.

BUYERS

For those who are looking to buy a home next year, there really isn’t any reason to wait until the spring. Why is that? The housing market recovery has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, so it’s framing up to be an ideal time to buy a home for those who are ready to make a purchase. Here are just a few reasons why homebuyers could win big this season:

  1. Mortgage rates are very low. In 2020, rates hit all-time lows more than a dozen times, falling below 3% for the first time ever.
  2. Buying is more affordable than renting. Due to the trend of low mortgage rates, this has made the typical monthly payment even lower than current rental rates.
  3. Equity is growing. According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of homes in the United States are mortgage-free, meaning they’re owned free and clear. With this much equity, the change of the market seeing a rush of foreclosures is not likely.
  4. Home prices are appreciating. Leading experts say that home prices are forecasted to continue appreciating and many experts are re-forecasting their projections in an upward direction.

All in all, if you’ve been considering buying a home this may be your perfect moment.

SELLERS

Many homeowners think selling in the spring when more buyers are in the market is the way to go. In reality, it’s more about the ratio of buyers to sellers that creates opportunities. Selling when the fewest number of homes are available to buy is what puts sellers in the driver’s seat. With today’s high buyer traffic and low inventory, this power combination makes now the optimal time to sell–before your neighbors put their homes on the market in the spring. Here’s how it breaks down.

  1. High buyer demand. Buyer demand is strong and showing no signs of slowing down. Buyer showing are up 64.1% compared to the same time last year, according to ShowingTime a firm that tracks the average number of buyer showings on residential properties.
  2. Low inventory of homes for sale. Purchaser demand is so high, the market is running out of available homes for sale. Homebuilders are also increasing construction, but they cannot keep up with the growing demand.

If you’re thinking of putting your house on the market, don’t wait. A seller will always negotiate the best deal when demand is high, and supply is low. That’s exactly what’s happening in the real estate market today.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Reno Housing Market Shows No Signs of Slowing Down

The Reno-Sparks Association of Realtors released the market stats for October and I couldn’t believe my eyes. Housing inventory was down to a number so low that it is driving prices up at an incredible rate.

Take a look at that graph. The 0.6 months supply of inventory means that if no homes came on the market we would exhaust our supply of single family home inventory in the Reno Sparks area in 18 days. 

With 568 New Homes, 616 Sold, 656 New Contracts and 394 Active Homes on the market at the end of October there is now a supply and demand problem that is pushing the median homes sales price to $455,000. There is no relief in sight. The new home builders are 15 months out if you order now. So folks coming to Reno for jobs are outbidding up the homes trying to be a winner! Appraised value is being thrown out the window by buyers who have the cash to close the gap when getting a loan or they just pay all cash and there is no appraisal. This is happening at all market  levels, from homes that are a few hundred thousand to homes in the millions.

The secret about Northern Nevada is out – not only is it one of eight states with no income tax, but it’s the ultimate place for work and play. Many people are falling in love with Reno for its tight community and plethora of activities to satiate any interest.

Nevada has been consistently ranked by Money and Forbes as one of the best overall business climates in the nation coupled with one of the lowest tax burdens in the country. Businesses will also benefit from competitive utility rates for commercial buildings and low start-up costs. There are reasonable regulatory, licensing, and annual fees to make doing business more lucrative.

Northern Nevada is sunny and beautiful around 300 days out of the year, every year. Maybe that’s why the region is home to world-class ski resorts, championship golf, and Lake Tahoe’s haven of recreation. Any and every activity exists here, from dog parks to hiking and mountain biking trails, to boating on the crystal-clear Lake Tahoe. You can find yourself in the beautiful tall pine trees happening upon alpine lakes and scenic vistas, or you can find yourself in the rolling hills where the wild horses like to roam. Either way, there are a myriad of activities to explore in every season.

In summary, life in Reno is great and everyone else is finally realizing just that.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

Why Do We Celebrate Nevada Day?

Nevada was admitted to the Union on October 31, 1864 and was established by the Nevada Legislature as an official state holiday in 1933. Since then, Nevadans across the state have spent the last Friday of October celebrating with parades and commemoration of rich, Nevadan history.

Since 2000, Carson City’s newspaper, Nevada Appeal, has sponsored a month-long “treasure hunt” each year for the whole month of October. Beginning on the first Monday, a clue is posted each weekday on a website set up just for the contest. The clues all have to do with Nevada history so it encourages people to study the state’s history in order to find the “treasure”. The treasure is actually a small plaque that can be redeemed for up to $1,000.

Since 1938, the Nevada Day Parade in Carson City has been an annual coming together to celebrate Nevada’s heritage and the founding of the state. This year marks the 156th anniversary with a theme of Historic moments in Nevada and there are plenty of great ways to celebrate!

Some of the highlights include:

Friday, October 30

Nevada Healthcare Heroes at the Nevada State Museum
To honor and raise funds for Nevada’s health care workers, historic Coin Press No. 1 will mint a special medallion.
Nevada State Museum, 600 N. Carson Street
9 a.m. – 4 p.m.
Attendees can purchase up to two .999 fine silver planchets and watch as they are minted on the press. Cost for a planchet is $100; a portion of the proceeds will go to the COVID-19 Relief Fund, administered by the Community Foundation of Western Nevada. Registration is required. https://www.carsonnvmuseum.org/events/

Friday, October 30 – Sunday, November 1

V&T Carson Canyon Railbike Tours
Experience motor-assisted pedal railbikes on the V&T railway for a comfortable and historically rich experience.
V&T Railway, Eastgate Depot, Eastgate Siding Road
Friday – Sunday: 10 a.m.,12 p.m., 2 p.m. and 4 p.m.
Friday & Saturday: All ages Halloween ride at 6 p.m. and 17+ Halloween ride at 8 p.m.
Make reservations at https://vtrailway.com/

Friday, October 30 & Saturday, October 31

Made in Nevada Film Festival Sponsored by Carson City Toyota
Watch a movie on a large screen and listen through an FM station from your car radio. Bring your own snacks.
Western Nevada College Campus, Lower Lot, 2001 W. College Parkway
Friday:
The Shootist 6:15 p.m.
The Misfits 8 p.m.
Saturday:
The Muppets 6:15 p.m.
Sister Act 8 p.m.
Pick up your tickets at Carson City Toyota and they are free and you will be entered for a $100 gift card.
Reserve your space online (http://siteline.vendini.com/site/breweryartscenterfakeurl.com/) and it is $5/car.

Saturday, October 31

Balloon Launch 
Watch hot air balloons fill the sky from Downtown Carson City.
8 a.m. – 8:30 a.m.https://85da24965544b3a2146bc49d5dd1a5c4.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

46th Annual World Championship Single Jack Drilling Contest
Contestants will use 4.5-pound hammers and ¾” steel bits to pound holes into more than two tons of granite, which dates back to the Comstock mining days.
Carson Mall Parking Lot (near Carson Home Furnishings), 1227 S. Carson Street
9 a.m. – 1 p.m.

Inaugural Nevada State Prison Tours
Learn about the history and preservation of this educational landmark which has opened for free, inaugural, 90-minute tours for Nevada Day (donations accepted).
Nevada State Prison, 3301 E. 5th Street
10 a.m. – 3:30 p.m. with tours every ½ hour
Visit the website for booking information. You must book a tour to attend. http://nevadastateprison.org/nevada-day-at-nsp/

Beard Contest
Anyone with a beard or mustache can enter for free. Categories include: best overall, longest, fullest, reddest, best groomed, scruffiest, most bearded community and inaugural best mustache.
Copper Pointe Plaza near Red’s Old 395 Grill, 1027 S. Carson Street
10 a.m. – 1 p.m.
Questions? Call Nick at 775-515-4038 or visit Cipriani’s Downtown Barbershop

Stewart Indian School Cultural Center & Museum Tours
Learn about the only off-reservation Indian boarding school in Nevada during a free, educational tour. Includes an art showing, beaded bag demonstration (until 1p.m.) and basket weaving and cradle board demonstration (from 1 p.m.).
Stewart Indian School, 1 Jacobsen Way
10 a.m. – 5 p.m.https://85da24965544b3a2146bc49d5dd1a5c4.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

Reverse Parade Celebration
Spectators can drive past flatbed trucks, floats and vehicles to enjoy all-things Nevada Day and free, live entertainment.
Check Nevada Day’s Facebook or Brewery Arts Center’s Facebook page for parade route and details.
2 p.m. – 4 p.m.

Times are subject to change. Please visit each event’s website for detailed information and COVID-19 instructions.

“Nevada Day is the time of year for Nevadans to celebrate our state’s heritage,” said David Peterson, executive director, Visit Carson City. ”Although we will all miss this year’s parade, we want everyone to feel safe celebrating in smaller groups in a responsible manner that involves social distancing, mask wearing protocols, proper cleaning measures and fun. This year has taught us that Nevadans are resilient and we look forward to open and safe activities that will keep us engaged and Nevada proud.” 

To learn more about 2020 Nevada Day activities, please visit nevadaday.com or visitcarsoncity.com.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

No Housing Bubble Here!

There’s no doubt that Northern Nevada has seen incredible growth in the past decade, but when housing prices hit an all-time median high last month there’s been a lot of talk about the “bubble” bursting. Well, I’m here to tell you that this is not a housing bubble.

My years of experience in real estate have taught me many things, but one of the most important that I have learned is to pay attention to economic development factors. In September 2020, housing in Reno-Sparks hit a record median home price of $444,900. Some are saying that this pricing is not sustainable, it isn’t here to stay, and the market is sure to crash. However, experts are quick to point to the law of supply and demand.

The demand for housing has far exceed the available supply and this has pushed prices higher and higher. So what makes this spike different from any others in the past? The Economic Development Authority of Western Nevada has been measuring metrics and was quick to point out many developing factors in an article that they released last month.

The Bureau of Labor Statistics has reported that the Reno-Sparks MSA has added over 8,000 new jobs per year in the past seven years (prior to the pandemic). Throughout this same period of time. there have only been 2,500 new housing units on average added to the entire region. With a ratio of 1.4 jobs per housing unit, this number is still nowhere near the more than 5,000 housing units needed to accommodate job growth. This is real, sustainable job growth and not just speculation on what the market may do. These record housing prices have also make homeownership impossible for many in the community, forcing them to rent and driving up rental demand more than 62% over the same period.

One of the biggest economic factors that Reno-Sparks has experienced over the past ten years has been diversification. Gone are the days of solely gaming and tourism to boost the economy, there are now more than 200 new advanced manufacturing, technology, logistics, and e-commerce companies here. The diversification augments the visitor industry demnad for the area and at the same time protects from excessive job loss. All of this means that the local economy will not crash as it has in the past.

Lake Tahoe

Something wonderful about Reno, that every local knows well, is the many live-work-play advantages of our region. Well, the secret appears to be out. In August, a record number of new company leads came in at 46 (three times the monthly average). Many leaders are finding their companies in high-cost environments and/or dense metro areas that are likely facing increasing taxes, COVID-19 operational restrictions, and a reluctant workforce. Now Reno-Sparks is the next viable option, with employees and companies drawn to the many perks the area offers.

The bottom line is that demand for housing is growing, while the supply continues to lag. The pandemic has actually accelerate the current job growth, and even without it there is no slowing down growth. These “jobs of the future” are those with higher wages and generous benefits to replace the jobs lost to the pandemic and automation. The bubble isn’t going to burst, so let’s concentrate on increasing the housing supply so we can support the long-term success of our community.

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Realtor® Sierra Nevada Properties

http://nealfincher.com/

https://www.snphomes.com/

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