A very telling statistic used to determine the market change in Northern Nevada is that in the course of a year, our real estate closed sales percentage went up a whopping 9.4 percent, but the real measure of a market shift lies in that in just one month, from June to July there was a 4.2% decrease in closings! Nearly half of the increase we had in a year decreased in a month. I gain from this that a buyer’s market is slowly emerging, but that being said, it will not be staggering but likely display itself with a few more price reductions, less overall competition, and the ability to negotiate once again! The x-factor can separate good realtors from great ones.
I do not expect there to be a full-fledged recession as investors don’t lose money before they opt to move money to a more stable long-term play that the stock markets used to provide, which the real estate industry is beginning to usurp with colossal speed. The investors alone will hold real estate prices at a marginal loss while creating a unique opportunity for first-time home buyers who are not afraid of a 1% mortgage rate increase to jump into home ownership, knowing that re-financing can only be a year away! Stay aware of opportunities to multiply as they are seized, and they die when neglected.
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