Reno-Sparks Real Estate Archives Page 2 of 6

Market Update for Reno-Sparks

July 29, 2022/in Blog, Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

Real estate is in all the news today, and the noise is deafening. We want to take just a moment to paint a quick picture of what the market looks like locally. Here is a market update for Reno-Sparks:

Last 90 Days:

Out of 988 homes sold, the average close price was $788,824 – and they spent 64 days on the market.

Out of the 405 homes currently pending, their average list price is $859,025. Pending homes have now been on the market for 84 days.

What is this telling us? The average list price is higher, and they are taking longer to sell. Our market is still great; homes just aren’t flying off the shelves, so to speak.

What Does it Mean?

When looking at the sold homes and the adjusted list prices to sold price ratios, a negotiated price of + or – 2%-3% overall spread provides a fair give and take on values. The days on the market are in line with a rebalance of values. Again, that is good news if we want to see a softer landing than many are predicting.

As of the first of July, sales in the homes that have rebalanced their expectations remain strong, and the market is doing very well. The August/September numbers will be significant as we move through the rest of this year and where we stand on unsold inventory by September and price adjustments.

From this viewpoint, we expect a market correction of asking prices, sold prices, a flattening of values, and a rise in the low single-digit levels as we end the year (assuming another 1% interest increase).

How Does this Affect the Price of My Home?

In an upwelling market, raising prices quickly to ride a wave of price increases is one thing. In an adjusting market, it’s suicide not to adjust to the market swiftly. You’ll risk chasing a market down!

Should I List My Home Now?

For sellers on the fence, selling now is an excellent opportunity. Buyers are highly focused on quality and value, and inventory remains low. With the current interest rates, buyers are making offers. The key words here are that buyers are making offers. Overbids still exist, but fewer than before. Buyers will expect the seller to negotiate.

Is Now a Good Time to Buy?

Buyers waiting for some unrealistic bottom to develop will be sorely disappointed in the results and miss a host of great opportunities in this market. Yes, we will see some fantastic deals on the fringes, and the competition for those homes will be intense. We assume that interest rates will move significantly in the next 60 days. Time will tell.

Please review and call us with any questions, and you should have questions. A lot is going on with many moving parts. Remember, regardless of the “news,” our inventory is small; demand, even reduced demand, still exceeds supply.

If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market or if you’re ready to list your home, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

It’s Almost Time to List Your Home!

March 16, 2022/in Reno-Sparks Real Estate /by Shauna Morris

The perfect moment to list is just a few weeks away! If you’re thinking about putting your home on the market, there’s a special week quickly approaching that you won’t want to miss! How do we know when that is? Realtor.com® told us in their fourth annual Best Time to Sell Report. According to their data, the best week of 2022 to list your home is April 10-16. Sellers who list during this week will benefit from a Spring buying season trifecta of strong demand, high asking prices, and quick home sales.

According to Realtor.com® Chief Economist Danielle Hale, “Homeowners who are thinking about selling this Spring still have time to get ready, with the majority of recently surveyed sellers indicating that listing preparations took 2-12 weeks.” However, now is the time to start checking your checklist and doing your to-dos!

How Good Is It?

Realtor.com® number crunchers predict, “Sellers who list from April 10-16 could secure asking prices that are 10.9% higher than at the start of the year and 1.4% above the average annual listing price, based on 2021 trends.” Realtor.com® also predicts that the low inventory and high demand for new homes could drive asking prices up more than 10% relative to initial asking prices in January of this year, that’s around $39,000 more!

So far in 2022, we’ve seen a record-breaking January, followed by a crazy-fast February. Sellers who list their homes during “Listapalooza” can expect more offers and bidding wars, resulting in higher asking prices and a faster sale than if you list later this year.

How Do They Know?

It’s in the numbers! In 2021, April 10-16 was a record week for an already hot market. On average, homes listed in this particular six-day period received 29% more views on Realtor.com® than the average week and sold six days faster than the average for the year. During this same week, homes sold 27 days faster last year than they did in 2019 BC (Before COVID).

Mortgage rates have been rising and will continue to do so. That adds fuel to the fire for buyers hoping to find the right home and lock relatively affordable mortgage payments before it’s too late.

New inventory is on the horizon. Builders have been accelerating production in an effort to progress against the supply gap. As the bottleneck of supplies begins to open and the price of materials begins to stabilize, new homes will add more inventory. More inventory will moderate the demand and bring listing prices down.

Let the countdown begin! If you’re ready to take advantage of “Listapalooza,” contact the David Morris Group | (775) 828-3292, and we’ll help you get ready for market!

Tips for First-Time Home Buyers

March 10, 2022/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

According to the National Association of REALTORS®, first-time homebuyers made up 34% of all buyers in 2021, with an average age of 33 years old. This data shows that millennials are still the most prominent home buyer demographic, with 82% of younger millennials and 48% of older millennials being first-time buyers last year. If you’re a first-time homebuyer, here are some things you can do to make your dream of homeownership come true.

Pay Down Your Debt

Buying a house is the most expensive purchase you’ll make, so you need to be as debt-free as possible before considering a home loan. The three most significant types of debt most new home buyers have are student loans, car loans, and credit cards. Paying down debt can be done. A good rule of thumb is to start paying off the smallest debts first. Student loans can be daunting, so start with what you can do. Consolidate high-interest credit cards into one monthly payment with a lower interest rate – then cancel the cards! Sell the car with a high payment for something with a lesser monthly burden. Getting out of debt isn’t easy, but you can do it!. Just take one step at a time, and when one thing is paid, move on to the next. Most importantly, don’t incur any new debts while paying down the existing ones.

Check Your Credit

Credit scores play a huge role in your ability to secure a mortgage loan. The minimum credit score most lenders have for a conventional loan is 620. It is possible to get a loan with a lower score, but the higher your score, the less interest you will pay. You can check your credit with your credit card company, online, or with a major credit bureau such as Equifax or Experian.

Know What You Can Afford

You need to sit down and decide how much you can afford to spend on a down payment, monthly mortgage payments, and household expenses. Be careful not to spread yourself so thin that you are unable to put a little bit of money in savings each month.

Get Pre-Approved

There is nothing worse than falling in love with a home only to realize you can’t afford it. Unless you plan to pay in cash, you need to get pre-approved for a loan. An initial consultation with a lender will help you determine your price range.

Hire a REALTOR®

Having a local professional guide you through the home buying process is more important than ever in this market. If you are serious about buying, you need a professional to help you find the perfect home within your budget. A REALTOR® will walk you through the information, talk you through the details, and help you make the right decisions. REALTORS® have access to the Multiple Listing Service (MLS), the largest centralized database of residential real estate listings in your area. While the internet offers some options to search for a home, the MLS is the only instant exposure to the market and is only available to Realtors®.

Once you have completed all of the prep steps, your REALTOR® will guide you through the rest of the process until you get to the closing table.

If you would like some more information about buying your first home, or if you’re looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Reno Neon Line District and Workforce Housing

February 18, 2022/in Reno-Sparks Real Estate /by Shauna Morris

For years, West 4th Street has been falling to the wayside and begging to be fixed up. However, developer, owner, and operator of Jacobs Entertainment, Jeff Jacobs, has a bigger vision than just a renovation or two. Jeff Jacobs’ proposal of The Neon Line District in Downtown Reno is a dynamic, mixed-use entertainment district. This area will include the expansion, renovation, and rebranding of the Sands Regency Casino Hotel, world-class art – including sculptures formerly at the Burning Man festival, and an array of commercial, retail, plaza, green space, convention, and entertainment venues. The development has been in the works since 2019 and is likely the most extensive project Downtown Reno has seen in decades.

The newest buzz around this development is the offer Jeff Jacobs made to City Council to help address the city’s housing affordability crisis. He proposes building 1,000 new affordable workforce housing units but has asked the city to contribute to the deal. Jacobs said his company would contribute land valued at $15 million to the Reno Housing Authority for workforce housing to start about 850 units. He is asking the city to offer additional land for 1,000 affordable housing units. “The idea is teachers, clerks, employees in the casinos who want to live downtown, who work downtown,” said Jacobs. “This gives them an opportunity.” If this proposal works, it would be the most significant housing initiative this region has ever seen from the Reno Housing Authority.

Jeff hopes that when the Neon Line District is complete, it will have as many as 3,000 total housing units, but the City Council has either not made a decision or is not yet ready to announce what the decision may be. The Mayor is quoted as being “definitely interested in an affordable housing partnership.” The idea of having over 2,000 units of affordable housing for Reno’s downtown workforce is exciting and puts a whole new spin on the Mayor’s 1,000 Homes initiative!.

The Reno retail market was hard hit overall by the pandemic, with lower-income workers at the top of the list. While retail demand has rebounded this year, the city could use a win. The Neon Line District might be exactly what Reno needs to revitalize downtown and turn this area back into a walkable destination with bustling businesses and busy sidewalks.

Photo of Neon Line District map (Courtesy: Jacobs Entertainment)

The Benefits of Homebuyers Putting 20% Down

February 17, 2022/in Reno-Sparks Real Estate /by Shauna Morris

If 2022 is the year to buy a home, congratulations on starting the homebuying journey! Part of the journey, and a large part of it, is assessing finances. One financial aspect homeowners go back and forth between is how much to pay in the down payment. Here are four reasons why homebuyers benefit when they put down 20% for their new home:

Benefit #1: Lower Interest Rate

When you put down a higher down payment, you’re proving to your mortgage lender that you are financially stable and are not a risk. Plus, when you combine a large down payment with a good credit score, the piece that proves you can handle debt, the more confident your lender will be in your ability to pay back the loan. When your lender feels secure in your financial abilities to pay off the loan, they’re more likely to give you a better interest rate.

Benefit #2: Pay Less Money

The more you put down means a smaller loan amount, which also means a cheaper monthly mortgage payment. When you put down 20% of the cost of the new home, you’re only responsible for the remaining 80%. If you put down less than 20%, such as 3-5%, as most homeowners do, the remaining percentage is added to your loan and will gain interest over time. Plus, most lenders require private mortgage insurance when a homebuyer doesn’t put down 20%. This is a fee to protect the lender, not you. This will cost you more money over the lifetime of your home loan.

Benefit #3: You Stand Out Against Competition

In a fast-moving real estate market like ours with limited homes on the market, it’s causing buyers to compete against each other. A way to stand out against the competition is a 20% down payment. As we mentioned earlier with the lender, this shows the seller that you are financially stable, which means they’ll have more confidence in you. You are seen as a stronger buyer as your financing is more likely to be approved. And approved financing means closing will happen quicker and easier.

Benefit #4: Not Paying PMI

Remember that private mortgage insurance (PMI) we mentioned earlier? It’s so important it gets its own bullet point! Private mortgage insurance is tacked onto a monthly mortgage payment by lenders when homebuyers put down less than 20%. This fee protects the lender if you cannot pay for your mortgage. A homeowner will pay this fee until they reach 20% equity of their home, then PMI can be canceled. But with PMI and a high-interest rate, it could be a while until 20% equity is reached, so you pay more money over time.

If you need help creating a financial plan to buy a home this year with a 20% down payment (or not, we can help with that too!), contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Gen Z Drawn to Reno

January 3, 2022/in Lifestyle, Reno-Sparks Real Estate /by Shauna Morris

In a recent Gen Z City Index, Reno ranked 6th for the best places for Generation Z or “zoomers” to live. Gen Z covers individuals born between 1997 and 2012. The post-millennial generation is getting ready to head out into the world to make big life decisions. As they enter into adulthood, Reno is becoming a place where the zoomers are setting their sights to carve out their own path.

Gen Z City Index ranked several cities on various factors, including the availability of employment, the median home price, affordability of the area, gender pay gap, diversity, resident resources, and more. The list includes 30 cities, and six California cities cracked the top 10. Reno was able to snag the sixth spot in part due to its perfect score in equality. The study looked at the 2020 Human Rights Campaign’s Municipal Equality Index to weigh how cities handle nondiscrimination laws and advocate for the LGBTQ+ community.

Reno also scored well in gender pay equity. The U.S. Census Bureau found that Reno has a wage gap of 6.88% between men and women, with only three other cities having a smaller pay gap. Reno saw the fifth-highest number of job opportunities, solidifying the city’s ranking as a great place for zoomers to live.

The 2020s will be a time for zoomers to age into adulthood and make their own way. As a college town that scored well in a variety of categories that are increasingly important to Gen Zers as they get older, Reno is likely going to continue to draw in the young adult demographics. With expanding technology and manufacturing job opportunities in Northern Nevada, booming economic activity, and the high quality of life offered to Reno residents, a young, talented, and driven workforce is sure to follow.

We’re excited to see what Generation Z will contribute to the evolving Reno area and how the University of Nevada, Reno will grow to fit the needs of the incoming students. Reno has always been accepting of new generations, new people, and new ideas, so we’re happy to see that Gen Z is so accepting of Reno.

If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Relocation Guide: Reno Revitalization and How Business is Booming

December 30, 2021/in Reno Relocation Information, Reno-Sparks Businesses, Reno-Sparks Real Estate /by Shauna Morris

Across Northern Nevada, there has been a rebound and a rebirth. Retailers are coming back, and the City of Reno is focusing on new economic developments that move away from the gaming industry, which has been rooted in the city’s history for decades. Let’s take a look at the Reno revitalization and how business is booming across the area.

Retailers are Bouncing Back

The pandemic caused a lot of restrictions and strains on businesses across the world, and Reno was no different, but in the third quarter of 2021, we’ve seen some massive improvements to how the city and its residents are adjusting. According to Nevada’s Department of Taxation, Washoe County’s taxable sales for July totaled more than $1 billion, a 23% increase from July 2020. Taxable sales for June also showed a 30% increase year-over-year at $1.16 billion.

With the influx of relocators from California, bringing their existing businesses or creating a franchise location, business is expanding, and retailers are seeing amazing sales volumes. In fact, commercial vacancies are below the already low values seen before the pandemic hit.

Good News for Retail Centers

The Reno and Sparks area has been undergoing a lot of revitalization and change over the last few years. The pandemic had put a pause on some of the construction projects as many weren’t sure how Reno would bounce back, but with the increase in retail sales and vacancies, there’s a renewed vigor for projects like The Oddie District in Sparks, as well as the Reno Public Market and the retail component of the Reno Experience District.

Reno Continues to Revitalize the City

The wave of retailer growth isn’t the only change you can expect from the City of Reno. The recent closure of Harrah’s after over 80 years in Reno was a big push for the city to broaden its economy and move away from the gaming industry. The hotel-casino is being converted into the Reno City Center, a mixed-use development with one and two-bedroom residential units, commercial office space, restaurants, and retail space.

City leaders are hoping to use the excitement for the city center to push more developments that would transform the gaming destination downtown Reno is into a place full of affordable living spaces, vibrant restaurants, stylish hotel rooms, and exciting entertainment options.

Partnered with EDAWN’s efforts on bringing technology companies, manufacturing businesses, and non-gaming industries into the region, the city is making marked improvements to reduce its reliance on casinos and the gaming industry as a whole.

Every year Reno evolves and finds new opportunities to promote growth and change. Reno’s ability to bounce back and accept innovation makes us excited to see what 2022 has in store. If you have questions about moving or what it’s like relocating to the Reno-Sparks community, contact the David Morris Group. We’re always happy to share our knowledge of the area and the real estate market!

Winter Tree Care Tips

December 17, 2021/in Lifestyle, Reno-Sparks Businesses, Reno-Sparks Real Estate /by Shauna Morris

Winter is often a season that has everyone neglecting their yards and their trees, but there are actually some things you should be doing to keep the outside landscaping looking beautiful and get ready for a stunning spring. Check out the winter tree care tips we’ve learned from our friends at Noah’s Park Tree Care!

The Benefits of Winter

Winter is actually a great time to spend some time taking care of your trees as it brings advantages like increased structural visibility, decreased stresses, decreased chances for pest infestation, and increased fruit production. With the shedding of a tree’s leaves, it’s much easier to look at the structure of the tree and gives you some insight into the health and the needs of the tree. Pruning is also much easier to take care of in the winter as trees are dormant and less likely to take on any stresses from the foliage loss.

Identifying a Dead Tree vs. a Dormant Tree

Are you wondering if you have a dead tree or a dormant tree on your hands? There are some things you can do to check!

Do you see any signs of budding? – A dormant tree will still have signs of small leaf buds in the dead of winter. They’re just waiting for spring to bloom. You’ll want to check each branch as branches with no buds or buds that are dry and shriveled could be signs of a dead branch and a tree in trouble.
Is your tree shedding its old bark and getting a new skin? – Just as leaves fall off and will grow back, tree bark does the same thing. Dormant trees will show signs of new bark, while a tree that is in trouble will show signs of shedding a layer but not replacing it. Be sure to also check for cracks in the trunk.
What’s under your tree’s twigs? – Grab a knife and scratch off a spot on a twig on your tree. In a dormant tree, the twig should be moist and bright green, while a tree in trouble will show a brittle, brown layer. Try this on a few twigs around the tree to get a complete view of your tree’s overall health. Another test you can perform is to bend a few twigs. If they break and are crunchy, they’re dead branches.

If you’re looking for a knowledgeable and great team to care for your trees, contact Noah’s Park Tree Care at (775) 376-0917. They offer winter inspections to help you identify if your trees are healthy and how to ensure they grow strong come the spring!

If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

New Home Builds – Increased Costs and Longer Timelines

November 23, 2021/in Reno-Sparks Real Estate /by Shauna Morris

Across the nation, home building projects are increasing, and permits are being put in to expand communities. The same is happening in Northern Nevada, but the COVID-19 pandemic has put a strain on the supply chain, pushed back deadlines, increased costs, and made new home builds a lengthier and costlier process.

Reno home builders have received various letters alerting them to price increases on the materials they need to complete a project, price increases on labor and truck rental fees, and extended timelines to receive materials.

The pandemic accelerated the housing demand in Reno. In part due to Reno’s growing economy and ability to bounce back during hard times, the increase in millennials starting families and joining the home search, and the rise of remote working positions allowing people to live in cheaper cities while working for companies with headquarters in more costly states.

The need for new homes is only increasing, and the supply of homes on the market is at a standstill. Freddie Mac released an estimate at the end of 2020 that said the U.S. housing market was short 3.8 million single-family homes, roughly 50 years behind in supply levels needed to meet the long-term demand.

Unfortunately, builders are facing hardships to not only obtain the supplies they need but to find the workers they need to complete their jobs. Construction costs have increased roughly 20% to 25% in the last year and a half, and it’s not just lumber that builders are having a hard time getting their hands on. It’s vinyl, garage doors, concrete, appliances, and more.

While it is a challenging time for home builders, new developments are still in the works to meet the estimated population increase of 100,000 residents coming to the Reno-Sparks area in the next decade. This projection comes from the Northern Nevada Economic Planning Indicators Committee. There’s still a big push for new homes in the Reno area, and the Reno real estate market is expected to remain strong for the foreseeable future.

If you need more information on what this means for the Reno real estate market, or if you need to buy or sell a home in the current market, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Fall Home Maintenance Tasks

October 19, 2021/in Lifestyle, Reno-Sparks Real Estate /by Shauna Morris

Prepping your home to withstand the winter weather is a crucial part of fall. Taking some time to prep now can save you from having issues later on. Before the season ends, check off each of the items on this list of fall home maintenance tasks.

Clean your gutters – The gutters help divert thousands of gallons of water from your house’s exterior and foundation walls, so be sure to keep them clear of leaves and debris.
Seal windows and doors – Gaps or cracks around windows and doors can let in cold air and cost you 20% more on your heating bill. Before the cold weather sets in, check the caulk and weatherstripping and repair and replace any of the areas where you can feel air coming in or escaping.
Inspect your roof – A leaky roof can be hard to fix and costly to do so. Before the winter ice and snow set in, inspect your roof from top to bottom. Check for missing, curled, or cracked shingles and look for damage to metal flashing in valleys and around vents and chimneys.
Protect pipes – Pipes and faucets can freeze and burst in the winter if you don’t take the necessary precautions. Before temperatures drop below freezing, close any shut-off valves serving outside faucets, then open the outside faucet to drain the line. If you don’t have shut-off valves and your faucets are not “freeze-proof,” consider buying faucet covers and make sure outdoor pipes are covered for protection.
Change your furnace filter and get it inspected – Furnace filters trap in dust, and when the filters get clogged, it makes it hard to heat the home. Clean the filters or replace the filters once a month to keep them free of debris and your home at a comfortable temperature. Before the heating season begins, it’s also a good idea to have your furnace checked by a professional. If you notice things like noisy belts, poor performance, and erratic behavior, put getting your furnace inspected high on your to-do list this fall.
Prep your fireplace – Check your fireplace annually for anything that needs to be repaired or anything that could be a safety hazard. Have your chimney inspected for creosote buildup, damages, or flue blockages.
Ready your lawn for winter – Hoping to keep your lawn looking healthy come the springtime? There are some maintenance tasks you’ll need to take care of now to make that happen! Rake the leaves, aerate the lawn, and fertilize the grass, trees, and shrubs to ensure your lawn and garden beds don’t suffocate.
Repair walkways – Walkways, drives, and steps can turn dangerous when they’re icy, especially if they’re damaged. Check for cracks more than 1/8-inch wide, uneven sections, and loose railings on steps and take care of the repairs before the temperatures drop and cause problems to become big headaches.

If you need more homeownership tips or fall home maintenance tasks, contact the David Morris Group. We’re happy to be your Reno resource, and if you’re hoping to buy or sell a home in the coming months, we’d be honored to help. Give us a call at (775) 828-3292.