After several years of economic recovery, the real estate market appears to be on the fast track in northern Nevada. The median home price in the Truckee Meadows is $278,000, an increase of 13% from a year ago. While the market is doing well, there is very little inventory. Some are choosing to buy new homes instead. But experts say it is a much different climate than it was before the housing boom collapsed during the recession.
"If you could breathe, if you could fog up a mirror, you could get a loan and that's not the case anymore," Dave Hansen, President of the Reno-Sparks Association of Realtors said.
"It got overheated, it got reckless, it was over exuberance," Perry Di Loreto, President of Di Loreto Homes of Nevada said.
Di Loreto says his company has a high volume of demand, and even has a waiting list of prospective buyers. But he is only selling to qualified buyers.
"They have established themselves with good credit," Di Loreto said. "They have money for down payments and they have good jobs."
Di Loreto Homes is building 8-10 new homes per month in each subdivision but says he could easily build more.
"We're very careful," Di Loreto said. "We basically want to sell homes to people that are going to use them for their intended purpose and that's to live in, not to speculate on."
Home values are still about 23% less than the pre-recession peak. It is expected to rise about 4% in the next year. Hansen says the only problem is inventory, with less than three months supply of homes for sale. Demand is also on the rise as more people re-enter the market.
"Some of the people that got foreclosed on, that had distressed properties are coming back into the market," Hansen said. "They've waited long enough and got their credit back in order."
During this seller's market, it is not unusual for homes to sell for above the asking price.
"If you know what the value of a house is, you're going to get a quick sale and you may get multiple offers," Hansen said. "If you overpaid it, if you're too pushy about what the price is, it might be on the market a little while."
Hansen says less than 2% of listed homes are foreclosures or short sales. His best advice to buyers is to get a realtor and get prequalified. Otherwise, someone else could swoop in and get the house you want.
