Buyers and sellers struggle to forecast the housing market to decide when the best time is to purchase or sell a property. The economy is doing well, unemployment is low, and home values are up, so you may be surprised to hear that mortgage rates dropped to a four-month low the first week of the new year to 4.51% for a 30-year, fixed rate loan. This was the fourth week in a row that mortgage rates have fallen.
For background, the average rate for a 30-year, fixed rate loan during 2018 was 4.55% and 3.99% in 2017.
The increase in home values is also slowing. Nationally, home values in November 2018 were up by 5.1% over November 2017 and up by 0.4 percent from the October 2018. Locally, the median home price decreased from $385,000 in October to $377,000 in November. This is still up nearly 7% since November 2017. This year-over-year change highlights the continued short supply and strong demand for housing in the Northern Nevada region.
Read the most recent Dickson Realty Market Report.
We don't know if lower mortgage rates will continue to be a trend in 2019, but we do know that this could be an excellent time to buy. If you have any questions about the Reno-Sparks real estate market, please don't hesitate to contact us.