We all want to buy low and sell high, but how do we know when the market time is right? Although our local markets are influenced by the national and international economies, we believe real estate is very local. To understand where we are, we study the local data.
The University of Nevada, Reno, Center for Regional Studies, has just released its Housing Report for 2nd Quarter 2015. Below is a chart that is part of the report that graphs the median single-family home value from 2002 through June 30, 2015. This chart shows what the median home price would have been without the housing bubble that peaked near the end of 2005.
We have heard from some people in our community that they believe we are heading for another housing bubble, but we disagree.
Although the median price increase from 2nd quarter in 2014 to 2nd quarter in 2015 was an impressive 16.3%, when we look at the blue trend line, it is interesting to see that we are right where we should be with home values, given a 0.97% average appreciation rate per quarter from 1990-2001. Couple this with the fact that our local economy is much more diverse and stable than in 2005 and that we are seeing jobs come to our region gives us the confidence that we are not facing another housing bubble.
Combine what we are hearing from organizations such as EDAWN and the data we receive from the University of Nevada, Reno, and the Reno-Sparks Association of REALTORS, we believe we may be in a housing shortage for some time. High demand with limited supply means housing prices will continue to rise, as well as rental prices.
As your Dickson Realty neighborhood experts, we have the tools, technology and experience to help our clients better understand the facts about our housing markets, so they can make an informed decision. If you have questions about home values in our region, please contact us to have a conversation. We would love to help you. Give us a call at 775-453-0209.