Hot Topics - Real Estate

To start off a new week, let’s talk about a couple of hot topics in real estate right now! Many of you ask me frequently what is happening in the market, and depending on the week, it might be grimmer than others! Understanding more about what’s happening with the moving pieces of real estate helps break it down and make the reality of home ownership more tangible, and achievable!

Interest rates are the big opener for the conversation about real estate hot topics, of course! The number one question I get as a realtor is, “When are the rates coming down?” Everyone is hoping for a crash so they can swoop in and get a house for cheap! The dream of home ownership seems far off with the rates pushing mortgages higher than what many households are bringing in each month.

A housing crash would provide relief and help many taste their dreams of buying a home, however, the numbers continually show we are not headed toward a housing crash, no matter how tight things seem at the checkout counter. The fed looks at unemployment and inflation when determining when to cut rates. For the current time being, unemployment and inflation are down. While down, (Inflation ~2%), (Unemployment ~4%) these numbers are slightly above where the fed wants us to be. If these things continue to trend upward, a different decision might be considered when it comes to rates.

Holding out or purchasing truly lies in the hands of the buyer – however, you should consider the cost of waiting, a workup a realtor can assist with, down the penny!

We are in a seller’s market and buyers are working with some unpredictability when it comes to rates,

impacting when they choose to purchase, or refinance. A few alternatives arise in this market such as rent-to-own and mortgage buydowns. Renting to own is a situational purchase, barring on the homeowner and renter coming to an agreement on terms of a contract. We see a lot of mortgage buydowns with new-builds, meaning you obtain a lower mortgage rate at closing for 1 – 3 years, and when that period ends, your rate goes up to whatever you agreed on when closing.

Another hot topic in the real estate world is housing demand and market trends. Inventory and affordable housing are a challenge in the real estate market right now, creating a few roadblocks for some. Affordability is preventing a lot of buyers from being able to enter the market as homeowners. While in Reno, Nevada, the average cost of housing is hovering in the mid $500,000’s to $600,000’s, there is still the consideration of those rates again.

There are plenty of options outside of this range, even with tight inventory. There are still new-build housing developments with mortgage buy-down options, condos, townhouses, and that gem that pops up with the perfect situation – as it does so often in real estate. With inventory being scarcer than we would prefer, there is a rise in new-builds with multi-generational living. It is more common to see a few models with this option, however, the community may have rules on whether it can be utilized as rental income, so always check.

Buying a home is a large and delicate purchase, and the right time for a buyer is up to the buyer! Connecting with a realtor to answer questions and provide guidance in the interim of market stagnation is always a good way to ease concern and stress while preparing for the next big chapter.

Sellers have an upper hand in many ways, and they should go through a checklist with their realtor to prepare to competitively enter the market as a shining new listing. Pricing right, having the home ready for buyers to envision their life there, and doing a pre-inspection to catch any areas in need of repair, all aid in drawing the right buyers in a timely manner to the home.

Real estate is always changing, but we continually observe investing real estate is still a positive long-term investment. Even though times may be tough in the real estate world right now, the way it interacts with supply, demand, politics, and the ‘givens’ of life is interesting to watch and follow, and especially to engage in as a realtor!