Legacy Pointe Market Update

Legacy Pointe Statistics: January to September 2024

• Average Days on Market: 66
• Median Sold Price: $455,000
• Active Listings as of 9/27/2024: 3
  Click here to view detailed info & photos on Active Listings
• Under-Contract Listings as of 9/27/2024: 0
  
• Sold Listings from 1/1/2024 to 9/27/2024: 9
  Click here to view detailed info and photos on Sold Listings

All Reno/Sparks Market Update – 9/27/2024

30-Year Mortgage Interest Rates: 6.50% (6.534% APR)

What does this all mean?

• Median Sold Prices have increased 5.2% comparing August 2024 to August 2023 (YoY). That’s huge! In fact, Year to Date we’re seeing a Median Sold Price increase of 6.2%. Compared to other parts of the country experiencing pricing corrections. For example:

Why are Reno/Sparks Median Sold Prices going up?

• We have a robust economy. While Nevada has one of the highest Unemployment Rates, Reno/Sparks is still strong. Tesla GigFactory 1 layed off about 1200 workers last month and the GigaFactory 1 is still hiring to prepare for the production of his 4680 (Gen 3) Battery and Semi-Trucks. That’s going to again push employment numbers up for Reno/Sparks.
• People continue to move to Reno/Sparks. We have no personal state income tax, we’re new business friendly, we enjoy 4 seasons and there are lots of outdoor activities to enjoy including Lake Tahoe.

What’s going to happen going forward?

• Mortgage Interest Rates are predicted to decline in Q4 2024 and probably be in the 5’s for 2025. That means more buyers will be entering the market. That will drive home prices up. If we saw August 2024 experience a 5.2% increase YoY,then we could see even larger increases in 2025! Get ready, it could get really crazy!

Conclusions – The Reno/Sparks Real Estate Market is still a Seller’s Market, however, we are beginning to see a bit of a shift. Evident by the Months Supply Increase to 2.5 months. Definitely not like 2020/2021 when the market was a White Hot Seller’s Market and had a months supply of 0.7 months.

Some interesting notes:

Interest Rates have have softened a bit to 6.50%. Still a bit high for many buyers which put them at a disadvantage to purchase the home they want at present interest rates. Closed Sales are also a bit soft as the Median Sales Price is moving up.

Here’s a couple of recent updates:

Inflation was reported at 2.9% for August 2024 which is a first since March 2021 and marks a probable reduction in the Fed Funds Rate. Just a reminder, the Fed Funds Rate influence the 30-Year Conventional Mortgage Rates (presently 6.125%). We’ll find out if FMOC does reduce the Fed Funds Rate on September 17-18, 2024 when the FMOC meets. It should be noted that the increase in unemployment to 4.3 (nationwide) will also fuel a Fed Funds Rate reduction.

Reno/Sparks Economy

Conclusion/Predictions:

We’ll probably see a reduction in the 30-Year Mortgage Rates. As rates go down, more and more buyers will enter the market. And, as I always say, when demand goes up, we’ll probably see prices go up too. We’ll have to see if more sellers put their homes on the market and that could neutralize the increase in buyers. The other elements that could greatly effect the housing market are Trigger Events as noted below.

Trigger Events:

• Economic Crisis – for example, in 1929, the stock market was greatly over-valued and when investors started to figure that out, there was a mass exodus out of the market which caused the Great Depression. Ok, there’s a bit more to it than just that. However, the Great Depression caused a huge drop (about 60% in value in some areas) in the Real Estate Market in the 1930’s.
• The next big “Trigger Event” for the housing market was in December 2007, when banks realized that a huge number of home loans were made to people that couldn’t make their payments when the loan adjusted to long term. That caused 3.1 million home foreclosures in just 2008. The Real Estate Market was flooded with homes for sale and in distress. Prices dropped dramatically (about 47% in Northern Nevada) and yes, there was a lot more to the Housing Market Crash than toxic mortgage loans, but that’s what basically happened.
• Are we headed for another Trigger Event in the residential real estate market? There would have to be a catastrophic trigger event or a combination of events. I.E. – war, recession, another health crises or something that may be new to the list of Trigger Events. The point being that it is unlikely that we’re going to see another huge drop in the Real Estate Market soon.
• There is one event coming up that could have an effect on the Real Estate Market, “The Presidential Election”. I don’t want to enter the political arena with the Blog so I think the best thing is to wait and see who becomes our next President and I’m fairly confident the Housing Market overall will continue to be strong, especially in Reno/Sparks.

Disclaimer: This article/website contains forward-looking statements which are predictions and opinion based on data and information at a particular point of time. As data and information is updated and changes, the predictions and opinions can and will change. It is recommended that you always conduct your own research and base any of your investments and decisions on your finances on your own conclusions.