With All The News About The Stock Market, Interest Rates, Economy … How Is Our Market?

It is important to separate our market from the constant bombardment of financial news you receive. We think our many special local attributes necessitate doing so. It is still a Buyer’s market in Carson Valley, but there has been a good increase in buying activity of late … inquiries, showings… even offers. Many Sellers have reduced their prices, and are willing to entertain an offer while others have taken their homes off the market and are waiting. In other words, our market seems to be stabilizing and finding its bottom … at least we hope we can see it from here.

Many Buyers are playing the waiting game thinking the market will drop. It might … likely will a bit… but is that smart today? We think not and here are some ideas why. These are our ideas and based on experience and instinct only. Let’s look at the stock market. It’s been a financial roller coaster of late. When it was rising rapidly in the late 1990’s people took their money out of real estate and invested in the market. They made a lot of money until the scare of 2000. When they could, they pulled their money and invested again in real estate. We saw the run up and the eventual profit-taking, much of which went in to the stock market causing it to again rise to great heights.

With the recent stock market decline we anticipate private investors getting their money out when they can and coming back to the King of investments… real estate. Loans were difficult to get a few months ago, but the lending industry is stabilizing and there are many opportunities for Buyers to secure good financing to buy a home. With oil prices at all time highs one can only guess what the cost increases will be in building a home. From high delivery costs to the cost of roofing material, pipe, and carpet, the costs will increase dramatically. We anticipate that all of this will cause resale home prices to rise accordingly.

The inventory of homes for sale in most of our market segments is now more of a one or two year supply vs. the ten year supply we were seeing a few months ago. We anticipate that as sales pick up there will be a rapid rebound, prices will increase rapidly. It is doubtful that they will go to 2005 heights right away, but if they go up just 10% that is $30,000 on a $300,000 house. Are you trying to save an extra $15,000 (5%) now? That is a $45,000 swing. Where do you think the market is going? How much are you really betting on the outcome? By not acting it might be more than you think.

Our Advice: Interest rates are low. Prices are low. Cherry pick the market now and act. Pick the best property that fits your wants and needs and make an offer. You might be pleasantly surprised. You will be happy in the long run, and this isn’t a short term investment. Live your dream, don’t continue waiting, wondering if you are going to be able to make a great buy. The “scream’n deal” is out there now. If you are looking for the “deal of a lifetime” … you might lose in the long run by waiting. Waiting for a “spring bump” or an influx of out of state Buyers to sell? Don’t.

You can’t sleep in a stock certificate. Don’t deny yourself the pleasure of owning what you really want, enjoying the tax benefits of real estate ownership, and putting to rest the anxious moments of trying to second guess the market. Be smart … act now. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com , Email Us or call 775-781-5472.

Where Have All the Buyers Gone?

We’re on the market but aren’t getting showings … where are the Buyers?

Our initial response is to address your price … are you priced right? That is elementary and essential. Assuming your price is right let’s look at today’s Buyers. Buyers today are very informed. They generally know the market, what is going on in the community, what is going on in the financial/lending world, and the many other factors that can affect market dynamics. This information is available on the internet, in print publications, and other media. They know what is happening so-o-o … “Where are the Buyers?”

There are Buyers actively shopping and making offers to buy. Their quantity is not what it was a couple of years ago, and there are many, many more properties available for them to buy. What is changing is where people are buying. When the Carson Valley real estate got too pricey a few years back people went to Dayton for affordability and investment opportunity. As Dayton got priced up they went to Yerington. As the prices came down this scenario unwound, the Yerington market slowed, Dayton slowed and they came back to the Carson Valley which is now quite affordable.

It doesn’t end there. Our market has been driven by people moving in from out of state, primarily from California. For some time we’ve waited for those people to sell their homes thinking that their slow market was causing our market to stall. Now we are seeing some of those markets so price decimated that the need or desire to buy in our market isn’t what it was. Investors that were investing in Northern Nevada can buy properties in their local market in the $300,000 range that were in the $500,000’s a few years ago. They are investing locally. Likewise, people that wanted the lifestyle of a $500,000 home, and were coming to Nevada to get it can stay home and achieve it today without moving to Nevada. Those coming for tax relief? Most people in the $300,000 price range aren’t that dramatically affected by the Nevada tax relief and many are now staying home.

Our Advice: If you are determined to sell in this market … price it right. There is no substitute. Your agent can’t buy an ad big enough to overcome improper pricing. Look ahead – where are you going and what will selling your property do for you. The market will change in time – it is up to you to decide if you are going to wait for it, or act now and achieve your immediate real estate goals. Don’t be hung up on price or value – it is your position in the market that counts. That will get you where you’re going.

Be aware of where you are positioned in the market. The Buyers know your market position… which may be why you aren’t getting showings.

Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com, 775-781-5472. Email us at carsonvalleyland@hotmail.com