Nevada Housing Market Earns a "C" Grade Despite Rising Home Prices
Nevada's housing market earned a “C” grade in the latest Nevada Department of Business and Industry stability index. The index looks at several factors, including the number of homes on the market that are in some stage of foreclosure.
Reno-Sparks Association of Realtors’ board member Ken Amundson says the report includes distressed properties in Las Vegas, which affects the numbers here in the Truckee Meadows. "We're at 21% here,” said Amundson. “That sounds high, but when you consider it was over 40% a year ago and over 58% two years ago, it's a major improvement," he explained.
Amundson watched the housing market sky-rocket and then plunge over the past 11 years. "It went up over 120% from 2002 to 2005. That's way more than it should (be) in any normal market," he said. Since the housing bust, prices here have finally come back to normal. "Right now the market is almost precisely where we would have been if we'd never had the bubble," Amundson said.
Realtors like Beau Keenan of Dickson Realty have more buyers than homes. "Especially under the $300,000 market. It's typical that a house -- priced right-- has two to three, or up to ten offers on it within 24 to 48 hours right now," he said.
Keenan says demand is high because fewer homes are underwater and interest rates are still low.
"We have a lot of people who can afford homes. We do worry about affordability as prices rise," he said.
And Keenan says one surprising factor has come into the market in northern Nevada. "Baby Boomers downsizing gives us a lot of demand in the $200,000 to $300,000 range. They want to get into a smaller home but young families are competing there as well," Keenan told us.
Experts say that even though the stability index gives Nevada a C grade, realtors here are seeing prices stabilize and have plenty of people who are looking to buy.