Reno real estate is on fire. Supply is low and demand is high which has caused Reno home values to increase rapidly. One major challenge in the Reno housing market is the bank appraisal. If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
Every month, Quicken Loans measures the disparity between what a homeowner believes their home is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). This report shows the gap between homeowners and the appraiser’s opinion has started to head in the right direction (closer to even). June saw a slight decrease of .6% from May’s -1.95% nationally but things are looking even better for Reno homes! The report showed that Denver received its highest HPPI last month as homes came in an average of 3.28% higher than the homeowner believed it would. Nine of the twelve metro areas that had a positive HPPI last month are located in the west and having the west coast trend well helps Reno, Sparks, Fernley, and Carson City real estate markets!
Quicken Loans’ Chief Economist, Bob Walters explains:
“The hot housing markets along the West Coast are growing quicker than owners realize, giving way to higher than expected prices for buyers and more home equity for existing owners. On the other hand, the housing markets are more balanced in the East and Midwest, leading owners to be slightly over-enthusiastic about their home’s appreciation.”
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be more difficult than the first. If you are planning on entering the Reno housing market() this year, call Marshall Realty today (775) 787-7400. Our team of local experienced real estate agents will look at your situation and talk about what’s happening in our area.