Builders Hope Mid-Range Prices Make Existing Homes More Affordable
Construction is happening throughout Reno and Sparks, and as new homes are going up, so are the prices.
Construction is happening throughout Reno and Sparks, and as new homes are going up, so are the prices. The median home price in Washoe County is $355,000. In Reno, it is $365,000, and Sparks has a median price of $335,000, but experts say they are at a much more sustainable level than during the housing bubble about a decade ago.
"It's a more stable increase and there's also zero investors, which is a huge shift from last time around," Taylor Cohee, Director of Sales and Marketing at Ryder Homes said. "Last time there was a ton of speculation and right now, it's people that are qualified and want to live in the homes."
Cohee says today's buyers are much more qualified, too. Many have equity, including those who bought their house during the height of the housing market and earlier. Many are looking to buy their second home, and can use that equity to move out of their starter home and into a new, more expensive one.
"They're able to trade up to a bigger house, more space, which is making a lot of that inventory available on the market at the lower price range, which is obviously greatly needed out there," Cohee said.
That could be good for first-time buyers who might not be able to afford a mid-range price of $400,000 to $600,000, but can find something in a lower price range. With rising rent and lowest interest loans, some residents are weighing their housing options.
"The rent/buy equation is starting to make a lot more sense to buy for folks," Cohee said.
Cohee expects prices to keep rising throughout 2018. While new construction helps with supply, one of the biggest challenges is finding people to build the new houses.
"One of the last things in America that's built by hand is a home and go getting folks that are capable and know what they're doing and skilled and enough of them is very difficult right now," Cohee said.
Ryder Homes is building 64 houses in its Somersett development. They will be for sale by the end of January, and the first homes will be ready for people to move into by the summer.