Jim Valentine: Outside influences in real estate
As big as the real estate industry is, there are influential factors that occur once in a while that are beyond our immediate control. These can be wide ranging and their influence varied, impacting some but not all, or impacting everybody. Once identified, quantified, and qualified, the true impact can be assessed and a perspective developed for the specific buyer/seller and situation.
Interest rates are one of those things that has a direct impact on the market, but not on all Buyers and Sellers. The record low interest rates we are enjoying today are helping the market to thrive in what could otherwise be a quiet period given the Pandemic environment. This is in sharp contrast to the experiences we had in 1980 when interest rates shot up to 18% and 9 points (a point is 1% of the loan amount) for a VA loan. We were saying in 1981, “We could make a living if interest ever gets back to 12%!” It is interesting that we can thrive in a Global Pandemic, but things went off the proverbial rails when interest rates soared. Interest is important.
Climate has a way of influencing real estate at times. The summer heat can cause home Buyers to look in the morning or early evening to avoid the heat of the day. Conversely, in the winter a wonderful snow storm can slow some folks down, maybe delay their home tours a few days until things clear up. The timing of extreme weather can help or hinder the viewing, transaction and transfer of a home.
Ecological matters can influence with little the impacted parties can do about it. In the Carson Valley there is the issue of the Leviathan Mine. It has been worked on for years, but once in a while there are mishaps and who knows what is coming down the river. Our drinking water is pure so the only real impacted properties would be those close to the upper part of the Carson River. Yerington has the Anaconda Mine, a Superfund Cleanup site about which much has been written but little spoken. Not really sure how it affects the local properties as the government has quit buying drinking water for the wells around the site and they aren’t proclaiming any public danger notices. Inquires of public officials only result in the topic being treated like a Teflon coated hot potato.
Decisions by the local governmental approval bodies can have influence neighborhoods as well as the region. A no growth attitude can halt commercial development, slow the creation of jobs, and stagnate the economy. Homes may go up a bit due to scarcity, but they can also be negatively impacted by poor governmental attitudes and performance. This topic broaches the subject of private property rights, a commitment that every Realtor takes an oath to protect when they are awarded their “R”. There is a fine line at times between a government protecting the community by practicing good planning, and an uncompensated taking. Know your rights and respect those of others.
Social mores and values contribute greatly to real estate considerations. Their apparent breakdown in our neighboring state is causing a major influx of “refugees” to our region. It is important to sustain those and keep the lifestyle that we live and love intact so as to protect our treasured way of life.
Our advice: When buying a home be sure to broaden your perspective as you evaluate the property, neighborhood, community and region. In Northern Nevada most will appeal nicely, some more so than others due to your personal lifestyle preferences. Pay attention to the many market influencers and how they may affect your purchase or sale, both positively and negatively. When you do this properly you can be comfortable and confident in your buying or selling decision. Make your action plan, work it, and enjoy your life.
Always look beyond your fence line when buying or selling property to determine what is out there that may influence your real estate decisions and processes. The other party will know about it so you should inform yourself. When it comes to choosing professionals to assist you with your real estate needs…