Real estate markets and values have long been thought to be influenced by the same thing year after year. Location, location, location was a phrase used and parroted by real estate professionals and consumers alike. Supply and demand created a buyers’ market or a sellers’ market. Typical to most other areas of our lives, market influences today can go far beyond these simple, logical factors.
The vast information resources on the internet today enable buyers and sellers to have easy access to a lot of information that gives them a broader view of things. We know that much of the Northern Nevada real estate market is driven by people moving in from out of state, primarily California. Those feeder markets can be easily monitored online giving us a window to our future. If sales slow or prices move, up or down, over there we know that trend may move our way in 30-60 days.
If there is a major disruption in those markets we can consider its influence in our market. An example of such disruption would be the destructive fires our neighbor state experienced in recent years. Hundreds of homes were burned. While those burned out properties aren’t saleable, many of those owners are taking their insurance payout and moving to Northern Nevada. Another influence we experienced from those fires is the need for construction materials and labor to rebuild. Construction prices have increased as a result.
Increasing construction prices are now influencing potential new home buyers or lot owners that were going to build. The recent construction boom was a welcome relief to that industry that was so stressed from the recession, but some of these external factors are going to play in to their absorption in the market.
What will affect our market more, a pandemic or national politics? Actually, local politics are at a point in Nevada where things are being passed or implemented that have, or will have, a negative influence in real estate. Passing legislation to pander to a base to the detriment of property owners is not healthy for a real estate market. Time will tell what the fall out is on that. We have one thing in our favor, despite the atrocious new ordinances or laws they are still milder than the politically overreaching insanity that is going on elsewhere.
Hard to think of a pandemic impacting us in Northern Nevada, but there is a large one brewing now that is catching the global leaders off balance with its intensity and spreadability. Some are projecting that it could result in a global economic down turn. What would a global economic collapse do to our market? For years we in Northern Nevada were impervious to such events, but we saw in the last recession that a true global situation will reach us and it did. Will it again? Hard to project the influence of this pandemic as it is so new, but it is moving fast and is already changing international business and banking practices due to limited travel.
Weather can influence a market. We’ve had a mild winter this year, some winter days have felt like spring days. People are moving about and buying. Interest rates have remained low and stable, but that can change quickly with market influences. Election years can influence a market and we are in one now.
Our Advice: Buy the best crystal ball you can afford and peer into it. Keep looking. Look really deep. There will be an answer. In reality, it will be a reflection of your heart and thoughts. Go with your gut to satisfy your wants and needs and your real estate decisions will be right for you. Be sure to take a look around for influences, discuss possibilities with your agent, but in the end, decide for yourself what is right for you.
Don’t overthink it. “Paralysis by analysis” is a real phenomenon. Don’t be a victim of waiting too long to have the stars align just right, you might find that you missed the proverbial bus when you wanted to get on it.
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. firstname.lastname@example.org