Jim Valentine: New projects being developed
One sign of a good economy is seeing real property development. When developers are investing in improving their property holdings, it shows that they have confidence in a good market and that they anticipate the market remaining solid throughout the development period, anywhere from six to 18 months depending on the project complexity and size.
There are currently many new projects that have been approved, are in the process of being approved or are being negotiated with the intention of taking the property through the approval process all over Northern Nevada. During the recession, even developed lots weren’t selling nor was there any new construction to speak of. All that while project development was non-existent. That has all changed.
We have learned recently of projects anywhere from five-acre lots to townhomes from Fernley to Reno to Minden. The demand for housing in Northern Nevada is excellent and should continue to be strong given the many “Chamber of Commerce” attributes the area offers and the diminishing appeal of living in our feeder markets. The new projects will compete with existing product but we anticipate that they will be readily absorbed by our high demand market that needs more inventory.
The new projects will take time to be created so their impact for now will be an anticipatory one. Property owners with projects coming to their immediate area might wish to sell before they get additional competition. Buyers might see an ideal living situation in a new project and decide to hold off buying until the project is completed. If you do that, remember that you don’t know the ultimate price of the finished product, interest rates are still very good now if you need a loan when you purchase and the cost of materials is skyrocketing due to increased demand from recent natural disasters and pent up construction demand due to the recession. Time for a session with your crystal ball to peer into the future to foretell what will happen and how it will affect you.
Not only are new lots being planned and created, there are many homes under construction. Where there was nary a building permit pulled during the recession years, all you need to do now is drive around to see all the fresh lumber going vertical around the region to know that builders have confidence in the economy as well. There is a good mix of pre-sales and spec (speculative) homes which makes for healthy competition. Some buyers are moving to new construction due to the lack of inventory on re-sale homes right now. While there is competition, there are options for buyers, and in the upcoming weeks and months there will be many more as the spring inventory hits the market and the new projects get finaled and become available. Despite the frustration from a dearth of inventory, this is a good time to be a buyer with the changes that are coming.
Our advice: The local economies are strong with the many new jobs being created in the region and the retirees moving to the area with their reliable retirement income stream and profits from the sale of their home. Northern Nevada should maintain its strong real estate market for some time to come. If you are looking to buy or sell be sure to look at the big picture, things that can change your position in a month or six, before you make a decision that you might regret. Work with your agent to get perspective on your specific circumstances and how you relate to the market with your wants and needs. With a good perspective you can move forward, or not, with confidence and comfort.
Real estate agents are here to tell you when to buy or sell or not. If it isn’t the time for you to take action based on your situation and your agent shares that with you, you have a professional agent. Stick with him when the time does come to act. 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