Jim Valentine: New year things to pay attention to
Here we are in 2019, full of wonderment and expectations for the new year. With all that is going on in the world one can’t help but ask where our attention should be focused as it pertains to real estate matters. The first thing that comes to mind is prices and values. No, they aren’t necessarily the same thing. Prices are what people will pay while values are what they are really worth. Or … is what they pay what they are worth? Something to ponder for a while.
Prices in Northern Nevada have been adjusting slowly since late summer, early fall. We are seeing many price reductions on a daily basis in the regional Multiple Listing Service. With reports of major feeder markets slowing in sales numbers and prices, one can only surmise that our declining market will hold or continue for a while. The feeder markets are usually more affected by national politics and economics than our regional markets are, but the impact they experience ultimately transfers to our market as we feel the adjustment to the changes they are experiencing. The Seattle Times reported this week that the median price in Seattle, recently the most dynamic market in the nation, has dropped $100,000 in the past seven months. So will our market go up, down or remain stable where we are at? Something to pay attention to.
Interest rates can modify real estate activity in a hurry. Rates have been stable for many years now, but there have been changes lately and rumors of more to come. Whether in our true economic interest, or simply political ploys, interest rate adjustments can change our market dynamics and pricing and must be watched.
The stock market can impact real estate when profits are taken and investors return for a cycle in real estate. Stocks ran in 2017 and 2018, then dropped at the end of 2018. Now they are going up again. Where the roller coaster ride will end is anybody’s guess, but those not willing to go along for the ride anymore most likely will come back to the stability of real estate. With real estate having checked but still below the 2005 peak in the market, there might be some room for appreciation as well as cash flow from real estate investment. If you are looking to buy a home, you might want to get ahead of the market and buy as soon as possible.
This is a year in which our Nevada Legislature goes back to work. As with most political endeavors, we must pay attention so we aren’t surprised by legislation that will have an adverse effect on our private property rights. In these times, some government officials try to balance society with legislation that isn’t always fair or moral to property owners. Pay attention to the legislative activities as much as you can and be sure to speak up if something goofy comes down the pike. The session is just a few months long, but the impact of poor legislation can last for years.
Is it time to remodel your home? Freshen its appearance with new paint, flooring, etc.? If you are holding it, keep it fresh and enjoy it. If you are considering selling, freshen it so if you decide to enter the market you are ready at the time you make the decision. Where is your neighborhood market going and what is happening in the neighborhood(s) that you are considering moving to? Can you sell high and buy low? Pay attention.
Our advice: As with any worthwhile investment, real estate requires that you pay attention to the many things that impact its return to you. Whether it’s financial or an emotional return on your investment that you seek, you should pay attention to the many details that can enhance or diminish your investment during the course of your ownership. Are new subdivisions coming? Are businesses expanding or contracting? What can you expect?
Ostriches put their head in the sand when they don’t want to see something. That is not the way to handle your real estate investments. Go in with your eyes wide open.
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.