The Buildup is Here
- Marisa Stewart
- Mar 13, 2023
- 2 min read
Spring is when the housing market starts its' climb in activity. Since this is the case, it is a great idea to look at what your local area is doing. Here is a look at what is happening in the Carson City and local area housing markets.
Prices
With the jump in interest rates and the holidays colliding, news and social media have been an overload with buzzwords like "crash" and "bubble" but the data says otherwise. Even with the extreme jump in equity over the past few years and the sudden decrease in home activity, the prices for homes are still up year over year, with forecasts of continued increase.
This means that when the market begins to pick up this spring every home, even the lower priced homes, still have so much potential to increase in equity.
Interest Rate Expectations
Of all the influences on the real estate market, interest rates are right up there with price on what changes a client's decision. Understandably so, as the interest rate will greatly affect the monthly cost for a home purchase. Last fall the interest rates had reached their peak for the year, doubling from their rates in January. This scared a lot of buyers, and honestly caused a lot of buyers to be out-priced. Currently we are headed back to that same high, due to multiple low unemployment reports and high inflation reports. The FED will try to bring these numbers into a better balance by increasing the cost of purchase across the board until purchasing decreases, including mortgages and homes.
There is another federal reserve meeting this March 15-16, in which we will hear more about where interest rates will continue for the next little while. For now here is where we sit compared to last year.
Where to go from here?
What do these numbers mean for you? Well the real question is, what do you want? Buying a home is a great way to build wealth, but never at the cost of your financial stability. Meet with a lender and a real estate agent (like me!) to help you look at what it is you can do! If you can afford it, and you want to own, there is no better time than the present. Waiting to buy will never pay off, as in the long run interest rates can be refinanced and home equity will always be increasing. But every home has a different situation and meeting with a professional will be the only way to truly know what you can do, or how you can put yourself in the position to buy.
Just for fun, here is a picture of some of the surrounding mountains in Dayton, NV recently. It has been a snowy winter, but the recent rain has melted the snow on the valley floor. So pretty in the crisp morning!
Attached is all of this information in a PDF, in case you want to look at it later.
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