While home prices in many of Nevada’s most sought-after neighborhoods and cities have seen steady increases, there is some good news out there for home buyers. It seems home and property prices across the country are down from their peak in the summer of 2022, according to the National Association of Realtors. Will that trend come to Nevada? And what should you look for when buying a home? We have some tips to help with your search and financing.
What is Driving Current Prices
Realtor.com recently reported that the median listing price in Reno was down 3.4% at $545,900 in February 2023. In Vegas, prices were up 3.7%, with the median listing price at $425,000.
What is pushing current prices? In Reno, a balanced market, where supply and demand are about the same, has caused things to stabilize. That’s a welcomed change. In Vegas, demand is up, with less than 6,000 homes for sale earlier in 2023. That’s caused a rise in home prices and bidding wars for homes in neighborhoods with high-ranking schools.
What to Look for as a Buyer
There’s an old adage in real estate: never buy the biggest and best house on the block. Translation? Buying a fixer-upper or a home in a less desirable neighborhood can be financially beneficial. Yes, buying the best house means you’ll have extra-large bedrooms and more. But, you’ll pay a premium to own that home. Wouldn’t you rather make updates and remodel as you go? Then, you can watch the value of your home go up along with your equity.
Ask your real estate agent, including one available through the HomeAdvantage® (link) network, about lesser-known neighborhoods in your area. Consider regions where home prices have remained stable or have yet to be affected by the housing market. Properties away from city centers can also be less expensive in some situations. Smaller homes without all of the amenities could also help you save money. If you can live without a pool or the extra bedroom, you could have an easier time convincing the seller.
Is it a Buyer’s or Seller’s Market?
News sources paint a different picture depending on the time of day and the weather. All joking aside, it’s still a seller’s market throughout most of Nevada — especially in and around Las Vegas. That means you’ll likely compete with other hopeful homeowners for the same house or property. Chances are, there will be multiple bids from several families, driving up prices and eliminating your chances of negotiating over the price or features.
The Market Could Work in Your Favor
As interest rates rise, the number of families that qualify for a half-million-dollar home loan will dwindle. In theory, as the number of potential buyers drops, home prices are expected to follow. Additionally, the longer a home stays on the market, the more likely the seller will be willing to negotiate and make allowances for things like a new roof and other improvements.
Watching the market shift can help you find an affordable home, but remember that a rise in mortgage rates means you’ll pay more for your home loan. The professionals at One Nevada are here to help you apply for your first or next home loan.
One Nevada is Your Home Loan Leader
Start your home-buying journey with a pre-qualification at any branch or online at onenevada.org. Our team of home loan specialists will show you all of your options, help you plan ahead, and send you out to begin shopping for your dream home. That includes our on-time closing guarantee1 and the chance to earn a cash reward2 when you finance your home with us.
1. Closing guarantee available for new, first-lien loan applications submitted directly to One Nevada Credit Union only. Other terms and conditions apply. Ask loan officer for details.
2. Cash reward is equal to 20% of your agent’s commission when enrolling in and purchasing your home through a real estate agent in the HomeAdvantage® network.