Selling Your Reno Home Successfully: Navigating Mortgage Rates and Inventory
Marshall RealtyIf you are ready to sell your Reno property, it's important to understand how limited supply and higher mortgage payments can influence the sale price of your property. While we're in the midst of the spring 2023 home buying season, it appears that the market is not living up to its usual expectations. Rising mortgage rates and a tight inventory have created a standoff between buyers and sellers. Many Reno sellers are looking at alternative listing options like instant cash offers to sell their homes fast for cash. In this blog, we'll explore how these factors impact home prices and provide tips to help you navigate the market successfully.
Mortgage Rates and Their Effect on Buyers
One crucial aspect to consider is the impact of rising mortgage rates on potential buyers. In April, mortgage rates experienced a 15-basis point increase, leading to a decline in pending and existing home sales. Buyers are becoming more cautious due to the higher rates, which can make purchasing a home less affordable. This means that as a seller, you may face a smaller pool of qualified buyers. The demand for your Reno property could be seriously impacted if listed through traditional channels.
Understanding Reno Inventory Challenges
Another factor that directly affects the selling process is the limited housing inventory. This scarcity of available homes has contributed to the continuous rise in home prices, which can work in your favor as a seller. However, be sure to understand that the limited inventory also poses affordability challenges for many buyers, particularly first-time homebuyers. This may further narrow down the pool of potential buyers for your property.
Understanding Price Trends
When it comes to pricing your Reno home, it is important to have realistic expectations based on the current market conditions. While the existing-home sales price experienced a slight 2.4% decline in recent months, substantial nationwide price drops are unlikely. The tight inventory continues to prop up prices, maintaining their relatively high levels. Staying informed about local market trends, accepting instant cash offers, and consulting with a Reno real estate agent can help you sell your home fast for cash.
Preparing for a Successful Sale
Given the challenges in the market, we at Marshall Realty Reno suggest the following ideas when preparing your Reno home for sale. Here are those tips for sellers:
- Prep your home: Invest time and effort in making your property attractive to potential buyers. Consider staging, decluttering, and enhancing curb appeal to make a positive first impression.
- List it competitively: Set a realistic and competitive price for your home based on comparable sales in your area. Work with a Reno real estate agent like Marshall Realty Reno to determine the best pricing strategy.
- Increase Traffic: Take advantage of our Massive Marketing Program to promote your listing and reach a broader audience.
- Be flexible: In a market with limited qualified buyers, be open to negotiations and consider instant cash offers to sell your home fast for cash. Flexibility will enable the smoothest transaction for all parties.
- Work with a Professional: Partnering with the best real estate agent in Reno will lead to the highest return on your investment. Marshall Realty Reno understands the local market and can provide valuable insights and expertise throughout the selling process.
As a seller, it's essential to be aware of the impact of mortgage rates and inventory challenges on the current Reno real estate market. Understanding these factors can help you set realistic expectations, price your home competitively, and implement effective strategies to attract qualified buyers. By staying informed and working with an experienced Reno real estate agent, you can navigate the market successfully and achieve a successful instant cash offer on your property.
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Now is the Time to Sell, as Real Estate Markets Shift in Northern Nevada
Marshall RealtyThe Reno housing market in Northern Nevada has had a healthy run over the last few years, experiencing unprecedented growth in both home values and skyrocketing prices.
But through the end of 2022, many Reno property owners have noticed home prices beginning to taper off. The consensus amongst the best realtor and housing professionals is that homeowners should sell now, as this may be the calm before the storm in which home values suddenly drop.
The U.S. economy is positioned to enter a recession in 2023, the severity of which can be debated. Nevertheless, many economists agree that a national housing correction is almost explicitly assured, given current economic data, which will ultimately impact Nevada real estate home prices.
Why is Now the Right Time to Sell?
Trends data indicated lower home prices for November 2022, alongside fewer home construction starts nationwide and weaker appetites amongst institutional homebuyers to purchase inventory.1 Specifically, Reno property sales dropped off in December 2022, with the median sales price for a home hitting $495k, or a 2.9% decrease from the year prior.2
Granted, most experts agree that a sudden crash to the housing market is unlikely, they also believe that a 10-15% hit to home prices is not out of the realm of possibility. Uncertainty about the economy and spiking unemployment are definitely contributing factors that can hasten a larger market correction.
The next housing correction has the potential to be the biggest correction post-Word War II, aside from the 2008 financial crisis.1 As real estate markets begin a downward shift throughout the Reno housing market and Northern Nevada, Marshall Carrasco and the Marshall Realty team recommends that homeowners sell now while property values are still elevated.
Capturing pandemic and pre-pandemic fueled equity will be crucial to selling your home for more money. Reports verify that most homeowners are still in the black, despite slight market changes. Most homeowners have gained an average of $92,000 in equity since the start of the COVID-19 pandemic.3
Another reason Marshall Carrasco and the Marshall Realty team advises homeowners to sell now is the lack of available inventory. Currently the Reno-Sparks supply sits at around 2.5 months.4 A healthy market typically has a 4–6-month supply of homes for sale. Get an instant home value at www.marshallrealtyteam.com.
Buyer affordability continues to be one of the biggest struggles. While Reno is doing better than other areas across the country, the average mortgage payment has still increased by around 50%.4
Tactfully approaching affordability issues can help you sell your home faster. Offering the funds to buydown a buyer’s mortgage interest rate, or help covering closing costs with a seller’s credit, can be the extra boost needed to help push your sale across the finish line and put more money in your pocket.
Tips to Sell Your Home Fast
Reno property owners need to act quickly to leverage current seller advantages before the market inches even closer towards normalization. Reno real estate is still in high demand but implementing the rights sales strategy to sell your house fast can sometimes be tricky. Let’s take a look at a few ways to develop your sales strategy that will allow you to sell your Nevada real estate in a pinch.
- Know How Much Your Home is Worth
Knowing how much your Northern Nevada real estate is worth is one of the biggest factors effecting how fast you can sell your home.
It’s important to know what your home is worth so that you can price it correctly when you go to list it. You want to price your home in a way that both attracts buyers but also maximizes your overall net profit.
If you price your Reno real estate to low, you may be losing money. If you price your Reno real estate to high, you may not attract as many buyers. Another factor to consider is that home values and prices are continuously shift throughout the Reno housing market. That means it can be harder to pinpoint your home’s true value and an appropriate listing price.
The best way to figure out just how much your home is worth is to get a home valuation by a Reno agent. Marshall Carrasco is the Reno real estate guy that can help you figure out how much your home is worth to help you properly price your property. - Understand How Long It Takes to Sell a Reno Property
It’s important to understand the typical timeline for selling Reno real estate so that you can set clear expectations and even take steps to help get your home sold faster.
In 2022, the average Nevada home sale took over two months to close after it was listed.5 Nevertheless, utilizing the right real Reno agent can help cut that time significantly. Realtors have varying networks, marketing strategies, and pricing tools that can expedite the sales process.
Marshall Realty’s unique, multilayered sales strategy has seen results that far exceed the national average and can help streamline the time it takes to sell your Nevada real estate. If you are really in a bind or simply don’t want to wait to get the money you need from your home, there are even instant cash offer options. - Utilize the Best Reno Realtor Available
If you want to sell your house fast and for more money, you must partner with the right local real estate guy that can get you the most bang for your buck. You want the best real estate agent with a proven track record for selling home quickly at above asking price.
Whether you have a traditional single-family home, luxury condominium, or multifamily property, Marshall Carrasco can help you sell now.
Marshall Carrasco and his Marshall Realty team have over 20 years of experience helping sellers protect their equity and aggressively negotiate terms that allows you to sell your home for an above-market rate. Whether its through a traditional listing or via a cash offer, Marshall Carrasco will make sure you get the most money for your home before the real estate market shifts further in Northern Nevada.
Sources
1 Allcott, D. (2023, February 8). 2023’s Housing Correction Could Be The Largest Since Post-WWII. Yahoo Finance. Retrieved February 15, 2023, from https://www.yahoo.com/now/2023-housing-correction-could-largest-165335648.html
2 S-Ehrlich. (2023, January 17). Is A Crash On The Horizon For The Booming Reno Housing Market? Retrieved February 15, 2023, from https://www.s-ehrlich.com/is-a-crash-on-the-horizon-for-the-booming-reno-housing-market/
3 McMillin, D. (2022, November 28). Homeowner equity data and statistics. Bankrate. https://www.bankrate.com/home-equity/homeowner-equity-data-and-statistics/#five-years
4 Hidalgo, J. (2023, January 10). Reno median home price falls to lowest point in year and a half; Sparks dips below $500,000. Reno Gazette Journal. Retrieved February 15, 2023, from https://www.rgj.com/story/news/money/business/2023/01/10/reno-median-home-price-falls-to-lowest-point-in-year-and-a-half/69795975007/
5 Ayers, J. (2023, February 3). Average Time to Sell a House in Nevada. Clever Real Estate. https://listwithclever.com/real-estate-blog/average-time-to-sell-a-house-in-nevada/
Was the Reno Housing Boom So Hot It’s About to Crash?
Marshall RealtyIt has been three years since the global lockdown and record-breaking housing boom for Nevada real estate. At Marshall Realty, we watched the Reno housing market crash to rock-bottom lows and jump to all-time highs from 2021 into 2022 but now home prices seem to have peaked. The current threat of a recession has sellers asking themselves, “Is it a good time to sell?”
Looking back, the worst housing market crash took place after similar up-and-down trends in 2005 and 2007. In today’s terms, any looming recession is being intensified by rapidly rising mortgage interest rates and high consumer inflation. Multiple real estate experts continue to predict Reno real estate prices could fall by as much as 15% by the third quarter of 2023 making now the time to sell your home and get an instant cash offer.
Recessionary Factors
The real estate experts at Marshall Realty continue to point toward a general level of financial health that was not present during the 2008 housing market crash. Reno homeowners have solid levels of equity, distressed properties are low, and lenders are working with creditworthy buyers. This gives Reno, NV sellers optimism that buyers are in better positions when entering transactions. However, if unemployment numbers shift, inflation continues, and buyers’ jobs and savings accounts are threatened, recessionary factors could shift quickly.
It remains unclear how quickly the Federal Reserve will gain control over inflation in 2023. There are many factors affecting buyer demand. For many Reno homeowners thinking about listing their properties, gaining a thorough understanding of the local market and pricing their property to sell fast will be the most important factor.
How Much is Your Reno Property Worth?
A positive factor to consider when pricing your home in early 2023 is that the real estate supply remains relatively low. While the ultra-competitive market behaviors between buyers and sellers of 2022 have cooled, demand still exists. Buyers are waiting for homes to come onto the Nevada real estate market and prices have not returned to pre-pandemic levels. Seasoned Reno realtor, Marshall Carrasco believes that if a home was sold in 2023 it would still bring in 150% of what it would have before the pandemic signaling there are still returns to be made for current sellers. Visit marshallsellmyhome.com for an instant Reno home value!
Sell Your Home and Get an Instant Cash Offer
During these uncertain times, it is crucial to work with a real estate pro like those at Marshall Realty. The key to properly evaluating your home and pricing it to sell is partnering with an experienced Reno realtor. Marshall Carrasco and his team understands your neighborhood and its comparable property sales. They will take into consideration your property’s size, location, features, and condition to determine how to properly position it in the best way for sale.
By working with a licensed Nevada real estate team like Marshall Realty, you will gain access to sophisticated marketing tools and the Multiple Listing Service (MLS). While listing your property on your own may seem affordable, attracting the most buyers and negotiating the highest price ensures the best possible outcome during real estate market downturns. Access to valuable local Reno housing market trends and expert advice during the selling process saves you time and increases your return.
