Reno-Tahoe real estate posted yet another strong month for closed transactions in February 2020. While the momentum in the local market is undeniable, closed transactions are generally a lagging indicator of economic conditions given that most deals are consummated 30-60 days prior. As such, the impact of recent economic events will not be quantifiable for another month.
Regardless of interrupted supply chains or other global-political events, the need for work and housing remains foundational. Fortunately, our region continues to be the nationwide leader in the creation of new jobs while offering an extraordinary place to live. Innovation has fueled an entirely new economy in Reno from a generation ago. As a result, demand for housing in the Reno-Tahoe area promises to remain intact well into the future.
In fact, historically low interest rates provided a meaningful boost to the housing market mid-2019. With a recent rate cut from the Fed, we may see rates even lower in the coming weeks and months providing affordability options that have never previously existed. With inventory balanced and cost of ownership low, the fundamentals of Reno remain as strong as ever.
Market conditions will fluctuate over time. Given the premise of ownership extending longer than one economic cycle, most homeowners will be pleased to have had the opportunity for habitat in a quality environment with the opportunity for an efficient exit strategy; whether for upward mobility or other factors, when the time comes.
Back to our daily lives; out and about in Reno:
- A hierarchy of Reno neighborhoods, by affordability.
- The rising cost of housing is creating an increasing homeless problem.
- Tiny houses have been offered as a solution and people love them; but they still aren’t a thing.
- …But traditional trade jobs are underserved.
- That state of banking in Nevada.
- Jet service just got easier.
- Measuring demand for office space has gotten more difficult.
- Winter has been mild but tourists have continued to visit.