The most recent 30-day period gave the first glimpse of that impacts stay-at-home orders are having on real estate in the Reno-Tahoe area. Many theories have abounded ranging from recession-level price drops to scenarios that include an acceleration of interest in the region for cost and quality-of-life reasons.
The first data that reflects a month at least partially impacted by the rapid change of lifestyle reveal a perceptible drop in transaction volume but relative stasis in all other metrics. The number of closed residential transactions dropped 27% from the same period in 2019 adjusting from 1042 down to 760. Similarly, the month-over-month change was a 22% drop in a time when spring activity tends to ramp up. Nonetheless, average price rose a healthy 7.6% while median rose a more impressive 10.4% demonstrating health and optimism among the home buying public.
Optimism in a gradual return to “normal” beginning in the next month along with increased purchasing power driven by historically low-interest rates have conditions near optimal for those whose employment status is unchanged. Moreover, tighter lender standards over the last decade post-recession combined with forbearance allowances have succeeded in forestalling mortgage distress. With owners in a better position to protect equity, there has been relatively little panic selling through this event.
Our outlook for the future remains bright as conditions that have positioned Reno as an optimal destination for relocation are as apparent as ever. Lower cost of living and higher quality of life as compared to many communities throughout California and the west have Reno poised for a robust recovery.
Reno’s reinvention as a business and transportation hub over the last decade has positioned the region for a healthier and more sustainable recovery compared to many southern Nevada communities that are still dependent on tourism and gaming; industries that appear to have a much more difficult road ahead.
- Which Reno businesses are able to open under the Governor’s plan
- Without Burning Man, businesses get creative
- Reno Tahoe Airport gets federal aid
- Small casinos are also eligible for aid through CARES Act
- Small Business Administration loans offer a lifeline to Nevada small business
- Some essential businesses are expanding based upon stay-at-home demand
- Developers are pushing forward with plans despite economic uncertainty
- Also pushing forward; Reno Public Market, Thompson Garage, McCarron Industrial Project, Victory Logistics District
Most notably, we’ve done a great job flattening the curve. What we do over the next weeks and months will determine our recovery.
Stay safe and well.