Real Estate in Northern Nevada Looks more Positive in 2013

Residential real estate is improving and builders’ forecast looks more positive.  After 5 years of almost no construction more buildings are now going up in the Reno/Sparks area. With more demand for new  homes expected in 2013 residential real estate experts are more hopeful that  perhaps we have hit bottom and that we are turning around to a more positive future. With limited existing homes and a low inventory on the market, builders are seriously considering once again to start building more homes is our area.

The area saw a 65% increase in new home sales in 2012.  Spanish Springs, south Reno and north west Reno showed the most construction activity in 2012 and that trend is expected to continue this year, with an estimated of 925 new homes sales and 950 permits. In Montreux alone we have approximately 7 new homes being built at present, with 23 home sales in 2012, up from 2011,  and only 26 homes on the market at present, we are in a situation were  inventory is low and demand is up.

Nevada had the second-highest home foreclosure rate in the nation last year, but in the longer term, the state’s is now showing improvement. For the first time in 5 years Nevada is not at the top in terms of foreclosure filings, taking second place behind Florida.  This was reported in tracker RealtyTrac 2012 report.  Additionally, Nevada’s rate reflects a 56.5% decline from 2011 and more than 70 percent drop from 2010.

The commercial real estate  market is likely to see a slower recovery as no new construction is expected with the excess of inventory already in the Reno/Sparks market.  They predict it will continue to be slow but steady.

Governor Brian Sandoval believes the table has turned and there is light at the end of the tunnel for Nevada.  With unemployment   lower than it has been in over three years and falling faster than almost every other state in the nation.   With Education taking budget priority.   $300 million, will be allotted to three areas – K-12 education, higher education and the Department of Health and Human Services.  There is no doubt in my mind that Nevada is still a great place to live!