Mortgage rates are falling in anticipation of the September rate cut, down to 6.77 percent for the week of July 18th per Freddie Mac.

Additionally, existing home inventory has increased by 35.8 percent year-over-year as of mid-July. Dr. Rossell attributes this to a diminishing “lock-in effect.” Homeowners with low mortgage rates from previous years are now moving despite higher current rates.

However, median home prices continue to rise and new construction remains stagnant, presenting affordability challenges. 

Luxury home prices in Reno, NV have more than doubled since the COVID-19 pandemic.

The Reno housing market has seen a notable increase in luxury home prices, positioning it among the top cities in the nation for price growth. This surge is driven by several factors, including a strong influx of buyers seeking both primary and secondary residences in this vibrant city.  Reno continues to attract buyers due to its favorable tax environment, proximity to outdoor recreational activities, and a strong job market. This demand has led to a competitive market, particularly in the luxury segment.  Reno offers a blend of urban amenities and natural beauty. Buyers are drawn to the quality of life, with easy access to Lake Tahoe, ski resorts, and a burgeoning arts and culture scene.

However inventory has now grown in the Luxury Market. Montreux, a private gated community with a Jack Nicklaus SIGNATURE golf course, at present has 16 homes on the market and we have only had 4 sales this year. One actually is the highest priced home sold in Montreux at $7.50 Million. The other 9 homes that have sold are actually homes that were sold 2 years ago and had to be built  but are now completed. With inventory increasing we are now in a buyers market. Interestingly, most sales in Montreux occur in the 4th quarter, so let’s hope things will pick up later in the year.

In Reno, if we take homes that are over two million dollars, considered Luxury homes, we have 104 homes of which 90 are active with 12 under contract. 6 have been sold this year in Reno over $2 M. Once again confirming that we are in a buyers market.

Now is the time for sellers to repair, update, paint or consider lowering the price of their home.  It also appears that as this year is an election year the market is waiting to see what happens on November 5th, 2024.