This week national real estate news has indicated a more optimistic outlook than previous weeks. On May 4th Zillow Forecasts a Dip in Home Prices, Rebounding By Next Year. In summary, this forecast predicts a 2 to 3% drop in prices through the end of 2020, followed by a slow recovery through 2021 with prices matching 4th Quarter 2019 by 3rd Quarter 2021. The report also suggests sales volume, having dropped 50% during COVID-19 crisis, will recover to 97% within the same time period.
But, while national real estate trends have influence on our local market, national statistics and data don’t always paint an accurate picture of what is going on here in Northern Nevada’s real estate market. Reno Sparks trends suggest our sales volume has dropped since the WHO Pandemic Declaration, but median prices are actually up from mid February and early March. Our Days to Contract, this being the time between a home is first listed on the MLS to an accepted offer and a Pending status, is hovering around 40 to 45 days.
Mortgage rates are near historic lows, reports The Washington Post. Freddie Mac released data indicating the average national 30 fixed rate loan was 3.26% with .7 points. Last week it was 3.23% and 4.1% a year ago. While purchase loans, which are tied to sales volume have slowed, the number of homeowners refinancing has gone way up. CNBC reports, that while refinance applications decreased 2% for the week, they are up 210% over last year.
Over the next few months we will see the impact of the CARES Act mortgage forbearance plans, rent relief and eviction protection. DS News reports that the biggest test for the economy is going to be at the end of June, when recovery programs phase out and many forbearance plans come due.
As always, if you would like to discuss your individual situation, or have an interest in buying or selling real estate in Northern Nevada, please give Robert Range a call, text or email. As a Realtor and “essential business” in Reno, Nevada we have been working through out the COVID-19 crisis in a safe and responsible manner. Virtual tours, video walk-thrus, electronic signings are just a few technologies that we, as real estate agents, have been using for years, but have become an even more integral part of the real estate business with social distancing and following CDC and Nevada state guidelines for the coronavirus.