(click image to enlarge)
"You must never confuse faith that you will prevail in the end--which you can never afford to lose--with the discipline to confront the most brutal facts of your current reality, whatever they might be."
-Jim Stockdale, 8-year POW in the Vietnam War
This is the biggest jump in five years (homes sold) in the the Reno-Sparks real estate market.
Buyers are more comfortable at current home prices than they ever were in the last three years. Don't make the mistake of thinking that the market has bottomed--not necessarily.
But the good news is history has shown us that a market bottom takes place when supply can't keep up with demand, buyers competing with each other.
This is already happening in the$250,000 and below price range.
If you have followed the news in the last six months it has gone from "worst" to "getting better". I talk about the news not to profit from their information but to get an idea on how people feel about real estate. The less afraid people are about the economy the more they buy--including homes.
The S&P 500 has been going up since March 10, 2009:
(click image to enlarge) picture from: moneycentral.msn.com
But the biggest factor in the increase in sales is affordability--more people are more comfortable in their mortgage payments than in the last five years.
Investors are seeing cash flow potential, especially in North-Reno where a $67,000 home ( $445.75/month mortgage: 7% interest, 30 year fixed ) can be rented for $700-$900 /month.
In summary, sales are up, prices are still going down--but for how long?
Let's wait and see.
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