(Click image to enlarge. Raw data taken from Federal Housing Finance Agency.)
In this post I want to show you the yearly percent change (taken from 4'th quarter results) of house prices in Reno-Sparks from 1979 to 2010.
It's been almost six years since the last time a home in Reno or Sparks hit the positive equity mark. You can see the above graph as half-empty or half-full. Is there a real possibility of a double dip in home prices? Meaning, the 2008 (4'th quarter) low of -18.17 could happen again, possibly even worst? Yes, that could happen with the lingering stench of local unemployment (highest in the nation).
But basing on the same set of numbers, is it also fair to suggest that the absolute bottom of the Reno-Sparks real estate market possibly took place at the same time in 2008 (4'th quarter) at -18.17? I think that's a real possibility too, until the market disproves it by going lower (double dip).
As always, this is where my job screeches to a halt. I'm not here to make a final judgement of the market. Every buyer and seller has a unique financial standing and at the end of the day you know what's best for you. But I really hope that you were enlightened about what's been happening in the last 31 years with Reno-Sparks home prices, and, equally important, how it could influence Reno-Sparks real estate future.
|Office Address:||985 Damonte Ranch Pkwy. Ste.110|
Disclaimer: All information in this Blog are deemed reliable but not guaranteed. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions."