3 Reno Residential Real Estate Myths Debunked
The experienced real estate team at YaYa Group discuss and debunk some of the myths facing the Reno residential real estate market.
Myth #1: Because it’s a seller’s market, it’s a bad time to buy a home.
The nature of the Reno residential real estate market – or any real estate market, for that matter – is that it’s constantly evolving. Even though the market here in Reno is currently favoring sellers, buyers can still find great homes while capitalizing on the historically low interest rates.
“The real estate market is always challenging. It’s a cycle of 10 years, basically. Take ‘08 for example, it took the market 10 years to get out of that,” says Ro Azulay, realtor with YaYa Group. “You’re always seeing something challenging affecting real estate, because real estate is touching every one of us. When it’s the buyers market, the seller will have challenges. When it plateaus and is not a buyers market or sellers market, it’s a challenge for everyone. But wherever there is a challenge, there’s an opportunity. And where there’s opportunities, that’s exactly our spot as real estate professionals to guide our clients through the process.”
As Louie Damonte III, another YaYa Group realtor, says, the most important thing is to develop an understanding of customers’ needs. Will they need a home their family can grow into? Do they need to consider school districts? Will they want to downsize in the future? What neighborhoods and areas do they want to be near? What is their budget? After developing an understanding of those needs, a good realtor can help them find properties to suit those needs.
“It’s not doomsday,” Louie says. “This is just one of the challenges we are able to help our clients work through.”
Myth #2: Commercial and residential markets operate in a similar climate.
Commercial and residential real estate, whether in Reno or anywhere else in the country, are affected by entirely different trends, patterns, and behaviors.
“Commercial is still booming,” says Ro. “We are seeing developers talking about a lot of obstacles in labor cost and material cost, so we’re not seeing a lot of new development. So the challenge right now is, the demand is high, and the amount of available properties are decreasing.“
In Reno’s residential world, however, things are starting to cool down. Although it’s still a seller’s market, Ro says, “we’re seeing a lot of price decreases, and we don’t see a lot of multiple offers. We’re seeing more properties coming to the market.”
From a residential real estate standpoint, there are still complexities and opportunities for both the buyer and the seller; (for example, buyers may have less competition for their desired property, and have more power to negotiate price.) Sellers are still in a strong position, but they may have to flex a little when negotiating with buyers.
“Every year, we are seeing appreciation and equity continuing to grow,” Ro says.
Myth #3: When there aren’t enough houses on the market, developers can just build more.
The Reno residential real estate market may be cooling, but it’s still a seller’s market. It can still be tricky to find the perfect home to suit the buyers’ needs. It’s easy to look toward new builds rather than purchasing an existing home, but that comes with complexities of its own.
“Builders have a huge obstacle because they started to build developments two or three years ago with certain budgets, but now building costs are way above that. So they need to increase prices,” says Ro.
High lumber prices, labor shortages, and local permitting processes all present challenges to those looking to build a new home. But as Viktor Ganchev, YaYa Group realtor, says, “it’s just taking longer, and it’s more expensive.”
Here at YaYa Group, we guide you through the buying and selling process with your goals in mind, and present you with different options and creative solutions every step of the way. When you work with us, you’re more than a client, you’re a friend, and we always strive to go above and beyond to exceed your expectations.
Ready to buy or sell in Northern Nevada? Connect with our experienced real estate today. Visit yayarealty.com to get started.
WHAT OUR CLIENTS SAY
- "Working with Ro and YaYa on selling and buying a new home has been the best experience. You hear nightmare stories about selling and buying at the same time, but this process has been seamless. I sat down with Ro and YaYa to discuss my needs, and within 4 days my home was in escrow and over the amount I could ever dream. A few weeks later I was also in escrow on my new home. No storage fees, interim living between the two homes because they listened to my needs and found a buyer willing to work with my request. They are an amazing team to work with and I couldn’t have asked for a better experience."