Your Local Real Estate Sales Resource

2007 in Review...
and Predictions for
2008 for the
Residential Real
Estate Market

Homebuyers, sellers, REALTORS®, lenders and builders alike are all asking... "Are We There Yet?" Has the real estate market correction seen the "bottom" yet? Here is the review of 2007 by the Reno/Sparks Association of REALTORS®:

In review for Reno/Sparks:

• The chart of the median home price trend line shows a 100% increase in the median price of Single Family Dwellings between January 2003 and January 2006, when it peaked. Median home prices have since dropped and particularly dramatically in late 2007, ending at a median price of $281,750 at the end of 2007. If you review the chart of the "Real Estate Market Dynamics" you'll see we are in Phase IV, probably near its end.
• If you wanted to go back in time to get the prices you can get today, you'd have to go back to Spring 2004.
• The months' supply of inventory in the resale home market alone at the end of 2007 was 12.4 months — which means that we have more than one year of home inventory to clear. The National Association of REALTORS® defines a buyer's market as six months or more of inventory on market and a seller's market as less than six months of inventory on market.
• The sub prime mortgage crisis that started last spring created financial difficulties for many. We will continue to see the impact of this into 2008.

So, our predictions for 2008:

• The National Association of REALTORS® predicts a 1.5 to 2% additional decrease in the median home price nationally.
• We are predicting an additional 5 to 8% decreases in the median home price in the resale market for 2008 and then home prices may remain flat for a period of time.
• We anticipate that there will be a pent-up demand of buyers waiting to see the bottom which may invigorate the market more quickly.

So, is now a good time to buy? It is... IF:

• You are in for at least five years. If you had bought a median priced home five years ago you would still be $100,000 ahead.
• You can take advantage of very positive rates.
• You can negotiate within market dynamics (there ARE deals).
• You like a lot of choice of inventory for sale.
• You have an educated REALTOR® who can show you why a property is or is not a good deal.

Source: Reno/Sparks Association of REALTOR®