National Trend Holds True in Reno

Interesting article from Realtor Magazine points out that, nationally, neighborhood names have a certain cache’ — that can translate into cash for home buyers and sellers.

The article leverages data from Porch.com, which states that neighborhoods that include “Village,” “Hills,” and “Island” in their names report higher average incomes.

Free tahoe photo

We see a few of those neighborhood names in Northern Nevada. Incline Village — an area knows for its luxury properties, comes to mind. The names vary considerably by state. In our area, I would put “Ranch” in the top five indicators: Caughlin Ranch, Rancharrah, Callahan Ranch, for example. The research doesn’t go town by town, rather it looked at the entire state.

Here’s a list of other “high value” names nationwide:

Realtor Mag Graphic on Name and Income

Porch researchers looked at the neighborhoods with the highest incomes and home values in each state. Read the full article here.

Holly O’Driscoll is a Realtor with Chase International Real Estate in Reno, NV. Contact: hodriscoll@chaseinternational.com or 775-850-5900. 

 


Will Reno’s “Crazy” Growth Continue?

Reno, Nevada

Reno, Nevada expects 50,000 new jobs in the region in the next five years.

By Holly O’Driscoll 

Worried home prices and growth in Reno will crash? Many people seem to be. I have clients who think prices are too high and want to wait for the next downturn before purchasing a home.

Advice from the economic development and building experts: Don’t!

Growth of jobs and population in Reno/Sparks outpaced the “crazy” projections in the last five years — and those who study the numbers say the next five years will be more of the same.

Citing data from the Economic Planning Indicators Committee (EPIC Report), Aaron West, CEO of the Nevada Builders Alliance, contends Reno, Sparks, Carson City and surrounding communities are in for a wild ride and long-term growth in home prices and availability.

Growth is outpacing the “crazy” predictions

Some of the EPIC statistics and projections, West shared at a recent recent Residential Real Estate Council meeting include:

  • From 2014-2020 (a five-year span) the region was projected to add 52,400 jobs.
employment_chart 2018

  • The reality: by the end of 2018, there were 58,400 new jobs in the region!

That’s more than 10,000 jobs per year — and we have a year to go on that projection. 

What about the next 5 years? 

That growth trend is expected to continue for the next five years, West said.

  • At that pace, this area will have 50,000 more jobs by 2024.

That means more than 100,000 jobs will have been created in this area between 2014 and 2024. Each “job” is estimated to add 2.3 people to the area (spouses, children, extended family). 

Crazy right? That’s not all: Retirees are moving here in huge numbers. Many sell their outlandishly-valued California homes. They come — and buy here for cash. 

When we marvel that home prices in Reno have jumped by 10+ percent year over year, this is why. 

This is basic supply and demand economics. All those newcomers have to live somewhere — construction of new housing has NOT kept up.  

To further support the job-growth projections, take a look at the industrial/commercial side of the equation:

  • In 2018, nearly 2.4 million square feet of industrial space was added to the region.
  • Another 4 million square feet is in the works for 2019.

Does that sound like a recession is coming? No. Big businesses are investing here. They will need workers. 

Facts:

  • Nevada has a much friendlier business climate in terms of regulations and costs than many surrounding states.
  • Nevada has an incredible personal tax advantages over neighboring states (No income tax, no inheritance tax, no estate tax).
  • While housing costs in Nevada are rising, elsewhere on the West Coast is much worse.

Conclusion: If you want to move up, do it soon! Prices are unlikely to fall, and with more people arriving monthly, competition will heat up for the best available properties.

For more information on this topic see the Epic Report produced by the Economic Development Authority of Western Nevada (EDAWN)

Holly O’Driscoll is a Realtor (R) with Chase International Real Estate in Reno. Contact her at hodriscoll@chaseinternational.com


5 Reasons to Buy a Home in Winter

Evans Ave Front pix

On the Market: 1056 Evans Ave., Reno, NV: The sellers of this 4-bedroom home near the University of Nevada, Reno, are motivated! The property was listed in December for $529,000. 

 

The “best deals” for home buyers often happen in winter. Sure, there are fewer homes on the market to pick from, but homes newly listed or still on the market when it’s cold outside, are there for a reason: Sellers either need to sell now, or the property didn’t sell earlier in the year.

Plus: With fewer buyers out looking, there’s less competition for those homes. In a tight market like Reno/Sparks, that can make a huge difference in actually getting a home. Multiple offers still happen, particularly in the lower price ranges, but a buyer in Reno/Sparks might be up against one other offer vs. six.

Here are five great reasons to buy a house between December and May:

  1. Bang for your Buck   

In a tight market like in Reno/Sparks, prices tend to jump several percentage points as the weather warms.  On average, about 40% of homes sell in spring and summer (May – August), according to The Housing Wire. Homes generally sell for $1,500 – $3,000 more than those sold in winter, according to Zillow.

  1. Sellers are Motivated (or Finally Ready) 

Whether a house is a new listing, or simply didn’t sell earlier, sellers tend to be serious, and ready to consider all offers, during the winter. This may give buyers more room to negotiate and perhaps get a better deal.

  1. Fewer Choices = Easier Decision

Fewer homes may seem like a disadvantage at first, but perhaps it’s not.

There’s an overabundance syndrome known as the paradox of choice. This happens when people have so many good options they dither and end up losing out or second guessing themselves. They dwell on the “what ifs” – which leads to less satisfaction with whatever choice they make.

  1. More Attention

Buyers flood the market in spring and summer, which strain the time resources of Real estate agents, lenders, title companies and other professionals. In winter, homes may not sell in two days. And, once in contract, it takes less time to arrange for appraisals, inspections and repairs.

  1. Furnishing a New Home May Cost Less 

Need new appliances or furniture for that new home? In general, winter sales offer great savings, according to Consumer Reports.

Conclusion: A buyer may indeed find that perfect home in winter. If not, looking now helps buyers clarify what “perfect” means. By doing their on the ground research now, when that ideal home does come up for sale, they’re ready.

Buying a home is the largest investment most people ever make, and should not be done in haste just to save money. Consulting with a lender, personal finance professionals all come into play before buying a home at any time of year.

That said, do consider starting your search soon. Forecasters say the housing shortage in Reno/Sparks will continue for some time.

Holly O’Driscoll is a Realtor (R) with Chase International Real Estate in Reno, Nevada. Email her at Hodriscoll@chaseinternational.com or call her at 775-850-5900.

 

Thanks to Mike Pulley, who contributed to this article.

 


Potentials and Pitfalls of a Fixer-Upper in Reno, NV

How many home buyers say they want to buy a “Fixer Upper”? Yet, when it comes down to actually deciding on which home to buy, how many discover really don’t even want to paint? In my experience, most buyers!  For those who really do want to tackle a fixer upper, potential profits (and pitfalls) abound.

Prime considerations when investing in any type of real estate include location, value and potential. Consider these questions when buying any “used” property, especially in Reno, NV:

  • Could renovations/rebuilding bring the property up to the price point of newer/nicer homes nearby homes?
  • Do you have the money and/or skills to buy and fix it up?
  • Do you want to live at the property for a few years, or quickly flip and sell?

In Reno, investing in a fixer upper gives buyers the chance to move into a neighborhood they might not otherwise afford. Living in a home after it’s “fixed” gives it time to appreciate in value.  Renovation shows on TV only hint at the reality of fixing up a property. Are you intrigued enough to consider it?

Mt Rose Highway Kitchen

Vintage mixes with dated renovations: Original fireplace, tile counters circa 1980s. 

 

One of my current listings at 4955 Mt. Rose Highway is a true “fixer upper” with potential:

This home in South Reno offers a great example of opportunity vs risk/reward. This area is close to Lake Tahoe, skiing and just about 15 minutes to downtown or the Reno-Tahoe International Airport. Home prices rank among the highest in the region.

In the last year, 208 homes nearby homes sold.  Of the 66 on one-acre or more, only 19 allowed horses, only 14 had RV access/parking. The median sold price for those 66 homes:  $791,250. Compare that to the $499,000 list price of the property in the photo.

Mt Rose Highway House w Mountains

Built in 1965, the original ranch house is ripe for renovation. 

This fixer upper was built in 1965 and sits on 2.35 acres. Back then, Mt. Rose Highway was considered “country” and “way out of town.”  Today, luxury custom homes, gated communities with private golf courses mix with semi-custom subdivisions prevail. For the most part, older homes are the ones with enough land and the proper zoning (no HOAs and low-density suburban) to have horses, RVs or other toys.

That’s the opportunity.

The challenge: Having the vision, energy and funds to fix it up.

Best features: Wide-plank hardwood floors and a large, brick wood-burning fireplace. The home has a natural gas furnace and water heater (vs propane). Washoe County officials say the well was re-drilled in 2003.

The Potential

This property – includes the main 2,171 square-foot house, a detached 3-car garage, and 300-square-foot guesthouse/home office. The buildings sit on the northwest corner of the level lot. The nearest neighbor to the east can’t even be seen. To the west, a greenbelt and a public access trail/dirt road borders this property, with a home beyond.

Mt. Rose Hwy View 1

2.35 level acres is zoned for horses with sweeping Sierra Nevada views.  

Ripe for renovation: The most obvious replacement priority: the wind-damaged roof. Some features appear original, or at least vintage – particularly the pink bathroom sink and the metal-framed windows. Dated, but perhaps not original: tiled kitchen counters and jetted tub upstairs. The property has a detached three-car garage of uncertain age, and a separate building that at one time was used as a guest quarters.

The pitfalls:  The property is older, with everything that could/might entail. This property borders Mount Rose Highway, a direct access route to Lake Tahoe. The level 2.35 acres is mostly open space, with natural vegetation (mostly sagebrush). Prior owners had horses, and the county allows this.

The competition

Within a 2-mile radius, of 27 homes on 1 acre or more actively for sale only eight allow RVs (seven of those allow horses).  Median list price: $1.1 million. Of the homes sold in the last year, the median price was $760,000.  Of the many ways to parse and leverage statistics, lot size, age of home and HOA restrictions are being used here.

Does it pencil out?

That’s a question only an individual buyer can make on any fixer upper — whether it is this property, or a starter home on a city lot. Certainly bringing this property into the 21st century is possible. These last two photos are of the same house — Really! The first is from 2010, when it sold for $295,000. The second is from 2017, when it sold for $700,000. Is buying a fixer upper a challenge you are ready, willing and able to tackle? Let’s talk!

Contact me, or have your agent contact me, for a private showing:

hodriscoll@chaseinternational.com.

Phone/text: 775-762-7576.

Holly O’Driscoll is a Realtor® with Chase International Real Estate in Reno, Nevada. She has lived in Reno for 20+ years. 


Why Reno? Lifestyle, Opportunity, Value

Cityscape taken from TMCC. Photo by Sandy Goff.

By Holly O’Driscoll, Chase International Real Estate 

Surrounded by mountains and blessed with an enviable climate, Reno and Sparks offer a breathtaking beautiful place to live, work and play.

Living in the RenoSparks area with its quick commutes, attractive and affordable housing options and its easy access to outdoor adventures attracts thousands of new residents every year. Those who already live here understand the specialness of being able to escape to the Sierra Nevada, Lake Tahoe or Pyramid Lake; to find adventure kayaking in the Truckee River or exploring the Great Basin; or to just relax in one of the many parks. Few communities in the world allow you to ski in the morning and play golf in the afternoon. From Reno, both options are within just a few miles of each other.

Here work-life balance is a reality.

Quality of life and the business-friendly philosophy attract global co2014-05-24-13-56-37rporations to the area and encourage start-up businesses. Tesla’s decision to locate here grabbed the headlines, yet many other high-tech firms, manufacturing plants, distribution facilities and service companies thrive here, plus add balance to our economy’s important tourism and special event sector.

Job Growth

In 2016, the Economic Development Authority of Western Nevada (EDAWN) reports that 25 companies relocated or expanded operations in the region bringing hundreds of new jobs. More companies — and jobs — are coming, EDAWN says.

Culture

Museums along with music and theatrical companies enrich the community and draw nationally known artists perform throughout the year. Generous local and national philanthropists support The Nevada Museum of Art, the National Automobile Museum, the month-long ARTown Festival in July.

The Pioneer Center for the Performing Arts hosts the Reno Philharmonic, Reno Opera, the AVA Ballet, as well as national touring productions of Broadway plays. Headline entertainers regularly perform at the spectacular showrooms at the many casino resorts, at events centers and at other local venues.

Sports

Sports enthusiasts fill the seats to watch the Reno Aces, the minor league baseball Pacific Coast League team play and they support the Reno Bighorns, a D-League basketball team affiliated with the Sacramento Kings. The latest pro team: Reno 1868 FC, a United Soccer League team will debut at Greater Nevada Field in February 2017.

Residents participate in adult leagues for nearly every sport imaginable from rugby to coed softball. Area youth leagues serve even the youngest soccer, football, basketball and baseball players.

Serious bicyclists train here by peddling up mountain highways while mountain bikers hurl themselves down rocky trails in the Sierra. Hikers can find a trek to suite any ability. With 18 world-class ski resorts within a one-hour’s drive and thousands of square miles of back country skiing nearby, skiers and snowboarders use Reno and Sparks as a base camp. Golfers can tee up at more than a dozen championship ranked courses within Reno-Sparks, with a dozen more in surrounding resorts.

Buying a Home 

One of Reno’s main attractions is affordability.  Urban lofts, historic bungalows, gated golf course developments, luxury custom homes, active adult communities, horse properties and homes in subdivisions give people many choices in living style

In 2016 the median price for a single-family home in Reno/Sparks was $304,999 – which means half sold for less, half for more, according to a report from Chase International Real Estate. Condos are an increasingly popular option. On the lower end, buyers can find condos below $200,000. The luxury condo market is growing as well, with penthouses selling for $1 million or more.

Education

The University of Nevada, Reno and Truckee Meadows Community College systems enroll more than 25,000 full-time students, plus numerous private colleges offer continuing education in many fields. Public/private partnerships with area industries are expanding curricula and training people for local high-paying careers. Entrepreneurship plays a significant role in the area economy.

Reno-Sparks has four major hospitals offering state of the artsnowman1 medical care, Carson City has a large hospital, plus the University of Nevada, Reno has a medical school and nursing program.

 Climate

The high desert climate of Reno and Sparks offers four distinct seasons and basks in
more than 300 days of sunshine each year. Most of the valley sits at about 4,500 feet above sea level and the dryness of the elevation soften the seasons. Summer days can top 90-degrees, yet the lack of humidity makes that tolerable, plus most nights cool down dramatically. In winter, even the coldest, snowiest days lack the bite of dampness.

Reno History

First settled in the 1850s, Reno was originally named Lake’s Crossing. The discovery of the Comstock Lode of silver in the mountains to the east led to one of the greatest mining rushes of all time. The area boomed, the Central Pacific Railroad built a depot here and in the 1860s the town was renamed to honor Major General Jesse Lee Reno, a Union officer who was killed in the Civil War.

Though the local mining boom faded, Reno continued to prosper as a commercial and business center. Large scale mining continues in other parts of the state and Nevada ranks as one of the top gold producing regions in the world.

Sparks History

The City of Sparks was built by the Southern Pacific Railroadmichael-train and named after Gov. John Sparks in 1904. Today tourist, commercial and industrial businesses fuel its economy and its residential areas extend far to the north into Spanish Springs.

Visitors from around the globe come to Reno-Sparks for its wide range of special events, from the Reno Rodeo in June through the National Championship Air Races in the fall the area covers the gamut of interests.  Once they discover the beauty, the quality of life and the affordability, most want to come here again.

Quality of Life is more than a hope. It is a way of life in Northern Nevada.

Have a question about Reno/Sparks? Leave a comment or send me an email! Email: Hodriscoll@chaseinternational.com


Christmas is a Great Time to Buy a Home!

Selling or buying a home in winter poses unique challenges — and real estate opportunities.

Seasonal swings in home prices and number of homes on the market happen in many cold climates, including Northern Nevada. Trees lose leaves, lawns turn brown. Hopefully, there’s snow on the ground. Sellers fret that buyers can’t see and appreciate the lovely landscaping they worked so hard on. Buyers must use their imaginations or rely on photos to understand the summer beauty of a home on the market in mid-winter.

Yet people buy and sell homes all year long. Families grow, promotions or new jobs require people to move, and many other life-changing events  prompt people to list a property for sale in winter.

Whether buying or selling a home, use these tips to get the most out of this real estate season!

Are you a  Buyer? 

Fact: There are fewer homes on the market from December – Marc2525 Rio Alayne Ct Sparks NV-print-006-1-11-2500x1668-300dpih, so buyers have fewer homes to tour and from which to select. BUT those homes that are available are there for a reason — their sellers are motivated! In many cases, price points may be less than homes that get listed in spring.

Fact: In many markets, prices frequently jump in the Spring and early summer, then level out or even retreat for the rest of the year. In winter, some sellers are more willing to negotiate, if not on price, on other points. Buyers who wait until spring to start looking, may miss the boat. If prices jump again, but a buyer’s budget doesn’t, then they may have to buy less house.

Fewer buyers = better chance at getting a great property at a better price.

Timing: The weeks before and after Christmas are great times to make an offer on a house!

The reason: Many agents and many buyers take the holidays off. Less competition may mean a better deal for those in the hunt for a great home.

Are You a Seller?

Homes for sale in mid-winter fchristmas-front-doorace the challenge of fewer buyers. Make the most of what your home has to offer with these tips:

• Turn the lights on! Outside  may be blustery, cold and dreary, so make the house you’re trying to sell warm and inviting.

Home buying is emotional.  Create a comfortable environment for buyers. Add lights to dark corners, Consider installing recessed lights in dark hallways. Add lamps on a timer. Both are fairly inexpensive, yet very effective tactics to make your home sparkle on a dark day.

• Keep the heat on! No one likes a cold house. Many modern thermostats have timers for night and day. Use one, especially in a vacant house. Set the daytime temperature at about 68 degrees.  If a home is barely warmer inside than it is out, clients just won’t stay very long. Don’t lose a sale over a few dollars for heat.ornament 2013

• Consider professional staging. Smart designers can re-purpose or re-arrange your furniture to give it a better flow for touring. Decorate — but not too much. Pack up your personal items — photos, toys, games, “stuff” you are moving anyway. Look at model homes — which maximize a room’s features by strategically placing a minimum amount of furniture. Just enough to give an idea.

Odd fact: empty rooms look smaller than furnished rooms. Again, play into the emotion of buying a home. You want a buyer to pick your property over all other options. Focus on staging the master bedroom and the rooms you spent the most time using and enjoying. Kitchens: Only one item on the counters, and perhaps a small breakfast table staged with coffee cups hint at cozy conversations.

• Show the summer scene with photos!  An album, 8×10 display stands clearly show buyers how much shade the now-barren trees provide your yard. Colorful fruit trees? Glorious roses? Share photos of how lovely your garden will be in just a few months.

dollar sign artReno Market Insights: Inventory is still low. Is buying new construction the answer? Maybe not. Developers used to price homes below existing homes in Northern Nevada. Not no much today — especially when factoring in lot premiums, nearly mandatory “upgrades” plus the hidden costs of window coverings, landscaping and customized paint. Buyers who think they really want brand new, may  find their dollars go farther in “used” home — especially before the traditional spring price hike hits.

So from today through January ‘Tis the Season to, perhaps find a great deal! 

For more information, call/text 775-762-7576 or send an email to hodriscoll@chaseinternational.com

Holly O’Driscoll is a Realtor with Chase International Real Estate in Reno, Nevada. 

 


Interest Rate Jump Hurts Home Buyers

Since the election, mortgage interest rates jumped 1/2 percent, according to a briefing this morning from one of our mortgage partners.

“Interest rates should increase gradually during the next four years under a Donald Trump administration, which could dampen growth in the housing industry, economists and housing experts predict,” according to The Street, an online economic blog.

It’s already happening. Rates offered to borrowers with excellent credit jumped to 4.25 percent for  30-year fixed-rate loan. That’s a real shock to consumers used to rates starting in the 3-percent range. The new numbers are low by historical standards — yet psychologically, it hurts.

 

It also cuts into consumers’ buying power. The lender I spoke with explained that a half percent adds about $44 per month to the payment on a $200,000 loan.

That may not sound exorbitant. Over time it adds up. And, it cuts buying power for many clients. Depending on their income and credit rating, every incremental increase in mortgage interest rates means they can afford less house.

Various economic websites are using “skyrocketing” “relentless move upwards” when talking about recent spikes in interest rates. Will rates continue to rise? I have no crystal ball. In one weekly report, 50% of economists said “yes” If that happens, buyers will afford less house.

25 Back 4 10611 Buckhorn Ridge Ct. High Res (36 of 59) Back

10611 Buckhorn Ridge, Truckee, NV $2,999,000

How does that impact buyers? Higher interest rates mean higher monthly payments and it will take a higher income to qualify for the amount a consumer could get last week.

How does it impact sellers? By shrinking the buyer pool. Will it hurt list prices for homes?  Not immediately. Logically a sustained increase in mortgage rates has to effect sellers.

  • Will it spur buyers to lock in a rate before they climb even higher?
  • Will it price buyers out of the market?
  • Will sellers have to lower the property price? Will they negotiate more?

What do you think? Let me know!

Holly O’Driscoll, Chase International Real Estate, Reno, Nevada. Call/text: 775-762-7576