Reno Home Blog

Introduction to Reno Home Blog: Why we exist

Reno Real Estate Market Recap: 2005-2007

Reno Real Estate Report: 1993-2005

Reno real estate market: 1993-2005

"History shows us that when a real estate bear market bottoms out it looks more like an L-shaped pattern.  Gradually going up in value."

Hello, My name is Ian Mariano.  I am the head of market research for Joe Salcedo Group.  Our broker is Chase International.

Welcome.

In this video I aim to do two things.

1. To show you the appreciation of home prices in Reno from 1993-2005. .

2. I want to give you a realistic guess on how much your home would appreciate in the coming years. We will base this 'guess' from the 13-year history of the Reno real estate market.
   
   I have been asked a number of times on what I think will happen in the Reno real estate market market after it reaches a bottom. Though no one exactly knows what the future holds. I do believe that  History gives us clues. And I want to show that to you today.

I've also heard people say  that once the real estate market reaches a bottom, right after that, it will go up again(Forming a V-shaped patter) similar to what we've seen happen in 2002-2005.  In my opinion this is a very dangerous assumption.  The history of the real estate market does not support this theory.   History shows us that when a real estate bear market bottoms out it looks more like an L-shaped pattern.  Gradually going up in value.

Let's look at the numbers.  Here you have the Median Sales Price  for Reno,Sparks & the North Valleys. By the way,This data was produced by the Bureau of business and economic research.

Notice that from 1993-2001 we didn't have very big numbers. Six percent increase in 1993 by 2001 we saw a 4.1 % increase in home values.  And it's the same story with Reno's neighboring cities of Sparks, North Valleys. In fact when I computed the average home appreciation from 1993- 2001.  All three cities were in the 4% growth/year . But something happened from 2002-2005. we went up three hundred percent across the board.

In a span of four years  we soared to 18-20%/ home appreciation per year in  Reno, Sparks & North Valleys.  From four percent to an unprecedented twenty percent in the top of the market.

So for the question of the day. Where are we right now? Since 2005- to the present, as many of you know that the market is going downhill.  We have yet to find a bottom. But once we reach that lowest point.  It is dangerous to live from this position. Meaning,  We won't be having 18-20% appreciation in the next ten years minimum.  It is more wise to expect our homes to go up in the 4-7% range per year. And even this won't happen right after the market bottoms out. History shows us that It takes a while to go up again even to 4-7% /year.


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