As a real estate investment advisor in Reno, I believe it is important for investors to focus past trends. National trends only tell part of the story. They also may not apply to the local market. Looking at past trends and indicators will help to forecast what will be happening in the near and distant future.
One of the indicators investors need to know is the historical appreciation rate for real estate. The historical appreciation rate has been in the ballpark of about four percent during the last four years. Right now, as a real estate investment advisor in Reno, I see that the appreciation rate is well below four percent in northern Nevada. The local real estate market is below the historical appreciation rate by 15 percent. What that means is median home prices locally are currently 15 percent below what they should be. It also means that homes are undervalued by 15 percent.
As a real estate investment advisor in Reno, I use the information I have about the appreciation rate and begin to look ahead. To get back to the appreciation rate of four percent, the local market needs to see some big increases. If you are an investor, you do not want to wait and see when those big increases will occur. Once those appreciation rates start rising, it will be too late to take advantage of any of the deals that are available right now.
When looking at real estate, investors people tend to focus too much on what is going on nationally. Investors also need to find out what is happening locally. As a real estate investment advisor in Reno, it is essential that national, local and historic trends and information are used to help figure out what will be happening residential real estate in northern Nevada
Your Savvy Real Estate Investment Advisor,
Serving the Greater Reno, Sparks, Carson City, Fallon, Fernley & Elko real estate markets