Low Inventory Creates Seller's Market

By: Denise Wong Email
By: Denise Wong Email

Reno, NV - It's a seller's market in northern Nevada. Right now, home construction is picking up because there just aren't enough existing homes available on the market to meet demand.

"In every price point, the best houses are being snapped up immediately," says Mike Smith, a Reno realtor with REMAX Realty Affiliates.

Smith says if you're in the market to buy a home, get ready for a bidding war.

"The market is crazy right now because it's suddenly a market where there's a huge shortage of houses. So there's many many buyers chasing the same houses," he says.

Experts say inventory is so low, mainly because of a state law that went into effect last fall. It created more paperwork and procedures for banks - which has slowed down the foreclosure process.

"And it just suddenly stopped all foreclosure notices in their tracks," says Smith.

That means fewer homes for sale. Smith says it used to be, when someone wanted to buy, he'd have 15 - 20 properties to show off.

"But now, like this new home buyer who wants to move to Reno from Carson City, that called me three days ago, we showed him just three houses and that was it," says Smith.

While this low inventory may be frustrating for buyers and realtors, it's good news for home builders.

"Home builders are building again," says Blane Johnson, president of the Nevada Realtors Association. "The number of permits they've been pulling to build new homes is way up over what it was just six months ago."

But whether you're looking to buy a new home or an existing one, realtors say get ready to pay more than the asking price - and move quickly.

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