An abundance of available homes is leading to some great deals for local buyers. According to national statistics, median-home-prices are down more than nine percent from last year. In Reno, Realtor David Hughes says home values are down up to 40 percent from their high point. The drop in prices is one reason why home sales were up almost 3% across the country for the month of September.
Mortgage rates hung below six percent in September, but banks want to make sure borrowers stay in their homes. That means the days of non-qualifying loans are all but over. Sharon Turner, of Heritage Bank of Nevada in Reno, says there are still good loans available. Someone seeking a primary residence may qualify for an FHA loan with as little as 3% down, but she says money for investment property will require more security. “At least 20 percent,” she says.
As turbulence continues on Wall Street, David Hughes says some investors are returning to the security of real estate. “They’re putting their money into another home because even though values are down 40 percent right now it’s going to come back sometime,” says Hughes. “We don’t know when. It might be 5 years, but at some point it will be back up that 40 percent.”