Is now a good time to buy in Reno? (Spanish Springs: sales, rent)

[dajohnson99]

I am looking to buy a house in Reno (S. Meadows/ Damonte Ranch) but I'm looking at home values and I'm blown away by how much they have gone up. My parents bought a house on the hill behind Damonte Ranch High School with incredible views of the city and beautiful finishes for $311,000 in 2012, that same house is now estimated to be worth $599,000 and was actually listed earlier this year for $585,000 then was removed.

The reason I'm thinking about maybe holding off is because my parents also bought a house in 2003 up in Spanish Springs on one acre for $323,000 in 2003, then sold for $540,000 in 2006. That same house was going for $235,000 at the end of 2011. Seeing this gives me hope that maybe the Reno market will correct again.

Now, I know that the low home prices almost a decade ago were a result of the 2008 crash but regardless of that. Do you see Reno home prices going down in the near future, and would right now be a good time to buy or should I wait?

[TaoistDude]

I'm also looking in that same area. I've noticed that prices have risen rapidly in recent years. Prices are still rising, and inventory is somewhat short (nationally, at least), which contributes to that. Sales are lagging because of low inventory, and sales have fallen year over year - I think new home sales for the last 11 months have declined. Rising rates are deterring some buyers. In October, sales of newly built homes fell 12%.

Toll Brothers gave disappointing guidance yesterday for next quarter, pointing to a souring housing market. The yield curve on Treasuries inverted, which often points to a recession in 12 to 24 months - that could knock down housing prices.

I'm not sure if this is a good time to buy - time will tell, but I'm not going to rush, and will probably wait until next summer or early fall before deciding. Buying now could catch things at a peak, at least temporarily. It's hard to say if waiting a while will produce bargains.

[smegmatite]

I'm gonna rent for a while, renting a home is actually cheaper than buying one in most places these days, thats a bad sign for the market overall, I remember this happening back in 05-06 in Chicago where I am from and well you remember the rest... with a recession on the horizon a year or so from now and rising rates, its a really bad time to buy. But I'm sure realtors will tell you the opposite!