Reno Realtor - Keller Realty Sierra Nevada Properties

It is interesting being out of a market and then jumping back in and trying to figure what is going on.  The first graph shows a median sales price that has gone down 59%.  The median price is the price at which half the sales were above and half below.  The challenge with this as a market indicator is that we have had a meltdown in the upper end where houses were not financeable for a good period of time forcing prices down.  This has brought the median down dramatically even though we are seeing a firming of prices in the lower end.  Do not get me wrong; the lower end has suffered with price drops, but not as much. The median price is also being driven down by distressed sales, which unfortunately make up a good part of the market.

The Stock Market is in shambles, the residential real estate market has not been this bad in my lifetime, and the commercial real estate market was doing well up until the credit crunch stopped development and acquisitions dead in the tracks.  Property values are down 40% and more from a few years ago.  What is a prudent investor going to do?  Buy!  In the next 18 months I believe we will see opportunities in the real estate market that are once in a lifetime opportunities.  But first let's examine what has happened in the past and what we need to look for going forward.