Is Now a Good Time to Buy a Home in Reno-Sparks? A Local Realtor's Take

Shay Phillips

3 days ago

4 min read

If you're on the fence about buying a home in Northern Nevada right now, you're not alone. I recently sat down with Lindsey Pena, a realtor who has worked the Reno-Sparks market for about 14 years, to talk through what buyers are actually facing right now and how to think about timing.

Here's what we covered.

Where Rates and Prices Stand Today

Before the recent Iran conflict, the average 30-year fixed rate was sitting around 5.99%. Today it's closer to the mid to high sixes, and depending on your credit score, down payment, and property type, some buyers are seeing rates in the sevens.

On the pricing side, Lindsey told me our market hit some peak values over the summer, and median home prices have continued climbing. A lot of buyers expected rates to keep dropping, and while they have come down from their highs, a 6.5% rate is still a solid number by historical standards.

Looking ahead, Lindsey doesn't expect the kind of appreciation we saw during the pandemic years. She's forecasting something closer to 3 to 3.5% appreciation for the rest of the year, which is still healthy for homeowners.

Should You Wait for a Better Time to Buy?

This is the question I hear most, and Lindsey's answer stuck with me. It's not about timing the market. It's about whether the timing is right for you.

If you're selling and buying in the same market at the same time, you're comparing apples to apples, so the rate and price environment matters less. But if you're a first-time buyer, the real question is whether you're comfortable with the payment, especially compared to what you'd pay in rent. If you are, and you plan to stay in the home for a while, Lindsey's view is that you're investing in yourself rather than in someone else's mortgage.

Her rule of thumb: if you can get in as early as possible and you're not planning a short-term flip, history suggests you'll see appreciation over time. Time in the market beats timing the market.

Renting vs. Buying

Lindsey was clear that renting makes sense for people whose life circumstances are still in flux, like a job that could move them elsewhere. But if you know you're staying somewhere for a while, she's a strong believer in buying because you're building equity in your own investment instead of someone else's.

Smart Ways to Reduce Your Costs as a Buyer

We also got into some of the tactics buyers are using right now to make a purchase more affordable.

Seller credits vs. price reductions. If a seller offers you $10,000, taking it as a price reduction barely moves your monthly payment, maybe $50 to $100 a month on a $500,000 home. Taking that same $10,000 as a credit toward a rate buydown or closing costs makes a much bigger difference.

Temporary rate buydowns. A 3-2-1 buydown lowers your rate by 3% in year one, 2% in year two, and 1% in year three before returning to the note rate in year four. On a starting rate of 6.5%, that means paying 3.5% the first year, 4.5% the second, and 5.5% the third year, which can save hundreds, sometimes over $1,000, a month while you settle in.

Long-term buydowns. These cost more upfront but lock in a lower rate permanently, giving you more long-term certainty in exchange for a smaller initial savings.

Down payment size. I (Shay) ran my own numbers recently comparing a 20% versus 25% down payment, and the extra 5%, about $25,000 in my case, barely moved my monthly payment. Keeping that money in reserve for emergencies often makes more sense than tying it up in additional equity.

Property age and taxes. This one is specific to Nevada. Our property tax structure is regressive, meaning older homes are taxed at a lower rate than new construction, regardless of what you paid for the home. Lindsey pointed out that buying a home that's 8 to 10 years old instead of brand new can save you hundreds of dollars a month in property taxes alone. As an example, we talked about a $900,000 home in Midtown Reno with a tax bill of just over $1,000 a year, largely because of how long it's been on the tax rolls.

Lindsey's Advice for Buyers Just Getting Started

Her biggest takeaway for anyone new to the process: sit down with someone and get educated before you start looking. The more informed you are, the more confident you'll feel making a decision you're comfortable with. And you can never start too soon. The worst position to be in is realizing you're not ready to make an offer on the home you actually want.

Ready to See Where You Stand?

If you're weighing whether now is the right time to buy in Reno-Sparks or the greater Tahoe area, the best next step is understanding your own numbers.

Reach out to me (Shay) at www.mortgageupside.com. I can help you know how much of a home you might qualify for in just a couple minutes.

If you'd like to work directly with Lindsey Pena on your home search, her contact information is below.