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How Will COVID-19 Impact the Real Estate Industry?

People and businesses that are involved in the real estate market in Nevada and Northern California are encountering significant changes in how the industry functions because of COVID-19. The pandemic has decimated certain real estate sectors like short term/vacation rentals and has changed the way that brokers and agents perform their jobs. Mortgage interest rates have plummeted, and former vacation rentals are now being listed for sale. The pandemic has rattled financial markets around the world and is now impacting real estate.  What will the future hold?

Impact on Mortgage Interest Rates

As the pandemic took hold in the U.S., mortgage interest rates fell sharply. In early March, they fell to a low of 3.29%. Currently, average mortgage interest rates are hovering around 3.342%. The falling interest rates have created an opportunity for people with existing mortgages to refinance their mortgage loans for a better rate so that they can pay off their homes faster. It has also drawn more buyers into the market because of the availability of cheaper financing. This could result in sellers raising their asking prices to pre-pandemic levels.

More Virtual Tours for Residential Real Estate

Brokers and agents have had to make adjustments to how they perform their jobs. While they previously might have met prospective buyers and shown homes to them in person, the pandemic has forced brokers and agents to rely more on virtual tours. As short term/vacation rental homes have sat empty, more of them are being listed for sale. The increase in inventory is creating a buyer’s market at a time when many Americans have lost their jobs and are feeling the pinch of the economic downturn. Despite these problems, the housing market has since rebounded in Nevada.

Silver Lining for Sales

Since interest rates are low, the pandemic has created a good market for investors. The delays and price drops initially caused by the stay-at-home order and general anxiety have stopped. In Reno, for example, the median home prices increased to $435,000 in July, which was a 7.4% increase from the median home prices in June and a record for the market. Year-to-year, the increase from July 2019 to July 2020 was 7.1%. Closing delays are also no longer occurring. Deals are closing quickly, and the number of homes sold increased by 29.8% in July as compared to June. In Las Vegas, the number of homes sold in July versus June increased by 34.9%, and there was a year-over-year increase of 5.1%.  While it is too early to tell the long-term affects of the unemployment rate and possible consequences on the real estate market, the current state of things in the local industry is looking up.

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
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